The Black Swan

[dawgball]

A very popular book out that is related to business and investing is the Black Swan by Taleb.

Here is an interview with him that could probably save you the purchase price of the book. More in-depth reading will be had by buying the book, though.

http://cdn.conversationsnetwork.org/ITC.TN-NassimTaleb-2007.05.10.mp3

Book link with description

 

[selkirk]

a book will probably pick up, not sure I agree with him. after read the book might be different.

that was the case with freakonomics, then read the book and thought it was excellent.

currently reading Market wizards by Jack D. Schwager. it was published in 1989 and interviews some top traders.

some books mentioned in their were how to make money in stocks, how I made two million dollars in the stock market, how to trade stocks (by livermore)

Reminiscences of a stock operator is mentioned about a dozen times maybe more... though one trader says (in 1989 ) it may be to old...... would disagree the basic rules of trading do not change.

only half way through the book and some interviews are more interestings than others.


one trader described the (method ) I trade options as wrong.....do not agree but makes some valid points....
had the book for 2 months and so far only on pg. 246, will write a small review when done....before the new year....

avg. reader and busy.

thanks
selkirk

 

[dawgball]

Some books on trading that I have read and would recommend:

+The New Market Wizards by Schwager (1995) -- same concept as what selkirk mentioned but different people.
+Trade Your Way To Financial Freedom by Tharp (1999) -- really good book with a terrible name. Deals with challenges of trading/investing psychology and controlling your emotions by setting up your own repeatable rules.
+Option Advisor by Schaeffer (1997) -- this book is a beast and is really not necessary reading unless you really want to understand the science/math behind options.


One quote from late in the interview above in response to asking if Black Swans are so prevalent, is the author fully invested in T-Bills and other ultra low-risk investments.

His response was that the vast majority of his portfolio is invested with "guaranteed" returns with a small portion geared at small companies and industries where there is a high potential for positive Black Swans such as bio-tech, etc.