To invest, one of the first decisions that must be made is to define the investment strategy according to the profile of each investor. At present there are different strategies that can be adapted to the risk that each one is willing to assume. One of the possible strategies is trading. The eToro platform explains that this form of investment involves buying and selling assets in a short period of time, which generally ranges from a few seconds to a few weeks.
“Trading is more speculative than investment and involves the implementation of short-term strategies,” they point out. And, given its speculative nature, it is important to take risks into account and apply techniques to manage them. From eToro they affirm that “they constitute a fundamental part of any strategy and allow you to reduce risk and optimize your exit strategy”.
Normally, trading is carried out on assets that are listed in highly liquid markets. That is, those markets where many transactions are carried out and it will be easy to exchange the assets. But any investor can resort to trading. Whether it is for beginner investors or more knowledgeable investors, it is always important to keep learning and stay up to date on how the markets work. Turning to books can help to learn new strategies or tools to apply to trading. Next, we can collect some books on trading that are useful for investing.
lions against lace
In all the recommendations on trading, the book Leones contra gacelas by José Luis Cárpatos always appears. “I divide the stock market into two parts: the lions and the gazelles. The lions are the powerful investors, those who have managed so much money that they can manipulate the markets however they want. The rest, like you and me, are the gazelles, the small investor, top quality fresh meat designed to be devoured by the hungry lion”, explains the author.
This is a basic book for new investors looking to learn about trading. It includes personal experiences, mistakes made by others so as not to fall into them, technical analysis and fundamental analysis, futures and options, automatic speculation systems, trading psychology and a subject for which there is currently no manual that delves into it: stock market guidelines. seasonal.
Technical analysis of financial markets
Technical analysis consists of studying the market through the use of charts to predict future price trends and it is a widely used tool in trading. To fully understand this analysis, the book Technical Analysis of Financial Markets is a classic reference. Its author is John J. Murphy, president of Murphymorris, a company specializing in research prepared for investors.
In its pages it collects all the analysis techniques, from the most classic to the most current. In addition, “it includes more than four hundred charts that help clarify the basics of technical analysis and chart construction, what you need to know about cycles, stock market indicators, money management, trading tactics, price models, and major patterns.” of change and continuity”, according to the description of the book.
Memoirs of a stock trader
Another classic for investing in trading is the book Memories of a Stock Market Operator despite the fact that years have passed since its publication. It narrates the life of Jesse Livermore, “the greatest speculator of all time” through an alter ego, a mixture of biography, financial analysis and social chronicle. In addition, it includes a dozen articles published by its author Edwin Lefèvre, who became a Wall Street chronicler.
