Last year, I put together a full run of Trading Rules & Aphorisms.

Here is the latest updated version:

Livermores Seven Trading Lessons

Bob Farrell’s 10 Rules for Investing

James Montier’s Seven Immutable Laws of Investing

Richard Rhodes’ 12 Trading Rules

John Murphy’s Ten Laws of Technical Trading

Six Rules of Michael Steinhardt

Art Huprich’s Market Truisms and Axioms


Lessons from Merrill Lynch

Rosie’s Rules to Remember

In Defense of the “Old Always” (Montier)

Lessons Learned from 37 Years of Futures Trading

Richard Russell’s The Power of Compounding

My (Ritholtz) own rules

Rules for Shorting

15 Inviolable Rules for Dealing with Wall Street

10 Psychological, Valuation, Adapative Investing Rules

The Zen of Trading

After this run, I plan on updating this list every quarter . . .

Books after the jump

Then go to these books — they cover trading and markets generally:

Jack D. Schwager: Stock Market Wizards : Interviews with America's Top Stock TradersStock Market Wizards : Interviews with America’s Top Stock Traders by Jack D. Schwager

Schwager interviewed market legends at the height of their success. What makes the book so worthwhile are the consistent themes that evolve from currency traders, mutual fund managers, commodities traders, hedge fund managers. Regardless of what is being traded, there are related motifs that run throughout.

What results is not a “How to trade” book; instead, it is a book about “How to think about trading.”

Charles D.  Ellis: The Investor's Anthology: Original Ideas from the Industry's Greatest MindsThe Investor’s Anthology: Original Ideas from the Industry’s Greatest Minds by Charles D. Ellis

Instead of interviewing famed investors, Ellis gathered their best writings into one collection. He ends up with a series of short chapters by luminaries of days gone by. There is something worthwhile on just about every page. This is another favorite worth rereading every few years.

Maggie Mahar: Bull: A History of the Boom and Bust, 1982-2004Bull: A History of the Boom and Bust, 1982-2004, What drove the Breakneck Market — and What Every Investor Needs to Know About Financial Cycles by Maggie Mahar

The best book about the 1982-2000 market, bar none. There are a surprising number of lessons buried in these pages that will reward the careful reader. I found it both fascinating and informative.

Richard D. Wyckoff: How I Trade and Invest in Stocks and Bonds (Contrary Opinion Library)

How I Trade and Invest in Stocks and Bonds by Richard Wycoff

Quite simply, this is one of my favorite books on the markets and investing. The fact that it is from 1923 is totally irrelevant.

Another good book is When to Sell by Justin Mamis. Published in 1970s, it is filled with good observations about developing a sell strategy.

If you want some book ideas for Technicals, have a go at these:

Technical Analysis of the Financial Markets by John J. Murphy.
Technical Analysis from A to Z by Steven B. Achelis;
Encyclopedia of Chart Patterns by Thomas N. Bulkowski;
Japanese Candlestick Charting Techniques by Steve Nison;

Don’t think you need a full reference library; any pair of these books should do.

Last, there are a full run of books here:

Reading Is Fundamental

More Reading Ideas

Category: Markets, Trading

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

15 Responses to “Trading Rules, Aphorisms & Books (Updated)”

  1. Dr. Goose says:

    Reminisces of a Stock Operator was republished last year in a beautiful new, illustrated and annotated edition – worth remembering for the holidays as well as the trading days.

  2. Gatsby says:

    This is gold Jerry…GOLD I tell ya.

  3. howardoark says:

    For whatever reason (probably idiosyncratic to my PC) the Ritholtz links are broken when I click on them but work fine if you copy and paste them into a browser window

  4. Singmaster says:

    The links for Mr Ritholtz’s rules are not working for.
    Copy and paste did not work for me either.

  5. Singmaster says:

    The links for Mr Ritholtz’s rules are not working for me.
    Copy and paste did not work for me either.

  6. [...] best read I had today came from Barry Ritholtz who posted a collection of links for Trading Rules, Aphorisms, and Books. Definitely worth bookmarking for later indulging. My [...]

  7. Singmaster says:

    All better now. Thank you.

  8. [...] Ritholtz has assembled an impressive list of trading rules and aphorisms from different sources that are well worth [...]

  9. parsec says:

    I know of only one rule to guarantee long-term success in trading stocks, futures, forex, or options:

    Charge commissions, don’t pay them.

  10. Rogue Medic says:

    Justin Mamis updated his book as “When to Sell for the 90s.” He also wrote, “When to Buy.”


  11. [...] • 15 Inviolable Rules for Dealing with Wall Street • 10 Psychological, Valuation, Adapative Investing Rules • Rules for Shorting • The Zen of Trading My (Ritholtz) own rules After this run, I plan on updating this list every quarter . . . Trading Rules, Aphorisms & Books (Updated) | The Big Picture [...]

  12. [...] Barry updates his trading rules and aphorisms list, bookmark this bad boy.  (TBP) [...]

  13. Cynic_FA says:

    See Barry’s Rule #2

    2. Overly Optimistic Assumptions: Imagine the worst case scenario. How bad is it? Now multiply it by 3X, 5X 10X, 100X. Due to your own flawed wetware, cognitive preferences, and inherent biases, you have a strong disinclination – even an inability — to consider the true, Armageddon-like worst case scenario.

    If you look at the already dead Greek debt and the just too likely contagion to PIIS and the pretend stress test in European Banks and the CDS spreads on BAC and MS and then multiply by 3X, 5X, 10X does that give you a new investment strategy : “BUY GUNS AND AMMO”

    Either rule #2 is optional or there is a good reason I grind my fake teeth off and cannot sleep at night!

  14. Jim67545 says:

    good stuff – thanks

  15. [...] Trading Rules, Aphorisms & Books – The Big Picture └ Tags: Investing, Market, Technicals, Trading Rules [...]