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Ask HN: What are the must-read books about economics/finance?

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Ask HN: What are the must-read books about economics/finance?

#1
Hey HN,

I am pursuing an engineering degree in Statistics, I hope to get into finance so I am interested in knowing what books you consider a must-read for someone who doesn't know almost anything about economics (from a philosophical point of view; positive vs normative economics) and finance in general to help them grow intellectually.

Thanks!

Re: Ask HN: What are the must-read books about economics/finance?

#2
Hi,

I found Larry Harris' Trading and Exchanges: Market Microstructure for Practitioners a solid introduction to market making and trading. Terms and concepts are easy to pick up from the text. I was comfortable enough after reading it to skim stats journal papers talking about market making models. The Stockfighter team had mentioned it in older threads here. It's expensive, but I just borrowed it from the library at my university instead of buying.

I also like The Elements of Statistical Learning which is free from the authors (http://statweb.stanford.edu/~tibs/ElemStatLearn/download.htm...). Although it isn't specifically about economics or markets, you should at least read it.

I'm at a loss on general economics books.

Re: Ask HN: What are the must-read books about economics/finance?

#4
post #2

Hi, I found Larry Harris' Trading and Exchanges: Market Microstructure for Practitioners a solid introduction to market making and trading. Terms and concepts are easy to pick up from the text. I was comfortable enough after reading it to skim stats journal papers talking about market making models. The Stockfighter team had mentioned it in older threads here. It's expensive, but I just borrowed it from the library a…

I've actually been reading The Elements of Statistical Learning (The French version at least) and I've found it extremely interesting.

Thank you Tom!

Re: Ask HN: What are the must-read books about economics/finance?

#5
Alternatively, don't learn from books, but the markets themselves. Open a Paper Trading account via Think or Swim. Begin a steady diet of Bloomberg / WSJ / CNBC every day. Whenever a word or idea is mentioned that you don't understand, Google it or consult Investopedia. Figure out what the Fed actually does. How debt and credit markets work. The microstructure of physical and electronic commodities trading. Maybe skim an online "Stochastic Calculus" class. Join Quantopian and master every algorithmic strategy known to humankind. Dive deep into cryptocurrency and blockchain technologies.

And who knows, perhaps one day you'll invent something that obviates the need for a global system of monetary trust ;)

Re: Ask HN: What are the must-read books about economics/finance?

#10
Here is my short list of favorite books on finance and economics:

FINANCIAL SECURITIES / BANKING / VENTURE CAPITAL

Bruck, Connie (1988) Predator's Ball: Inside Story of Drexel Burnham and Rise of Junk Bond Raiders

Draper, William (2011) Startup Game

Graham, Benjamin and Jason Zweig (2006) Intelligent Investor, revised ed.

_________ and David Dodd (2008) Security Analysis, 6E

Greenblatt, Joel (1999) You Can Be a Stock Market Genius

Greenwald, Kahn, Sonkin, Biema (2001) Value Investing: From Graham to Buffett and Beyond

Henwood, Doug (1997) Wall Street: How It Works and for Whom

Levitt, Arthur (2003) Take on the Street: How to Fight for Your Financial Future

Lewis, Michael (1989) Liar's Poker: Rising Through the Wreckage on Wall Street

_________ (2010) Big Short: Inside the Doomsday Machine

STATISTICS

Ayres, Ian (2007) Super Crunchers: Why Thinking by Numbers is the New Way to Be Smart

Bernstein, Peter (1996) Against the Gods: Remarkable Story of Risk

Kahneman, Daniel (2011) Thinking, Fast and Slow

Silver, Nate (2012) Signal and the Noise: Why So Many Predictions Fail, but Some Don't

Taleb, Nassim Nicholas (2005) Fooled by Randomness, 2E

_________ (2010) Black Swan: Impact of the Highly Improbable, 2E

BUSINESS DEVELOPMENT / ENTREPRENEURSHIP / INNOVATION

Christensen, Clayton (1997) Innovator's Dilemma

Stone, Brad (2013) Everything Store: Jeff Bezos and the Age of Amazon

Wallace, James and Jim Erickson (1992) Hard Drive: Bill Gates and Making of the Microsoft Empire

Walton, Sam with John Huey (1992) Sam Walton: Made in America

Wilson, Mike (1996) Difference between God and Larry Ellison: Inside Oracle Corp

POLITICAL ECONOMY / THEORY / ECONOMIC HISTORY

Arrighi, Giovanni (1994) Long Twentieth Century

Braudel, Fernand (1979) Civilization & Capitalism 15th-18th Century, vol. 3: Perspective of the World, trans. Siân Reynolds

Brechin, Gray (2006) Imperial San Francisco: Urban Power, Earthly Ruin

Heilbroner, Robert (1999) Worldly Philosophers: Lives, Times & Ideas of Great Economic Thinkers, 7E

Marx, Karl (1867) Capital, vol. 1

Stiglitz, Joseph (2003) Roaring Nineties: A New History of the World’s Most Prosperous Decade

_________ (2010) Freefall: America, Free Markets and the Sinking of the World Economy

Vallianatos, E.G. (2014) Poison Spring: Secret History of Pollution and EPA

Vilar, Pierre (1976) A History of Gold and Money: 1450-1920

Yergin, Daniel (1992) Prize: Epic Quest for Money, Oil and Power

Would enjoy email correspondence with anyone interested in these subjects: mitchelldeacon9@gmail.com All the best

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