Invest Like a Shark

I am currently reading Invest Like a Shark by James DePorre. For those who don't know, Deporre, otherwise know as Rev Shark, lost his hearing, job and wife before starting to trade with a $30,000 stake and turning it into millions.

Thus far there isn't much that I already don't know. However, from time to time it's worthwhile to review what you know to get the mind focused on what's important. For example, DePorre likens successful small investors to sharks, who patiently wait for an opportune time before striking aggressively. I like the analogy and I am already waiting for better setups.

Click on the picture below to view Rev Shark speaking with Jim Cramer about current market conditions.

What I'm Reading

I took my daughter to Barnes and Noble today. Of course, I had to sneak over to the investing section. I picked up Steve Nison's Japanese Candlestick Charting Techniques, Second Edition and Pring on Price Patterns : The Definitive Guide to Price Pattern Analysis and Intrepretation

Steve Nison is considered the candlestick guru. However, I have yet to read one of his books. Everything I know about candles I've learned from online sources and my own research. I had no plans to read the Pring book, but a friend of mine had recommended it and I'm a pattern addict. Hopefully it will be a good supplement to the Bulkowski chart pattern books.

I'll let you guys know how the books read in a couple of weeks.

"Pump Up" Books

{Thursday's Watchlist}

Once I find something that I am passionate about, I tend to relentlessly pursue that endeavor. My closest friends and family would say I do so to the point of obsession. While some may see this as a negative, I see it as a positive. It's the only way I know to achieve excellence.

However, there are some negatives to the "full tilt" pursuit of expertise. The most obvious side effect is burnout. In the past, when I'd feel burnout setting in, I would completely step away from what I was doing. However, when I came back, I wouldn't feel much different when I came back.

I've learned to take a different tactic when I'm burned out. I take only one day off, and spend that day fully immersed in the subject. I know it sounds crazy. Here's the rub; I immerse myself in "pump me up" activities. For example, when I'm tired of lifting weights, I watch "Pumping Iron" the bodybuilding classic that documents the rivalry between Arnold and Lou Ferrigno. If my tennis game is lagging, I go to my collection of classic matches. One of my favorites is the 1980 U.S. Open final between McEnroe and Borg.

When I've overdone it as a trader, and I cannot bear to look at another chart, I take a day off and spend it reading trading books. However, I am not reading trading "texts", such as Alan Farley's "Master Swing Trader." Trader biographies, interviews and profiles are what I use as "pump up" tools. Here are a few books that do the trick for me:

Market Wizards: Interviews with Top Traders

Jesse Livermore: The World's Greatest Stock Trader

Pit Bull: Lessons from Wall Street's Champion Day Trader

Confessions of a Street Addict

One of my new "pump up" books is Entries & Exits : Visits to 16 Trading Rooms (Wiley Trading) by Alexander Elder. The author interviews sixteen traders and not only asks them questions, but actually analyzes how they trade. Each traders gives some background on how and what they trade, and then open the vaults to their past trades, detailing the setup, entry and exit. It's sort of like reading somebody else's diary, with an added critique from Elder. This book takes the idea of "Market Wizards" and pushes it to another level.

I read this book for the second time this past weekend. Not only did it rejuvenate me as a trader, I gained some nuggets of wisdom that I will likely apply to my current methods. I highly recommend this book to anybody with even the slightest interest in trading.