1. The Smart Investor was also written by Graham, which is easy to understand.
2. Technical Analysis of Futures Market by Murphy. Because the technical analysis of the stock market originated from futures, and this book is the bible of technical analysis, and it is not difficult to understand, and the language translation is well organized.
3. Gann's 45 Years of Wall Street.
Graham's book Securities Analysis, after distinguishing between investment and speculation, made the second contribution that he put forward the quantitative analysis method of common stock investment, which solved the urgent problem of investors and enabled investors to correctly judge the value of a stock in order to decide whether to invest in a stock. Before the publication of Securities Analysis, there was no quantitative stock selection model, and Graham can be regarded as the first person to use quantitative analysis to select stocks.
In the book Securities Analysis, Greer pointed out that there are three reasons for the stock market crash:
(1) the manipulation of stocks by trading brokers and investment institutions. In order to control the rise and fall of a certain stock, every day the broker will release some news, telling customers how wise it will be to buy or sell a certain stock, so that customers will blindly walk into the trap set by them.
(2) the financial policy of lending to stock buyers. In the 192s, speculators in the stock market could get loans from banks to buy stocks. From 1921 to 1929, the loans for buying stocks rose from $1 billion to $8.5 billion. Since the loan is supported by the stock market price, once the stock market plummets, everything will fall like a domino.
It was not until the Securities Law of the United States was promulgated in 1932 that individual investors were effectively protected from being cheated by brokers, and the situation of buying securities by margin began to decrease gradually.
(3) excessive optimism. This reason is the most fundamental of the three reasons, and it can't be controlled by legislation.