5 ms·

I like the topic, but I have no idea where to start on these books. Can anyone recommend one or two sources that would be good entry points for learning this ki

I like the topic, but I have no idea where to start on these books. Can anyone recommend one or two sources that would be good entry points for learning this kind of stuff?

niggler 14y ago
I always recommend "Trading and Exchanges" by Larry Harris. If you want a slower mathematical introduction, I recommend the Stochastic Calculus for Finance books by Steven Shreve.
- strongvigilance 14y ago
  I'd second the Harris book - very good intro to trading and markets.
  - larsonf 14y ago
    I couldn't tell from your comments, strongvigilance, but do you code as well? I'm interested finding who on HN code but also show a deeper understanding of finance beyond just passing interest.
    - strongvigilance 14y ago
      To an extent - I'm a trader first, programmer second - learnt the latter to help with the former.
- minimax 14y ago
  Another endorsement of the Harris Book here. The technology is all out of date (hello SuperDot), but otherwise it's a great introduction to modern financial markets.
fixxer 14y ago
Those that know don't write books. If you'd like more of a live view into what is going on in the markets (strategy-wise), check out nuclearphynance.com. As for technical books, I prefer Maureen O'Hara's structural approach over continuous time finance. Beyond providing more of a "trader's view", she is also a lovely person. I don't much care for continuous time finance.
wtvanhest 14y ago
The first book on the list, The Big Short is an easy read that is interesting and will get you started. Start there and move down the list.
avenger123 14y ago
A good corporate finance book is going to give you the foundation of all this. If you read a corporate finance book and then start going through the book list, it will make a lot more sense. A lot of the books in his book list assume a foundation in graduate level understanding of finance. One I would recommend is: http://www.amazon.com/Corporate-Finance-3rd-Pearson/dp/0132992477/ http://www.amazon.com/Corporate-Finance-3rd-Pearson/dp/01329... This will go into some level of detail into all areas. Once you are comfortable with this material, you can branch into more deeper study in each area. A lot of trading systems attempt to exploit arbitrage opportunities (however time limited) in the market place. A book like the above will give you a deeper understanding of the stock market and the different financial instruments that are used in the market. It will also provide real insight into how companies manage their capital budgeting (I have $100 million dollars, how do I decide what to spend this money on this year). Not every company will follow the same approach, but the fundamental concept of net present value is very common. Once you have a good understanding of the basics then you can delve further into derivatives. It would be hard to get into derivatives without a solid background in what a MBA/graduate level corporate finance book gives you. As an aside, anyone in IT that wants to expand their business know-how would gain quite a bit by reading a corporate finance book. If you want to know what the executive team spends their time on, the knowledge around capital budgeting and understanding how projects are assessed (ie. using WACC and NPV) is very valuable.
- niggler 14y ago
  Undoubtedly the best corporate finance book is Brealey and Myers (http://www.amazon.com/Principles-Corporate-Mcgraw-Hill-Insurance-Insureance/dp/0078034760/ref=pd_sim_sbs_b_4 http://www.amazon.com/Principles-Corporate-Mcgraw-Hill-Insur...) -- amazon ranks it at #205890 versus #249565 for your proposal
  - avenger123 14y ago
    I used the book I referenced for a course so that's what I am basing my recommendation on. Your suggestion also seems like a good choice but I don't have any direct experience with it.
- 14y ago
n00b101 14y ago
"Options, Futures, and Other Derivatives" (John Hull) is the definitive newbie handbook in quant finance. If you are interested in Quantitative Finance, you should understand this book, cover-to-cover. "Principals of Corporate Finance" (Brealey & Myers) is the definitive newbie handbook for Corporate Finance, which is not the same subject as Quant Finance.

I like the topic, but I have no idea where to start on these books. Can anyone recommend one or two sources that would be good entry points for learning this kind of stuff?

niggler 14y ago

I always recommend "Trading and Exchanges" by Larry Harris. If you want a slower mathematical introduction, I recommend the Stochastic Calculus for Finance books by Steven Shreve.

strongvigilance 14y ago
I'd second the Harris book - very good intro to trading and markets.
- larsonf 14y ago
  I couldn't tell from your comments, strongvigilance, but do you code as well? I'm interested finding who on HN code but also show a deeper understanding of finance beyond just passing interest.
  - strongvigilance 14y ago
    To an extent - I'm a trader first, programmer second - learnt the latter to help with the former.
minimax 14y ago
Another endorsement of the Harris Book here. The technology is all out of date (hello SuperDot), but otherwise it's a great introduction to modern financial markets.

fixxer 14y ago

Those that know don't write books. If you'd like more of a live view into what is going on in the markets (strategy-wise), check out nuclearphynance.com. As for technical books, I prefer Maureen O'Hara's structural approach over continuous time finance. Beyond providing more of a "trader's view", she is also a lovely person. I don't much care for continuous time finance.

wtvanhest 14y ago

The first book on the list, The Big Short is an easy read that is interesting and will get you started. Start there and move down the list.

avenger123 14y ago

A good corporate finance book is going to give you the foundation of all this. If you read a corporate finance book and then start going through the book list, it will make a lot more sense. A lot of the books in his book list assume a foundation in graduate level understanding of finance. One I would recommend is: http://www.amazon.com/Corporate-Finance-3rd-Pearson/dp/0132992477/ http://www.amazon.com/Corporate-Finance-3rd-Pearson/dp/01329... This will go into some level of detail into all areas. Once you are comfortable with this material, you can branch into more deeper study in each area. A lot of trading systems attempt to exploit arbitrage opportunities (however time limited) in the market place. A book like the above will give you a deeper understanding of the stock market and the different financial instruments that are used in the market. It will also provide real insight into how companies manage their capital budgeting (I have $100 million dollars, how do I decide what to spend this money on this year). Not every company will follow the same approach, but the fundamental concept of net present value is very common. Once you have a good understanding of the basics then you can delve further into derivatives. It would be hard to get into derivatives without a solid background in what a MBA/graduate level corporate finance book gives you. As an aside, anyone in IT that wants to expand their business know-how would gain quite a bit by reading a corporate finance book. If you want to know what the executive team spends their time on, the knowledge around capital budgeting and understanding how projects are assessed (ie. using WACC and NPV) is very valuable.

niggler 14y ago
Undoubtedly the best corporate finance book is Brealey and Myers (http://www.amazon.com/Principles-Corporate-Mcgraw-Hill-Insurance-Insureance/dp/0078034760/ref=pd_sim_sbs_b_4 http://www.amazon.com/Principles-Corporate-Mcgraw-Hill-Insur...) -- amazon ranks it at #205890 versus #249565 for your proposal
- avenger123 14y ago
  I used the book I referenced for a course so that's what I am basing my recommendation on. Your suggestion also seems like a good choice but I don't have any direct experience with it.
14y ago

n00b101 14y ago

"Options, Futures, and Other Derivatives" (John Hull) is the definitive newbie handbook in quant finance. If you are interested in Quantitative Finance, you should understand this book, cover-to-cover. "Principals of Corporate Finance" (Brealey & Myers) is the definitive newbie handbook for Corporate Finance, which is not the same subject as Quant Finance.