The Enlightened Trader: An Essential Reading List

By Mark Dow  JUN 01, 2012 1:20 PM

Books for the intelligent reader who does not necessarily have specialized training in economics, sociology, or evolutionary psychology.

 


I’ve been getting a lot of requests for a book list on behavioral economics, finance, etc. Here are what I find to be some of the best books on these subjects. I picked books that are aimed at the intelligent reader who does not necessarily have specialized training in economics, sociology, or evolutionary psychology.
 
But I would also suggest you start with the 30-minute video of Daniel Kahneman’s Nobel Prize lecture. Videos are always easier than books, and it’ll open your eyes to our cognitive limitations as a species. Yes, that means you, too. Especially you.
And, my favorite all time book—though I don’t recommend this if you are interested exclusively in how behavior affects finance; it only should be read if you have a hard-core interest in evolutionary psychology—is:
Since I first put this book list together, Daniel Kahneman came out with an accessible version of his life’s work, Thinking Fast and Slow. I highly recommend it. I have read many of his papers over the years, but this book is by far the most jargon-free of anything I’d seen from him.

Lastly, if any of you are interested in Africa, or economic development, I would recommend you the best, least politicized book I have read on the subject: Paul Collier’s The Bottom Billion: Why the Poorest Countries Are Failing and What Can Be Done About It.

Happy reading.

This article originally appeared on Behavioral Macro.

Twitter: @mark_dow
No positions in stocks mentioned.