The Speculator's Edge: Strategies for Profit in the Futures Markets

This book goes beyond the basic fundamental/technical analysis texts that any trader is familiar with. Pacelli, now a securities regulations lawyer at Jones Day, writes a cogent analysis of capital markets. The basic idea of the book is that a speculator is an important part of our capitalist, free-market system and good speculators get paid when they "demand supply and supply demand." This is more than just buying because the price is low and selling because it is high. My only problem with the book is that it was written in 1987, so there is no analysis of the U.S. equities bubble, the Asian currency crisis, and LTCM. It would be nice of Pacelli were to write an updated edition of this book. Also, this book is out of print, but get your hands on a used copy if you can.

Of the many dozens of books I've read on markets, trading and speculation this is clearly the best. Extremely well written, the book is both educational and entertaining. I'm personally convinced that the market approach advocated by the author must be considered by anyone who is involved in the very serious business of speculation. Clearly this book is a classic. I've had it over a decade, read it many times, and find myself in trouble more often than not whan I've forgotten to follow the ideas presented.

This book is not a technical book about the science of trading or speculating. Rather, it presents a compelling and original perspective on the function of speculation in capital markets, and explains what it means to buy low and sell high. Moreover, the book has very little to do with the commodities markets specifically, and a lot to do with general speculating in the financial markets.The Speculator's Edge is the first book I have read which explains who takes "the other side" of a stock tranaction, and explains why. As a study of the psychology of investors and the market, the book has few peers. Pacelli states the original of this book came from a boast that he could write the best book available on the subject of speculation (and investing) because most books were worthless. He succeeded.