The Money Machine
| The Money Machine – How the City Works is one of the few financial books I have read that strikes the right balance between in-depth explanations and easy to read concepts, even for people with limited financial knowledge. Very few numbers and formulas are included in this book and most concepts are explained with historical examples in an easy to understand format. | ||||||||||||||||||||||||
| Another good point is that the book is written in a similar style to many leading financial journals such as the Financial Times (the author used to write for the FT and the Economist); this will help beginners to become familiar swiftly with this reporting style and the terms and concepts often used by the FT.
The main concept of this book is that financial markets consist of borrowers and lenders; the role of the financial system being to put them in touch with each other to facilitate business. The book then provides a concise explanation of each market participant’s role, how they aim to benefit from the financial system and the type of financial instruments they employ. Most of the content of this book is nothing new but the day-to-day language and examples used throughout make it easy to grasp each concept. Historical examples used in the book are up to date (until early 2009), so readers can expect up to date case studies. In my opinion, The Money Machine should be the first book to read for anyone looking to improve their fundamental knowledge of the market, or participating in the financial markets for the first time. Although I doubt that just by reading this book your profits will increase exponentially, I still think this book is an essential read for any trader who wants to build a solid fundamental profile of their market. Adding fundamental knowledge to other core trading skills, such as tape reading ability, understanding of market psychology and discipline, will definitely improve your game in the competitive world of trading.
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