Best Stock Market Books

There is a magic about the words woven beautifully in the crisp pages of a book. No matter how much time or technology advances, a good book neither has nor will lose its charm. In the stock market as well, it is always a plus point if you read the basics of stock market books and then practice the same. Therefore, let us talk about the best stock market books that can help assist you in having the right knowledge and generate better profits.

In this article, we will talk about some popular books that will guide you through the stock market basics and help you understand topics like fundamental analysis, technical analysis, and various other topics.

Best Stock Market Books in India 

There is a pool of different stock market books available for readers in India. There are not only books written by foreign authors but some of the best stock market books by Indian authors are also there.

If you are a stock market enthusiast know what are your financial goals in the stock market, then you can choose the right kind of book. It does not matter if you are a beginner or an experienced trader, a good book can always add an extra zing to your success.

Just like there are different trading styles, concepts, stock market sectors, there are different books for each. The categorization makes sure that you get the apt and detailed knowledge of every topic and gain an understanding of different online trading types. 

Fundamental Analysis Books

Fundamental analysis is one of the most important factors when it comes to stock market investing. It not only tells an investor about the financials and different ratios of a company but also allows investors to analyze the future objectives of a company. This not only helps in choosing the right stocks but also helps an investor in aligning their financial goals with those of the company.

It is therefore important for every stock market investor to learn fundamental analysis. Here are some books that can help you in the same.

• Getting Started in Fundamental Analysis- Michael C. Thomsett

As the name suggests, this is one of the best stock market books for beginners to learn fundamental analysis. Micheal C. Thomsett, through the usage of simple language and delivery style, guides the readers to understand the concept of fundamental analysis, from very scratch.

You will not only learn how to pick stocks using the right analysis but will also learn how to manage your risks. Michael C. Thomsett who himself has been a financial consultant talks about different concepts like P/E ratio, balance sheets, how to use fundamental analysis, income statement ratios, and many other.

So, if you are a beginner investor and want to learn fundamental analysis, this is the right pick for you.

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• Fundamental Analysis for Dummies – Matt Krantz

Another book that you should read if you want to gain in-depth knowledge of fundamental analysis is written by Matt Krantz. The author has used easy to understand language and illustrations to guide a reader through the fundamental analysis. The book promises to aware the reader of how one can judge the potential of a company by understanding its history.

This book is for everyone, from a beginner investor to someone who is experienced. Not only the author talks about analyzing the future value of a stock but also helps in choosing the right stocks with high potential.

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• The Theory of Investment Value – John Burr Williams

 

This book written by John Burr Williams talks about fundamental analysis not just in theoretical diction but he has also compiled a segment of his own experiences and case studies. So, not only do you get to learn the fundamental analysis concepts, but you also see if there is a practical value of it.

The major emphasis of the book is on the technique of cash flow and how you can understand the business and then invest in it.

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Books for Technical Analysis

After fundamental analysis, technical analysis is another important factor that is required in making great profits in the stock market. A trader mostly used technical analysis to study the price movements and sentiments of the market, so that he can choose the right stock to trade-in.

Let us have a look at the top books that you can read if you want ot learn technical analysis of the stock market.

• Getting Started in Technical Analysis by Jack D. Schwager

Technical analysis can often confuse beginners because of the complexities involves. Jack D. Schwager in his book uses simple language and examples to make the concept of technical analysis easy for beginners as well.

Since technical analysis is all about the practical approach, this book uses a lot of illustrations as well to acquaint the beginners with the charts and other intricacies of technical analysis.

This book will tell you how to choose the stocks, enter and exit at the right time, and also how to minimize your risks. Therefore, this book is a must-read for people who want to learn technical analysis.

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• Japanese Candlestick Charting Techniques – Steve Nison

Candlestick charts are one of the most used and important chart types in technical analysis. They are also the most used intraday trading indicators. The book consists of the long research, experiences, and learning of the author. Ever since the book was introduced in the market, it has maintained to deliver the right knowledge till date.

The language of the book is simple and the style with which it is delivered is also apt. The book is also a great option for beginners and also for seasoned traders to get a better idea of this age-old technique and use of the candlestick chart patterns to make better profits.

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• Technical Analysis of the Financial Markets – John J. Murphy

If you are struggling with technical analysis, this book is guaranteed to solve that for you. Not only does this book guide you through the technical analysis in the equity market, but also talks of the technical analysis in the futures market as well.

The recent update of the book has equipped with the latest computer technologies and how one can use it to trade in the stock market and earn profits. This book will teach you how to read charts, use indicators, and the right time to enter and exit a stock.

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Value Investing Books 

Value investing gained momentum after the market crash of 2008. Warren Buffet who is considered a pioneer of value investing has focused on the importance of value investing time and again. If you are thinking of venturing into the arena of value investing, here is a list of books that you can consider.

• The Intelligent Investor- Benjamin Graham

This book is the epitome of learning if you want to master the concepts of value investing. Written by Benjamin Graham, this book has received global acquisition as one of the most acclaimed books and an investment advisor. Although this book was written a long time back, still stays relevant for the present market.

An economist himself, Graham has not just talked about how to invest but also sent in great insights on how one can manage their risks and make the most of their investments.

This book is definitely a must-read for every aspiring value investor.

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• Value Investing and Behavioural Finance- Parag Parikh

Another book in this list is ‘Value Investing and behavioral Finance’ by Parag Parikh. He talks about how one can determine the true value of the companies when others are busy following the crowd. It is best to be greedy when others are fearful.

With detailed explanation and easy-to-understand language, Parag Parikh delivers all the information necessary for a value investor to make it big in the stock market.

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Books About Swing Trading

Swing trading is another common trading style in the stock market. A swing trader stays invested in the stocks for the mid-term, usually not more than 2 months. It attracts a lot of investors as it gives them the opportunity to earn good profits in a shorter span of time.

There are several dedicated books written for swing traders as well. Let us have a look at the list.

• Mastering the Trade Proven Techniques for Profiting from Intraday and Swing Trading Setups- John F. Carter

As the name of the book suggests, this is an insightful journey into the profit-making strategies of swing trading. Carter is himself one of the most successful traders and through his book passes on the same skills to the readers. It consists of all the relevant topics and techniques in the current market situations as well.

There are topics like how you can predict market corrections, how to control risks, identifying high probability set-up, and much more.

So if you are a swing trader or want to be one, this book is a must-read for you.

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• Swing Trading- The Definitive Step-By-Step Guide to Swing Trading – Andrew Johnson 

An active trader himself, Andrew Johnson has written a lot of books to guide beginners as well as experienced traders. In his book about swing trading, he talks about the complete guide to achieving great success in the stock market with swing trading.

In his book he talks about 14 different patterns to determine the momentum of the market, how to time the market, picking the right stock and the right time to enter and exit, managing risks, etc.

You can give this book a read and better your chances of generating your profits from swing trading.

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Books on Derivatives Trading

Derivatives are often considered one of the most complex and dreaded by a lot of stock market enthusiasts. But you can learn derivatives through various stock market courses or you can always take the assistance of a good book. There are several books in the market that are specifically written for this purpose, let us have a look at the various books on derivatives trading.

• Derivatives The Wild Beast of Finance | Alfred Steinherr

Alfred Steinherr in his book talks about the repercussions of poor risk management in derivatives and how it can affect the entire global market. A lot of people ditched his ideas and did not accept it. But the revolution came when all the market predictions came out to be true. He effectively used these situations to analyze the market and put forward the idea of effective risk management.

He is an investment banker and carefully talks about the effect that derivatives can have on the global economy. Delivered in a very story-like and interesting format, this book is a must-read for all those involved with derivatives trading.

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• An Introduction to Derivative Securities, Financial Markets, and Risk Management | Robert Jarrow, Arkadev Chatterjea

If you want to learn about the basics of the derivatives market like a call option, put option, how a call option works, etc, then this is a must-read for you.

The author along with his student Arkadev has created this book for everyone who wants to learn the derivatives segment from the very basic. It is carefully kept in line with the current financial situations of the market

So, if you are a beginner then you should give this book a read because not only will it enhance the knowledge but will also help you in trading derivatives to maximize your profit.

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Books On Option Trading 

Options trading is often considered a difficult trading segment because of the jargons and involvement of complexities. You can always refer to some good books on options trading that will not only help you build a basic knowledge of options trading, but will also help you in maximizing your profits.

Here is a list of books that you can refer to.

• The Ultimate Options Trading Strategy Guide for Beginners by Roji Abraham

If you are want to build the right strategic approach towards trading then this stock market strategy book is a perfect blend. It covers the concept that has great storytelling abilities and knowledge for a beginner just venturing into the field of options trading. It covers all the basic topics like the meaning, types, principles, benefits, etc of options trading.

Further, Roji Abraham with his unique style of delivering information helps the traders to work out on some strategies in the practical world. He also breaks the myth that options trading is only for experienced trading. He acquaints the beginners to the options trading so that they can also dive into the profit zone of options trading.

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• Options Volatility Trading by Adam Warner

If you are an intermediate in options trading, then you can avail the benefits of this book. It is perfect for the traders who are acquainted with the basics of options trading but are skeptical about taking it to the practical markets. Adam Warner makes sure that he doesn’t use any unfamiliar jargons, but still manages to get his point across to the readers.

He talks about the volatility factor in options trading with the support of historical data and his past experiences as well. The prime focus of the book is to help the traders make more profits and minimize the losses.

It is a must read for anyone who is planning to venture into the field of options trading.

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Trading Psychology Books

It is always essential not just to have the right trading knowledge but also the right mindset to become a perfect trader. A lot of people often ignore the importance of trading psychology books, but they are extremely necessary when one wants to learn and grow. Let us have a look at some of the famous trading psychology books.

• Trading in the Zone: Master the Market with Confidence, Discipline, and a Winning Attitude-Mark Douglas

You might have heard or experienced that a lot of traders often distance themselves from the market because they fail to make the right decisions and suffer losses. The author has tried to resolve all the fears of the traders. He has focused on what are the habits that usually lead the traders to lose their consistency. He also focuses on the mistakes that can cause the traders to lose their money in the stock market.

Therefore, this is a must read for not just beginner traders but also the seasoned ones to stay put in the market.

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• The Hour Between Dog and Wolf: Risk Taking, Gut Feelings and the Biology of Boom and Bust – John H. Coates

Have you ever wondered that there could be a connect between the biological factors of a trader and the psychological factors? John H. Coates in his book ‘The hour between dog and wolf’ tries exactly to talk about the same. He has explained in depth how a simple rise and fall in the testosterone hormone in human males can impact their trading decisions. Younger males tend to produce more hormones, which in turn make them a little less fearful than the old traders.

There are several such examples and the basic motive behind the book is to remove the fearlessness of a trader, teach how to manage risk, and evolve a traderin every aspect.

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Conclusion 

A book is the best investment that you can make today so that you can perform well in the stock market tomorrow. Choose one according to your trading style and learn stock market in the best way possible. You can read about fundamental analysis, technical analysis, derivatives, and various forms of trading.

Learning and then practicing is always beneficial and can help you achieve your financial goals. Keep reading and keep growing.