Before anyone dares to make any sort of investment in the stock market, we assume they already have enough understanding of its functioning or at least basic knowledge. If anyhow it isn’t the case, we would recommend that they gain an insight about the same through books for learning stock markets.
The Stock Market can be tricky and at times an overwhelming place, especially for a beginner who has just landed in there without ever having a real experience of trading.
The unforgiving and merciless nature of the stock market can leave first-time investors badly hurt.
The Stock Market isn’t exactly a place to enter without knowing the rules of the trading game. So, our first instinct would prompt us to advise them to learn about the stock market.
Yes, you must be looking at some of the top stock market courses too but yea, books can complement the learning experience as well.
But, again, the internet can prove to be just as confusing a place. The search engines will, without doubt, show 100’s of books for learning the stock market.
Top Books For Learning Stock Market You Must Read
We know, in that case, investors already worried by the prospect of learning to trade can have headaches finding a reliable source of information on the stock market. To enter the stock market with the right mindset, a reader can always take the help of trading psychology books as well. But what about the basic knowledge of the stock market?
Here in this article, we present to you the 10 best books for learning the stock market :
1. The Intelligent Investor ⏐ Benjamin Graham
Benjamin Graham, often known as “The Father of Value Investing” got this book published long back in 1949. The trading world we know today is a whole lot different from the one talked about in the book.
Read: Value Investing Books and Value Investing Courses, if you want to learn more about value investing and increase your earnings.
However, this book has been a source of timeless trading wisdom and the techniques mentioned in the book still work wonders for individual investors.
The most popular example is that of probably the biggest investor of the current time – Warren Buffet, who practiced the knowledge in the book to good use.
Also Read: Intraday Trading Examples
The book has been divided into 3 parts, where the first part talks of the investment techniques adopted by a bullish investor, whereas the second part discusses market behavior.
The third chapter explains various concepts that relate to the topic of risk management.
2. Trade Your Way to Financial Freedom ⏐ Van Tharp
The author Van Tharp is a well-recognized figure in the field of trader psychology having been in the profession since 1982.
“Trade Your Way to Financial Freedom“ published in 2006 became a huge favorite at the time and still enjoys reverence among investors.
The book features interviews between the author and some of his clients he helped to greater investment glory.
The book contains chapters on some of the more advanced topics of investor psychology, fundamental analysis, technical analysis, and systematic approach.
A novice will learn some of the crucial elements of trading such as managing finances, the risk to reward ratio which can help investors reduce losses.
3. Fundamental Analysis For Dummies ⏐ Matt Krantz
Published in 2016, the information, data, and stats contained in this book are still as fresh as ever. The book is a beginner’s guide to the topic of fundamental analysis which helps investors make a prediction about a particular stock’s potential.
The book teaches how fundamental analysis can be employed by investors to ascertain a financial instrument’s performance for long-term investment. Thus, completing the fundamental analysis course will benefit you in long term.
Author, Matt Krantz demonstrates how to conduct fundamental analysis on stocks, bonds, commodities, and forex.
The book is written with special attention to using as simple a language and even the technical terms are presented in a plain manner so that it could be understood by the novices.
4. Security Analysis ⏐ Benjamin Graham and David L. Dodd
The book “Security Analysis” by Benjamin Graham and David L. Dodd got published in 1934 soon after wall street registered its biggest crash to this date. Investors hold the book with such high regard that many still refer to it for help even after all these years.
The book upon its release instantly became a firm favorite among investors for the practical techniques talked in the book catered to the need of the time.
Both the authors, considered great financial analysts, presented a whole new investment method that was considered safer, yet profitable than the techniques available at that time.
The teachings in the book can be of great help to investors to learn to cushion themselves against a situation like that were to ever appear again.
5. How to Avoid Loss and Earn Consistently in the Stock Market: An Easy-To-Understand and Practical Guide for Every Investor ⏐ Prasenjit Paul
“How to Avoid Loss and Earn Consistently in the Stock Market” by Prasenjit Paul is the only book on this list by an Indian author. Published in 2015, the book is like its tagline says – “An easy to understand and Practical Guide” that can be employed by any investor to match their investment needs.
This book will help an investor to look for a high-performing business or stock for making an investment while also teaching them to know the right time to invest in share market to maximize the profit potential.
The book contains a chapter where the author tries to convince the readers that Stock Markets aren’t indeed risky and can easily be worked around with the right move at the right time. The book will help readers develop that knack to some extent.
6. Encyclopedia of Chart Patterns ⏐ Thomas Bulkowski
This book by widely acclaimed author, Thomas Bulkowski is a reference book containing all the types of chart patterns used for conducting fundamental analysis on stocks, businesses.
Chart patterns are one of the most important tools required by an investor to carry out the fundamental analysis.
“Encyclopedia of Chart Patterns” originally published in the year 2000, got revised again in 2005 to include all the new chart patterns for both bull and bear markets. The revised version includes 23 new chart patterns.
The book has been split into 2 parts consisting of a part dedicated to Chart patterns and Event Patterns.
7. How to Day Trade for a Living: Tools, Tactics, Money Management, Discipline and Trading Psychology ⏐ Andrew Aziz
This book is an autobiographical account of the author, Andrew Aziz which will provide the reader with ample knowledge, practical information from the real-life experience of participating in day trading or otherwise known as intraday trading.
The author shares his own experience of the time he started as a day trader and with a stroke of luck made a profit on investment unrealistically high for a first-time trader. Further, revealing how easily he lost all of his hard-earned money in a blink of an eye.
Such incidences only go on to make the learner aware of the high stakes game and all the risks involved in the day trading.
8. Getting Started in Technical Analysis ⏐ Jack D. Schwager
An investor having absolutely no idea of the term technical analysis should look to get their hands on this book. This book by the vastly recognized financial expert and one of the best-selling authors, Jack D. Schwager gives all the answers a rookie needs.
Written in easy to understand language, the book simplifies a vastly complex and critical topic of technical analysis for investors with limited experience in the trading world.
The book serves the purpose of introducing readers to learn technical analysis tools.
These tools such as trading ranges, chart patterns, pyramiding approaches, price trends, various ratios to develop an accurate understanding of the stocks an investor intends to invest in.
9. A Random Walk Down Wall Street ⏐ Burton Malkiel
This book right here is a classic. “A Random Walk Down Wall Street” written back in 1973 has been a hugely successful book in terms of registered sales. The book as of 2020 has been sold over 1.5 million times.
Authored by American economist, Burton Malkiel puts forward his contention that most of the time stock prices follow a pattern similar to a random walk, hence it is as close to impossible to make predictions about their movement.
They can rise and fall at any time without showing any significant signs.
The book, having received 12 revisions, still has the charm of a classic and the fresh content matter to meet the needs of time is equipped with techniques such as fundamental analysis, as well as technical analysis.
10. How to Make Money in Stocks ⏐ William O’Neil
“How to Make Money in Stocks: A Winning System in Good Times and Bad” is written by William O’Neil, renowned entrepreneur and founder of the stock brokerage company by the name William O’Neil & Co. Inc.
The book is a great addition to an investor’s bookshelf as this guide is full of advice about trading in the stock market. The author discusses the best practices, techniques by illustrating examples from his own experience in the trading world.
Readers will learn about the “CANSLIM” method which has been devised by the author himself.
The method is a blend of technical and fundamental analysis and helps an investor develop an understanding of how and when to cut losses on investments.
Apart from this, if you ever think of swing trading, you are advised to keep track of some books about swing trading that will guide you throughout the trading journey.
Conclusion
Quite the truth, the Stock Market is a lucrative proposition. Even when they are well aware of the risks in the stock market, the threats posed by the scammers, and many falling to such fraudsters that come to light in the newspapers on a regular basis.
Many seem to live under the impression that trading is a cakewalk.
However, the fact is that trading on the stock market requires a fair amount of understanding of the operations of the stock market and the various processes involved in trading.
However, people who want to learn to trade on the stock market can have a tough time finding the right book to help them with the task.
The list of books dedicated to the subject of the stock market keeps on getting longer by the day.
This prompted the need for a list of best stock market books.
This list features books for beginners as well as books that will help investors develop know-how of advanced topics such as financial techniques of fundamental analysis, technical analysis. Also, if you want to explore topics like futures trading, options standing, etc, you can read books on option trading and enhance your journey.
The Stock Market is a subject and the books mentioned on the list surely will help an investor gain a good level of insight about the same, and graduate with good marks. The knowledge will help an investor in their trading journey.
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