Best books for Beginners in Stock Market Trading…!!
Every investor wants to make money in stocks, irrespective of the level of experience. But the stock market is one of the toughest places in the world to make money. If you have never invested in stocks, it can be an intimidating process. A proper understanding of the stock market is a must, before trading in the stocks. To become a successful trader, one needs to learn the nitty-gritty of investing. Investing in the stock market is simple. It requires passion, patience and discipline. Investors need to have a sound understanding of the market and some level of research capability. To do so, books are the best medium. Even the world’s leading investors like Warren Buffet, Charlie Munger reads books daily. Let’s look at the top best books about stock trading for beginners:
A Random Walk Down Wall Street:
This book is a must read for anyone, who is interested in how the stock market works. It is one of the classic books about the stock market. The book is written in a simple and engaging language. It introduces the readers to the concept of “efficient market theory’’. It talks about the value of index funds and indexing your money.
Any investor who is starting a portfolio and wants to know about indexing, diversification, trends and value then this book is a must read.
The Little book that’s beat the market:
This book is written by Joel Greenblatt. The book opens a discussion between Greenblatt and his son about his friend’s gum selling business. The author uses his Gum shop idea to illustrate various aspects of business and company evaluation, such as earnings yield, price to earnings ratio and return on capital invested. The author provides an insight into his “magic formula of investing ‘’, which helps in outperforming the market. He presents a strategy for picking companies to invest in and showing how the following strategy resulted in 30% return over the past 17 years.
How to make money in Stocks: William’ O’ Neil (Author)
The book is one of the best sellers on the stock market trading. It provides reference regarding minimizing risk and maximizing gains to build a generation of wealth for investors. This book provides deep insight and strategies which help in picking winning stocks.
This book is a must read for traders who want to build a successful career in stock trading. This book is a collection of interviews with traders, who have converted small sums into great fortunes. Their experiences are fascinating, inspirational and traders can draw endless lessons from the stories.
One Up a Wall Street: Peter Lynch (Author)
It is one of the most classical books for investors. The writer (Peter Lynch) of the book is one of the most successful investors of all time. In this book, Lynch gives advice, how a common investor can get greater returns from his investment in the stock market. Most of the time, lack of convictions forces amateur investor to shun stocks at precisely the wrong time and think of them as a prudent investment when they are not. He explains stock- picking methods in the second section of the book ” Picking Winners ‘’. He also advises investors to do their own research before investing in any stock.
Four Pillars of Investing:
The book is written by William Bernstein. The book covers mainly theory, history, business and psychology of investing, which is considered as four pillars of investing. After one’s understanding of these topics, it will help you in making sensible plans. Through this book, the writer also provides strategic advice about assembling a portfolio. It helps in figuring out the risk and reward profile of any investor.
Fooled by Randomness:
This book is written by one of the best writers in the investing domain i.e. Nassim Nicholas Taleb. Generally, investors follow certain models and their investment is based upon those models. But sometimes, investors trick themselves into underestimating investment risks or believing in market trends which are not there. This book introduces readers to the concept that world events and outcomes are not subjected to a bell- distribution curve. There are chances that rare events may pop up more frequently and have much bigger ramification than thought before. The world is not uniform and is prone to sudden unexpected change is a challenge. But once you master it, it gives a great clarity to the world.
*Disclaimer: investment in securities market are subject to market risks, read all the related documents carefully before investing