There are how-to books for everything these days, including successfully and strategically investing in the stock market.
It’s important to do your research before approaching the stock market with plans to invest.
If you don’t understand the way it works and the key principals of smart investments, you may end up losing everything you own.
This is why I’ve put together these 6 must read books for you to improve your knowledge about the stock market.
A Random Walk Down Wall Street – Burton Gordon Malkiel
This book was initially published in 1973 by Princeton Economist Burton Gordon Malkiel. It has been passed from generation to generation and is still highly relevant today in teaching strategies for successful investing.
The basic argument discussed in this book is that price of assets normally displays signs of random walk where one may not outperform market averages each time.
Over the years, newer editions of the original version have continued to be produced, with the twelfth edition being the latest.
It offers newer strategies for successful investment and ideas for creating a prosperous retirement. This book remains one of the most popular books for stock market investors to this day.
The Intelligent Investor – Benjamin Graham
A great book for beginner investors, it focuses on investment strategies, provides guidance on long-term company health and suggests ways to minimise risk.
Authored by Benjamin Graham in 1934, the book is an ideal model for teaching investors to remain focused on long-term wealth generation instead of chasing short-term smaller gains.
Reminiscences of a Stock Operator – Edwin Lefèvre
This is an intriguing biography of a successful trader. Originally published in 1923, Edwin Lefèvre was inspired by successful stock trader Jesse Livermore to share experiences of trading within the stock market.
The book tells the story of a trader, showing us how he learns to trade, his lessons learned through the process and the failures and success he had throughout the journey.
From this book you can come away with the following lessons:
- Times change, but some things remain the same.
- Always remain a student of markets, learning from your losses.
- Stop trying to be right, just make money.
- Patience is the key.
- Plan before execution.
- Learn your boundaries.
- To earn consistent money, investment is necessary.
Also Read : What To Consider When Investing In Stock
Common Stocks & Uncommon Profits – Philip Arthur Fisher
Written by Philip Arthur Fisher in 1957, this book introduces an ideology about purchasing quality stocks at a reasonable price without promoting investment diversification.
From the book, the following statement remains a favourite line for many market participants:
“The basic idea of that it was hard to find good stocks, and it was hard to find good investments, at that you wanted to be in good investments. And therefore, you just have to find a few of them that you knew a lot about and concentrate on those. It seemed to be such an obviously good idea.”
This book is known for changing the multi-billionaire Buffet’s entire thought-process surrounding stock market investments.
Rich Dad Poor Dad – Robert Kiyosaki and Sharon Lechter
This book revolves around the concept of financial literacy where the basic press is to start young. To explain the entire idea of the book:
“Money comes and goes, but if you have the education about how money works, you gain power over it and can begin building wealth.”
Written by the famous Robert Kiyosaki and Sharon Lechter in 1977, the book addresses a real problem that many other authors and publishers fail to address – cash flow. Some lessons learned from Rich Dad Poor Dad include:
- “Illiteracy, both in words and numbers, is the foundation of financial struggle.”
- “Money often makes obvious our tragic human flaws, putting a spotlight on what we don’t know.”
- “Cash flow tells the story of how a person handles money.”
- “Most people don’t understand why they struggle financially because they don’t understand cash flow.”
Also Read : What To Know Before Start Investing
Technical Analysis of the Financial Markets – John J. Murphy
This technical analysis is a complete guide for beginners wishing to learn about candlestick patterns, charting, building correlations amongst variables, understanding indicators and building them, stock rotations, and more.
Using well-structured examples for readers, this masterpiece has already played a key role in assisting newcomers to the market and pro-traders alike.
Traders should read this book to gain a good understanding of turning tables in the market and having an edge through understanding the future market.
In my opinion, the books mentioned above are all fantastic examples of must-read books for stock market investors. If you agree, let me know in the comments below. Any other stock market related book suggestions are also welcome.
Best of luck with your stock market research and investments!