Best Stock Market Books for Beginners

Best Stock Market Books for Beginners 2021

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Books are man’s best friend, as it is said. It is true in this context too. Yes, I am talking about the best stock market books. Reading books gives the best and accurate knowledge, whether it is studies or the stock market. When you read a book, you get to know the complete details, and there is no need to rely on others.

The more you read, the better you get. Books are not written in a single day; every day, the thought that comes to the mind is written, and the experiences that individuals gain over time are collected and shared in a book. This helps the new investors to know about the details of the stock market. The motive of writing a book is to share knowledge with people.

Best Stock Market Books for Beginners

Here, in this article, we will discuss some of the best stock market books for beginners. I think we shall begin now.

The Intelligent Investor

This is the overall best book. If you don’t have a habit of reading, and can’t read many books, you should go for ‘The Intelligent Investor. The book will give you complete knowledge about stocks. The book is written by Benjamin Graham and released in 1949. Benjamin was the college professor of Warren Buffett, a great American investor, and a business tycoon. This book remains the one to hit the greatest number of sales. The book has in-depth concepts and teaches the reader investor about Graham’s famous ‘value investing’ theory.

The idea of the book is around long-term investment. The book explains the investors are reading this to invest their money in the long term. Graham tells the readers not to focus on others who are taking significant risks hoping that some luck would help them, but the market doesn’t run on luck.

After more than 70 years of this book, today’s idea of long-term investment is practiced by big investors. This means the concept of the book is still valid. Reading this book is like doing a crash course on the stock market. The book is readily available on online platforms such as Amazon and some book stores as well.

A Beginner’s Guide to the Stock Market

The book is as true as its name. Written by Matthew R. Kratter, this book is a complete guide for a beginner. This book covers everything like how to open a brokerage account at the best place, how to buy the first stock, and more. Kratter, an author, the hedge fund manager, has shared the mistakes he made as a beginner to help the new investors not perform the same again. The book will help you make money right away with your first stock if read and applied thoroughly.

The Little Book of Common-Sense Investing

The book focuses on investing in Index funds. Writer John C. Bogle has said that low-cost index funds are the option for investing. A question may arise here, what are index funds? Index funds can be understood like a report card of the market where the performance of the market can be seen.

The 10th edition of the book was released in 2017. This book has also created records of sales, most popular among professionals and armchair investors. These investors manage their accounts and investments themselves. The book is available on an online platform like Amazon and the book store as well.

How to Make Money in Stocks

The book focuses on the money-making strategies that can help a beginner in the stock market. ‘How to Make Money in Stocks: A Winning System in Good Times and Bad’ is the full name of the book written by William J. O’Neil. William has explained his theory of the CANSLIM investment system, where there is a seven-step guide that explains the method of minimizing the risks and maximizing the gains.

This book has gained the trust of every investor as the book is based on a 100-year study of the stock market. Over two million investors have made a lot of earnings by reading this book. With the latest editions, you will know the tips to find out the best stock and identify the winning stock. This helps on mutual funds and ETFs too. The book also includes 21 mistakes that a beginner would make in his starting investments. This is one of the Best Stock Market Books For Beginners.

Market Wizards

In this book, some top investors have shared their experience, tips, and success secrets with the author Jack D. Schwager.

Interviewing successful superstar investors such as Bruce Kovner, Richard Dennis, Paul Tudor Jones, and more, Jack figured out the different approaches between a successful and unsuccessful investor. The book also has a reminiscence with some investors like one who had 3,000 USD and turned it into 80 million USD.

The original interview was so popular among the people that Jack wrote four more books:

  • The new market wizards, 1994.
  • The stock market wizard in 2003.
  • Hedge fund market wizard in 2012.
  • The little book of market wizards in 2014. This contains a summary of around 50 interviews.

Irrational Exuberance

Robert Shiller is the writer of this famous book ‘Irrational Exuberance’. He won the 2013 Noble prize as an Economist. He is such a respected man that an index is named after him. Robert spent his life watching the movement of the market.

The Case-Shiller home price index is named after Robert Shiller and Karl Case. The book explores how a trend turns into a boom and finally bubbles and bursts. Readers look at the text and see how the bubbles happen. A well-performed investment helps to save you from the stumbling block of the boom and bust cycle.

Alchemy of Finance

The author of the book ‘Alchemy of Finance’ is George Solos. The book explains the theory of reflexivity and how it is related to the market. This book, along with Soros’s latest book, ‘The New Financial Paradigm’, explains reflexivity. The book doesn’t provide a direct trading system but helps the readers develop their thinking and understanding of how the financial market works.

If you are not a regular reader and leave reading the book in the middle, this book is not a great choice. But for those who love reading and want to get complete knowledge in-depth, then my friend, you are most welcome to read this book of Solos. The book is also readily available as the above ones on bookstores and Amazon online.

The Financial Diet

This book fits well for both the young and the adults aging between 25 to 40 years. This is the best book for the millennials who want to do a crash course for managing their finance. The author of the book is Chelsea Fagan. The book is available on bookstores and online platforms like Amazon. The book is written to learn the basics like getting started with investing and advanced topics like how to care for your house.

Author Chelsea had also created a website and the Youtube channel named The Financial Diet to help beginners get a better and deep knowledge of the market through videos.

The Psychology of Money

This is a beautiful book that is written in the form of stories. The book is written by Morgan Housel and contains 19 short stories. The main focus of the book is on the number behind the financial investment.

The message behind the book is –“emotions matter when it comes to money.” The statement is true and makes sense for someone who has ever made an emotional decision while investing his money in the financial market.

Morgan’s The Psychology of Money helps people make the right decision and steps when emotions and ego play a role in our financial investment. This is one of the Best Stock Market Books For Beginners.

Conclusion

So far, we have discussed some of the best books for a beginner in the stock market. Every book is different from another and is written on a different plot. The books mentioned are readily available; hence you can either buy them online or offline according to your suitability. You can also learn trading by joining a good stock market course. Many institutes are available in the market, but I will highly recommend ‘The Thought Tree’ as they provide special mentorship and practical training. I end this article hoping that the article has helped you give the best book for you.

All the best for your future investments!

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