20 of the Best (MUST READ) Stock Market & Finance Books of All Time. The most In-Depth Book Review & Ratings on the Web + A Bonus 14 Book Review for Professional Stock Market Technical Analysis Books An essential way to improve your knowledge and therefore improve your success in the stock market is to always keep learning and expanding your mind. Here you will find a hand-picked selection of simply the best finance and investing books ever written, including a detailed review and ratings based on the content, practicality, and readability of the books. If you are interested in specifically Stock Market Technical Analysis Books (used by professional analysts) click here to jump to. 1 – How to Make Money in Stocks Combining Technical & Fundamental Analysis, this best selling book gives you a good framework for building your own stock market investing approach.
We will discuss about best stock market books for beginners in Indian stock market. You may finish reading this page in 10 minutes but its implementation will take around a year. And if you take action as exactly stated you will be a completely different stock market investor after a year. The 9 Best Books on Investing of 2019. And how to analyze stocks to a comprehensive history lesson on the stock market. A Beginner Guide to Investing in Stocks.
One of the best investing books ever written. Positives: Packed full of clear examples and a very structured approach. The approach called CANSLIM, is easy to remember as a Stock Screening approach to finding good stocks and shares to invest in. C – Current Quarterly Earnings increased sharply compared to same quarter in previous year. A – Annual Earning Increases over the last 5 years. N – New products, management or improved circumstances. S – Supply versus Demand, stock buybacks, low debt to equity, volume surges.
L – Leading Companies versus Laggards. I – Institutional Sponsorship. M – Market Direction Most of these ideas are integrated into our and also outlined in the Blueprint. Negatives: Promotes using Investors.com as a tool. In reality, you do not need to purchase this service as you can create your own stock screeners to achieve the same goal for free. Score 92% – Content:5/5 – Applicability:5/5 – Readability:4/5 – Fundamentals:5/5 – Technical Analysis:5/5 Related Article: 2 – Trade Like A Stock Market Wizard Minervini was featured in the Stock Market Wizards Series and this book is an excellent practical guide into the application of technical analysis and how to apply it in the real world. Practical, usable and readable, this is an extremely worthwhile book.
Packed full of insights and strategies this is a modern book that simply must be on your bookshelf. Score 92% – Content:5/5 – Applicability:5/5 – Readability:4/5 – Fundamentals:5/5 – Technical Analysis:5/5 Related Article:. 3 – Winning on Wall Street A must-have book for the serious investor, covering economic, fundamentals and technical analysis. While is may seem a little outdated, this book is still worthwhile and a must-read.
Positives: Strong on the logical systematic evaluation of the state of the business environment and its effect on the stock market. Negatives: Not enough charts.
Some systems are hard to calculate manually and require a lot of effort to maintain. Score 80% – Content:4/5 – Applicability:4/5 – Readability:5/5 – Fundamentals:4/5 – Technical Analysis:3/5. 4 – Technical Analysis Explained One of the Bibles of Technical Analysis, and one of the best. Pring is a popular technical analyst and the depth of value of this book is unmistakable. This book is prerequisite reading for any serious or professional technical analyst and is core for the (International Federation of Technical Analysts) of which I am certified.
Positives: With 600 pages of detailed Technical Analysis, the quality and quantity of the content can be overwhelming. Negatives: Combining this best of this book and covering some fundamental analysis would provide an improved and more efficient way to learn. See the for this combination. Score 76% – Content:5/5 – Applicability:4/5 Readability:4/5 – Fundamentals:1/5 – Technical Analysis:5/5 Related Article: 5 – One Up On Wall Street A great book for beginner investors, with an excellent down to earth approach, ideal for the beginner to show you how to apply your local knowledge to find winning companies. Great stories, great anecdotes: “The old Wall Street adage “never invest in anything that eats or needs repairs” may apply to racehorses, but it’s malarkey when it comes to houses.” Peter Lynch “Know what you own, and know why you own it” Peter Lynch Positives: A very easy and entertaining read, authored by one of Wall Streets great stock pickers. Negatives: Light on really actionable investing strategies, charts and technical analysis.
Score 76% – Content: 3/5 – Applicability: 3/5 – Readability: 5/5 – Fundamentals: 5/5 – Technical Analysis: 3/5 6 – The Little Book of Common Sense Investing New for 2018 The creator of the worlds first Index Tracking Fund, shares the critically important reasons why you should not be actively trading stock, commodities, and ETF’s, but investing long term. This is again one of the best investing books on my bookshelf. The key messages are very clear and passionately explained in the book.
Essentially, using any stock advisors, stock pickers or mutual funds are going to work out negatively for your investments over the long term. This is incredibly important information that everyone needs to understand. Taxes, Broker Costs, Mutual Fund Manager Costs and Financial Advisor costs will severely eat away at the long-term compounding power of your investments. Positives: Short and sweet and backed up with plenty of proof for the assertions he makes. Negatives: Constantly repeats “Don’t take my word for it’, gets a little annoying after a while. Score 76% – Content: 4/5 – Applicability: 3/5 – Readability: 5/5 – Fundamentals: 5/5 – Technical Analysis: 1/5 7 – Full of Bull: Do What Wall Street Does, Not What It Says, To Make Money in the Market An insiders account of how Wall Street Financial Analysts really operate. This book deciphers the double talk and outright misleading way Stock Market Analysts cover the markets and how to really read their advice.
I came away with the thought to never trust a Wall Street analyst and do my own research. Positives: A good addition to any bookshelf with insights into how companies manipulate earnings and how Wall Street Analysts sit in a microcosm of influence from the big company CEO’s. Negatives: Some of the book became a little tiresome to read, but was none the less interesting. Score 75% – Content: 4/5 – Applicability: 3/5 – Readability: 4/5 – Insight:4/5 8 – Technical Analysis of the Financial Markets A very valuable contribution to the understanding of technical analysis of the financial markets, this book is a must-have for the technical (Stock Charts & Indicators) trader. This book is also prerequisite reading for any serious or professional technical analyst and is core for the (International Federation of Technical Analysts). Positives: One of my favorite Technical Analysis reference books and published by the New York Institute of Finance, this book is well presented and easy to understand. Negatives: A mind-blowing amount of information, however, it does not backtest the indicators to show if they are really useful in the practical world.
Score 72% – Content: 5/5 – Applicability: 3/5 – Readability: 4/5 – Fundamentals: 1/5 – Technical Analysis: 5/5 9 – Unshakable – Financial Freedom Playbook New 2018 A new 2017 entry, in classic Tony Robbins Style, he aims to teach the masses about how their investments in Mutual Funds and 401K’s are subject to so many hidden costs that the financial industry is literally stealing from the common man. With many people being charged upwards of 2% annually this removes hundreds of thousands of dollars from your retirement pot. This is one of the best books for beginning investors.
Positives: Tony and his team make solid irrefutable points which everyone investing for the long term should understand. I welcome this fresh light being shone into the murky depths of Wall Street Money Manager hidden costs. Also, the proceeds of the book go to charity. Negatives: This is not advanced investing for anyone seeking to actively managed investments, but this should not detract from the importance of the book. If you are a U.S. Investor this is a book you need to read.
Also, you can uncover your hidden 401K costs here at Score 72% – Content: 5/5 – Applicability: 5/5 – Readability: 5/5 – Fundamentals: 2/5 – Technical Analysis: 1/5 10 – The Intelligent Investor A classic book written by Graham, the father of Value Investing. Warren Buffet was also strongly influenced by Graham. Positives: A huge amount of valuable insight and knowledge. The revised version with comments from Jason Zweig brings the book up to date with new examples of how the book’s tenets still hold true. Negatives: With an overwhelming 623 pages and a very dry writing style you will need a lot of coffee to get you through. Score 72% – Content: 5/5 – Applicability: 3/5 – Readability: 3/5 – Fundamental Analysis / Value Investing: 5/5 – Technical Analysis:2/5 11 – Market Wizards – Interviews with Top Traders Packed with good interviews with successful stock market traders, this book is a worthwhile addition to your bookshelf. Do not expect solid strategies, but expect insights into how stock market institutional investors operate.
Positives: Well selected interviews and easier read than its predecessor, this book is worth buying. Negatives: Low on specific strategies and rules to incorporate into your market approach, the interviewees would not want to give away anything truly useful in case they lose their edge. Score 68% – Content: 3/5 – Applicability: 3/5 – Readability:5/5 – Fundamentals:3/5 – Technical Analysis:3/5 12 – Secrets for Profiting in Bull and Bear Markets Stan Weinstein Written in the 1980’s this classic investment book covers the Technical Analysis approach to the stock market in a very practical and usable way. Positives: The explanations of Bull and Bear Markets and the use of combining price breakout with volume increases to improve the chances of success are excellent.
Negatives: The book is quite old and therefore a little dated. It does not make use of more modern indicators or ways to leverage current technologies to achieve your goals. Score 68% – Content: 3/5 – Applicability: 4/5 – Readability: 5/5 – Fundamentals: 2/5 – Technical Analysis: 5/5 Related Article: 13 – Getting Started In Options If you want to leverage your capital through the use of options, do nothing until you read this book.
Probably one of the best books on options for beginners. Positives: Options are a difficult subject to learn never mind to master, this will make getting used to the basics a walk in the park.
Negatives: Options are a tough topic and a lot of new tools have been developed since this book was written. After reading this book you will still not be equipped to be a successful options trader. However, it does achieve what it sets out to do. Score 68% – Content: 3/5 – Applicability: 4/5 – Readability: 3/5 – Fundamentals: 1/5 – Technical Analysis: 1/5 14 – The Bible of Options Strategies This book takes you to the next level of understanding options.
Taking away the mystery and helping you realize that options can actually be used to create regular income and as a fantastic vehicle for limiting risk and knowing what your risk-reward really is. Great strategies and thoroughly good read. As it says on the cover, this is the definitive guide for practical trading strategies. Score 65% – Content: 4/5 – Applicability: 3/5 – Readability:3/5 – Insight:5/5 15 – Trader Vic – Methods of a Wall Street Master An easy to read book with some useful insights. Written in 1991, when everyone and their dog made money in the biggest bull market of all time, I wonder how Vic would have fared in the 2000, or 2007 stock market busts. Positives: Good chapters on drawing trend-lines and the basics of economics.
Negatives: Dated and lacking any really solid advice for trading in today’s market using the power of computers and technical analysis software. Score 60% – Content: 4/5 – Applicability: 3/5 – Readability: 3/5 – Fundamentals: 2/5 – Technical Analysis: 2/5 16 – Hedge Fund Market Wizards – How Winning Traders Win A mixture of interviews with top traders on topics as far reaching as trading Futures, Trading T-Bills, aggressive trading, stock selection, and psychology. The books provides interesting insights into the minds of the traders interviewed and how they operate to achieve that profit. For an insight into the minds on Wall Street, this is a classic book.
Positives: Focus is definitely on interviewing and insights into trading styles, which can make interesting reading and a break from too much number crunching and technical analysis books. Negatives: The people interviewed provide no real practical insight into specific trading systems or actions, yet is it still a good read. Score 60% – Content: 3/5 – Applicability: 3/5 – Readability: 5/5 – Fundamentals: 2/5 Technical Analysis: 2/5 17 – Buy And Hedge Jay Pestrichelli & Wayne Ferbert Buy and Hedge gives you an important lesson in risk management. I know, it sounds boring right. If you do not have a solid grasp of the concepts in this book you will be severely hampering your chances of success. Covering what they call the 5 iron rules of hedging this book re-iterates the importance of using Options and other strategies to know and limit your risk.
Score 60% – Content: 3/5 – Applicability: 2/5 – Readability:5/5 – Insight into subject:3/5 18 – The 86 Biggest Lies on Wall Street Talbott’s 86 biggest lies on Wall Street is a good book and an easy read. Some of the “lies” are difficult to agree with but on the whole a good insight into the views of Wall Street and Government. Positives: Although Talbott tells you what all the lies are, his version of the truths are also debatable.
A firm view against the use of technical analysis to analyze stocks and market shows he is no expert in this area. However, these flaws in his reasoning are balanced with good and compelling arguments against many of the preconceptions we have today regarding governments, corporations, venture capital, and economics”. Negatives: Some interesting arguments, especially if you have a left-wing conspiracy theory bent. Talbott holds some views that do not make sense.
Also, I am sure some of the lies he has made up just for effect. Score 55% – Content: 3/5 – Applicability: 1/5 – Readability:4/5 – Insight into subject:3/5 19 – The Winning Investment Habits of Warren Buffet and George Soros A good book if you enjoy some insights into the two most successful investors of all time, but lacks any serious investing strategy or practical examples. More a book about the people and catchphrases. Positives: Nice quotes and comparison between the two great men. Negatives: A let down in terms of real practical investing wisdom. Score 48% – Content: 2/5 – Applicability: 2/5 – Readability: 5/5 – Fundamentals: 3/5 – Technical Analysis: 1/5 Further Information on and Related Article: 20 – The New Market Wizards – Conversations with America’s Top Traders With very diverse interviews this time, the book would appeal to investment firm insiders but I feel this will have less value to the independent investor who focuses on the stock market.
Positives: Interesting insights on Options Trading, Foreign Exchange (FOREX) and Automated Trading this book provides insights outside the realms of the stock market. Negatives: A rather weak trading psychology section at the end leaves one wondering what the point was. Score 48% – Content: 3/5 – Applicability: 2/5 – Readability: 3/5 – Fundamentals: 2/5 – Technical Analysis: 2/5 21. Dark Pools: The Rise of the Machine Traders and the Rigging of the U.S. Stock Market (added in 2019 Where are you investment retirement accounts (IRA’s) and 401K’s invested? In the stock market. So it is vital you get an understanding of the current state of the stock market and what drives price fluctuations.
Scott Patterson takes on the task of educating us all in the rise of the machines and the artificial intelligence algorithms that run on them. Whilst the book lacks details on how AI actually works the discussion around the rise and impact of AI trading is enlightening and shocking. As discussed in our, Bot’s or AI algorithms are estimated to be responsible for 80% of stock market trading. Learn more about AI and what you can do about it in this excellent book. An absolutely compelling read. No One Would Listen – Harry Markopolos “No one would Listen” by Harry Markopolos.
This is a thrilling account of the rise and fall of Bernie Madoff and how difficult it was for Markopolos himself to get the Securities & Exchange Commission to take action. I was on the edge of my seat during the book and exasperated for Markopolos. You have to see this only to understand the depth of the problem of trying to oversee the companies that take advantage of the lazy money.
Respect to Markopolos for his ordeal and for sharing this great story. A gripping read. Bonus Book – Liberated Stock Trader, A Complete Stock Market Education Designed as a complete education the book covers everything you need to know to get started in investing in stocks. Fundamental analysis, technical analysis, stock screening, risk management and psychology are all covered. What makes it different is that there are 16 hours of instructor lead video included, which turns this training from a book to a full stock market seminar training. Premium stock market education is expensive, this training course is extremely cost-effective. Well rounded education for those who want to take the stock market seriously.
Other Books You Might Find Interesting Part Two Bonus – Pro Traders Book Review. The Best Books to Learn Technical Analysis Like a Professional Are you serious about technical analysis & Charts? Are you looking to work in the Financial Industry? Do you want to attempt to trade successfully Stocks, Foreign Exchange (FOREX) or Binary Options or Contracts for Difference (CFD’s)?
If so, you really need to study Technical Analysis. This is essentially the study of Supply and Demand, Volume and Price through an array of different lenses called Stock Charts. Professional Market Technical Analysts study for an IFTA (International Federation of Technical Analysts) exam, which is a recognized certification. If you want to know what they study for the exams and use in the industry read on. The Professional Market Technical Analyst Reading List. Technical Analysis of the Financial Markets New York Institute of Finance/Prentice Hall – Latest or current edition A very valuable contribution to the understanding of technical analysis of the financial markets, this book is a must-have for the technical (Stock Charts & Indicators) trader. This book is also prerequisite reading for any serious or professional technical analyst and is core for the (International Federation of Technical Analysts).
One of my favorite Technical Analysis reference books and published by the New York Institute of Finance, this book is well presented and easy to understand. A core text for students progressing to Part 2 of the STA/IFTA Diploma. Technical Analysis Explained McGraw-Hill – Latest or current edition One of the Bibles of Technical Analysis, and one of the best. Pring is a popular technical analyst and the depth of value of this book is unmistakable. This book is prerequisite reading for any serious or professional technical analyst and is core for the (International Federation of Technical Analysts) of which I am certified.
With 600 pages of detailed Technical Analysis, the quality and quantity of the content can be overwhelming. Technical Analysis: The Complete Resource for Financial Market Technicians Kirkpatrick, Charles D & Dahlquist, Julie R The latest or current edition A comprehensive book, with a special focus on the flow of funds, system trading, money management, sentiment and takes a brief look at statistics. Covers also backtesting and includes various academic studies to back up assertions.
Lots of charts and indicators and core reading also for the CMT (Chartered Market Technician) Exam. Cloud Charts: Trading Success with the Ichimoku Technique Linton, David Updata plc Recognized as an authority on Cloud Charts, David Linton’s section on Ichimoku Techniques (recommended by IFTA/STA) is the key. Good writings and clear explanations, backed up with very thoughtful use of Ichimoku Charts make this a must-read reference.
Japanese Candlestick Charting Techniques New York Institute of Finance From the man who introduced candlestick charting to the West, this is the updated 2nd edition of the original. Candlestick Charts or Bars are used routinely today and are an essential part of building your charting methodology. Candlesticks give insights into short-term supply and demand scenarios and enhance the speed of pattern recognition.
The Definitive Guide to Point and Figure du Plessis, Jeremy Harriman House Ltd Latest or current edition Understanding Point and Figure Charting is essential to the IFTA certification and there are questions in the exam paper on this topic. Point & Figure (P&F) was a real eye-opener for me. Many of the major Stock Market Analysis Software Program Vendors offer P&F charts now as standard, which is a welcome resurgence of the technique. To see which vendors offer P&F read the Forecasting Financial Markets Plummer, Tony Kogan Page Latest or current edition. It shows how your ability to make money in the world’s financial markets depends on your ability to make decisions independently of the crowd.
This book is an essential addition to the other books as it focuses on psychology and sentiment, critical for you to understand. R N Elliott’s Masterworks, the Definitive Collection New Classic Library, a division of Elliott Wave International, Gainesville GA, USA Latest or current edition I had the pleasure of hearing Robert Prechter speak on socionomic theory at the IFTA World Conference in 2014 and he is a giant of the industry. The Definitive Collection This book compiles R.N. Elliott’s original writings on the Wave Principle and presents it to you in a single, all-inclusive book. Devour the three ground-breaking works, long out of print, in which Elliott first described the Wave Principle to the world. Ichimoku Charts: An Introduction to Ichimoku Kinko Clouds Elliott, Nicole Harriman House Ltd Latest or current edition Nicole Elliott’s 25 years’ experience of financial markets – both as analyst and trader – and ability to inject flashes of dry humor into her writing make the study of Ichimoku a pleasant as well as useful experience.
Now, for the first time in English, this book presents the next stage of candlestick analysis – Ichimoku Kinko Hyo. Sometimes called Cloud Charts, this analysis adds moving averages to candlestick charts.
But moving averages a little different from those traditionally used in the West. For trending markets, Cloud Charts add an essential tool for analyzing near-term areas of support and resistance. Sources: Amazon.com & STA-UK.org Breakthroughs in Technical Analysis Keller, David Bloomberg Financial Latest or current edition The recommended section in this book is the GANN theory section developed by W.D. This is usually a critical piece of the exam, but can also be challenging to learn as the esoteric concepts in the theory are more like taking a step into the twilight zone.
Mastering Hurst Cycle Analysis Grafton, Christopher Harriman House Ltd Latest or current edition Christopher Grafton helps to translate J.M Hurst’s ideas to the modern day with plenty of examples. Cycle analysis is core curricula and Hurst cycles are a new addition to the curricula for IFTA. Further information on Hurst cycles are at 21st Century Point & Figure du Plessis, Jeremy Harriman House Ltd Latest or current edition One of the oldest methods of charting gets another serious update. As the book mentions 21st Century Point & Figure updates the theory. Now that we have automated charting and back-testing available broadly we get insights into the effectiveness of Point & Figure Quantitative Trading Systems – Practical Methods for Design, Testing, and Validation.
Blue Owl Press. Building a robust trading system is important to success. This is exactly what Quants (Quantitative Analysts) do for their day job. With so many Stock Market Software Program Vendors offering integrated back-testing functionality, this book is a must-read. Bandy’s interesting book is a must-read for anyone who wishes to develop a trading system.
Additional Sources: IFTA / STA Additional Books Lists – How We Rated the Top 20 Stock Market Books Purely Stock Market Strategy books covering specifics of fundamental analysis, technical analysis are rated like this:. The depth of Content: How deep does the book go into the subject matter. Applicability: How applicable is the material to helping to improve your investing success.
Readability: Is the book easy to comprehend or difficult to read. Fundamentals: How well does the book cover things like the Balance Sheet, Fundamental Analysis or value investing. Technical Analysis: How well does the book cover the topics of charts, indicators and price action. Previous Comments Imported Due to Page Move. Qing Keller September 22, 2017 at 11:57 am Excellent list. The commentary is incredibly valuable for me in choosing one to study Barry D.
Moore – Member Society of Technical Analysts (MSTA/IFTA) September 22, 2017 at 4:48 pm Thanks Qing, it certainly took a lot of time reading them all, but ultimately time well invested, I am glad you like it. Raju varma October 9, 2017 at 7:25 am Comment: give me best suggition’s about stock market how to invest & suggested companie’s how to gain profit’s plz give adviz: Barry D. Moore – Member Society of Technical Analysts (MSTA/IFTA) October 9, 2017 at 8:15 am Hi Raju, this is a good place to start, work through all the training material then we can talk. Learn Stock Trading.
Stock Market Books for Beginners – Do you look out for the newspaper first thing in the morning to check out the stock market? Does your eye rest on the tv screen to find out the next plausible jump in shares? Do you worry day and night about the money you have invested in the stock market?
Don’t keep your heart in your mouth, it’s time to go for intelligent investing that is sure to give you a good night’s rested sleep. Enhance your Knowledge and wisdom about investment and stock markets. Check out these best stock market books for beginners to become knowledgeable in investing in the stock market. Recommended Courses.
Who can deny advice from the greatest investor of the twentieth century and if it is Benjamin Graham, no one can ignore the timeless wisdom that he is going to impart. Graham believed in the philosophy of loss minimization and not profits maximization-a theory which at the instance sounds weird but it the strategy that true investors should follow. This philosophy works for the long term investors who use their research, analyzing and analytical power and years of discipline and experience to make sound investments. The book puts forward a realistic picture of the Wall Street without any form of contortion. Grab this book immediately to attain your financial goals as this book is the Bible of investment for everyone associated with the stock market. There is nothing much to be written about this book, because its sale and its performance speaks all about it. A national bestseller How to Make Money in Stocks is a seven step guiding reference for minimizing risk and maximizing gains to build generation of wealth for investors.
The book is enlisted with strategies that allow for finding winning stocks before making big price gains. It also provides tips for better investment of money in stocks, and ETFs to maximize gains. But the best deal is that book helps you decode the twenty one mistakes that every investor makes. The book is a magnum opus and has comprehensive details covered about the stock market. Neil’s CANSLIM strategy that allowed him to turn into a multi-millionaire is a time proven strategy that demonstrates how the equity (stock) market(s) really work – for the passive, minority, outside investor.
The 80/20 approach invented by Neil talks about the investor achieving 80% success with 20% effort is based on the idea proprietary metrics and tools. The book is a classic and its trading advice is still relevant in today’s time. This pocket pinch is a must for investors who want to enjoy a great deal of wealth.
#3 – When to Sell: Inside Strategies for Stock-Market Profits by Justin Mamis (Author) The name of the book itself suggests there is ample of things to learn from it. So, buying it is mandatory if you are looking for the answer to the question when is the right time to sell my stocks. Mamis spent several years as an “upstairs” Member-Trader for Phelan, Silver, an NYSE specialist firm and therefore he is the perfect mentor for investors looking to invest without the working knowledge of the stock exchange. Mamis in a very layered fashion discusses the market indicators to understand the correct time for buying and selling, and also — the “they” many investors refer to grudgingly — benefit from herd psychology. This book reveals the psychology of the average investor who prefers to lose but is most likely to win in the race. Mamis takes minutest details into account and explains meticulously the details of how to sell your stocks to earn a bigger profit and when to sell it short to ensure you prevent yourself from digging a hole in your pocket. Interestingly, he highlights the idea of the stock market as an ideal place to run through a variety of human emotions.
From the thrill of earning money, to the guilt of losing it all, Mamis very truly identifies the human weaknesses and weaves them into this informative piece. His writing has an ease which reflects his experience and knowledge accumulated over the years. Keep this book handy to use if you are interested in stock picking.
#4 – Irrational Exuberance 3rd edition Revised and Expanded Third Edition by Robert J. Shiller (Author) The Irrational Exuberance is to remain relevant forever for it expounds on the idea of stock and bond prices and the cost of housing in the post-subprime boom. The book fundamentally shows how recent asset markets capture and inherently reflect psychologically driven volatility. Written by the Nobel Prize winning, Yale economist the book is a consideration into the gamut of human emotions that are at play into the stock market and lives of the investors after the 2008-09 financial crisis. The book is a careful study, drawing widely from the research and historical evidences to come to the conclusion that the enormous stock market boom that started around 1982 and picked up incredible speed after 1995 was a speculative bubble, not grounded in sensible economic fundamentals. Shiller points out that the real estate bubble is similar to the stock market bubble that preceded it, and warns that “Significant (further) rises in these markets could lead, eventually, to even more significant declines.” Shiller has proven he is correct and we are very well aware of this fact. The book is interesting and is a great combination of Psychology and Finance and provides analysis and concepts learned in traditional finance theory.
The book allows the student to ruminate over the idea of bubbles as a myth or reality but with due intelligence this secret code can be cracked by the serious students of economics and finance. #5 – Stock Investing For Dummies by Paul Mladjenovic (Author) A newbie is sure to be lost in the ever changing, fast paced of finance. It is therefore imperative that the newcomer be helped with the very basic to form a great base that could be the foundation to the next Warren Buffet. Thus, there is no better book for teaching the basics than Stock Investing for Dummies. The book begins with the basic information on ETFs, a safer way to be more diversified in the stock market; new rules, exchanges, and investment vehicles; and much more. The book explores the idea on how technological changes bring in new products, services, and ways of doing business and how to eventually protect yourself in such a volatile world of finance.
The book is filled with real life examples that allow you to grow your stock with a definite investment plan. The book considers the reader to be dumb and navigates him through the basic stock math and eventually to finer points of finding a stock broker to picking. The author has meticulously provided the details of published resources and websites to gather enough data and make an informed decision of investing in a company. A free tip for beginners, invest in this book rather than spending your time in tutorials. #6 – A Random Walk Down Wall Street The Time-Tested Strategy for Successful Investing by Burton G. Malkiel A book by Princeton economist is sure to make heads turn and if it is the celebrated Burton Malkiel students cannot resist the inclination to grab a copy of his book.
Written in 1973, this book is an established guide for all fresher, novice or the entrepreneur. Written in a simple and engaging style, this book packs the idea of indexing in a risk taking and unpredictable world of stock market. The book advices in a lucid way and does a great job of combining the theoretical and the practical of the stock market funds. Malkiel takes the history of the Wall Street and casts a speculative eye in turn making each and every bubble very insightful. The author’s approach to the adherence of the efficient market hypothesis and indexing is extremely correct.
He argues each and every point with statistics and grudgingly acknowledges the outliers in the stock market. Malkiel’s approach is a mediocre one where he does not bombard the readers with complicated terms to take the reader off guard but is lucid and just about technical to help the seasoned as well as the newbie. The eleventh edition of the book adds fresh material on exchange-traded funds and investment opportunities in emerging markets; a brand-new chapter on “smart beta” funds, the newest marketing gimmick of the investment management industry; and a new supplement that tackles the increasingly complex world of derivatives. This book is a great source of fundamentals and is recommended for anybody who is looking for advice on managing his money. #7 – Market Wizards, Updated Interviews with Top Traders Paperback by Jack D.
Schwager Trade secrets our always beneficial and if they are from the market wizards, there should not be anything to stop you from making it big in the stock market. And to achieve that you need to grab a copy of the national best seller Market Wizards.
Schwager in a unique format reveals the essential formula which helped the top traders to amass this ton of wealth. Interestingly, Schwager does not interfere with the words of wisdom of these top traders and allows reader to hear them directly as advises that should shape their own bright future.
The likes of Bruce Kovner, Richard Dennis, Paul Tudor Jones, Michel Steinhardt, Ed Seykota, Marty Schwartz, and Tom Baldwin have been interviewed by Schwager to come out with the story of their sensational trading coups. Despite the differences in each trader’s market area and approach, the themes remain consistent. The book is noteworthy of keeping it in your library not because of the trading patterns revealed or the techniques that are sure to work out but because it throughout tries to instill in the reader the idea that each and every trader will have to develop their own success path, realize their own follies and move ahead to achieve success in trading. #8 – Stocks for the Long Run 5/E The Definitive Guide to Financial Market Returns & Long-Term Investment Strategies by Jeremy J. Siegel (Author) The investment world will turn upside down if investors were assured of safe investment and guaranteed returns. However, when Jeremy Siegel presents this idea in the book, readers are convinced and do not bat an eyelid in surprise. Stocks for the Long Run present the facts of the history to prepare you for the safer investment pattern i.e.
To invest in the long-term stocks. Siegel in a plaintiff manner explains, “The principle of this book is that through time the after-inflation returns on a well-diversified portfolio of common stocks have not only exceeded that of fixed income assets but have actually done so with less risk. Which stocks you own is secondary to whether you own stocks, especially if you maintain a balanced portfolio.” The market in today’s time is so robust that the investor is required to maintain a great deal of patience to maintain a long term portfolio. However, Siegel categorically contradicts point and argues that stocks are safer and more productive, over the long run, than most other forms of investment. He explains how to calculate stock returns and examines some of the more technical aspects of analyzing stocks. Siegel is not addressing the general public and provides detailed information on sophisticated ways of investing which works well for a novice rather than a beginner.
Siegel’s knowledge is however handy when anyone of you is looking for a great long term investment plan for the future. #9 – Common Sense on Mutual Fund by John C. Bogle (Author). John C Bogle needs no formal introduction. Respected in the mutual fund industry, this book is nothing short of the timeless commentary that Bogle can dedicate to the industry to which he has given many years. The book in a very straightforward manner talks about the ongoing storm and its after effects in the stock market, giving sound advice on investment only after evaluating the fundamentals of the mutual funds and its long term implications. Bogle also reflects on the structural and regulatory changes in the mutual fund industry.
Bogle is credited with the institution of the the first index mutual fund which became the largest mutual fund in the world, and has also founded the only mutual fund owned by its shareholders (Vanguard). Thus he timelessly puts in great deal of efforts to present a platform for intelligent investing as he analyzes costs, exposes tax inefficiencies, and warns of the mutual fund industry’s conflicting interests. He offers sensible solutions to the fund selection process and reveals what it will take to make it in today’s chaotic market. Common Sense on Mutual Fund is sure to make you a better investor, helping you to gain a footing in the finance industry through good sound decisions. #10 – One Up On Wall Street How to Use What You Already Know To Make Money in The Market by Peter Lynch (Author), John Rothchild (Contributor) This is a classic for investors who do not aim to turn into the Warren Buffets of the industry. The average investor has plenty of advice to achieve financial success the smart way. It talks about finding the “tenbaggers” -the stocks that appreciate tenfold from the initial investment and eventually a few tenbaggers will turn an average stock portfolio into a star performer.
Peter calls out to the each investor and puts faith in each individual’s inane ability and knowledge to show the power of common knowledge (take advantage of what you already know) to predict the stock market to make money in stocks and keep an open mind to new ideas to uncover great investment opportunities. The book is filled witty remarks and is written in an extremely easy go hunky manner. It’s entertaining and informative, and you’ll be compelled to finish the book as soon as possible. The book though written in an easy manner cannot be considered as a shortcut to easy success.
There are no magic formulae to attain riches and homework is always necessary. Enjoy reading these stock market books as I am sure it’s going to enhance your treasure trove of financial knowledge immensely. Amazon Associate Disclosure WallStreetMojo is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com.