Top Stock Market Books to Read

May 27, 2021 Trading 6 min read
Stock Market Investment Books

Stock Market Investment Books

The legendary investor Warren Buffett said that if book knowledge made good investors, then the librarians would be rich. 

Just by reading a book will not make one intelligent, but extracting the pearls of wisdom from it and applying them will ensure that the book has been well consumed.

We have put together a list of the best share market investment books for investors and traders that have inspired several professionals in the field and will help beginners in their journey in the market. 

Best Stock Market books for beginners in 2021
Here’s a list of best stock market books on investing and trading.

Stock market books on investing

The Intelligent Investor – Benjamin Graham

Among the most popular share market investment books is The Intelligent Investor, published in 1949 by Benjamin Graham also known as “the father of value investing”, the book edifies value investing. To this day it is considered as a stock market bible and helps people identify value in the stock market. 

The book contains tried and tested strategies that provide methods of earning money and minimizing losses. 

One up on wall street- Peter Lynch

One of the most popular books on investing by fund manager Peter Lynch is well articulated and breaks down complex concepts in an effortless manner, making it easy to digest for anyone looking to venture into the world of investment. 

It also involves determining the right stock portfolios by giving a brief review of an organisation’s financial statements.

A random walk down wall street – Burton Malkiel

Often described as the first book to read before building a portfolio, this share market investment book is based on the random walk hypothesis. This hypothesis concludes that the direction of a stock price cannot be determined, thus making it unpredictable. 

Burton Malkiel has screened through several investment techniques in this book including the fundamental and technical analysis, pointing out flaws in both techniques. 

This book is aimed at an audience who are keen to invest in the market despite the volatility and have a questioning mind with regards to the logistics of the market.

The essays of Warren Buffett – Warren Buffett

Warren Buffett or the Oracle of Omaha is one of the most successful investors of all time. This book contains some of the interesting parts of the letters written by him to the shareholders of Berkshire Hathaway. 

The editor of the book Lawrence Cunningham has formed a concise compilation of such letters as each section in the book. This share market investment book is a must read for anyone looking to enter the financial/corporate world. 

The little book of common-sense investing – John Bogle

John Bogle was a mutual fund pioneer who aims at getting the most out of our investing. In this book, he encourages readers to invest in low-cost index bonds. 

The principles laid down by John Bogle in this share market investment book have endured the ever changing world and stand relevant even to this day. He focuses on maximising returns by keeping the costs of investments low, through investing in index bonds. 

Beating the Street – Peter Lynch

This book goes beyond the horizons of his well-known “One up on wall street”. It is a knowledge bank for anyone new to the finance and investment world. 

Peter Lynch explains the activity of investing in a company isn’t just a fluke but requires study of the company and its chain of functions. The book also guides us on how to make the most out of our wealth and teaches us the basic skills required for investments. 

Fooled by randomness- Nassim Nicholas

This book delves into the effect of risk, uncertainty, and probability in the world of investment. It discusses how luck functions, or how we perceive it. 

This share market investment book helps us get an insight into one of the least understood factors of our lives- randomness.

The Dhandho Investor – Mohnish Parbai

This share market investment book is an easy-to-understand investment guide on gaining high returns from low investments. The book is based on the allocation of capital as practiced by the “Patels” in the US and explains its successful implementation in the stock market. 

It builds on the value investing principles laid down by Benjamin Graham and Warren Buffett.

The Psychology of Money – Morgan Housel

As the name suggests, this book focuses on ways to understand money and creating a stable mentality. Sometimes it is not about how much we know about money, but how we behave. In our school lives, we’ve been taught the formulae, which guided us exactly on how to deal with various problems, but business and financial decisions cannot be made through formulae, it requires a strong understanding of the nature of money. The book provides timeless lessons about greed, happiness, wealth.

Share Market Books on trading

Reminiscence of a stock operator-Edwin Lefevre

The book narrates a person named Jesse Livermore’s story from a “boy plunder” to one of the most influential speculators on Wall Street. Apart from focusing on Livermore’s experiences, this book also deals with trading philosophy and wisdom. 

The book focuses on echoing the message that an investor must always stick to his strategy or he risks losing his money. It also suggests that the market is a product of mass psychology and market history repeats itself.

Market Wizards- John Schwager

This book is a compilation of various interviews of renowned traders conducted by John Schwager. The traders share their various experiences and strategies but the crux of the entire book is based on the principle of having a strong mentality and a solid methodology, which is the key to successful trading.

Trading in the zone-Mark Douglas

Mark Douglas speaks about how having a strong mentality is a must for getting superior returns in the market. As a trader, we must get rid of all the paradoxes, any preconceived notions about the market. Having any conflicts and contradictions in the mind can spell disaster even for the most astute and sound traders. 

Mark looks into the various reasons for errors and encourages the readers to look beyond the realms of the market, face the true realities of risk and probabilities, various other forces which determine the movement of the market.

Japanese Candlestick Charting Techniques – Steve Nison

The candlestick charting is an ancient technique that helps in technical analysis. This book is the perfect guide to introduce oneself to technical analysis and use it in modern day trading. 

Steve Nison gives clear-cut examples of present-day situations where the candlestick charting has come in handy, this technique can be used by both amateur traders as well as seasoned professionals.

The New Market Wizards – Jack Schwager

In this edition of Market Wizards Jack Schwager interviews star performers of the financial markets on how they propelled themselves to success. 

The traders share their insights into the market and their strategies. Many of the frank answers and bewildering opinions of the traders make this book as much a page-turner as its predecessor.

Come into my trading room – Dr. Alexander Elder

This book focuses on teaching novice traders on building a strong foundation for trading. The book focuses on the three Ms (mind, money, method) and also provides clear-cut strategies and helps in setting up a proper trading schedule. 

It reviews a lot of trading strategies for bonds, futures, equity and also provides a psychological framework for instilling a disciplined and organised work ethic.

Technical Analysis Explained – Martin Pring

It’s been almost 30 years since this book was published and during this period there has been a lot of changes in the market except for human behaviour, which is the main focus of this book. 

Thousands of investors have used the guidance of this book to educate themselves about technical analysis and grow their wealth. 

The book contains an in-depth review of the indicators and procedures to be followed while conducting a technical analysis along with steps to master it.

Trade like a stock market wizard- Mark Minervini

US investing wizard- Mark Minervini had revealed his strategies and methods for ensuring triple-digit returns over his 30-year career as a trader in the market. 

The book highlights specific entry points, his trademarked stock market method SEPA which endured oversized returns in any market. The SEPA involves risk management, perseverance, and self-analysis. He opens pandora’s box on trading truths, market secrets along with case studies.

How I made $2,000,000 in the stock market – Nicolas Darvas

Nicolas Darvas was a professional dancer who started trading as a part-time activity. He used to study for almost 8 hours a day. He had entered at a 52-week high and was surprised as the prices kept on increasing, he sold his shares at a good profit. The book provides an insight into his methods and experiences.

A Complete Guide to Volume Price Analysis – Anna Coulling

The book is meant for those readers who do have little insight into trading and are looking to expand their horizons. Volume is the leading indicator for trading and has been used for over 100 years with price being the second. 

The book is the combination of two and is directed towards determining the right opportunities and strategies which can be used using the two indicators. This gives a good analytical prediction of the market direction, simple logic and common sense is all it needs for proper execution.

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