If we talk about the most successful people in any field, they give a lot of importance to book reading, and when it comes to investment or personal finance, the importance of book-reading becomes even greater. Many successful people like Mr Warren Buffett and Bill Gates read books regularly. So here is the list of 5 must-read Stock Trading books for Beginners.Check out VectorVest for more on stocks and trading.
- The Psychology of Money, authored by – Morgan Hausel.
In this book, the author has shared 19 stories that tell us how we should deal with money. Through these stories, it tried to convey that to become rich. It explains that compounding will only work if you give it enough time to grow. Not all investment decisions taken by you will be correct. But even if you are correct in 50% of the cases, you can generate good wealth in the long run.
- The Intelligent Investor, which Benjamin Graham authors.
He is also known as the father of value investing, and this book is considered the bible of the investment world. Legendary investor Warren Buffett also mentions the book several times in his annual shareholder letter and interview. Though this book was written a long time ago, and it may happen that some formulas or techniques may not work today, the principle of value investing given in the book is equally valuable and relevant today.
3.” Coffee Can Investing” authored by – Saurabh Mukherjee, Rakshit Ranjan, and Pranab Uniyal.
Coffee Can Portfolio or Coffee Can Investment was a term coined In the 1900s. When banks were not so popular in America, people kept their cash & valuables in coffee cans to keep them safe for a long time. As per this book, we should focus on the following a list of factors before investing in any company. For businesses that satisfy all the criteria, we must invest in them. We can ignore all other companies.
- Common Stocks and Abnormal Profits and Other Writings.
The author of the book – is Philip A Fisher. After Benjamin Graham, if Warren Buffett gives the most credit to anyone, Philip A. Fisher. Warren Buffett said that Graham and 15% by Fisher influenced 85% of his investment style. This book states that the best time to sell any stock is “rarely”. It also mentions 15 such points in the book, which we must see before investing in any stock.
- The Zurich Axioms:
A generation of Swiss Bankers used the rules of risk and reward. The author of the book is Max Gunther lived in Switzerland, a small country rich in natural resources and agricultural land, with the highest per capita income globally. The author then describes how the citizens there have learned to face and manage risk. The author has given 12 hypotheses in the book that teach you a little about investing and general life.
So these are the 5 books you must read if you want to sharpen your investing skills.