On Amazon there 97,311 Stock Market Books on the shelf today. Information is power but with all of those books floating around in the world it is virtually impossible to decide what to read. That is why I have narrowed down the best of the best stock market books that every investor or trader should read at one point or another in their life. Some of these stock market books are classics, some of them are very popular but all of them have a very high rating review among investors, traders and regular people who read them.
Benjamin Graham’s classic book, The Intelligent Investor, doesn’t try to sell the idea of a no-fail strategy to stock market success. Rather, he shares his abundance of wisdom of good portfolio management. Graham’s distinctive philosophy is not based on how to maximize profit. On the contrary, it’s based on loss minimization. That is truly one of the main reasons, The Intelligent Investor is a book for true investors, not speculators or day traders. Graham guides the investor to develop a reasonable plan for buying stocks, and he argues that this plan must be a protection against emotional behavior that will always be tempting during distinct bull and bear markets.
Edwin Lefevre’s Reminiscences of a Stock Operator is the thinly disguised biography of the man known as the Boy Plunger: Jesse Livermore. Undeniably, Jesse, was a remarkable character who began speculating in the New England bucket shops at the turn of the century. After his success as a speculator grew, Livermore, was banned from these shady operations because of his consistenly profitable winning strategy. Soon after, he moved to Wall Street where he made and lost his fortune several times over. What makes this book so valuable are some of the most fascinating quotes that are regularly quoted, again and again, among stock speculators today.
William J. O’Neil’s national bestseller, How to Make Money in Stocks through every type of market, gives stock investors the secrets to building wealth. O’Neil has built a proven 7-step process for minimizing risk and maximizing gains. His knowledge is based on a major study of stock market winners from 1880 to 2009. What makes this one of the must read stock market books is he shares his proven techniques for finding winning stocks before they make big price gains, tips on picking the best stocks to maximize gains and gives you 100 charts to help you spot the most profitable trends. If that weren’t enough William O’Neil shares his strategies to help you avoid the 21 most common investor mistakes.
Roger Lowenstein’s Buffett: The Making of an American Capitalist is one the best stock market books that everyone should read at one point or another. What investor, day trader or stock speculator isn’t intrigued by Warren Buffet and his amazing success. Journalist Roger Lowenstein spends three years delving into the life of one of the greatest investors of all time by accessing Buffett’s family, friends, and colleagues. Buffett explains Buffett’s’ investment strategy–a long-term philosophy grounded in buying stock in companies that are undervalued on the market and hanging on until their worth invariably surfaces–and shows how it is a reflection of his inner self.
Ivy Bytes’ A Beginner’s Guide to Investing: How to Grow Your Money the Smart and Easy Way is a complete guide to investing . There are no get-rich quick schemes in this guide because we all know that they never work. In addition, you can tune out all of the financial news because that is all biased noise. However, if you dream to protect your assets in any turbulent market or you are just growing your wealth so that you can retire in style, this book is the blueprint. If you are a novice or you are completely confused about all the contradictory advice out there, then Ivy Bytes’ guide should be on your stock market books must read list.
Steve Nison’s Japanese Candlestick Charting Techniques is one of the first to read stock market books for any new trader or investor. In fact it should be read and then read again. Japanese candlestick charts are a versatile tool that can be joined with any other technical tool, and will help improve any technician’s market analysis. Japanese candlesticks charts can be used for speculation, hedging, futures, equities or anywhere technical analysis is applied. If you are just starting you will find out how effective candlestick charts are as a stand alone charting method. If you are a seasoned trader you will discover how joining Japanese candlesticks with other technical tools can create a powerful synergy of techniques.
Michael Lewis’ Flash Boys: A Wall Street Revolt is a best selling book about a group of Wall Street skeptics who realize that the United States stock market has been rigged for the benefit of insiders. The small group band together―some of them walking away from great careers garnishing them seven-figure salaries so they can investigate, expose, and reform the insidious new ways that Wall Street generates profits. This is one of those stock market books that you will not be able to put down because no matter how big or small you are invested in the stock market you will be effected.
John C. Bogle’s The Little Book of Common Sense Investing will show you how to incorporate a very strategic and proven investment strategy into your portfolio. It will also change the very way you think about investing. Let’s face it, successful investing is not easy. It requires discipline and patience but it is simple, because, according to Bogle, it’s all about common sense. With The Little Book of Common Sense Investing as your guide, you’ll discover how to make investing a winner’s game.
Jack D. Schwager’s Market Wizards: Interviews with Top Traders is a book of interviews from dozens of top traders across most financial markets. Naturally, their responses differed in the details of their success, but all of them could be boiled down to the same essential formula: solid methodology + proper mental attitude = trading success. In Market Wizards Jack Schwager lets you hear, in their own words, what those super-traders had to say about their unprecedented successes, and he extracts the best information and narrows down their responses into a set of guiding principles you can use to become a trading star in your own right.
Peter Lynch’s One Up on Wall Street has sold more than 1 million copies. Mr. Lynch is America’s most successful money manager. He shares his secrets on how average investors can beat the pros by using what they know. Investment opportunities are everywhere. From the supermarket to the workplace, we encounter products and services all day long. He says that if you pay attention to the best ones, you can find companies in which to invest before the professional analysts discover them. Lynch offers easy-to-follow advice for sorting out the long shots from the no-shots by reviewing a company’s financial statements and knowing which numbers really count.
Joel Greenblatt’s The Little Book that Beats the Market is a straightforward stock market book with an accessible style. The book delves into the basic principles of successful stock market investing and then reveals the author’s time-tested formula that makes buying above average companies at below average prices automatic. Though the formula has been extensively tested and is a breakthrough in the academic and professional world, Joel Greenblatt explains it using 6th grade math, plain language and humor.
Burton G. Malkiel’s A Random Walk Down Wall Street has long been established as the first book to purchase when starting a portfolio. In addition to covering the full range of investment opportunities, the book features new material on the Great Recession and the global credit crisis as well as an increased focus on the long-term potential of emerging markets. With a new supplement that tackles the increasingly complex world of derivatives, along with the book’s classic life-cycle guide to investing, A Random Walk Down Wall Street remains the best investment guide money can buy.
Michael Lewis’ Liar’s Poker is a very shrewd and wickedly funny book. He describes an astonishing era and his own rake’s progress (reckless course) through a powerful investment bank. From an unlikely beginning as a art history graduate at Princeton, he rose in two short years from Salomon Brothers trainee to Geek which is the lowest form of life on the trading floor. However, that is not all… he then went on to be the Big Swinging Dick, the most dangerous beast in the jungle, a bond salesman who could turn over millions of dollars’ worth of doubtful bonds with just one call.
Roger Lowenstein’s When Genius Failed captures the gripping roller-coaster ride of Long-Term Capital Management. Drawing on confidential internal memos and interviews with dozens of key players, Mr. Lowenstein explains not just how the fund made and lost its money but also how the personalities of Long-Term’s partners, the arrogance of their mathematical certainties, and the culture of Wall Street itself contributed to both their rise and their inevitable fall. When it was founded in 1993, Long-Term was hailed as the most impressive hedge fund in history. But after four years in which the firm dazzled Wall Street as a $100 billion moneymaking juggernaut, it suddenly suffered catastrophic losses that jeopardized not only the biggest banks on Wall Street but the stability of the financial system itself.
Robert Shiller’s Irrational Exuberance warned of both the tech and housing bubbles. It cautions that signs of irrational exuberance among investors have only increased since the 2008-9 financial crisis. With high stock and bond prices and the rising cost of housing, the post-subprime boom may well turn out to be another illustration of Shiller’s influential argument that psychologically driven volatility is an inherent characteristic of all asset markets. In other words, Irrational Exuberance is as relevant as ever. Robert Shiller is a New York Times bestseller, Nobel Prize-winning economist.
Stock Market Investing for Beginners is one of the best tools you can use to build a more secure financial foundation for you and your family. However, for those of us who aren’t professional stockbrokers, the process of stock market investing can seem complex and bewildering. Stock Market Investing for Beginners will arm you with the information you need to understand the basics of stock market investing, and start taking control of your financial future. Stock Marketing Investing for Beginners is one of those stock market books that will take the frustration and intimidation out of investing, so that you can make the investments that are right for your financial goals.
Thomas Bulkowski’s Encyclopedia of Chart Patterns is a classic must have book on all types of chart patterns. In fact, it is one of those stock market books that gives hard data on how good and bad chart patterns are for both bull and bear markets which is important in a changing market. Bulkowski tells you how to trade the significant events, such as quarterly earnings announcements, retail sales, stock upgrades and downgrades. All of his data is backed up by his statistical research giving you a very needed edge in the stock market.
Fooled by Randomness, Nassim Nicholas Taleb, a professional trader and mathematics professor, examines what randomness means in business and in life and why human beings are so prone to mistake dumb luck for consummate skill. This eccentric and highly personal exploration of the nature of randomness meanders from the court of Croesus and trading rooms in New York and London to Russian roulette, Monte Carlo engines, and the philosophy of Karl Popper. Part of what makes this book so good is Taleb’s ability to make seemingly arcane mathematical concepts (at least to this reviewer) entirely relevant in evaluating and understanding everything from the stock market to the success of those millionaires cited.
Jason Kelly’s The Neatest Little Guide to Stock Market Investing is suitable for beginners as well as seasoned pros because the book includes simple strategies that everyone can appreciate, Among those strategies are the small-cap value averaging strategy that returns 3% per quarter, come what may, achieving an astounding 12.6% per year — much better than the market’s long-term average and leagues ahead of almost all professional money managers.
Brady Dahl’s Momo Traders features extensive interviews with ten top day traders and swing traders who find stocks that move and capitalize on that momentum. They began where you are and now make a great living, some even becoming rich. They weren’t given a leg up, they didn’t start with millions, and they don’t manage billion-dollar hedge funds. They battle the market day in and day out just like you, and win! Hear in their own words, how they got started, what strategies they employ, how they deal with losing streaks, what setups are most profitable, how they overcome blowups, what tools they use, how they enter trades, how they exit trades, how they manage risk, how they maintain success, and much, much more.
There are a lot of great stock market books in the world today, but You have to be responsible for your trading successes and failures. Don’t rely on people, news or any of the stock market books mentioned above to trade or invest in a stock. If you are interested in trading or investing in a stock You must have a plan for entering, exiting and bailing out of your position if you are wrong. If you don’t have a plan then plan not to trade until you have one.
Disclosure: My wife uses my kid’s college fund to buy shoes so I started using an affiliate link so they could go to college.