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InvestingAdvice StockTrading FinanceandInvestments +7

What book should I read to gain knowledge about

nance, the stock market, and investing topics?
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13Answers

Pratik Parthe, Trader, Investor, Adviser

WrittenMar10

Hi Ive already wrote an answer to a similar question you can read here.

These are a few recommended books on trading:

The rst book is called Reminiscences of a Stock Operator

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This biography of Jesse Livermore, known as one of the greatest speculators there 1MergedQuestion

ever was, has insights that have inspired generations of investors. One review said, Edits
Nothing changes! Im into reading historical books and this is a classic. It was
originally published as a series of newspaper interviews in the 20s about a ctional
trader (based on real life trader Jesse Livermore) and how he earned his living trading
the markets. Even though things were drastically dierent 80 years ago than they are
today whats even more shocking is how little things have actually changed in the
stock market. The game is the same now as it was then and human nature never
changes. From the beginning to the end the book is entertaining, informative, and
engaging. I will say it takes a bit to get used to the language and youll have to read
passages a few times to really understand what hes saying (the language was just
dierent back then) but it doesnt take away from the enjoyment of the book. Pump
and dumps are just as legal now as they were then, suckers will still lose all their
money, and hope and greed will always rule the markets. Great book.

The second book is Pit Bull: Lessons from Wall Streets Champion
Trader
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This book is a true story, following the path of Schwartz becoming the best of the best.
One reviewer said, Fun inspirational book. I dont know that this did much for my
technique (I never had much luck with the approach he likes: having a girl beside you
to say if you like it, get it), but its one of those inspiring books that everyone needs
to read. If you love speculation, dont give up. Get intelligent at it, hone your skills,
and enjoy life. Actually I dont know that Schwartz had the enjoy life part down, but
he bought some really nice stu, and Im pretty obsessive too, so its interesting to
daydream about buying million-dollar paintings.

The third is, Encyclopedia of Chart Patterns, Second Edition

Tom Bulkowski, trading expert, authored this book. This edition contains updates
and expansions upon the rst book, with new statistics that are useful in both bull
and bear markets. One helpful review says, Essential Reference Material. I have been
using statistical techniques for many years and thought most patterns are mostly in
the eye of the beholder. I have yet to see a head-and-shoulders. But some patterns are
so obvious that recently I have looked for denitions and explanations. This author
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not only provides them, but also has done the heavy lifting of testing 500 securities
over 5 years in order to say how often each pattern is successful, how much you are
likely to make from it, etc. This has never been done before and is very useful.
Encyclopedia went to my top 10 technical analysis list in the rst ten minutes I had
it. It will be the most dog-eared book since Edwards and Magee.

The fourth book on our list is about Jesse Livermore, the topic of the number
one book on our list. Jesse Livermore: Worlds Greatest Stock Trader is
the true-life story of one of the best traders in history.

One reader said, Fact is usually much more amazing than ction. Well in this case
that is exactly right. Jesse Livermore is probably only known by a few in the
investment/trading world but his mark is assured in history. This guy is freaking
amazing. Sad life, but what a story. Imagine being so powerful (because you are such
an amazing trader) that the top banker in the world begs you for help to save the
Amercian economy. If you liked this book you might like to check out: The Biography
of Andr Meyer: A Story of Money, Power, and the Reshaping of American Business. Its
not a trading book but the stories of banking, money, power are... (more)

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Robert Parker, CEO of Holborn Assets - Holistic Financial Planning

Services, Dubai
WrittenNov27
#1 The Little Book of Common Sense Investing by John C Bogle
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Main Ideas of the book:

Cut out the costs of active management and let the market do the work.

Fees last forever: performance comes and goes. It never works out to pay for
performance with high fees because performance averages out whereas fees
stay high!

Forget about market expectations what matters with stock-picking is

dividend yields and growth in earnings.

Gain exposure to publicly-held businesses at as low a cost as possible and

hang onto them.

Compounded returns are great; but dont forget about compounding costs.

Dont under-estimate the power of costs, taxes and ination to turn a decent
portfolio into a turkey.

#2 A Random Walk Down Wall Street by Burton Malkiel

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Main Ideas from the book:

The market is super-ecient. It works like a hive mind. This means that all known
information is priced into the market at any given time. This means that stock prices
cannot be predicted because all known information has already been factored into
them. Hence stock prices are random.

#3 The Intelligent Investor by Benjamin Graham

Main Ideas of the book:

You cant beat the market, but you can tip the odds sensibly. Being
meticulous with details and margins means you can minimize the odds of
getting it all catastrophically wrong and maximize the odds of repeatable
gains.

The intelligent investor is a realist who sells to optimists and buys from
pessimists.
 Expect volatility; develop the emotional disciplines to sit out the worst of
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bear markets.

Know what kind of investment style suits you: active or passive.

#4 The Successful Investor Today by Larry Swedroe

Main Ideas of the book:

Here are ve of Swedroes 14 simple truths you must know when you invest:

Truth 1: Active Investing is a Losers Game: It Must Be So.

Truth 3: If Skilled Professionals Dont Succeed, It Is Unlikely That Individual

Investors Will.

Truth 7: The Most Likely Way To Achieve Above Average Returns Is To Stop
Trying To Beat The Market.

Truth 10: The Forecasts of Market Strategists and Analysts Have No Value,
Except as Entertainment.

Truth 12: Knowledge of Financial History is Critical to Successful Investing.

You can check more in our article: Top 5 investment books you need to read by
Holborn Assets - Holborn Assets

I hope this helps!

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Thomas Schaefer, Global Macro + Tech | macropolitics.wordpress.com

WrittenSep1,2015
OriginallyAnswered:Whatarethemostfundamentalbookstoreadaboutthestockmarketforaperson
whoisinterested?
Thank for A2a Daniel Kalish!

To understand investing psychology: The Most Important thing Illuminated by

Howard Marks, really great book that looks at why investors make decisions, and how
not to get lost in the noise of the market. This is one of my long time favorites and can
be a little be easier to read than some of the texts by Graham and Dodd. The
annotated edition has many great notes from other investment greats, like Klarman
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and Greenblatt. In my opinion, this is very highly underrated book in the nancial
eld, and should be read by those who are entering the stock market for the rst time,
or those who are interested in understanding value based investing.

For market history: Liar's Poker. I like this book because it gives a lot of context for
stock market beginners, to show the roots of the nancial crisis, the evolution of Wall
Street, and the beginning of beginning of big money. Saloman was an important
player in Wall Street's history, and I think it's important to see the role it played in the
evolution of modern nancial markets.

For cynics: The Black Swan: The Impact of the Highly Improbable. Not strictly about
stocks, and heavily criticized for some of Taleb's ideas, this is great manual for
teaching aspiring traders how to be critics, or "Skeptical Empiricists," in the words of
Taleb.
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Dhananjhay Gangineni, www.dhannacademy.blogspot.in

WrittenDec30,2015

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Meet Jagani, An ICAI Student

WrittenApr22,2015

One up on wall street by peter lynch, Permanent Value by Andrew kilpatrick, Poor
charlie's Almanack by Charles T. Munger, Greatest trade ever on John Paulson
shorting the housing market in the U.S.

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Vishwas Joshi, former Privilege Banker at ICICI Bank (2006-2012)

WrittenApr14,2015
Thanks for A2A.
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This answer is purely based on my outlook, and my experience of 5 years as

'Investment Banker' and bringing up in 'Ahmedabad': the un-ocial capital of 'Grey
Trading'...

Did you read (or for that matter, did you ever heard) some book to learn 'Walking' or
'Living' or 'Eating'...it's natural right; just like that 'Direct Investing in Stock Market' is
also natural (it is not purely based on 'Company Financials', 'Vision', etc.....)

Yes, 'Calculated Investing' is altogether a dierent ball game; SIP, PPF, REIT (near
future), ETF, etc...

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Prakarsh Gagdani, Around 15 years of Capital market experience including

Mutual Funds
WrittenDec5

Some of my personal favorites are:

Buett: The Making of an American Capitalist - Roger Lowenstein

One Up On Wall St - Peter Lynch

Reminiscences of a Stock Operator - Edwin Lefevre

How to Make Money in Stocks - William ONeil

Market Wizards - Jack Schwager

Trade Your Way to Financial Freedom - Van Tharp

The Intelligent Investor - Benjamin Graham

A Random Walk Down Wall Street - Burton Malkiel

The Little Book of Common Sense Investing - Jack Bogle

Japanese Candlestick Charting Techniques - Steven Nison

The Little Book That Beats the Market - Joel Greenblatt

Liars Poker - Michael Lewis

Encyclopedia of Chart Patterns - Thomas Bulkowski and many other.

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Aashish Rathi, Enthusiast

WrittenJan2,2016

I think that the following books will help you learn about these topics, or at least point
you to the right direction.

1. The Intelligent Investor - Benjamin Graham

2. Options, Futures and Other Derivatives - John C Hull

3. Security Analysis - Benjamin Graham

Not necessarily in the same order. I'd personally suggest you start with 2.

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Nicholas Galarnyk
WrittenSep1,2015
The Intelligent Investor by Benjamin Graham
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A Random Walk Down Wall Street by Burton Malkiel

The Little Book that Beats the Market by Joel Greenblatt

Read those then use a small amount of money to practice strategies. You will likely
lose this money, but you really cannot learn until you feel true loss.

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Matt Zeltser, 10+ year in the nancial industry.

WrittenSep2,2015

My favorite book is Security Analysis by Benjamin Graham.

It might seem redundant, but it gives you a good starting point and foundation on the
market and companies. Highly recommend it. Wish I read it earlier in my career.
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David Oak, Owner Robur Investment Resources

WrittenSep2,2015

Security analysis and the intelligent investor are the 2 'go to' books on value and
fundamental investing - just be aware that they are not light reads and they were
written some time ago.

On top of that I would read basic accounting books to begin with. These helped me to
understand the 3 main statements all investors need to get to grips with - balance
sheet, cash ow statement and income statement

good luck1

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Abhishek Kumar, Subject matter expert at United Health Group (2011-

present)
WrittenMar26
Hi,

Start with business channels and magazines. Once you feel comfortable with the
technical terms, buy any book to start with.

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Abhishek Behera, works at Tata Institute of Fundamental Research

WrittenOct12,2014

You could start by browsing the website: Investopedia - Educating the world about
nance . You can nd book recommendations here: Books .

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Answerwritten1h Answerwritten4h AnswerwrittenApr6

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