In this article, I will share with you the top 10 books that have a profound impact on your financial market career
10 Best Stock Market Books For Beginners
Generally, I hope you have developed a habit of reading books across various fields and subjects. However, when it comes to the financial market, the initial books you read hold the most significant influence on your mindset as they shape your journey in the stock market. Therefore, I would like to share with you a curated selection of 10 stock market books. You can explore these books and decide whether you would like to read them or simply go through their summaries. By doing so, you can better equip yourself for the challenges and opportunities that arise in the stock market, thus preparing yourself for success.
List of Stock Market Books You Should Read
| Name of the Book | Author |
| Liar’s Poker | Michael Lewis |
| The Intelligent Investor | Mr. Benjamin Graham |
| Dhadho Investor | Mohnish Pobrai |
| Value Investing And Behavioral Finance | Parag Parikh |
| Options as a Strategic Investment | Santosh Nair |
| Learn to Earn | Peter Lynch |
| Coffee can Investing | Saurabh Mukherjee |
| Common Stocks and Uncommon Profits | Philip A. Fisher |
| Trading In The Zone | Mark Douglas |
| How To Make Money Trading with Charts | Ashwin Gujral |
1. Liar’s Poker:-
“Liar’s Poker” conveys the idea that the stock market is a poker game. Those familiar with poker understand its deceptive nature, as it involves players who bluff and others who skillfully uncover those lies. Successful identification and exposure of these deceitful practices can lead to significant profits in the world of poker. If you are considering entering the stock market, this book serves as a crucial starting point for gaining a comprehensive understanding of the market’s dynamics. Published in 1989, “Liar’s Poker” is Michael Lewis’s autobiographical book, showcasing his time as a bond salesman on Wall Street during the late 1980s. It explores the parallels between the Liar’s Poker betting game and the high-stakes gambling of bond traders at Salomon Brothers. The book highlights the similar qualities necessary for success in both arenas.
2. The Intelligent Investor:-
This stock market book defines the investment journey and should be a mandatory textbook in every business school or commerce college. It is a timeless piece of writing that continues to offer valuable insights, even after many years have passed. Mr. Benjamin Graham wrote this book years ago, and its relevance persists even today. As I often say, investing is a journey, and the journey into the share market should commence with the investment itself. Through investing, we grasp the essence of the share market. Therefore, reading this book is highly recommended for anyone embarking on their investing journey. This book encourages investors to consider buying shares of valuable small companies that have the potential to provide higher returns in the future. With the help of this book, investors can learn how to grow their money in the stock market while minimizing risks and avoiding emotional pitfalls associated with investing.
3. Dhadho Investor:-
The third book is by Mohnish Pabrai and is called “Dhadho Investor”. When we look at this book, we can consider it an expansion of “The Intelligent Investor,” but in a compact and slim format. It contains delightful anecdotes shared by the author, related things, and examples of the application of this in the real world.
The Dhandho Investor Framework
Mohnish Pabrai presents nine principles of the dhandho framework for achieving low-risk and high returns in his book.
The principles outlined in the book are as follows:
Focus on acquiring existing businesses.
Invest in straightforward and uncomplicated businesses.
Consider investing in distressed businesses.
Always choose businesses with durable competitive advantages (moats).
Make a limited number of significant and infrequent bets.
Seek opportunities in arbitrage.
Emphasize the importance of a margin of safety in investments.
Explore low-risk, high-uncertainty business investments.
Favor investments in established players over innovators.
- I won’t go into all the details of these principles here, but grasping the fundamental concept behind the framework will make you more curious to read the book.
4. Value Investing And Behavioral Finance by Late Shri PARAG PARIKH:-
“In this book, if you read it in the textbook and make notes through lines, why is the value of stocks in the share market simply decoded by this book? It blends value investing and behavioral finance. Based on his years of expertise, Parikh explores the psychological biases that frequently influence financial decisions and offers insightful advice on how to overcome them. The book presents an appealing viewpoint on the significance of long-term thinking, reasoned decision-making, and spotting investment opportunities at a discount. With his friendly writing style and use of practical examples, Parikh makes difficult ideas understandable for both inexperienced and seasoned investors. Anyone looking to improve their investment knowledge and build a disciplined value-investing approach will find this book to be an invaluable asset. One of India’s best investors, Parag Parikh, exposes readers to behavioral finance while spotlighting the importance of value investing. He analyzes the use of value investment in the development of profitable companies. Parikh’s comprehensive review of the psychological factors, where he analyzes how emotions like greed, self-interest, ignorance, and delayed gratification affect the stock market, is what sets this book apart from others. Although at first glance these components may seem unimportant, readers will relate to every word since human emotions never change. Parikh’s knowledge illuminates the irrefutable impact of human behavior on stock markets. Anyone looking to learn the fundamentals in-depth and manage the stock market with a thorough comprehension of both financial and economic concepts must read this book.”
5. Options as a Strategic Investment:-
You learned a lot about option trading from this book. Whoever desires to have trade options should obviously read this book. A thick book, yet it’s filled with an abundance of information. The book is the most influential book you can read if you want to go into options trading for options trading because of the author’s excellent guidance.
6. Learn to Earn by Peter Lynch:-
“This book is so amazing that I can’t find words to describe it to you. If you look at the author, Peter Lynch, you’ll see that he is one of our stock market teachers and among the top managers of mutual funds in the industry. Every aspect of the capitalization era is covered in this book. Therefore, it is very well stated that you learn capitalization step by step from the beginning and visualize in your mind the entire movie, how it came to be, and its progression. This will first make your foundation strong before it gives you basic investing concepts.
What are these?
- It will concentrate on the power of compounding.
- It will compare the bond and stock markets for you.
- How do you inspect companies?
- Complete Apple Companies case study.”
7. Coffee Can Investing by Saurabh Mukherjee / Pranab Uniyal & Rakshit Ranjan:-
“This book is fantastic. What do I like and love about this book? The book has been described as a narrative. It features three people: Mr. Kumar, Mr. Sanghvi, and Mr. Tanwar. Their plots are still developing. How do they discover the markets? And you can relate to any one of these characters; they are very relatable and interesting. They have considered the following points: Is real estate actually an investment? What should I consider when buying stocks? If you have no idea how to approach the stock market or how to be patient, this book is absolutely world-class. So, this is the book I highly recommend. It is very simple to read, with an easy-to-read font and a story format. If you read it once, you will enjoy it.”
8. Common Stocks and Uncommon Profits by Philip A. Fisher:-
Now the eighth book on our list is “Common Stocks and Uncommon Profits and Writings.” After Benjamin Graham, if Warren Buffett gives credit to anyone the most, it is Philip A. Fisher. Warren Buffett stated that Benjamin Graham influenced 85% of his investment style, while Fisher influenced 15%. In his book “Common Stocks and Uncommon Profits,” Fisher states that the best time to sell any stock is “Almost Never.” Warren Buffett also stated in his 1988 letter to Berkshire Hathaway shareholders that “My Favorite Holding Period is Forever.” Fisher mentions points in his book that we must consider before investing in any stocks. According to Fisher, we should keep two points in mind to generate good wealth in the stock market. The first point is patience, and the second point is to stay away from the herd mentality. “Don’t follow the Herd Mentality.“
9. Trading In The Zone by Mark Douglas:-
The phenomenal book “Trading in the Zone” tackles the psychology of trading instead of technical analysis. The author emphasizes the significance of controlling emotions and establishing discipline in dealing with fluctuations in markets with remarkable insight.
This book provides practical strategies and engaging experiences that will be useful to traders of every level of expertise, providing readers with the feeling of having a personal mentor. For anyone hoping to succeed in trading, the author’s emphasis on creating a winning mindset and self-awareness is precious.
The author’s sharing of personal experiences creates a connection that inspires and motivates. It serves as a constant reminder to trust your gut, stay focused, and approach trading with confidence.
10. How To Make Money Trading With Charts:-
Let’s address the final book now, and believe me when I say that I specifically set it aside for technical analysis. I strongly recommend this book, especially for novices. Ashwin Gujral writes the book, presenting technical ideas in an understandable manner while providing an Indian perspective. Having an Indian perspective is essential if you are from India and interested in mastering technical analysis. The fundamental concepts of technical analysis, such as ADX indicators, chart patterns, RSI, MACDs, and moving averages, are covered in this book. The author explains these concepts in simple language for all readers. I highly recommend everyone read this technical book.
Conclusion:
The top 10 stock market books that might have a significant impact on your financial market career are highlighted in this article. These books offer insightful information for traders of all experience levels and cover a variety of themes. Each book, from “The Intelligent Investor” to “Trading in the Zone,” offers readers guidance through the use of real-world tactics and firsthand accounts. By reading these books, you can acquire the information and mindset required to succeed in the stock market. Committing to lifelong learning and staying informed will shape your financial market career.