What are the best stock market books for beginners?
If you are looking to start investing in the stock market or simply want to learn more about it, then you’ll soon discover that knowledge is key.
You need to understand the basics before you jump into the advanced stuff. We have gathered together the 13 best stock market books for beginners. Knowledge is power, so get reading!
#1 Value Investing
[This book] is the most up to date practical book for investors, Bruce provides practical examples throughout and Bruce Greenwald's courses are the only one ever recommended by Warren Buffett.
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Contributor: Adam C. Parris
Company: searchingforvalue.org
#2 The Richest Man in Babylon
This book is all about making good choices, and benefiting from the ones which did not go as planned. It puts forth a set of principles, and there is a reason why this is still a go-to piece of business literature, nearly 100 years after it was originally published.
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Contributor: Caleb Backe
Company: mapleholistics.com
#3 The 5 Mistakes Every Investor Makes and How to Avoid Them
The best way to learn is from other people’s experiences, and mainly from their mistakes. Learning what not to do is just as important as learning what to do, especially in the market. Too many times, we get in the way of our own success. This book breaks down some of that false logic, and delivers a better way of approaching issues common to investors, and making the right choices.
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Contributor: Caleb Backe
Company: mapleholistics.com
#4 The Ascent of Money
A big part of knowing any industry or market is knowing its history, its rises, and falls. Those who understand the past have a better grasp of the present, and often a better course for the future. I find internalizing some aspects of financial history can teach you a lot, even though it is indeed much less hands-on than other investment books.
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Contributor: Caleb Backe
Company: mapleholistics.com
#5 Rich Dad, Poor Dad
This book highlights the importance of continuous education; the existence of constant change; and dealing with the ebb and flow of business. It explores the issues of making money and managing money, which are both tough jobs. Stocks are a risky business at times, so you need to appreciate and manage your risk-taking accordingly, as you continue down the path towards financial independence.
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Contributor: Caleb Backe
Company: mapleholistics.com
#6 The Millionaire Next Door
Even though this book isn't exclusively about investing, it's an amazing resource for people to learn about wealth building - which is the ultimate outcome of most stock market investors. The premise behind the book is that anyone can amass wealth, given they have the right habits.
When I finished the book, I remember viewing millionaires in a totally different light; the idea of becoming one felt much more accessible and real. I would definitely recommend this book as a must-read for anyone who is serious about not only investing but building long-term wealth.
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Contributor: Jeff Proctor
Company: dollarsprout.com
#7 The Little Book That Beats The Market
Greenblatt, one of the most legendary value investors of all time, shows how we can actually follow that well-known credo: buy low, sell high. To do this, he explains how investors can find good and cheap companies through his Magic Formula. The book contains entertaining anecdotes and is written in a conversational tone, making it accessible for new investors. I highly recommend it.
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Contributor: Adam Pascarella
Company: adampascarella.com
#8 Get Rich With Dividends
Especially for beginner investors, dividend investing is one of the safest, most reliable ways to grow your money and generate income... in any market... The best part? You don't need a lot of time or financial expertise to get started. In this book, Marc (a former Wall Street Analyst and 15-year veteran of equity markets) shares his 10-11-12 system to help investors earn higher returns on their stocks.
I might be biased (I do work with Marc, after all) but it's a very easy to understand read and even more than that, gives you effective strategies and tips for investing. Take it from someone who had NO financial knowledge before starting in my position. Marc's book was the first finance book I read and it made a world of difference in my understanding AND in my own personal investments.
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Contributor: Amanda Tarlton
Company: oxfordclub.com
#9 Market Wizards
This book offers a good overview of different types of traders. It gives the readers a good overview that there are a million and one ways to become a successful stock market participant. There is no one way to become successful nor a holy grail to trading success. I think this is a vital read for every beginner.
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Contributor: Paul Koger
Company: foxytrades.com
#10 Momo Traders
This book covers the top tips and tricks from actual day and swing traders. The book is combined with a number of extensive interviews with the traders. The information is really valuable to anyone that is interested in actual day trading.
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Contributor: Paul Koger
Company: foxytrades.com
#11 The Mind of Wall Street
One of Wall Street's legendary investors, Leon Levy, explains why the market so often confounds us, and why those who ought to understand it tend to get chewed up and spat out. Levy, who pioneered many of the innovations and investment instruments that we now take for granted, has prospered in every market cycle.
In The Mind of Wall Street he recounts stories of his successes and failures to illustrate how investor psychology and willful self-deception so often play critical roles in the process. Like his peers George Soros and Warren Buffett, Levy takes a long and broad view of the rhythms of the markets and the economy. He also offers a provocative analysis of the spectacular Internet bubble, showing that the market has not yet completely recovered from its bout of irrational exuberance.
The Mind of Wall Street is essential reading for all of us, whether we are active traders or simply modest contributors to our 401(k) plans, as volatile and unnerving markets come to define so much of our net worth.
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Contributor: Alexander Lowry
Company: gordon.edu/gradfinance
#12 How to Make Money in Stocks
O’Neil explains the characteristics that have historically been found in winning growth stocks and his CANSLIM method he uses to select stocks for his portfolio.
CANSLIM is also the basis for O’Neil’s newspaper---Investor’s Business Daily which makes it easy for investors to screen for stocks that meet his CANSLIM criteria. O’Neil’s approach to selecting stocks combines screening for fundamental characteristics such as strong, consistent earnings and revenue growth and technical analysis to identify stocks with strong current price momentum.
I use his approach to select stocks for my Momentum Growth strategy, which was up 46.6% last year net of fees and is up over 17% this year. However, I use my own proprietary strategy in determining when to sell stocks. I recommend How to Make Money in Stocks to all of the interns who have worked for me Steel Peak Wealth Management.
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Contributor: Rich Winer
Company: steelpeakwealth.com | richwiner.com
#13 The Intelligent Investor
This is the best book for anyone who is interested in learning about value investing in the stock market. Value investing is the strategy that Warren Buffett, the greatest stock investor of all times, famously used to make billions in the stock market. It is also one of the safest and most sound long-term stock market investment strategies.
This book is written by Benjamin Graham who Warren Buffett learned value investing from. In this book, he talks in depth about everything you need to know about value investing. It is a must-read for both beginner and professional investors who are looking at growing their wealth over the long term.
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Contributor: Gladice Gong
Company: earnmorelivefreely.com
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