This is a list of the best stock market books and trading books that I read over the years and I highly recommended that you read at least a few of them if you are serious about trading and investing. I divided the stock market books into two categories, investing and trading. Investing books are for long term investors who want to buy and hold a stock for a long period of time. This approach requires you to study the company’s fundamental and predict how the company will perform many years later. Trading books are for traders who are interested in short term trading where the main focus is technical analysis and reading stock charts.
Best Investing Books
This is a really good book on how to invest as well as trading in stocks. The book is written by William J. O’Neil, who is the founder and chairman of Investor’s Business Daily. He uses the CAN-SLIM method explained in the book that made himself a multi-millionaire. The book also teaches you how to read stock charts and technical analysis so that you find the best entry prices.
The intelligent investor is like the bible of the stock market investing book. It is written by Benjamin Graham, known as the father of value investing. This is the book that inspired Warren Buffet, the world’s most successful and richest investor into investing in the stock market. This book teaches you how to find stocks that are currently undervalue and might explode in the future. This is a must read book if you are planning to invest in the stock market for the long term.
One Up On Wall Street is an unique book about investing written by Peter Lynch, who managed the Fidelity Magellan Fund from 1977 to 1990 when it was one of the most successful mutual-funds of all time. Unlike other investing books where they teach you how to read and use financial statements to find undervalue or growth stocks. One Up On Wall Street takes a different approach. It shows you how to find valuable companies around you that might take off before the public find out about them.
This is a great book for beginners to learn how the stock market works and evaluating individual stocks. The book goes through the basics of fundamental analysis, which is the way to analyze stocks and investing for the long term. These included things such as Price to Book ratio, Price to Sales ratio, Price to Earnings ratio, Dividends, Current Ratio, Market Cap, and a few others. You will learn what they mean and how to use them to find profitable stocks to invest.
Stock Market Investing for Beginners is another good book on investing. You will learn the fundamentals of stock market and investment strategies to deepen your investing literacy. You will also learn the 5 strategies that the author uses to find profitable stocks, and useful advice on buying, selling, owning, and diversifying.
Best Trading Books
Technical Analysis of the Financial Markets is the best introductory book on technical analysis. You will learn all about technical analysis and chart patterns and how to use them to predict the short term price movement of stocks. This is an easy to understand yet comprehensive book that is great for both beginners and experienced traders.
The New Trading for a Living is the new version of the classic book Trading for a Living. It is one of my favorite trading books because it combines technical analysis and psychology into one book. The psychology part of trading is even more important than technical analysis and trading strategies because it is easy to learn the strategies that other successful traders use, but it is harder to learn how to control your own emotions and discipline that are needed for long term success.
Candlestick patterns are powerful charting patterns for swing trading stocks successfully. This book is a very detailed guide on how candlestick patterns work and all the different types of candlestick patterns such as trending and reversal patterns. Trending patterns allows you to jump and ride a rising stock whereas reversal patterns allows you to get on a trend early. You will learn how to buy and sell a stock based on candlestick patterns and signals, and how to find stocks to watch for trade setups.
Mastering the Trade is a great book on swing trading. You will learn many trading techniques for profiting from intraday and swing trading setups. The book also talks about futures and options trading in addition to stock trading. Simply by reading and applying the trading strategies layout in the book, you are well ahead of most people who ever trade stocks. The book is good for both beginners and experienced traders.
If you are interested in day trading, A Beginner’s Guide to Day Trading Online is one of the first books that you should read. The book introduces you to the world of day trading, trading jargon, terminology and a little bit of stock charting and technical analysis that will help you get started quickly. You will learn how to day trade stocks in today’s fast changing market using decimalization of stock prices, E-minis and Exchange Traded Funds (ETF), precision entries and exits.
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