The best way to learn about the stock market is to start with the best stock market books. I’ve read over 100 books in stock trading and investing, and here are some of the best ones that I recommend everyone to read whether you are a stock beginner or a experienced investor.
1. How To Make Money In Stocks: A Winning System in Good Times or Bad, 3rd Edition
This book is written by the founder of Investor’s Business Daily and it is good for both beginners and experienced investors. It focuses mostly on the fundamental, with a few sections on technical indicators and stock charts.
2. The Neatest Little Guide to Stock Market Investing
This book teaches you all the basic information that every beginner needs to know from PE ratio to building a winning portfolio in a simple and easy-to-follow manner.
3. Reminiscences of a Stock Operator (Wiley Investment Classics)
This book was first published in 1923, and is still a bible for many investors. This book doesn’t teach you how to read a stock chart, nor does it show you how to read financial statements. Instead, it teaches you about human nature and how greed, fear, and impatience controls the stock price.
This book was written by Benjamin Graham, Warren Buffett’s teacher. What more do I need to say? The revised version was released in 2003 with commentary by Jason Zweig.
5. One Up On Wall Street : How To Use What You Already Know To Make Money In The Market
This book was written by Peter Lynch, one of the best money managers in America. This book doesn’t teach you how to read financial statements. Instead, it teaches you how to find good companies around you. For example, by observing people’s attitudes in a store can help you determine which companies might be a better buy.
Top 10 Technical Analysis Books
Please note these are the top 5 investing books where you learn about value investing. If you want to learn about short term trading, then read the top 10 technical analysis books.
“The small stock trader” by Mika is also a small unique book that covers almost all the major stock market topics such as the traits of a successful small stock trader, how to choose a few simple focus stocks, market sentiment and industry, fundamental analysis, technical analysis, short selling, your edge and competition, catalysts that move the stock prices, stock trading plan, discipline, risk management and psychology. It is a simple book of about 100 small-sized pages (more like a collection of tips, perhaps 4-5 hours read), but it will answer many of your questions, so, it is a great book to start (no need to mention that about 90% of your lessons you are going to learn from your own experience/mistakes). It is also a fun-to-read book, as it is accompanied by a few jokes and observations from poker, intelligence world, relationships, happiness, Zen, and psychology.