List of 8 Best Stock Trading & Investing Books for Beginners | Motilal Oswal

8 Must Read Stock Trading Books For Beginners

Individuals who are new to stock market trading may find the whole affair confusing. Nonetheless, with a handy book, you needn’t be lost. Stock market books for beginners are aplenty, but the ones that matter are a few good ones to depend on for your trading education. The stock market books you can consider are written by some of the best and most proficient minds in the industry, and they are simple to grasp. With books listed in this article, you will never feel bored, even if reading is not your forte. Have a look at how you can be efficient and effective at trading, with the best books on the stock market to rely on. 

1. The Little Book of Common Sense Investing by Jack Bogle

One of the best trading books around, Bogle, founder of The Vanguard Group, has a simple message. He recommends you go into trading by keeping costs reduced, investing long term. This is a book that risk-averse traders and investors will be attracted to, since it talks about active strategies to keep your losses at bay. In fact, if you are a little apprehensive about trading to begin with, this is one of the best share market books you should read first. A bestseller of a book, it offers practical and sensible ways to make money. 

2. A Random Walk Down Wall Street by Burton G. Malkiel

The 10th edition of this book is a great read for those starting portfolios from scratch. Trends, bubbles, indexing, the importance of time and patience while trading, and other key concepts are touched upon. A superbly written share market book, crafted by Burton Gordon Malkiel, a proud Princeton University alumni and key economist, this book is popular due to the “random walk hypothesis”. The author stipulates that the prices of assets typically show indications of a “random walk” and investors have no way to outperform averages in the markets in a consistent fashion. Malkiel stresses on famous investing strategies like fundamental and technical analysis that will ultimately help investors become clever at their game. 

3. The Intelligent Investor by Benjamin Graham

This is the ‘bible’ of investing as far as stock market books go. One of the reasons may be attributed to the author, Benjamin Graham, mentor to Warren Buffett. The book begins by explanations of the basics of the stock market from the perception of value investors. The first few chapters may not have relevance for the Indian scenario, but keep at it and you will find real value in later chapters. 

Value investing basically tells you that if you find the “true value” of a stock, you can earn real returns from your holdings. The book goes on to touch upon “Mr. Market”, symbolic of the volatile prices of the stock market, and talks about how investors should not buy or sell on the whims of the markets. 

4. One Up On Wall Street by Peter Lynch

Written by one of the most experienced and successful fund managers of all time, Peter Lynch has an impressive record of a return of 30% (on average) annually on his portfolio spanning 13 years. Considered a classic by trading professionals, this book talks about the preparation that comes before investing, along with the author’s distinctive way to choose stocks. One of the best trading books the world has witnessed, the book comprises easy terminology and gives investors clear directions on sorting out long shots and no shots by studying a company’s financial records. 

5. The Warren Buffett Way by Robert G. Hagstrom

Whether you’re on the floor or involved in online stock trading, this book gives you deep insights into Warren Buffet’s investment strategies, all bound for success. If the financial success of the bestseller businessman is anything to go by, this book only benefits investors. The key principles outlined in the book stand for value investing by purchasing stocks of promising businesses. Buying stocks at discounted rates is another one of Buffet’s mantras to live by. This is a share market book that you cannot go wrong with as it is based on real-life investment success over a long period. 

6. How to Make Money in Stocks by William J. O’Neil

O’Neil describes his own system of investing and finding big stock winners. For new investors, this book should answer all your questions. With a stock brokerage to back up the author’s experience in the industry, you can learn some secrets from a man who has helped millions of investors get wealthy in the past. 

7. Stocks to Riches by Parag Parikh

A true-blue book for all Indian investors, this guide is simple to follow and is one of the best stock trading books for beginners. Importantly, the author tells you what mistakes to avoid and the advice comes from years of experience. 

Parikh has written the book that all Indian investors have long been looking for, touching upon behaviour while investing, and ideas of how traders should behave in certain situations. These actions would then lead to better trading and investment decisions overall. The author explains the basic concepts investors have to grasp while trading shares, like definitions of trading itself, speculation, sunk cost fallacy and loss aversion, to name a few. 

8. How To Avoid Loss and Earn Consistently by Prasenjit Paul

A book that resonates with the Indian market, you can get a lot out of this book explaining the ins and outs of Indian market mindsets. A great takeaway is the 2-minute strategy Paul advocates, to choose/reject stocks. 

By far, this is one among the best stock market books for the Indian investor, Paul has written the “starter book” for every Indian novice investor today. Reading is made engaging as Paul writes as if telling a story, with information cleverly weaved into the narrative. Paul stresses on the fact that the only way to get rich, or decently wealthy in the stock market is by buying high quality stocks and holding them for the long term. 

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