Best Books to Learn Stock Trading
Stock Trading Books are a branch of valuation where the entire prediction is on the basis of probability theory. It gives you the past, present, and future upward and downward trading trends, commonly known as the Bull and Bear strategy.
The list Stock Trading Books cover many valuable topics that help beginners and professionals understand stock trading better. The Stock Trading Books share many tips and strategies for managing risk and proper investment.
Here is the list of the top 10 stock trading books relevant to students and professionals.
|
# |
Stock Trading Books | Author | Published |
Rating |
| 1 | Trading Mastermind Book | Zebra Learn | 2022 | Amazon: 4.5
Goodreads: 3.81 |
| 2 | Stock Trading | Carl Robertts | 2014 | Amazon: 4.6
Goodreads: 3.47 |
| 3 | The Subtle Art of Intraday Trading | Indrazith Shantharaj | 2021 | Amazon: 4.7
Goodreads: 4.32 |
| 4 | The Intelligent Investor | Benjamin Graham | 2013 | Amazon: 4.5
Goodreads: 4.25 |
| 5 | One Up On Wall Street | Peter Lynch | 1989 | Amazon: 4.5
Goodreads: 4.27 |
| 6 | The Little Book of Value Investing | Christopher Browne | 2006 | Amazon: 4.6
Goodreads: 4.12 |
| 7 | The Essays of Warren Buffett | Warren Buffett | 1997 | Amazon: 4.6
Goodreads: 4.40 |
| 8 | The Warren Buffett Way | Robert Hagstrom | 1994 | Amazon: 4.4
Goodreads: 4.32 |
| 9 | The Intelligent Asset Allocator | William Bernstein | 2000 | Amazon: 4.5
Goodreads: 4.21 |
| 10 | Technical Traders Guide to Computer Analysis of the Futures Markets | Charles Lebeau | 2022 | Amazon: 4.6
Goodreads: 3.83 |
Let us go through each book’s reviews and core topics in detail.
Book #1: Trading Mastermind Book – Become a Trading Expert From Scratch
Author: Zebra Learn
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Review:
This book describes the traditional trading patterns that assist in making intelligent choices concerning the stock markets. It helps in giving a broad idea of bear and bull behavior. The book explains how it’s also important to have risk management strategies, such as stop-loss orders.
Key Points:
- The author explains that stocks can be bought and sold through a broker, either online or in person.
- The book discusses how the market’s supply and demand determine a stock’s price.
- It helps readers understand that diversifying their portfolio by investing in multiple companies and industries can help to spread risk.
- It also gives guidance on the importance of having a long-term perspective and not making impulsive decisions based on short-term market fluctuations.
Book #2: Stock Trading: Tips for Trading Stocks – From Stock Trading For Beginners To Stock Trading Strategies
Author: Carl Robertts
Buy this book here.
Reviews:
The book explains the input of demand and supply in the stock market very well. This book provides some insights into stock traders’ mistakes and learnings. It helps set up the prerequisites of trading in the modern era. This book defines investment as allocating resources, usually money, with the expectation of generating an income or profit. The risk associated with an investment is often related to the potential return.
Key Points:
- The book mentions the various types of investments, such as stocks, bonds, mutual funds, real estate, and commodities.
- The author says it’s essential to have a clear investment strategy and to align it with your financial goals, time horizon, and risk tolerance.
- Hence, regularly monitoring and reviewing your investments can help you stay on track and adjust as needed. Everyone must consider tax implications and fees before making any investment decisions.
- The book also says that it’s essential to have a long-term perspective and not to make impulsive decisions based on short-term market fluctuations.
Book #3: The Subtle Art of Intraday Trading
Author: Indrazith Shanthara
Buy this book here.
Reviews:
Option trading is the future. This book describes the basics of intraday trading. Intraday trading is the key indicator in deciding futuristic valuations. This book teaches the basic principles of option trading, helping set the bar. It’s essential to be aware of the rules and regulations regarding intraday trading and to consult with a financial advisor before starting. Having a clear exit strategy is also important, and not letting emotions guide decision-making.
Key Points:
- The book explains that intraday traders aim to profit from short-term price movements in the market rather than holding positions overnight. Intraday trading typically requires a high level of discipline and focus, as well as a thorough understanding of market dynamics and technical analysis.
- It says that intraday traders often use charts and technical indicators to identify potential buying and selling opportunities. Intraday traders use a variety of strategies, such as scalping, momentum trading, and breakout trading.
- Intraday traders often use margin and leverage to increase their buying power, which can amplify potential gains but also increases potential losses. Intraday trading can be hazardous, and it is not suitable for all investors. It is important to have risk management strategies in place, such as stop-loss orders.
- Intraday traders need to be able to make quick decisions based on market conditions and to be able to handle the stress of the fast-paced and volatile nature of the markets.
Book #4 The Intelligent Investor
Author: Benjamin Graham
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Reviews:
This book is considered a classic text on value investing and is widely read and respected by investors and finance professionals. The book talks about the importance of long-term investing rather than trying to make quick profits through speculation. The book also covers the concept of “Mr. Market,” which is a metaphor for the emotional and irrational nature of the stock market. The Intelligent Investor should not get swayed by the emotional market and should be patient and stick to their investment plan.
Key Points:
- Graham stresses the importance of conducting thorough research and analysis to make informed investment decisions.
- The book advocates using a “margin of safety” when investing, which means only purchasing stocks when priced significantly below their intrinsic value.
- Graham also stresses the importance of diversifying one’s portfolio to spread risk.
- The book also covers the concept of defensive and enterprising investors. Defensive investors prioritize the safety and preservation of capital, while enterprising investors are willing to take on more risk in pursuit of higher returns.
Book #5: One Up On Wall Street
Author: Peter Lynch
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Reviews:
This book is a personal account of Lynch’s successful tenure as the manager of the Fidelity Magellan Fund and offers insights and advice on how to pick winning stocks. Lynch stresses the importance of investing in what you know and looking for businesses that are easy to understand and whose products or services you use or see daily. He also talks about the concept of “tenbaggers,” which are stocks that have the potential to increase in value tenfold or more.
Key Points:
- Lynch emphasizes the importance of conducting thorough research and analysis to identify undervalued stocks.
- He also talks about the importance of looking at a company’s financial statements and focusing on a company’s earnings growth, profit margins, and return on equity.
- The book also covers “diagamming,” which is Lynch’s method of analyzing a stock’s price and volume activity to identify trends and patterns.
- Lynch also stresses the importance of being patient and not following the crowd.
Book #6: The Little Book of Value Investing
Author: Christopher Browne
Buy this book here.
Reviews:
It is a guide on how to apply value investing principles popularized by Benjamin Graham and Warren Buffett to individual stocks. Browne advocates the use of a “margin of safety” when investing. It means only purchasing stocks when they are priced significantly below their intrinsic value. The book covers the concept of “cigar butt” investing. It is the strategy of buying stocks that have been overlooked or undervalued by the market, even if they have little value left.
Key Points:
- Browne emphasizes the importance of buying undervalued stocks based on their intrinsic value and avoiding overvalued ones.
- He stresses the importance of looking for companies with a solid financial position, a consistent track record of profitability, and a capable management team.
- Browne also explains that investors should not get swayed by the emotional market and should be patient and stick to their investment plan.
- The book has a straightforward approach to value investing and explains complex investing concepts in an easy-to-understand way.
Book #7: The Essays of Warren Buffett
Author: Warren Buffet
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Reviews:
The book contains a collection of letters written by Warren Buffett, the Chairman, and CEO of Berkshire Hathaway, to the company’s shareholders. The book provides insights into Buffett’s investment philosophy and decision-making process. Buffett emphasizes the importance of a long-term investment horizon and being patient and not following the crowd. He stresses the importance of looking for companies with a strong financial position, a consistent track record of profitability, and a capable management team.
Key Points:
- Buffett advocates using a “margin of safety” when investing, which means only purchasing stocks when priced significantly below their intrinsic value.
- He also talks about the importance of understanding the underlying business and its economics rather than just focusing on short-term stock market movements.
- Buffett also stresses the importance of avoiding debt and being financially conservative.
- The book gives practical and timeless advice and provides insights into the mind of one of the most successful investors of all time.
Book #8: The Warren Buffett Way
Author: Robert Hagstrom
Buy this book here.
Reviews:
It is a biography of Warren Buffett and an analysis of his investment strategies and philosophies. Hagstrom provides an in-depth look into Buffett’s investment process and value investing philosophy. It emphasizes the importance of buying undervalued stocks based on their intrinsic value and avoiding overvalued ones. He explains how Buffett looks for companies with a strong competitive advantage, a consistent track record of profitability, and a capable management team.
Key Points:
- This book covers the concept of the “circle of competence,” which is the idea that investors should only invest in companies and industries they know about and understand.
- Hagstrom also analyzes Berkshire Hathaway’s portfolio and its performance over the years. It gives a glimpse of how Buffett has been able to generate high returns for the shareholders over the long term.
- The book also explains the “owner-oriented” approach to investing. It is Buffett’s idea that investors should think like owners and focus on the company’s long-term prospects rather than short-term market movements.
- The book provides insights into the investment strategies and philosophies of Warren Buffett and explains complex investing concepts in an easy-to-understand way.
Book #9: The Intelligent Asset Allocator
Author: William Bernstein
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Reviews:
The book is a guide on constructing a diversified investment portfolio, focusing on the principles of modern portfolio theory. Bernstein emphasizes the importance of asset allocation. It is the process of dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash. The book is known for its practical advice on asset allocation and portfolio construction.
Key Points:
- The book covers the concept of “efficient frontier,” a graph showing the highest expected return level for a given level of risk.
- Bernstein also discusses the importance of understanding different asset classes’ historical returns and risks and how they have performed over time.
- The book also covers the concept of “rebalancing,” which is periodically adjusting the allocation of assets in a portfolio to maintain the desired level of risk.
- It discusses the concept of “home bias,” which is the tendency for investors to allocate a disproportionate amount of their portfolios to domestic assets.
Book #10: Technical Traders Guide to Computer Analysis of the Futures Markets
Author: Charles Lebeau
Buy this book here.
Review:
It is a guide on using technical analysis to trade futures markets, including commodity and financial markets. The book also covers the importance of risk management in futures trading and the use of stop-loss orders to limit potential losses. The book has gotten widely praised for its practical advice on using technical analysis to trade futures markets.
Key Points:
- The book covers technical indicators, such as moving averages, relative strength index (RSI), and stochastics, to identify buy and sell signals in the futures markets.
- It explains using chart patterns, such as head and shoulders and triangles, to identify potential market trends and reversals.
- The book also covers the use of computerized trading systems, including the design, testing, and implementation of trading strategies.
- It provides an overview of the different types of futures markets, including commodity and financial futures, and each market’s unique characteristics.
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