The Top 5 Trading Books For Making You A Successful Investor

Investing in the capital market might be a child’s play for some traders, while it is a costly mistake for most people. Studies show that over 95% of investors will likely lose their money in the capital market. Hence, it is important to understand and have a deep knowledge of the momentum of stocks and other financial instruments.

For staking your hard-earned money into the capital market, you must have an in-depth knowledge of the trading sector and the movement of prices in this sector. Fortunately, a wealth of books are available on every aspect of trading for you to become a successful investor.

You must go through these books if you have an urge to teach yourself the most aesthetic craft of trading. Reading about the trading experience of others and learning from their mistakes can help you avoid those rookie mistakes for yourself. There is no better way of becoming a great investor than reading the experiences of others and learning from them.

The Top 5 Trading Books For Becoming A Great Investor

Books are the best companions of human beings. They show you what others can’t express and teach you what others can’t. Moreover, trading is a type of skill in which one has to be perfect to earn huge returns on their investment. Hence, to become a successful investor, here are five must-read books to help you in your trading and investing journey.

One Up On Wall Street

This is one of the most famous trading books written by Peter Lynch. More than millions of copies of this book have been sold globally. Undoubtedly, the book is America’s number one money manager book which encourages the average investors to use unique ways of trading to surpass the professional ones even.

In this book, Peter states some simple rules for the bedding traders to use and beat the professionals regarding successful investing. In addition, the book also teaches the most amazing way of reviewing financial statements with which numbers to count on and which not to count on.

A Random Walk Down Wall Street

This book by Burton Malkiel stands in the second position in the list of most famous trading books for budding investors. The book was first published in the year 1973, and presently it is running in its tenth edition. The concepts discussed here are timeless and very engaging.

However, the author introduces the ‘Efficient Market Hypothesis’ concept here, which states that the stock prices are always at their fair value. Eventually, the technical and fundamental analysis can generate extra returns for the trader. This book is also famous for observing that mutual fund managers do not carry a magic wand in their hands for picking up the best profitable schemes consecutively.

The Intelligent Investor

Benjamin Graham, the author of the book, is the mentor of Warren Buffet. Undoubtedly, it is the best trading book for novice traders and investors. However, few consider it the ‘Bible’ of trading and investing. Along with this, the book also explains the difference between defensive and aggressive investors. Instead, it targets the prospective audience and explains the value of investing.

In addition, it also teaches the distinction between market behavior and risk management in detail. After reading this book, you can easily choose the undervalued stock with massive potential for growth. You will also be able to evaluate a company based on its growth, management quality, potential, capital structure, dividend and financial history.

Also read: Why you should invest in Bitcoin

The Little Book That Still Beats The Market

The book is written by Joel Greenblatt, which clearly states the best trading tips for conservative and aggressive traders. In addition, he offers foolproof tips and strategies with a formula for the investors to spot bargain deals. This formula applies to all financial markets, including the Indian financial market.

You will also find the recent data on the global financial crisis and backtesting data of 2009. The book’s standout feature is that even if millions of people apply it in real-time, it will effectively withstand the test of time. Investors who desire to pick top-notch value stocks that can outperform the market in good and bad periods are the good readers of this book.

How To Avoid Loss And Earn Consistently In The Stock Market

This book is written by Prasenjit Paul and is India’s bestseller for trading and investing. The book clearly states why even after the proliferation of free trading resources, more than 80% of the investors suffer losses in the capital market. The author here suggests tips on how to make a consistent market in the most liquid market.

He ensures that novice traders can find the fundamentally strong business at ease. In addition, you can explore different ways to purchase and sell stocks while minimizing the stocks. You can also get a 2-minute strategy for shortlisting and rejecting the value of stocks.

The Final Takeaway

There are many best trading books available in the market for the most successful tips and tricks. However, you can get these books in local bookstores. Moreover, there are many online sites also which deliver these books.