You can find most of the information about stock market online but if you are someone who love reading stock market books, you would not be disappointed. There are hundreds of books you can find on stock market which will help you to be a better investor. Most of the books are from US as they have a long history of stock market and 100 year worth of data is available with them.
So below you will find TOP 10 book which have helped me in trading and investing and which I feel gives a good understanding for someone who is starting in the market. Some of the books are little advanced and specific in nature specifically book on Options and Futures and Japanese Candlestick charts. I believe that these books are also important as you need to be aware of F&O date and use technical analysis if you want to be a better trader or investor in any market.
I have tried to further breakdown the list between Indian books and international best sellers. I somehow feel that Indian investor are better able to connect with books written from Indian perspective.
Best Stock market books by Indian author on Indian stock market
Stock to riches by Parag Parekh
He is a value investor and tries to follow the teaching of Warren Buffet. Died in a car crash in 2015 when he went to Ohio to listen to yearly Warren Buffet meeting. The book is written in simple words and more for a beginner who is just starting in the market and want to understand how to think long term. Have lots of lesson for value investor.
The Dhandho Investor
This is one of the few good books by Indian writer on value investing. The method of writing is very simple to follow and the book have tried to explain complex idea in easy to follow wording. It takes it idea from Patels in Gujarat who are known to be ace investor. It talks about value investing criteria like “Heads, I win! Tails, I don’t lose that much!,” “Few Bets, Big Bets, Infrequent Bets,”.
One of the best books from an Indian writer and if you are just starting, I would recommend you to read this book.
Bulls, Bears and Other Beasts: A Story of the Indian Stock Market
One of the good books which tell how the Indian stock market works. The book is written from an eye of Lalchand Gupta and how he tries to make sense of the market. Talks a lot about the scams and other manipulations which happen in the market. A very good read for someone who want to better understand the working of Indian stock market and main actor who are part of it. Read more like a story. A good one time read.
Books by US author for US markets
THE INTELLIGENT INVESTOR
This is like a bible for value investor and was written by Benjamin Graham who is also known as guru of Warren Buffet. But beware, this is not a easy reading books. It expects that the reader are well versed in financial analysis and interested in Value investing. This book will help you to better understand how you should read the financial statement and try to find out the real value of a share.
Reminiscences of a Stock Operator
This is a fun to read book written almost 100 year ago. A biography which shows how a young man managed to make money in the stock market. The central points of the book is that fear, greed, hope and ignorance will drive the markets for as long as humans make trading decisions. This was true 100 year ago and is still true. Lots of things have changed but the greed is the same.
One Up On Wall Street
This is one of the classic books which most of the investor have read at sometime. But most of the idea he talk to are not actionable and may have been true in 90’s but don’t seem to have much weight now, But if you are interested in knowing how some of the ace investor of our time think, this is a good read and get you idea which you can include in your trading practices.
Market Wizards
A Random Walk down the Wall Street
This is more of a basic book on stock investing which introduces readers to concept like Diversification, Bubble and the value of patience in investing. Sort of an elementary book but if you are just starting to invest in the market, introduces you to lots of basic terminology which you should be aware of while trading.
Japanese Candlestick Charting technique
This is more of a practical book for someone who want to get in depth understanding of technical charts specifically Candlestick charts. Introduces all the sample chart pattern like Head and shoulders, Doji, Hanging Man etc. Good book if you are interested in technical analysis. Even if you are investor mostly doing fundamental analysis, a good book to read to get better support and resistance point for the stock you have in your portfolio.
Options Futures and other Derivative
This is again a practical book which introduces the reader to F&O. This is more of a book return for college student to understand derivatives but very in depth in nature. Very good read if you are just starting to explore Derivative or have some understanding but want to better understand the pricing of the derivatives contract.
The list is not exhaustive and there are many more books which you will be able to find online. The books I have selected are the once which I feel are good for reader who are just starting in the market. The list is somewhat skewed towards international books as not many Indian stock market book are available in the market. But things are changing now and every year, there are 3-4 good books which are getting written about the market.
If you think that I am missing some books, do let us know your comments and we will try to add the review of those books also. Just keep in mind that the books you recommend should be easy to read from a layman perspective and not very technical in nature.
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