Knowing how and when to begin your trading journey can be an overwhelming task. That’s why we’ve compiled a list of the top 5 books, by some of the world’s most experienced market practitioners, which every trader should read to gain insight into the fundamentals of the global markets and learn how to navigate the industry.
The Intelligent Investor
Benjamin Graham’s classic “The Intelligent Investor” is a staple in every trader’s household. It focuses on the concept of value investing and dollar-cost averaging, strategies that Warren Buffett credits for his success. Originally published in 1949 and later revised in 2009, the book offers young traders traditional wisdom on how the market works and how to make the most of it. “The Intelligent Investor” isn’t necessarily the flashiest book for investing for beginners, but it more than makes up for that with an abundance of grounded common-sense advice.
Broke Millennial Takes on Investing
A more recent addition to the beginner investor’s essential reading list is Erin Lowry’s “Broke Millennial Takes on Investing”. As the title suggests, the book is targeted towards younger investors who are interested in investing but don’t know where to start. Lowry offers a refreshingly new take on the topic by breaking down information like how to buy and sell stocks in an easily digestible way, appealing to a younger demographic. The book does this by walking readers through questions that will particularly appeal to new, young investors, like how to invest in socially responsible ways to where one can find investment advice online.
Trade Your Way to Financial Freedom
Written by Van Tharp, Trade Your Way to Financial Freedom covers both the psychological and system-development aspects of trading. A must read for newbie investors; the book offers a short but comprehensive guide of all entry level techniques to help investors substantially increase their income. The book also features interesting interviews with successful traders giving readers insight into how the concepts can be applied into real life.
The Little Book of Common Sense Investing
Written by the founder and former CEO of the Vanguard Group, John C. Bogle, “The Little Book of Common Sense Investing” is filled with in-depth insights and practical advice about how to get smart about the market. Bogle reveals his key to getting more out of investing: low-cost index funds. The book also details the simplest and most effective investment strategy for building wealth over the long term: buy and hold, at very low cost, a mutual fund that tracks a broad stock market Index such as the S&P 500.
A Random Walk Down Wall Street
Burton G. Malkiel’s invaluable read offers a step-by-step guide on investing through straightforward, long-term strategies and breaking down technical jargon for beginners. “A Random Walk Down Wall Street” includes a list of key investment terms and it applies them to various investment strategies geared toward different stages in life.
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