8 best investing books for beginners you can’t afford to miss

investing books for beginners

Beginners can often find investing confusing and overwhelming. If you don’t understand the market and are not familiar with its volatility, investing without adequate knowledge won’t make any sense at all. 

 

Knowledge is the greatest power. Every beginner who is starting to learn investing should start by investing in themselves first. And how can you invest in yourself? – By exploring and thoroughly reading the variety of stock market books that can help you get started. 

 

These books will be the greatest booster in your investment journey. They will not only help you avoid the mistakes every beginner investor makes, but also help you analyze the markets well and make wise financial decisions.

 

There are probably a vast number of stock trading books available in the market. 

 

To sort out a few of them, we have made a list for you giving a brief idea of the best books on investing. 

 

These stock investing books have been read by millions of people who had just started their journey as beginners in the stock market. Therefore you can start investing in such resources that could prepare you to get started the right way. 

1. The Richest Man in Babylon by George S Clason

The Richest Man in Babylon is such a book that’s practically a headstart for every investor.

 

In this book, George Clason teaches you about different financial rules using a parable set 8000 years ago in ancient Babylon with a protagonist named Arkad. 

 

The protagonist in this book takes us through his journey of being a poor scribe in Babylon and how he becomes the richest man in Babylon. 

 

This book will help you with personal wealth through financial principles. It’s a very simple book that will reveal the important financial rules to remember while starting your journey of investing, depicted in a very interesting storytelling narrative.

2. A Random Walk Down Wall Street: Including a Life-Cycle Guide to Personal Investing

As a beginner, one needs the right guidance on how to start investing at a young age. The book “A random walk down wall street” will help you to start your investing journey on just the right note. 

 

This best-selling guide will cover topics such as tax management, automated investment advisers, risk parity, and the bitcoin hype. 

 

It will help you gain confidence and maintain a calm pace through the volatility of the market. This book is an excellent choice for beginners in the long term. It has been written by Burton Gordon Malkiel, a Princeton University economist, popularised by the random walk hypothesis. 

3. How to Make Money in Stocks: A Winning System in Good Times and Bad, Fourth Edition

The book ‘How to make money in stocks’ is actually a comprehensive guide involving illustrations like chart graphics, and new research tools for the better understanding of the reader. 

 

Consider it a practical guide for anybody that wants to start their investing journey.

 

The topics in the book revolve around reading the financial newspapers, choosing the right industry groups to invest your money in, reducing losses, analyzing charts for stock selection, and going through news regularly to turn out profits.

4. Rich Dad, Poor Dad by Robert T. Kiyosaki Sharon L. Lechter

Rich Dad, Poor Dad is probably one of the most-read investment books. 

 

Being an “Excellence in Education” award winner, the book is one of a kind as it perfectly compares the narrative of two equally opposite scenarios.

 

The book takes you through the journey of a kid who has two fathers, one rich and the other poor. It will help you explode myths to become rich. It will explain to you the difference between working for money and money working for you. 

5. One Up on Wall Street by John Rothchild and Peter Lynch

One up on Wall Street is a great option for beginners in the stock market field.

 

Written by one of the most successful mutual fund managers and philanthropists Peter Lynch, the book explains how the authors understood the meaning behind investing comprehensively and how they developed their portfolio over the years.

 

Being a very practical guide, the book will explain how investing just some time in the financial statements of the company will give you a path on how to shoot long shots from practically nothing.

6. How to Day Trade for a Living

The book “How to day trade for a living” gives you an in-depth understanding of how to work as a day trader, where to start, and how to start. 

 

It explains what you can expect in your day as a day trader, how it is different from other types of investing and trading, and how you can develop strategies around it. 

 

It’s not a very long book but the details provided are short and crisp, providing the information that is important so that you can finish the book and not leave it in the middle by getting bored. 

 

This is one of those books that will tell you exactly where to get started and how to benefit from different day trading strategies. 

7. The little book of common sense investing by Jack Bogle 

The little book of common sense investing is exactly what it sounds like.

 

It shows how to avoid poorly managed, overpaid funds by low-cost, passive index funds as a sustainable investment strategy. 

 

What John Bogle did was come up with one of the best prevailing investment ideas in the world. How? By just mimicking what the indexes are doing and not managing it. 

 

His invention of an index fund is the safest and most preferred way of investing by beginners today. So if you are just starting, you can start by reading his little book on how to get started in investing. 

8. I Will Teach You to Be Rich by Ramit Sethi 

The book I will teach you to be rich is a perfect guide for people in their 20s and 30s to start investing.

 

Starting early in investing has its perks but even if you are in your 30s and want to start now, it’s never too late. 

 

Written by the New York times’ best-selling author Ramit Sethi, the book revolves around strategies for youngsters for eliminating student loans and debts, how to prepare to buy a car or a home, and create a fine balance between their spendings and savings. 

 

It will make you understand the psychology of investing and how to make investments that grow with you, and how you can spend money without feeling the guilt of it. 

Conclusion 

These books were all best sellers in their timelines. Each one of them provides different aspects of investing and trading. 

 

While some of them have a psychological point of view for investing, most are storytellers which give you a very relatable financial overview.

 

Each book has a different aspect but the purpose of these books is the same, i.e to provide the best advice for investing to beginners by expert investors who have been in the stock market for a long time and whose strategies have been proven to work again and again. 

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