8 Must-Read Stock Trading Books for Beginners

Most traders are either not making the right investment decisions or trust the correct sources. That is why it is essential for beginners to first educate themselves about all the small concepts and principles of the stock market. 
Written by
Danish Mohd
Published on
September 25, 2023

As per a report, there are almost 10 million forex traders across the globe, of which 27% are between the ages of 18 to 34 years. 

However, only 15% of those traders successfully make a profit. Most traders are either not making the right investment decisions or trust the correct sources. 

That is why it is essential for beginners to first educate themselves about all the small concepts and principles of the stock market. 

The best way to do the same is to get knowledge from books written by stock market geniuses. 

Find below a list of the 8 Must Read Stock Trading Books for Beginners:

1. A Random Walk Down Wall Street

The author of A Random Walk Down Wall Street, Burton G. Malkiel, is a Princeton Economist who has explained all the basics of stock market trading for everyone, starting from beginners to entrepreneurs and novices. 

Many important concepts, like the significance of having patience and time while trading, bubbles, trends, indexing, etc., have been described here using simple words. 

This book is very popular mainly of its random walk hypothesis, where he mentions that asset prices usually show ‘random walk’ indications, and thus, it is impossible for traders to outperform averages in the stock market consistently. 

The author mainly advocates for traditional strategies like technical and fundamental analysis for the investors to be at the top of their games.

2. How to Make Money in Stocks

One of the most popular trading books among active traders is How to Make Money in Stocks by Willam J. O’Neil, the chairman and founder of ‘Investor’s Business Daily. 

Any beginner can learn all the mysteries of stock market trading, including choosing the right stocks and finding the best ETFs and bonds. 

Also, this book talks about spotting the current market trends to take advantage of them. 

3. Stock Investing for Dummies

When it comes to investing in the stock market, having basic knowledge is a must for all beginners. That is exactly the purpose that this book by Paul Mladjenovic serves. 

Readers will find all the basic topics, including all details about Exchange Traded Funds, investment vehicles, all the new rules, exchanges in the stock market, how to be more diverse in the market, etc. 

Along with this, the book also talks about ways to be protected in the volatile world of the stock market, how to do business etc. 

Also, it includes several real-life examples, basic maths related to stocks, and how to find the right stockbroker to prepare a beginner for investing in the market.

4. The Intelligent Investor

If any book is considered the holy grail of all the stock marketing books for beginners, it must be “The Intelligent Investor” by Benjamin Graham. 

Benjamin was the twentieth century’s most successful trader and Warren Buffet’s mentor. Although the book was published long ago, the ideas and principles mentioned there are still relevant. The book mainly talks about value investing, loss minimization, and refraining from making decisions based on emotions while investing. The newest edition is available now, and updated data about the modern market has also been included. 

The book has been very well-received among trading enthusiasts and has sold over a million copies worldwide.

5. A Beginner’s Guide to the Stock Market

A Beginner’s Guide to the Stock Market, written by Matthew R. Kratter, can be considered the ultimate guide for first-time traders. 

This book offers many valuable lessons that can help one avoid making beginner mistakes that can be very costly. 

Some of these lessons are where and how to open a Demat account, buying the first stock and all the things to consider while trading, spotting any stock that is very close to blowing up, things to avoid while buying value stocks, etc. 

6. Market Wizards

This stock market book by Jack D. Schwager is a must-read for all beginners to get complete case studies about all-time geniuses of the trading world. 

This book offers interviews with experts like Jim Rogers, Paul Tudor Jones, and Bruce Kovner. The principles presented in the book can be applied in real life. 

7. Technical Analysis of the Financial Markets

Technical Analysis of the Financial Markets by John J. Murphy is one of the best Stock Trading Books for beginners to learn the complexities of technical analysis of the stock market. 

This book is perfect for any newbie in the world of trading, and anybody can learn how to read charts, track and analyze market behavior, understand indicators, etc. 

The book includes over 400 charts and other examples of stock rotation, Intermarket relationships, and candlestick charting to help all first-time investors.

8. The Little Book that Beats the Market

This book by Joel Greenblatt was released in 2005 and became a New York Times Bestseller, selling over 300,000 copies. 

This book is one of the best stock market books to learn the basics of investing in the stock market. In fact, Joel presented the ‘magic formula’, a rational investing strategy that can profoundly help a beginner trader. 

This book is written in a very beginner-friendly manner with the use of simple language along with a touch of humor. 

The book teaches many things, including the right way to view the stock market, the perfect way to use this magic formula tool and be on top of the game in the market, why it is necessary to look at the earning yield and not the dividend yield at the time of investments, etc. 

In Conclusion 

As we all know, trading or investing in the stock market does not run on luck; success here relies entirely on research, method, and the right mental state. 

Reading trading books is the best way to learn all the essential tricks for gathering effective techniques and insights. 

Investing in books written by experts can help make educated decisions while trading.

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