Investing in shares or any other business and making a living out of it is really a challenging job. You cannot fully depend upon your luck while making investment decisions. The best thing to do is to know about the investment ideas and strategies and apply them to increase your profit as well as reduce the overall risks and losses associated with your investment.
So what is important is to gather the knowledge and information related to investment. In doing so, one of the best ways is to study good books on investing. If you are a beginner to the stock market or want to learn more before you invest, then the following 7 books can be very helpful for you.
The Intelligent Investor by Benjamin Graham
This book by the famous economist and investor Mr. Benjamin Graham emphasizes value investing. To generate long term profit, you need to pick good companies with high intrinsic value. So, value investors make their investments by considering the fundamentals of the company.
How to make money in stocks by William J O’ Neil
This book is written by American entrepreneur, stockbroker, and writer William J O’ Neil. The writer advocates that the winning investor’s objective should be to have one or two big winners rather than dozens of very small profits.
One Up to Wall Street by Peter Lynch
This book is written by an American investor, mutual fund manager, and philanthropist Peter Lynch. One Up lays out Lynch’s investment technique including chapters dedicated to stock classifications, the two-minute drill, famous numbers, and designing a portfolio.
When to Sell by Justin Mamis
This book explains the principles and strategies behind the profit-oriented selling decisions of experienced professionals, providing guidelines for using stop-loss orders, selling short, trading and holding, and other actions.
A Random Walk Down to Wall Street by Burton G. Malkiel
This book is written by economist Burton G. Malkiel. It covers the subject of stock markets. The book emphasizes that one cannot consistently outperform market averages. This is because the prices of the asset typically exhibit signs of random walks.
The Little Book of Common Sense Investing by John C. Bogle
It is written by the founder and the former CEO of Vanguard Group, Mr. John C. Bogle. The book focuses on the importance of index funds which will provide an average market return to the investors.
Thinking Fast and Slow by Daniel Kahneman
It is one of the best-selling books by Daniel Kahneman. This book will help you explore how your thought processes can affect your success in investing.
It is always wise to invest after gathering some knowledge and ideas on investing. So, you must invest your valuable time to pick up good books and make a careful study regarding investment ideas, strategies, and decisions. This can lead you to a thought process that can help you make wise decisions while investing.