Reading for Investors and Traders
If you are a trader you might not love to read but you love to learn and trade. Learning and trading come hand in hand as we all know. Learning is a never-ending process, and learning comes in many forms. Learning may be through practice, experience, failures, analyzing competitors, and many more ways.
Similarly, learning for traders comes includes many ways. This involves reading various newspapers and financial websites, listening to updates from financial news networks, analyzing the market, trading practically.
How is Reading related to Investing?
Reading includes insight into all the standard investment vehicles, including stocks and bonds, money markets, real estate investment, and tangible assets, as well as thoughts on how retirement should change your portfolio. It also includes a chapter on behavioural finance, or how emotions and biases affect our financial behaviour and therefore, our investment strategies and a lot more topics. And the beauty of reading is, it is helpful to traders of each stage and each type.
Traders should make it a habit as reading will not only teach you how to evaluate a business but also explain that what things might not help you. As it is your hard-earned money, you would surely not want to lose it in a snap. Even if you understand investing basics, you might struggle to incorporate them and manage them with your personal finances at the beginning. By reading the words of experts, you get advised to execute the investments in manageable steps includes insight into all the standard investment vehicles, including stocks and bonds, money markets, real estate investment, and tangible assets, as well as thoughts on how retirement should change your portfolio. This updated version also includes a chapter on behavioural finance, or how emotions and biases affect our financial behaviour and therefore, our investment strategies.
Books are filled with numerous pearls of wisdom on trading that are still often retained by even the best of traders we know.
Why is Reading Important for Traders?
You Gain Knowledge.
You get aware of the possible mistakes you can make
Vocabulary and Terminology Expansion.
You get exposed to Stronger Analytical Thinking Skills.
Study other expert traders
Discover the market forces
Know about the rare market conditions
Inspiration from the great investors and traders.
These benefits not only help you learn the stock market and its factors but contribute to identifying the specific factors that influence the market as a whole. Learning can be a major source of information and exposure to the remotely executed master trades.
Lastly, if you want to be a successful trader, you might know you need to be very accurate and precise in studying the market, you should follow the process used by successful traders.
And the best way to do so is to read the best trading books out there.
However, there is no end to books you can read to learn about trading in the financial markets. But, we would suggest to you a few popular and useful books for beginners and as well as professionals.
Books for Beginners
The Intelligent Investor
Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns
A Random Walk Down Wall Street
Market Wizards
Trader Vic II: Principles of Professional Speculation
Morningstar's 30-Minute Money Solutions
The Five Rules for Successful Stock Investing
How to Make Money in Stocks
A Simplified Approach to Option Strategies
Options, Futures and Other Derivatives by J.C Hull
These books are often recommended by professionals for first-time investors, especially those who are interested in learning and encourages investors to develop necessary skills that will help them compete with advanced investors who have been in the market for many years. Some books also take a psychological approach, helping readers develop the right mindset for investing and trading stocks.
Other Popular Books on Investment
One Up On Wall Street – Peter Lynch.
The Intelligent Investor-Benjamin Graham
Beating the Street- Peter Lynch
The Warren Buffet Way- Robert G. Hagstrom
Stocks to Riches – Parag Parikh
Bulls, Bears and Other Beasts – Santosh Nair
Guide To Indian Stock Market- Jitendra Gala
The Little Book That Beats the Market
Broke Millennial Takes On Investing:
The Millionaire Next Door
Reminiscences of a Stock Operator
These books have been a best seller, each book has its speciality and area of focus. While trading you might learn from your own mistakes, but while reading you learn from others’ mistakes too.
Here are 19 great quotes that inspire you to earn and learn
"The first rule is not to lose. The second rule is not to forget the first rule."
"If past history was all there was to the game, the richest people would be librarians."
"Risk comes from not knowing what you’re doing."
"Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it."
"Buy on fear, sell on greed."
"Amateurs want to be right. Professionals want to make money."
"If you want to have a better performance than the crowd, you must do things differently from the crowd."
"The four most dangerous words in investing are 'This time it's different."
"If you are not willing to own a stock for 10 years, do not even think about owning it for 10 minutes."
"Wall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway."
"I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years."
"In the business world, the rearview mirror is always clearer than the windshield."
"Stock market bubbles don't grow out of thin air. They have a solid basis in reality, but reality as distorted by a misconception."
"The financial markets generally are unpredictable. So that one has to have different scenarios. The idea that you can actually predict what's going to happen contradicts my way of looking at the market."
"Go for a business that any idiot can run - because sooner or later, any idiot probably is going to run it."
"In this business, if you're good, you're right six times out of ten. You're never going to be right nine times out of ten."
"Wall Street people learn nothing and forget everything."
"Time is your friend; impulse is your enemy."
"What seems too high and risky to the majority generally goes higher and what seems low and cheap generally goes lower."
Books that teach the art of Investment and Trading and offer a great way of learning the ins and outs of the market at convenience. By reading a book, you consume a huge amount of research in a relatively short amount of time, and it is one of the best ways to improve your skills.
You might gain or lose in trading, but will only gain from reading and lose nothing!