Stop to think for a moment if you’re fully invested in becoming a smart trader. The promises of high returns, tax-free money, and easy gains only become realities with the right education. Luck is on your side; the world has no shortage of educational material, but you need to know about what will actually help. Start with this list of books.
A Random Walk Down Wall Street
The “random-walk hypothesis” explains the unpredictability of market prices. Author Burton Gordon Malkiel relies on fundamental and technical analysis but with a bit of sure caution and even more concern. The book’s premise is simple: Randomness stops you from consistently outperforming the markets.
The Little Book of Common Sense Investing
Consider making sense out of finance if you want to find low-cost investing with high-level returns. John C. Bogle writes about this. He relies on the “buy-and-hold” strategy and encourages you to do the same.
The Essays of Warren Buffett
This book is a preservation of private letters that were written to Warren Buffett’s shareholders. In it, readers get a closer look into how Buffet adapted his every strategy to the circumstances he was facing.
One Up on Wall Street
Having a slight edge on Wall Street could lead to more returns. Having “one step up” may, instead, lead to more caution. Read this book to learn about the most common mistakes in trading. Understanding the errors better equips you to avoid them.
The Only Investment Guide You’ll Ever Need
Andre Tobias published his book in 1978, but its advice still holds true; saving money should be a common-sense game. The tips you learn will help you to build an account that you can then invest with.
The Intelligent Investor
Wit, humor, class, and intelligence turned the writing of Benjamin Graham into a “go to” for technical analysis. You don’t, however, have to rely on these strategies alone; many investors will mix the book’s ideas in with their own trading styles.
Thinking, Fast and Slow
In being one of the recent books on this list, behavioral science is its topic, and developing a better strategy should be the results. Daniel Kahneman is a Nobel Memorial winner; he shares, with a compelling narrative, over 15 years of in-depth research.