Trading is inherently risky. Financial markets are incredibly complex and their behavior depends on both economic fundamentals and human psychology. However, that doesn’t mean you can’t understand them and trade successfully – you just need to learn how they actually work. That’s why we’ve curated this list of basic books that can come in very handy if you want to learn how to trade. Let’s check them out.
Technical analysis from A to Z — Steven Achelis
Technical analysis is essential for every trader, and this book is widely regarded as one of the best ways to learn it. Achelis is an experienced trader who has developed his own market analysis system, and here he explains it in the simplest way. This makes this book incredibly useful even for complete beginners.
Beat the Street – Peter Lynch
As useful as technical analysis skills are, you can’t really trade without understanding fundamental analysis: reports, opinions, etc. And this book has everything you need for a good start. Written by a legendary investor, it teaches you how to watch the markets, mitigate risk and avoid devastating mistakes. It is definitely one of the best business books the low.
The Intelligent Investor – Benjamin Graham
One of the most well-known books on investing, this iconic tome clearly articulates all the most basic principles of creating your own stock market trading strategy. Here you will find a wide variety of tools and tips that you can apply to almost any situation. They are so universal that you can probably use them even to trade cryptos or similar assets.
How I trade for a living — Gary Smith
This is another book dedicated to creating your trading strategy. Writing by a self-taught trader who turned $2,000 into $650,000 in just 13 years, this work teaches you how to replicate those results without taking too much risk. But what’s even better, it helps you develop a calm and thoughtful approach to trading that can save you from losing your money.
Negotiating in the Zone — Mark Douglas
Even if you’re an expert at analyzing the markets and strategizing, you can lose it all with just one impulsive decision made out of fear or greed. That’s why you really need to learn one out of two things in psychology, and it’s a perfect book for beginners. It explains how traders can maintain a stable psychological state and what factors can interfere.