A lot of experts will tell you that today, 2021 in the next few years are some of the best times to get into the stock and the cryptocurrency market. Both of these worlds are currently blooming with opportunities and easy ways to get rich. But, to get rich in either of these markets, you will need to have a bit of experience and a lot of knowledge in regards to trading. So, if you are a new trader, you will need to learn a lot of things. The best way to achieve that is by going through some must-read books.
However, with thousands of books related to starting training, it may seem impossible to find which ones are the best. Every expert recommends and condemns different books and authors.
To stop the confusion, I decided to write this article and to tell you about all of those books that you must read as a new trader.
1. A Random Walk Down Wall Street – Burton Malkiel
Written in 1973, A Random Walk Down Wall Street by Burton Malkiel specifically focuses on the random walk theory. This theory specifies that the price of the stocks are random a lot of times which means they cannot be predicted.
In other words, no matter how good a trader really is, it is impossible for them to be always right and went. A loss is expected because of this unpredictability.
Why is this a good book for a new trader? Well, it is important to have this knowledge and to understand that there is no technique that works 100% of the time. You should always be ready for the loss.
However, this also does not mean that you should not follow any strategies. The strategies do exist and they are effective. Without utilizing said strategies, you will never end up making profits, unless you have a lot of luck.
Even if you do not support the random walk hypothesis, I still think this is a good read and it is quite popular even in 2021.
In fact, in 2020, about 1.5 million copies were sold.
2. A Beginner’s Guide to Day Trading Online – Toni Turner
With the introduction of the Internet and later applications that allowed people to buy, sell and analyze the state of the stock market, it is so much easier to trade nowadays. In the past, only a certain number of people could afford to trade. Only those that had the financial power, connections, and some knowledge on the subject. You need a lot of money to get into this world.
However, that is not the case anymore. These days, anyone can start trading on the stock market. You can start with just one dollar if you want. It is not going to get you far, but at least you have the freedom to do that.
So, if you plan on trading online, A Beginner’s Guide to Day Trading Online by Toni Turner is a great read. Since you will not and should not resort to most traditional strategies and techniques, with this book you will know exactly which tools and tactics you should use for success.
Toni Turner is quite a successful investor, so it would be a good idea to stick with his advice. It is a very useful guide, you will also learn exactly which skills you will need to be successful with your online day trading.
Yes, day trading is stressful and very difficult, but it can also be highly profitable in a very short amount of time. Of course, only if you know exactly what you are doing. And with the guidance of Toni Turner, you will know what you need to do.
There is one thing that every new trader has to remember. The market is ever-changing. Every hour, every minute, and every second, the prices change, the trends change, etc. This means that one single book cannot tell you what you should and should not do. It is only there to provide you with some information on popular techniques and needed skills.
To be successful, you also need to obtain daily and fresh news of the stock market as suggested by beststocks.com. Fortunately, there are tons of websites that constantly report changes of every segment in the stock market.
3. How to Make Money in Stocks – William O’Neil
Referred to as a classic by a lot of previous and current investors. This book is based on the research and studies of a lot of successful investors. Following their mindset, skillset, and pattern.
By thoroughly analyzing every step a successful investor has made throughout their life, it may be possible to figure out the easy path to success by trading stocks. At least, this is what William O’Neil believes.
Since the original release of this book in 2009, a lot of things have changed. However, that does not make the information in there obsolete. In fact, the information and there may be more useful than ever.
4. The Disciplined Trader – Mark Douglas
The author, Mark Douglas was a very successful investor and quite experience in the day trading world. And we all know how volatile and stressful day trading can really be. The people that can endure that kind of stress have to be very disciplined.
This book from Mark Douglas focuses exactly on that issue. The mental state of the average investor. For a trader to be successful, they have to understand the psychological requirements. Without the right type of mindset and behavior, it is impossible for a beginner or even a veteran to overcome the challenges and problems of a day trader.
Mark Douglas goes very deep into this topic and by reading this book, he can indirectly help you develop the best skills that are needed for trading in the stock market.
As I mentioned in my introduction, there are thousands of books out there that make all kinds of claims. But, you can skip all of those because these 4 are those must-read books for every new trader.