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Ask HN: Introductory Books on the Stock Market?

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Re: Ask HN: Introductory Books on the Stock Market?

#32
One book that I have enjoyed is "The (Mis)Behavior of Markets: A Fractal View of Risk, Ruin, and Reward" by Benoit Mandelbrot. Have a look at his Wikipedia page, it has a link to the book on the Internet Archive.

Many here have mentioned "A Random Walk Down Wall Street"; let me add that there exists a book called "A Non-Random Walk Down Wall Street", but I haven't read it yet.

Browse Wikipedia on any trading-related topic you find interesting and you are probably going to find some books, such as "The Quants" https://en.wikipedia.org/wiki/The_Quants

Finally, you might want to check out the works of Jack Schwager [1], Michael Lewis [2] or Ed Thorpe [3].

[1] https://en.wikipedia.org/wiki/Jack_D._Schwager

[2] https://en.wikipedia.org/wiki/Michael_Lewis

[3] https://en.wikipedia.org/wiki/Edward_O._Thorp

Re: Ask HN: Introductory Books on the Stock Market?

#33
post #15

The book that provided me with the proper knowledge about investing in the stock market would be: The Five Rules for Successful Stock Investing: Morningstar's Guide to Building Wealth and Winning in the Market The reason I recommend this is because it teaches you how to read IFRS Financial Reports and calculate Discounted Free Cash Flow , with practical examples. Fun fact: many people have asked me over the years wha…

I was put off by the title of this book, but after reviewing the Table of Contents, I'm quite intrigued and I'll be picking up a copy. Thanks for the recommendation -- I probably wouldn't have gotten past it's title without it.

Re: Ask HN: Introductory Books on the Stock Market?

#36
post #33
post #15

The book that provided me with the proper knowledge about investing in the stock market would be: The Five Rules for Successful Stock Investing: Morningstar's Guide to Building Wealth and Winning in the Market The reason I recommend this is because it teaches you how to read IFRS Financial Reports and calculate Discounted Free Cash Flow , with practical examples. Fun fact: many people have asked me over the years wha…

I was put off by the title of this book, but after reviewing the Table of Contents, I'm quite intrigued and I'll be picking up a copy. Thanks for the recommendation -- I probably wouldn't have gotten past it's title without it.

My pleasure!

Yes, to be fair I was skeptical at first as well, the title does look like click-bait. But it was recommended to me by somebody that I trust knew what he was talking about, after that person gave us a talk about the stock market's financial reports and shareholders meetings. I guess the down-votes I got were because of a similar reaction from others, I'll have to keep in mind to write a disclaimer next time I recommend it.

By the way, if you get around to reading it, please drop me an email if you'd like to discuss about the content or need extra clarification on certain topics, or more practical examples (you'll find your way to my email from my user profile). I know I needed in the beginning and couldn't find anybody to talk to since I was the only one in the group that read it, and I was too embarrassed to ask the "mentor" such trivial questions.

Re: Ask HN: Introductory Books on the Stock Market?

#37
post #27

Some topics to Google: Fundamental vs technical analysis, Buy and Hold, Dollar cost averaging, Risk management ( https://www.optionsprofitcalculator.com/ ), Option greeks that should get you started

A couple more: risk of ruin, and kelly criterion

Re: Ask HN: Introductory Books on the Stock Market?

#39
A few recommendations, which follow more fundamental investing, some people have already mentioned:

One Up on Wall Street, 2nd ed. Lynch, Peter - explains what i think is a good way of looking at the stock market

Common Stocks and Uncommon Profits by Philip A. Fisher - shows importance of having investment philosophy

Ahead of the Market: The Zacks Method for Spotting Stocks Early - by Mitch Zacks - shows the importance of quarterly earnings

The Five Rules for Successful Stock Investing: Morningstar's Guide to Building Wealth and Winning in the Market - how to perform proper analysis on company

How to Make Money in Stocks: A Winning System in Good Times and Bad by William J. O'Neil - shows example of growth/momentum investing

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