Skip to main content

2 Must Read Books For Stock Market Investors.

2 Must Read Books For Stock Market Investors.



It’r really important to know the basics about the stocks before entering the market as lack of knowledge in this field almost always leads to a huge financial loss. Further, loss of capital also leads to a decline in the morale of the investor.
Therefore, today I am going to give you the names of 10 must read books for the stock market investors. So, be with me for the next few minutes while i give you a brief introduction and review about the 10 must read books for stock market investors. Here it goes:

2 Must Read Books For Stock Market Investors:


This book is ranked 1 in my list of 10 must read books for stock market investors. Peter Lynch, the Author of the book, is one of the most successful fund manager with an average annual return of 30% on his portfolio for a period of 13 years. A great record for a mutual fund manager.
  • This classic book explains all the important basics that a beginner should know before investing.
  • From preparing to invest to the long-term view, everything is covered in this book. Here, Peter Lynch describes his stock picking approach for Winning stocks.

The Intelligent Investor




This is also known as the Bible of the stock market. A must read book written by the legendary Benjamin Graham, a.k.a. the mentor of the greatest investor of all time- Warren buffet.
The book explains about the fundamentals of the stock market for value investors. There are three main concepts covered in this book.
First, the investing approach for a defensive investor and enterprising (aggressive) investor. The other two concepts introduced by Graham in this book are- Mr. Market and Margin of Safety for easy explanation of the market behaviour and risk management.
I will highly recommend you to read this evergreen classic book on stock market. There are many concepts that you can learn by reading this book. I have already read this book 2 times.



Comments

Popular posts from this blog

Axis Bank to sell 9% to Bain Capital, others to raise Rs 11,625 crore

The board of Axis Bank on Friday approved stake sale to private equity player Bain Capital and other investors in its bid to raise capital by issue of equity linked securities on a preferential basis. The board of Axis Bank on Friday approved a 9 percent stake sale to Bain Capital and other investors including LIC in its bid to raise capital worth Rs 11,626 crore by issue of equity of equity linked securities on a preferential basis. The issue price of equity Shares at Rs 525 per share while the issue price of convertible warrants is Rs 565 per share. Entities affiliated with Bain Capital propose to invest Rs. 6,854 crore while LIC or Life Insurance Corporation will be issued around 3.02 crore equity shares on a preferential basis to help the bank raise over Rs 1,583 crore, the bank said. Approved by the Board today, Axis Bank proposes to raise Rs 9,063 crore through issuance of equity and the remaining Rs 2,563 crore through issue of warrants. The capital raise ...
THE NIFTY FUTURE  Basics of the Index Futures Within the Indian derivatives world, the Nifty Futures has a very special place. The ‘Nifty Futures’ is the most widely traded futures instrument, thus making it the most liquid contract in the Indian derivative markets. In fact you may be surprised to know that Nifty Futures is easily one of the top 10 index futures contracts traded in the world. Once you get comfortable with futures trading I would imagine, like many of us you too would be actively trading the Nifty Futures. For this reason, it would make sense to understand Nifty futures thoroughly. As we know the futures instrument is a derivative contract that derives its value from an underlying asset. In the context of Nifty futures, the underlying is the Index itself. Hence the Nifty Futures derives its value from the Nifty Index. This means if the value of Nifty Index goes up, then the value of Nifty futures also goes up. Likewise if the value of Nifty Index decl...

OPTION TRADING

A Special Agreement There are two types of options – The Call option and the Put option. You can be a buyer or seller of these options. Based on what you choose to do, the P&L profile changes. Of course we will get into the P&L profile at a much later stage. For now, let us understand what “The Call Option” means. In fact the best way to understand the call option is to first deal with a tangible real world example, once we understand this example we will extrapolate the same to stock markets. So let’s get started. Consider this situation; there are two good friends, Ajay and Venu. Ajay is actively evaluating an opportunity to buy 1 acre of land that Venu owns. The land is valued at Rs.500,000/-. Ajay has been informed that in the next 6 months, a new highway project is likely to be sanctioned near the land that Venu owns. If the highway indeed comes up, the valuation of the land is bound to increase and therefore Ajay would benefit from the investment he would mak...