All Financial Wisdom

5 Books to Learn How to Invest in the Stock Market

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One of Benjamin Franklin’s most celebrated phrases is about investment. “Investing in knowledge always produces the best benefits,” said the inventor in the seventeenth century and is a phrase that continues to have value, especially when it comes to increasing the wisdom of people.

The skills needed to invest in the stock market are not acquired overnight. We write a lot about advanced trading techniques but we don’t want to leave out the beginner crowd.

And although investing in the stock market is still a complicated activity, there are numerous Fintech apps to help you get started. This is the millennial guide to investing in the stock market.

For the more experienced and those who do not want to see this as an alternative but a way of life to become a full time trader or investor, there is a lot of literature at your disposal.

However, a quick caveat. Before you decide to invest, you should make sure that you have an emergency fund set aside first. You need to learn fundamental analysis, technical analysis, monetary management (how much you designate each trade), and know how much you are going to allocate to each investment, which requires a learning curve of at least 2 years.

Start reading and then go to simulators online. When you have 70 percent of profits and 30 percent losses, you can start to trade in real life. With that, here goes:

5 books to learn how to invest.

 

1. “The New Market Wizards: Conversations with America’s Top Traders” by Jack D. Schwager

If you could ask a seasoned Wall Street investor several questions, what would you ask? In this volume, the author asks questions of what happens in a routine day in the international financial markets.

2. “Daytrading”, by Borja Muñoz

What systems are used to exchange capital? What risks should be prevented on a day of trades? Is it good to speculate? A book for those who already have the basic concepts of compound interest and analysis and introduces the reader to concepts like Forex (Foreign Exchange) and how to make decisions on a day of stock trading.

3. “5 Moving Average Signals That Beat Buy and Hold”, by Steve Burns

The author is one of the most experienced investors in the stock market, with more than 13 books published to understand the movement of capital and how the world’s major securities behave. This is his latest book and gives practical advice to those who already have experience investing.

 

4. “Trading Psychology 2.0: From Best Practices to Best Processes” by Brett N. Steenbarger

The psychology of trading 2.0 describes how to react and anticipate correctly in situations of volatility. This guide made with a psychologist expert in the matter and immerses in situations that simulate the negotiation among investors brought to the digital field.

5. “The Outside Edge: How Outsiders Can Succeed in a World Made by Insiders” by Robert Kelsey

The business of the investor is traditionally formed from financial institutions such as brokerage firms or banks, however, this book describes how a person who was not groomed in the corridors of the Stock Exchange can also generate great profits.

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