Books for investors are a huge storage of knowledge. They should contact both a beginner and an experienced trader. Many books allow you to look at the market with a fresh look and move away from traditional solutions. The best of them won the title of bestsellers and are used by investors from around the world.
What books should you read for both a beginner and an experienced investor?
There are many books on the market, but, unfortunately, not all of them are written in an understandable language and not everything is as valuable as you might expect. But the best book to learn how to invest are here.
1. “Think slowly, decide quickly” Daniel Kaneman
Daniel Kaneman is an American economist and psychologist, Nobel Laureate of the 2002 economy, which he received for the use of psychological methods in the economy.
Are people conscious and autonomous authors of their own choice and judgments? Do they really always make rational decisions? Of course, I want to believe that we are able to think objectively and reasonably, but the trap of thinking is more difficult to avoid than it seems. This happens with investors and does not help make the right decisions.
In the book, Kaneman explains how the mind works and describes how our thinking is determined by two systems: the first – quick, intuitive and emotional, and the second is slower, but more logical. Kaneman reveals interesting opportunities, but also mistakes and disadvantages of rapid thinking, indicating how intuitive sensations overwhelmingly affect our thoughts and behavior. The book will be useful to both experienced and novice investors. Even more books on this and other topics can be found in this selection of books for self -development.
2. “Black Swan” Nassim Nicholas Taleb
Nassim Taleb is an American philosopher and economist of Lebanese descent. In his works, he focuses on the issues of probability, accident and uncertainty.
According to the definition of Taleb, “black swan” is an extremely rare event located at the very end of the tail of probability distribution, but has a huge impact on the environment and peace. According to the author of the book, most people are not able to adequately respond to “black swans”. They focus on the past, trying to understand where the error has occurred and create models of future behavior based on past events. This does not work, it is better to change your type of thinking and try to develop immunity against those very “black swans”.
The book of Taleba has become a cold shower for many economists and experts of the financial market. Written before the financial crisis of 2008, it has become popular only after it and is now considered an almost prophetic vision of the future. And during the new Black Swan, Covid-19, the work is again by ear and inspires business people.
3. “Technical analysis. Full Course “Jack Schwagger
Among the many textbooks on technical analysis, Jack Schwager’s book occupies a very important place. In this book, the reader will find a complete review of the methods of technical analysis, ranging from discussing typical graphs to complex and rare models.
Technical analysis of a blogger is practical and contains many examples that can be considered as specific tests of investors’ behavior in specific market situations. An important element of the book is a description of the entire methodology for creating automated trading systems – from an idea, the choice of market and tools to specific solutions.
The book is written in a very accessible language and can be recommended both to investors who begin their adventure and experienced traders who want only to systematize their knowledge.
To be an investor means to constantly learn, improve your knowledge and personality and not be afraid to look forward.