Nine obligatory reading for a novice investor 

Investments - this is an increasingly common word on the lips of many people. For the most part, however, it is spoken thoughtlessly. Investments are not only about putting out a pool of cash, waiting for profit and increasing own resources. Investments are an art that requires specialist knowledge, commitment and a bit of luck. Every novice investor should read the following nine literature items, thanks to which he will be able to avoid many mistakes without experiencing them on his own skin and wallet. 

Let's take a closer look at the topic. Curious? Let's start! 

1. "Wandering on Wall Street" by Burton Malkiel

An insanely popular position, thanks to which all novices with a head full of dreams about their first million will get a large dose of realism and a cold shower that will allow them to think rationally about investing.

What is the leitmotif of this item? One of the most important rules on the investment market - never you will not win with the market. The main message? It's better at first invest in an ETF (for the uninitiated, these are index fund units that reflect the composition of the stock index) to the largest the US S&P 500 index than trying to "catch" lows and lows on a specific action. 

Initial hard investments usually beat our resources, and we start to make rational decisions only after a series of enthusiastic impulses. A proven strategy of effective investing is the position from which we should start our adventure with investments.

2. "Warren Buffett's Wallet" by Robert Hagstrom

Everyone who has been interested in the issue of investment in any way, the slightest way, knows the character perfectly well Warren Buffett. Widely and unanimously considered one of the best investors in the world. No wonder that many books have been written about him, and many interviews were conducted with him in order to learn a little about the secrets of his success. 

For many, another book, "Snowball: Warren Buffett and the Business of Life" by Alice Schroeder is a kind of Bible (by the way, it's also worth reading). Warren's Wallet is a book about how to invest. So it is a purely technical item, presenting specific criteria, calculations and examples from the history of the great master's investing. 

3. The "smart investor" by Benjamin Graham

After reading the previous two items, it is worth exploring your knowledge even more. Since investing is a river topic, reading two books is just the tip of the iceberg. It is a book that requires a certain amount of knowledge due to the rather complicated language and the complexity of the arguments. 

Curiosity? Benjamin Graham taught… Warren Buffett at Columbia University. Buffet said he could even work for free for Graham, so an interesting and rich personality was for him.

Be sure to check out the book. 

4. "Memories of a stock trader" by Edwin Lefevre

Something for relaxation after the book of Benjamin Graham. Interestingly, even though it is a novel, you will learn from it more about investing than from more than one textbook. Real stories are best remembered.

Learn the story of the legendary speculator Jessie Livermorewho tended to avoid 'investment advice' and disbelieving the gossip but focused more on price fluctuations. He did not care about the reason for the rise or fall in prices, only the movement itself paid attention. He was a supporter of broadly understood technical analysis, aware of his trading skills. It allowed him to quickly recover from numerous bankruptcies ...

Make money in the stock market by simply doing nothing.

5. "Common Stocks, Extraordinary Profits" Philip Fisher 

Philip Fisher invested in Motorola stocks, which became his main focus success. According to the author, what counts is the qualitative approach, followed by the current valuation of the enterprise.

Extremely popular position, for many years in the hands of thousands of investors around the world. One of the first investing books to be entered on the New York Times bestseller list. It was established over 50 years ago, but it still amazes with its practical and up-to-date approach to stock market investments and broadly understood business.

6. "Conscious investor" Paweł Zaremba-Śmietański 

Of course, the Polish position could not be missing. This is a book that you really can't be ashamed of. It is not another textbook that is not very informative. The author carried out the research on his own, which significantly increases the credibility of the item.

One of the curiosities is the fragment that tells about the harmfulness of the purchase of own shares by listed companies for small shareholders. Only the main owners of enterprises benefit from this.

7. "Beat the Stock" by Peter Lynch

Lynch invested in growth companies with well-defined characteristics. The Fidelity Magellan investment fund managed by him continuously for 13 years achieved an average annual rate of return of around 27%.

The title of the item is not just a marketing gimmick. The author has developed precise and quantifiable criteria on which you can create an investment portfolio. It is worth taking the practical advice of a market genius and learning the techniques that will allow you to effectively use the potential of the stock exchange.

8. "Japanese Candles and Price Chart Analysis" by Steve Nison

If you've reached this point, we can assume it's time to tackle the so-called "Cherries on the cake". Investors focus on technical analysis, claiming that history likes to repeat itself.

By delving into this position, you will learn the complete descriptions of candlestick patterns, the philosophy of their effectiveness, and the methods of trading based on them. You will learn how candlestick patterns can be combined with tools such as trendlines and moving averages.

9. The "Most Important Thing" Howard Marks 

Safe and responsible investment in value - this is one of the guiding principles that every investor should follow. Find out what defensive investing is, the contrarian approach, and the concept of second-level thinking. 

After reading this book, you will understand what the theory of market efficiency is, you will begin to pay attention to cycles, control risk, use your intuition in today's volatile markets, and you will also learn the most important - patience.

Start your adventure with investments based on the experience and knowledge of the greatest leaders. Don't make their mistakes! To work! 

The article was prepared in collaboration with Robert z invest financee.pl