You have several half-read books on stock market stacked up on your nightstand, several more squirrelled away in a desk drawer and your wishlist, but still, you can’t get a grasp of where to begin your stock market journey.
Believe me! it’s what most newbie investors go through. Well! How do I know this?
I have gone through many such lists of best books on Indian stock market for beginners and been in the same place that you are right now all dazed about the mechanics of the stock market even after going through dozens of books on investing.
The problem with most book recommendations out there is that they do not cover the history, terminologies and case studies of different companies in the Indian stock market as they are only concerned with the US stock exchange.
Although the basic principles remain same throughout all markets in the world, but having case studies and experiences of successful investors in the Indian market can help you better understand the market before you take that final call on choosing your stocks.
Venturing into the stock market without any fundamental knowledge about the market can lead to a financial catastrophe.
Keeping this in mind, here are 10 Best Books on the Indian Stock Market for Beginners (the only 10 books that you need to read on the Indian stock market) that will clear all your doubts about how, where, when and, why to, invest in the stock market.
Let’s dive right in.
Here’s a list of 10 Best Books on Indian Stock Market For Beginners
The Autobiography of a Stock, by Manoj Arora
As a beginner in the stock market, many of our initial decisions are a result of falling prey to ‘hearsay’ or ‘tips ‘ from online brokers, promising higher returns on your investment.
Many people new to the market, invest without any prerequisite knowledge or understanding. Making sense of even the simplest of terminologies of the stock market can be overwhelming for a newbie.
In ‘The Autobiography of a Stock’ author Manoj Arora, breaks down every basic principle of stock market into easy to comprehend language.
The book uses the storytelling format with a conversational style which makes it fun to read and hikes the readers interest as you go through the book. Here, the ‘Mr. Stock’ himself is our lead character along with Govind, who is a beginner asking questions to ‘Mr. Stock’.
The author teaches you how to gauge the strength of a stock using financial formulas, charts and parameters like EPS( Earnings per share), PE ratio(Price-earnings ratio) with real-life examples.
Moreover, the author has given his own strategies and methods he used to make money in the market.
Easy to understand book, written in a narrative style which breaks down financial terms into layman’s language.
Best book for beginners with zero to little knowledge of investing in the stock market.
Learn Fundamental analyses of a share.
How To Avoid Loss and Earn Consistently In the Stock Market, by Prasenjit Paul
In this book, expert research analyst Prasenjit Paul clears all your doubts and negative falsifications about the stock market.
Paul shows you how thousands of small retail investors fall prey to traps like ‘tips’ and ‘tricks’ circulating in the mainstream investor circles. As a result of which, 80% of retail investors suffer a loss in the market.
This is the main reason why there is a negative outlook towards investing in the stock market as people consider it as a mindless gambling game.
Paul teaches you how to choose stocks that will give you high returns on your investment if you hold them for a reasonable period. This book will teach you how to analyze the fundamentals of a business for choosing stocks with low-risk and high-returns in the long term.
Shows the step-by-step process of how to choose stocks for long term investment.
Learn the how-to identity multi-bagger stocks for higher profits.
How to build a diverse portfolio?
Check the valuation of a business/ stock.
Do’s and don’ts to avoid loss in the market.
Flirting with Stocks: Stock Market Investing for Beginners by, Dr Anil Lamba
Dr Anil Lamba’s ‘Flirting with stocks’ as the name of the book suggests, will not only teach you how to flirt with stocks but also develop a serious relationship with them.
Lamba uses his witty and tongue-in-cheek humour style of writing to explain complex and often mundane things with clarity and fun.
Being a chartered accountant and expert analyst himself, Lamba has poured his years of experience as an investor in the stock market in the book. Lamba writes about his shortcomings and failures when he started as an investor and traps most beginners fall prey to in the market.
What are stocks? How to invest in stocks? How does a transaction take place? Who decides share prices? What is an index? What are mutual funds? your every question is answered in precise and simple language.
Learn how to interpret a balance sheet.
How to choose a fundamentally strong company (to invest in)?
What investing strategies to employ?
How should you time your entry and exit?
Let’s Talk Money: You’ve Worked Hard for It, Now Make It Work for You, by Monika Halan
The section of our Indian society which struggles the most with managing its money problems is the Indian middle class. A lot of people do not understand the importance of financial planning, and when they do, they regret not starting early.
Expert financial planner Monika Halan, stresses the importance of a ‘systematic’ financial plan to achieve your goals in life. Halan gives a blueprint of how to achieve good long-term gains through a low-risk investment strategy.
If you are a low-risk investor and are planning to invest in stocks through mutual funds then you must read this book to choose the right fund to achieve your financial goals.
Learn how to make a financial plan to achieve your financial goals.
Know the low-risk methods of earning steady long-term profits.
Learn What are mutual funds? How to invest in mutual funds? and Which funds to invest in?
Value Investing and Behavioral Finance: Insights Into Indian Stock Market Realities, by Parag Parikh
Investors psychology plays a vital role in determining how an investor’s portfolio will perform in the stock market. Every human being has the basic emotions of fear, greed, hope and regret which can get in the way of sound investing.
In ‘Value Investing and Behavioral Finance’, author Parag Parikh, helps you understand how vulnerable most investors are to psychological influences, and what they can do to protect their portfolios from the destructive effects of their own emotions.
For Indian investors especially it’s a must-read book.
Understand behaviour trends.
Behavioural obstacles to value investing.
How to spot stock market bubbles?
The Dhandho Investor: The Low-Risk Value Method To High Returns
Another good book on how to gain good long-term profits with low-risk investment strategy, in The Dhando investor, author Mohnish Pabrai unveils the capital allocation strategies of the successful business savvy Patel community from India and presents how they can be applied successfully to the stock market.
Pabrai stresses the principles of value investing already shown by successful investors like Warren Buffet, Peter Lynch and Charlie Munger.
With an easy-to-read and comprehensible language, the author shows you time-tested sound strategies that work in the longer run.
Learn business strategies used by the Patel community.
How to apply capital allocation strategy to develop a strong portfolio?
Using Kelly formula to invest in undervalued stocks.
Stock To Riches: Insights on Investor Behaviour, by Parag Parikh
The road to success in the stock market is a long journey, filled with hurdles which can be very daunting, especially for amateur investors. Identifying possible threats and eliminating wrong practices within time is very important as you advance in your investing journey.
Parag Parikh, a veteran broker and expert, explains with his easy-to-understand language how to avoid setbacks most beginners face in the stock market.
Be it falling for emotions, price bubble or broker tips, Parikh, educates the layman investor how to use the right strategy to identify and invest in the stocks that will earn good long-term profits.
How to identify threats in the market?
Develop a sound investment strategy.
How to build a good portfolio?
Trading and Technical Analysis Course: How To Trade Safely and Profitably, by Mandar Jamsandekar
One thing most people would agree upon is that it is difficult as an amateur investor in the stock market to get your head around day trading and technical analysis.
Technical analysis is an effective tool for investors looking to gain quick and short-term profits through day-trading. Mandar Jamsandekar, a seasoned day-trader and SEBI registered research analyst has explained complex trading tools and terms in a lucid and easy-to-understand language for absolute beginners.
Mandar has compiled his years of experience as a day-trader into step-by-step chapters explaining how to use candlestick charts, understand trade patterns to time your entry and exit in the market.
How to use various technical analysis concepts and tools, including trend analysis, moving averages, indicators and oscillators, candlestick and price patterns, volume, consolidations and corrections
How to pick the right stocks and timely trades using chart and pattern analysis
How to pre-determine tentative price and time targets for a trade
How to Make Money in Intraday Trading: A master class by one of India’s most famous traders, by Ashwani Gujral
One of India’s leading market analyst and trading expert, Ashwani Gujral cuts through the clutter and awe surrounding day trading, sharply zeroing in on the skills, methods and abilities which spell success in the most challenging and rewarding of endeavours.
The book equips readers with strategies to cope up with market ups and downs and essential tools to earn consistent profits.
From understanding trade patterns to learning to apply time-tested strategies, Gujral’s style of writing with a tinge of humour makes it easy and a fun ride to go through.
The 3Ms of trading success — method, money management and mind-set
The technical pillars — moving averages, pivots and exceptional candles
Profitable trade entry, trade management and exit tactics
How to trade the morning range, trends, gaps, and sideways markets
How to add the catalyst of big news events to power your trades
How to avoid — and profit from — market traps
How to harness the explosive power of multiple trading tools working in tandem
Bulls, Bears and Other Beasts: A Story of the Indian Stock Market, by Santosh Nair
Finally, the list cannot be complete without a book that gives you past anecdotes about the Indian stock market to make you understand events that led to the present state of the Indian stock market.
Bulls, Bears and Other Beasts, by Santosh Nair, gives you a fascinating account of the last years of the Indian stock market and the dangers and signs you need to look out for while venturing into the stock market.
In this books, Nair talks in brief about the policies that the government must revise to harness the domestic capital more effectively. A must-read for those who are interested in the financial health of the country.
History of Indian stock market
Policies and reforms of the government.
Financial scams like money-laundering, price-fixing and market crashes in the past 25 years.