Stock Market is Cruel (for those who just came here on others’ advice) and it even goes one step further when a beginner approaches it to make quick money. So What’s the Solution?

And that’s what this article is all about.

Look, if you are a professional, then you might already know the importance of books but this is for beginners or newcomers who approach the stock market as a gambling center. With this approach, the Stock Market also reacts to freshers as a Gambling Hotspot and takes all their hard-earned money in just one Trade.

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So the key is you first have to know its basics, like how it Works, What are Stocks, How and When to Buy and Sell Stocks, Who is the Smart Money, How to React when the Market Tumbles, and so on. But learning all this on your own is time-consuming, so the key is to “Learn with Others’ Experiences and Mistakes”, and the best place for learning all this and taking a snapshot of how the Market Works is Books.

Yes, Books are the ultimate source of learning, so no matter how far you have gone through this or if you are an absolute beginner, nothing in the world can teach you better than a Book. Even Bill Gates read books daily. So why not you?

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Hence, in this article, I mentioned my 9 favorite Books on the Indian Stock Market which I read in almost 3 years.

Let’s Dive into it.

Here are the 9 best Books on the Indian Stock Market.

let’s move on to our 1st Book,

1. Coffee Can Investing

The World Famous Strategy for long-term capital Gain, Coffee Can Investing is a systematic approach to choosing good quality Stocks with continuous growth in Revenue and profits and holding them for the long term (usually for 5 years or more) to make stupendous wealth (in words of Saurabh Mukherjee).

Now you know what is Coffee Can Investing, and this is what Saurabh talks about in his book, Coffee Can Investing but differently, and it’s interesting. Look, who doesn’t want to make money, ofcourse everyone but, not everyone has the patience to see their money compounding and exit from an investment in just a short period, and this is because they go for the same investment options which their grandparents go for. But these days are different you have to think out of the box to make a steady wealth on your current wealth.

And,

This is what the book is all about, how to approach the stock market and choose Quality Stocks with steady growth in Revenue and Profits with Future growth potential and hold them for the long-term. For example, Reliance, and HDFC Bank.

Most people till date in India invest in some usual or just social Proof Assets, like Real Estate, Gold, Fixed Deposits, Mutual Funds, or sometimes the Stock Market, which usually ends up giving up 8 to 12 percent return on an annual basis (which is not enough if we adjust the inflation), so instead of making the same investment what if there is a way where we make not just 10 or 15 percent but 20 percent or even more compound annual growth on your investments.

So, the Approach is,

You have to choose high-quality stocks with Solid past performance good Track Record, Solid Competitive Advantage, and a sustainable business model aiming for the future, showing continuous growth in Revenue and Profits.

Now you also need to diversify your portfolio when selecting stocks to minimize the risks of a specific sector and your overall portfolio. It helps you manage your risks and at the same time make high returns and capture sector-specific growth.

Lastly, you have to hold these stocks for a long time, usually for 5 years or more to see the power of Compounding, and this is a crucial step in Coffee Can Investing. You also need to be strong enough to handle short-term market fluctuations like COVID-19.

That’s it,

But you need to read the book to get the real value and understand what the author is trying to convey.

Also Read: Best Option Trading Books to Read

2. Bulls, Bears, and Other Beasts

Bulls, Bears, and Other Beasts is a summary of the past of the Indian Stock Market (1989 – 2014) taking you on a journey to the Ups and Downs of the Stock market from the eyes of the trader Lal Chand Gupta aka Lala (a fictional Character). What he has seen throughout his life as a trader from Liberalization, Tech Boom, Tax Evasions, Money Laundering, Harshad Mehta Scam, Ketan Parekh Scam, Market Crash, Bull Runs, and so on, the author explains all the topics explaining how the Indian Stock Market evolved over time.

By far this is one the best books about the Indian Stock Market that touches the facts that we never heard of like the Market shut down after the 9/11 Attack, How the game of market Captilizations, and wealth creation started and continued in the 2005 IPO Boom after Jet Airways and Suzlon Energy launched its Ipo backed by the people wants to increase their wealth who funded it from the back, and so.

No matter how you heard about the Indian Stock Market or you eventually became a professional trader, you also want to know its history, like how it started, how it evolved, what was wrong those days, how people scam even the Government’s tight policies, how some investors influence others to buy certain stocks to increase their own wealth, this book summarises the most crucial time of the Indian Stock Market.

This is a must-read book for all stock market enthusiast who rushes towards the Stock Market after other’s advice. It all gives you a view of what to watch out for before making any investments, and what needs to be fixed.

Enjoy a sensational journey of the Indian Stock Market from the era of the jobbers to the blinking fast computing machines executing trades in just a fraction of a second.

3. Investing in India

Rahul Saraogi is a Value Investor, and that is what he trying to explain in his book Investing in India – A Value Investor’s Guide to the Biggest Untapped Opportunity in the World; where he explains how Indian Companies work, and what Investors should look for before investing.

He also mentions that India is growing rapidly and there are many untapped opportunities in India for foreign investors to create wealth, but he also warns investors that one who will be investing should have deep knowledge of the country and its culture. Without all this making wise investment decisions can be difficult end up losing wealth because of its vibrant democracy and an active press.

Rahul Saraogi explains a five-step framework to evaluate stocks and to side value stocks to invest, and Each stock needs to go through one filter before going to the next. The five filters he explains are corporate governance, capital allocation, business fundamentals, financial strength, and relative opportunity.

And, yes it’s true that India is growing at a very rapid speed, and Investing in India now, is kind of a master stroke but wisely, because there are also some Ponzi schemes running there like Sahara did. But Investing in India helps investors not only inside but also outside the country and find the facts that really matter to anyone who wants to invest there.

4. Stocks to Riches

Simple to follow, full of knowledge and insights garnered over time in an easy-to-understand language, Parag Parikh puts all his experience and knowledge in this book to help retail investors Invests in stocks that tend to give them a long-term returns, by doing proper calculations and managing the Risks.

Stocks to Riches is a compilation of all the calculations that one needs to do before investing. It explains the Fundamental concept of investing to achieve great success in the Stock Market. Look, the Stock Market is Unpredictable, and yeah whether it is a professional or a beginner everyone does their best to analyze the stocks and have proper calculations that a stock does well but they don’t.

So what’s the reason behind it? What inside their minds? What does one do to find the right strategy for investing? And that’s what Parag compiled in his book which you must know like What is an Investment? How it is different from Speculation? What is a Stock Market Bubble and how it bursts? What is Loss Aversion, Sunk Cost Fallacy, and how to escape from this, Decision Paralysis, Metal Accounting, Concepts and Terms of Behavioral Finance, Herd Mentality, and the list goes on.

Basically, there are so many things to learn from this book from the process of thinking of a stock to exiting from it profitably aka how to make money from stocks by following a time-tested and data-backed research and guidelines provided in the book.

So you definitely need to read this book.

5. Investonomy

Having a dream in mind is temporary and over time it disappears but, if you start working on that before it disappears it may happen to you, but the FIRST step is very difficult. If this is what you also face when trying to enter the stock market, then you need to read this book.

Investonomy is kind of a booster dose for your thinking walking into reality. Pranjal Kamra tries to empower young generations to start investing in the Stock Market, and instead of thinking of being a billionaire start taking small steps towards that, and maybe one day you will be a billionaire.

This book is all about how a beginner can start Investing in the Stock Market and Pranjal tries to discuss every aspect a very new person thinks of before investing. Like the Myths he/she heard of, The fear they are facing, Misconceptions, and so on. For eg. How much money I could Start Investing, whether investing in the Stock Market is like Gambling, Which companies should I go after, What are the Process of Investing in, Finding Investable Companies, and all other Questions, Myths, and Misconceptions like these.

Investonomy doesn’t only clear your Questions and Myths, but it also enables you to chart your investment plans, and over that, it teaches you modern-day Investing values and reveals some crazy secrets about Stock Market. So, if you are also feared of investing in the stock market, then this is a must-read book for you.

6. Everything You Wanted To Know About Stock Market Investing

Everything You Wanted To Know About Stock Market Investing, as the name suggests what this book is all about, “Investing” but not only Investing, it’s about Investing in Equity, the most simple and rewarding sector of the Stock Market (in my Experience).

This book wants to convey that Equity is the most rewarding asset class across the Globe, thus why an Individual in India feared Investing in it, so this book covers every aspect of investing in very simple and easy-to-read language and uses simple terms instead of heavy financial Jargons, to better understand the concept of investing in Equity.

If you are an absolute beginner or anyone who just put his or her ass aside from the Stock Market, this book helps you in understanding all the concepts from Start to End, including Financial Planning, Impact of the Inflation on your Investments, different strategies of investing in Equity, Risk Management measures like Value Averaging, how to use Market Volatility, how to react when market Tumbles, and man-many more.

Not only just Concepts like how the market works, but “Everything You Wanted To Know About Stock Market Investing” also provides practical tips and illustrations, Axioms, and Action Points, and also provide test questions to prepare you for your real journey in the world of Stocks.

Over that, this book also helps investors understand the microeconomic concepts and their impact on their business, how to react in times of panic, How to avoid and stay away from Scams, and Ponzi Schemes, and how to compute your equity investment returns before and After Tax.

This means, this book is a complete package for an investor who doesn’t want to seek one from another to be a successful Investor.

7. How to Avoid Loss and Earn Consistently in the Stock Market

How to Avoid Loss and Earn Consistently in the Stock Market, is one of the best books on the list as it talks directly about why almost 80 to 90% of Small traders and Investors book losses in the Stock Market, perhaps there are so many books out there, free trading and Investment tips are available across the web and Televisions. Why Maximum of Individual Traders still consider the Stock market as a Gambling Center?

You might know some super-rich people like Warren Buffet and Rakesh Jhunjhunwla, and notice that they had invested in companies a long period ago which has created wealth for them, and this is the Key, Investing in high-quality Business (Stock) at the right price and holding them for a long period is the only way of Wealth Creation.

This book teaches you Exactly how you can find these types of Businesses, When to buy or Sell the Stocks, and most importantly How you can Avoid or Minimize your losses and make Consistent Profit from the Stock Market in an Easy-to-Understand language.

Divided into 11 Chapters this book summarizes all the important things you need to keep in mind that matter the most in the Stock Market, like How to pick Winning Stocks, When to Buy and Sell, Do’s and dont’s to avoid loss in the Stock Market, and most importantly how to evaluate Companies.

Look, if you are fear of the Stock Market, then this book will help you Clear your Doubts and enable you to make smart decisions on your own.

8. MasterClass with Super Investors

Published on Dec 10, 2018 “Master Class With Super Investors” is a compilation of in-depth Interviews with some of India’s most versatile and Successful Investors Ramesh Damani, Raamdeo Agrawal, Anil Goel, Vijay Parikh, Vijay Kedia, and 6 others, providing you decades of experience from the eyes of these investors.

The book provides us with various aspects of these successful investors as each of them is India’s most versatile investor, with decades of experience of investing in the Indian Stock Market, successfully navigating through various highs and lows of the Markets. This book aims to provide various investing Styles, Different Investment Tools, the Mindset of a Successful Investor, and many more such lessons.

No matter, how you have started your Stock Market Journey, you are always going to be inspired by the Stories and case studies of these Investors, and this is what Vishal Mittal and Saurabh Basrar try to put in front of the world in their book, from their background to their Advice to new Investors.

Masterclass with Super-Investors covers various aspects of these Legendary Investors’ Stock Market Journey, starting from,

• Their Background and How They Started in the Stock Markets
• Evolution of the Investment Framework
• Case studies of their past investment successes
• Case studies of their mistakes (both omission and commission)
• The process of idea generation and portfolio construction
• Views of investing in cyclical, taking leverage, going short, timing the markets at the extremes
• Views on macros
• Developing the right temperament and habits
• The process of wealth creation with capital milestones

to, Advise the New and Beginner Investors.

Conclusion,

These are my 8 favorite books that I read in my early days of the Stock Market Journey, I learned a lot from these books, and the last one inspired me to make investments, either then I trade on a regular basis thinking of making fast and easy money, till I learned the Power of Compounding from the book, Coffee Can Investing.

And I recommend you to purchase and read these books, as it definitely makes a positive difference to your Stock Market Journey.