This year, the stock market debate was very hot, from the unexpected jumps of the beginning of the year to the heavy fall of the half year. In the meantime, what became clear more than anything else is the importance of training and acquiring knowledge to work in this field. In this article, we introduce 7 stock education books from the best books in the field of technical and fundamental analysis.
Investing in the stock market and securities is one of the common methods of investing around the world and in Iran. Depending on whether you enter the market with a long-term or short-term vision, you need to have a sufficient level of knowledge. You can also transfer your capital to experts and portfolios; But if you want to manage your capital yourself, it is better to increase your knowledge in this field.
In the first step, we will review a few terms together:
The stock market is a tool for raising capital for companies and for ordinary people to share in the profits and losses of companies. Other securities such as equity, rent and mortgage securities are also traded on the stock exchange. The issuance of government bonds or partnerships is also a common means of raising capital. In addition, in recent years, the supply of shares of state-owned companies in the privatization process has increased significantly.
Iran Stock Exchange has special conditions and restrictions that are not seen in other stock markets of the world. In addition, the debate over market manipulation and information rents has always been hot on the Iranian stock exchange. Of course, these degrees may also exist in the stock markets of other countries to varying degrees. However, by gaining knowledge and determining a sustainable strategy, it is possible for anyone to exploit and make a profit from the Iranian Stock Exchange; As many people have been making money from the stock market over the years.
Knowledge of market and stock analysis is one of the most important and effective tools for operating in the stock market. Technical analysis and fundamental analysis are the most common methods of analysis for stock market traders.
Technical analysis is a method of forecasting prices in markets, based on a review of price history and trading volume in that market. Technical analysis, in addition to the stock market, is also used in the foreign exchange and forex markets and commodity exchanges. Technical analysis is the study of market behavior and predicting its trend using charts.
Fundamental analysis is a way to determine the intrinsic value of securities based on various economic and financial factors. In fundamental analysis, the factors affecting the value of the share are evaluated from macroeconomic factors (such as economic situation and the situation of other markets) to microeconomic factors (such as how the company is managed). The output of this valuation indicates that the current share price is more or less than its intrinsic value. Fundamental analysis, in addition to stocks, is used to evaluate other securities such as debt or derivatives.
7 stock exchange training books in the field of technical and fundamental analysis
There are many books on teaching technical and fundamental analysis. In addition to some old history books, some books are useful and practical for any interest without being limited to a specific time and place.
The books in this list are currently available. It is also good to know that the focus of the technical analysis books on this list in the field of technical analysis is on the basic principles of analyzing and reading charts as a tool for psychological identification of the market, not presenting a multitude of charts and graphs. These books help traders better understand the market and be able to determine their own trading strategy.
1. The book begins with technical analysis
Translator: Secure Website
Publisher: Secure Website
This book is a good option for novice traders. The Beginnings of Technical Analysis book outlines all the key topics in technical analysis. In addition to introducing chart patterns and indicators, this book devotes sections to how to select entry and exit points, develop a trading system, and design a plan for successful trading. These issues are the key to success in stock trading. You should know that there are not many books that offer all these things to you at once.
2. Book of Technical Analysis in Capital Markets
Translator: Kamyar Farahani Fard, Reza Ghasemian Langroudi
This book, despite its many details, has an understandable and practical approach. John Murphy, with more than 40 years of experience in market analysis, is a leading figure in technical analysis. He has a special skill in explaining complex and understandable topics, he looks at future markets and its relationship with technical analysis.
The book Technical Analysis in Capital Markets, which is especially recommended for stock market newcomers, explains the basic concepts of technical analysis in a way that the trader can put them into practice. This book also introduces you to the latest technical analysis tools. It also teaches the trader the science and art of reading charts and indicators by comprehensively explaining the relationships within the market, the rotation of stocks and the candlestick chart.
3. Book of Japanese Candle Patterns
Translator: Kamyar Farahani Fard, Reza Ghasemian Langroudi
This book is a comprehensive guide to candlestick charts that are one of the most widely used technical analysis tools. Prior to Neeson’s educational activities, Japanese candlestick diagrams were unknown to Westerners. Today, candlestick charts can be considered as an essential tool in technical analysis that plays an important role in the success of traders around the world.
Neeson introduced the chart to the public and trained financial institutions. In this book, he introduces all the candle patterns that traders use today. Neeson also explains how this versatile and creative tool can be combined with a diverse range of technical analysis tools to become an effective tool for market analysis. Reading this book with hundreds of different examples is recommended for any trader.
4. Encyclopedia of Graphic Patterns
Translator: Pouria Tirgar, Mehdi Mirzaei
This book is truly an encyclopedia. The book provides a unique list of graphic patterns. In addition, with a statistical look, it explains how these patterns are used to predict and change future prices. The statistical analysis of Bolkovsky, who is himself a technical analyst, distinguishes this book from other books in this field. Other books only explain graphic patterns and how to read them.
The book also includes 10 event templates that help average traders take advantage of financial events such as presenting quarterly financial statements in their trades. Each graph pattern is explained and analyzed in detail. First, the model is introduced, then its behavior and performance rating are described. Finally, a comprehensive guide to identifying points and descriptions of pattern failure cases and how to avoid them is provided. The author also discusses effective trading strategies with the help of graph patterns and risk reduction.
5. The Book of New Market Wizards
Translator: Mohammad Karim Tahmasebi, Javad Sabetnejad
This book contains the author’s interview with a collection of the world’s top traders. The book New Market Wizards offers valuable approaches that have been extracted from the minds of the smartest people in the stock market. Beneficial for both novice traders and professionals, this book helps you learn the fine art of trading and strengthen your risk management skills with stories of successful trades. It is also one of the best books in the field of technical analysis, which has an informal and familiar language.
The book includes interviews with Bruce Connor (risk fund management expert, managing director of Capital, and board member of institutions such as the Juilliard School of Music), Marty Schwartz (trader and winner of the US Investment Competition in 1984), and Ed Shikota (trader and leading trader). The basis of the algorithms) is Tom Baldwin (a bond trader who, according to Wall Street Journal, is the only one who can move the bond market) and other well-known stockbrokers. Schwagger’s admirable effort in writing this book has led to the creation of a fundamental guide for traders based on the first-hand experience of successful people in the field.
6. Smart Investor Book
Translator: Saeed Saadatian
This is considered by many to be the best book on fundamental analysis. The book Smart Investor, by a well-known author Benjamin Graham It provides valuable insights into value-based investing. Some consider this book to be the holy book of the investment world because it has been shown to be beneficial to any type of investment.
What makes the book really valuable is its discussion of analyzing the future performance of companies. The book also helps to learn how to read corporate financial statements. This book has inspired many generations of traders with Benjamin Graham and has helped many people avoid harmful mistakes. Studying the book Smart Investor helps the trader determine a long-term strategic portfolio management.
7. Ordinary stock book with unusual profit
Translator: Mohammad Yusuf Amin Davar
The book has been a useful and inspiring resource for a wide range of investors for more than 60 years since its first publication. Philip Fisher, a financial analyst himself, shows investors how to make a calculated decision to invest in a company based on its stock history. Careful reading of the book acquaints the reader with fundamental analysis. The approaches presented in this book help the reader to make an investment decision with confidence.
Ordinary stock books with extraordinary profits are especially popular among the professions that have followed the book recommendations. This book is a valuable supplement for those who are familiar with investing and decision making in this field, which significantly increases their knowledge. In addition, a clear, concise, and accurate description of the author (presented in a structured way) makes it easier for the audience to read and understand.
It’s up to you what your investment strategy is and on what basis you invest and trade; But for those who are looking for a strong position in this field, gaining knowledge and ability to understand the existing perspectives in the field of investment is undoubtedly very important. Technical and fundamental analysis are two powerful and common tools for acquiring knowledge and information in this field. According to experts and practitioners in this field, reading the books introduced in this article will help to earn a profit and reduce risk, and ultimately, to reach your desired position in this field.
If you have experience in stock trading and investing in securities, it is good to share it with us. If you have read one or more of the 7 stock market books, we are happy to know your opinion. Tell us how much you agree that these books are effective and useful.