Finance
3 books that will help you better understand the stock market and how to invest your money
Former TD Ameritrade CEO Joe Moglia joins ‘Cavuto: Coast to Coast’ to react to Sam Bankman-Fried being sentenced to prison and his outlook for the markets and AI.
The stock market can be a very difficult place for beginners to navigate. Before you start investing your money, you should have a fairly good understanding of how the stock market works.
Investing can be a way for your money to make money for you. That said, you work hard for the money you earn, and investing in the stock market without proper knowledge can cost you.
There are many resources out there to give you the knowledge you need to be confident in the investments you make. Books are one of many resources to explore.
The stock market can be a confusing place when you don’t have the knowledge you need. (iStock / iStock)
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Over the years, there have been numerous books written about the ins and outs of the stock market, and they all take different approaches. Some take a very data-driven approach, while others are more psychology and behavior-based. Certain books cover short-term investing, while others are more focused on the long-term growth of your money.
If you have never invested a dime before, or have just begun investing and want to know more, these are three books that will help you get a better understanding of how the stock market works.
- “A Beginner’s Guide to the Stock Market: Everything You Need to Start Making Money Today”
- “The Intelligent Investor”
- “The Psychology of Money”
1. “A Beginner’s Guide to the Stock Market: Everything You Need to Start Making Money Today”
If you have no idea how the stock market works or what the first steps you should take are, this book is for you.
Think of “A Beginner’s Guide to the Stock Market” by Matthew R. Kratter as a “how-to” guide to investing. This book will answer all the questions you have and provide you with clear instructions on how to get started in the stock market.
Throughout this book, you’ll learn how to open a brokerage account, how to purchase your first stock, how to earn a passive income in the stock market, how to choose stocks and more.
2. “The Intelligent Investor”
“The Intelligent Investor” was written by Benjamin Graham in 1949 but remains one of the most popular stock market books to date.
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This book covers value investing, which is an approach that targets undervalued stocks that could perform well in the long term. This is not a short-term strategy, but instead teaches investors how their money can grow over a long period of time.
Before you get into investing, pick up a few books that will teach you the basics of the stock market. (iStock / iStock)
Even though this book was written in 1949, a lot of the concepts put forth by Graham can still be applied today. That said, there was a revision published in 2006 so the book better reflects a modern market.
The revised edition of the classic business book offers commentary by financial journalist Jason Zweig.
3. “The Psychology of Money”
“The Psychology of Money” is slightly different from the others on this list. This book was published in 2020 by Morgan Housel.
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This book is more of a lighter read than many other money-based books. It focuses more on individuals’ behaviors and financial decisions, rather than math and data.
Knowing the basics of investing can help you accumulate wealth over time. (iStock / iStock)
As a stock market novice, it’s easy to get tangled up in the math and data. The style of this book is easy to digest, while still teaching about investing and money management in general.
Through the 19 different stories presented in the 19 chapters of this book, Housel is able to teach readers how to have a better relationship with money and finances.
‘The Big Money Show’ co-hosts discuss buy now, pay later spending options and the impact it will now have on your credit score.
Small, everyday purchases like a meal from DoorDash are now able to be financed through eat now, pay later options — a practice that some experts deem “predatory.”
“You’ve got to have enough sense to not follow the urge to finance a taco, okay? You have got to be an adult,” career coach Ken Coleman told “The Big Money Show,” Wednesday.
“This is predatory, and it’s going to get a lot of people in deep trouble.”
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DoorDash and Klarna are now partnering up to extend buy now, pay later options to consumers. (Reuters, Getty / Getty Images)
Financial wellness experts are continuously sounding the alarm to cash-strapped consumers, warning them of the devastating impact this financial strategy could have on their credit score as some lenders will begin reporting those loans to credit agencies.
Consumers may risk getting hit with late fees and interest rates, similar to credit cards.
“So your sandwich might show up on your FICO score, especially if you pay for it late,” FOX Business’ Jackie DeAngelis explained.
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Major players like Affirm, Afterpay, and Klarna have risen to prominence at a time when Americans continue to grapple with persisting inflation, high interest rates and student loan payments, which resumed in October 2023 after a pause due to the COVID-19 pandemic.
Ramsey Solutions personal finance expert and ‘The Ramsey Show’ co-host George Kamel discusses the ‘buy now, pay later’ craze and the trend that celebrates the financial benefits of being childless.
“The Big Money Show” co-host Taylor Riggs offered a different perspective, suggesting that company CEOs have a “duty” to attract as many customers as they want.
“Unfortunately for me, this always comes down to financial literacy — which I know is so much in your heart about training people to save now by later,” she told Coleman, who regularly offers financial advice to callers on “The Ramsey Show.”
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Coleman continued to come to the defense of financially “desperate” consumers, arguing that companies are targeting “immature” customers.
“I’m for American businesses being able to do whatever they want to do under the law. That’s fine. But let’s still call it what it is: it’s predatory, and they know who their customers are,” Coleman concluded, “And I’m telling you, they’re talking about weak-minded, immature, desperate people.”
FOX Business’ Daniella Genovese contributed to this report.
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