A stock market education is expensive, and I’m not talking about the cost of a Harvard or Wharton MBA. Those, while pricey, can actually be cheap by comparison.
Sure, you can spend money on investing books or even a fancy trading system. But the real cost of a stock market education is measured in money lost and profits foregone due to investing mistakes. And over a lifetime of investment, that can mean millions — if not tens of millions — of dollars.
Unfortunately, there is no real shortcut here. All stock market education is, to some extent, straight from the school of hard knocks. You will make mistakes. Even legends like Warren Buffett and George Soros made horrendously bad investment moves at various points in their careers.
But new investors can still give themselves a leg up by studying beforehand. Every serious investor should have a solid library of investing books.
I should be clear here; if you blindly follow a trading strategy verbatim out of an investing book, you’re likely to be disappointed with the result. Investing is often more art than science, and what worked for the author might not work for you. But by voraciously reading as much as possible, you can take the tidbits of insight that you glean from each book, and eventually cobble them into a trading style that works for you.
I’ll give you a head start with five investing books I keep in my library… and that I recommend you keep in yours.