Recommended Books

I believe in simplification-- the human brain can only pay attention to 3-5 items at most. The books are listed in the order in which I believe will make sense. I will also offer reasons why you have to read the next book in order (which is, what is offered in the next book and not the one before).

#1: The Five Rules for Successful Stock Investing

This should be the first book that you read. In fact, the book is so good that you can probably read just half of it and be better than the average joe.

Why you should read this book:

• This book explains the financial statements (income, balance sheet and ultimately cashflow) clearly for the layman. 
• Pay attention of the discounted cash flow method in valuating a stock.
• Red flags to look out for when investing in a company
• Discuss characteristics of a durable competitive advantage, otherwise popularly known as moat.
• Valuable discussion on how various industries work

ISBN: 0471686174

Amazon
Book Depository

#2: The Intelligent Investor

Why you should read this book:

• explains the difference between an enterprising investor and a defensive investor.
• prevents you from investing in mutual/hedge funds, stupid bond funds and IPOs
• general investment principles. 
• commentary, by Jason Zweig, on recent cases at the end of each chapter

ISBN: 0060555661
Amazon 
Book Depository 

#3: F Wall Street

Why you should read this book:

• Discuss another way of Discounted Cash Flow valuation
• Talk about special situations, namely mergers and acquisitions, which to me appears to be risk-free
• Bond laddering

This book is no longer printed, feel free to check out your local library or download the e-book here.

#4: Getting Started in Candlestick Charting

Before you carry on, make sure that you have digested #1-#3. Reading this book beforehand will encourage you to trade blindly. If you do make money, great... no questions asked.
But if you lose, doubts will cloud your mind.

I studied candlesticks to understand when to take profits.

Why you should read this book:

• explains the minimal amount of candle stick patterns to look out for in reversals. It is better to understand a handful of stuff than to skim through a hundred patterns

ISBN:  0470182008
Amazon
Book Depository