Recommended Economics Books for Beginner Investors in Early 2025: Step-by-Step Learning Path

Beginner investors entering the stock market need knowledge across various fields such as investment psychology, technical analysis, and company analysis. Choosing the right books can make this learning process much more efficient. In this article, we will recommend 10 proven economics books for those starting stock investing in 2025 and detail the tangible value each book offers.

Basic Investment Psychology Every Beginner Should Know

Success in stock investing depends as much on understanding your psychological state as on market analysis. Morgan Housel’s 《The Psychology of Money》 deeply analyzes why investors make irrational decisions. It emphasizes that the ability to invest rationally without being swayed by emotions is key to long-term profits.

As seen in cases where investors sold high-quality stocks at loss prices during financial crises, fear and greed can cause significant losses. Beginners can learn the importance of emotional control through this book and build a more stable profit structure.

Pathways to Learning Short-Term Trading Strategies

For investors aiming for short-term gains, mastering technical analysis and execution strategies is essential. (Wonjeong Yeon) and (Manju)'s 《Techniques for Profitable Short-Term Trading Based on Principles》 systematically explains the principles of short-term trading and timing for market entry and exit. Additionally, instructor Gojiro’s 《Moving Average Investment Method》 covers key technical indicators for identifying stock trends and managing volatility.

Using moving averages allows clear reading of long-term trends, and investors who used this indicator during the dot-com bubble burst were able to detect downward trends early and minimize losses. This demonstrates how crucial quick judgment and clear strategies are during sharp declines.

As learned from the rapid fluctuations of GameStop stocks, failing to take profits at the right time after short-term gains can wipe out all profits. Hong In-gi’s 《Starting Stock Trading Short-Term Strategies》 explains step-by-step how beginners can execute from entry to exit.

Systematic Learning from Basics to Practice

If you want to understand the entire stock investment process at a glance, Yoon Jae-su’s 《Follow Stock Investment Without Overthinking》 is effective. This book covers practical topics such as opening accounts, selecting stocks, risk management, and trading procedures, enabling beginners to learn all necessary steps for actual investing.

Particularly, strategies like partial buying and partial selling, which many beginners used in the early 2010s to reduce losses during downturns, are proven methods. Setting clear stop-loss criteria and avoiding emotional decisions form the foundation of stable profits.

Data-Driven Analytical Approach

Mer’s 《The Power to Read 1%》 presents methods to capture subtle market signals and develop investment strategies through data analysis. It is explained in an accessible way for beginners interested in quantitative analysis, and it teaches systematic approaches similar to those used by quant strategy investors.

Investment Philosophy for Long-Term Growth

Peter Lynch’s 《One Up On Wall Street》 is a classic in the investment industry, conveying the message that ordinary investors can succeed if they establish and consistently follow their principles. The case of high returns from investing in everyday products demonstrates that consistent execution is more important than exceptional analysis.

For those aiming for stable asset growth through dividends, Choi Yoon-young and Hwang Geumbyeol’s 《The Golden Star’s Investment Habit of US Stock Dividends and ETFs》 is helpful. As in the case where a long-term investor invested in dividend ETFs for 10 years and reinvested dividends quarterly, resulting in about a 30% increase in principal, the power of long-term dividend reinvestment and compound interest is significant.

Core Skills in Company Valuation

Jang Woo-jin’s 《Don’t Invest in Stocks Without Understanding Electronic Disclosures》 trains readers to accurately read and analyze corporate financial disclosures. A case where an investor identified revenue growth and new contract information of a small business through electronic disclosures, leading to more than doubling the stock price after five years, proves the value of thorough company analysis.

Benjamin Graham’s 《The Intelligent Investor》 is a classic on value investing, explaining how to analyze a company’s intrinsic value and invest without being swayed by market volatility. Warren Buffett’s example of holding Coca-Cola stock for over 30 years after purchasing in 1988 and generating multiple returns demonstrates the power of value investing.

Criteria for Choosing the Right Economics Books

Selecting books that match your investment style and learning goals is crucial. For foundational concepts, theoretical books are suitable, while case-based practical guides are better for applied learning. Choosing books aligned with your learning style greatly enhances knowledge acquisition and comprehension.

Conclusion: The First Investment for Investment Success

The foundation of successful stock investing is solid knowledge and proven strategies. The recommended books introduced above are highly helpful for beginners to understand the market and develop systematic investment plans. Through continuous learning, accumulating both knowledge and experience, you can achieve confident and stable results in stock investing.