Any1 Read a Good Stock Trading Book? - Suggestions

[Jagosaurus]

While I know the bare bones, I would like to start investing in some stocks (mainly the company I work for, but a few other stable companies & a handful of starting companies).

Want to better understand the actual process and also pick up some success tips.

Was looking @ the book below. Suggestions?

http://www.amazon.com/gp/aw/d/045228473 ... roduct_top

Thanks!


Afterthought: of course, good website readings would help also! Looking for long term investments rather than quick flips for cash, if that gives an idea of the type of readings I'm hunting.

[Hatta]

The best way to get rich on the stock market is to gamble with other peoples money. Even when you lose you get bonuses.

[RCBH928]

I wouldn't recommend it , I never heard of some one who started small and became rich in stocks except for Buffet . All others some how try to manipulate the market or just got lucky .

I just know this website that might help fool.com

[Jagosaurus]

Well guys, it all depends on how you look @ it.

For example, Wall Mart's stock cost $76 a share today. That is a stable and growing company & it is safe to say in 10 years, that will be around $100.

Their stock was $52 in May 2003. It went up 31% due to the inflation of the dollar & being a stable, growing company.

Not looking to get rich quick at all. More of long term money investment that grows over time.

[Erik_Twice]

It isn't that easy. I really don't recommend it.

By the time you know you must sell, the price will have already dropped and by the time you must buy, others will have taken the shares.

You are competing against sharks.

[J T]

In college I minored in business. One of my professors back then said that there was a study where they picked 10 stocks based on expert recommendations and compared them to 10 stocks picked at random. After about a decade or so, the randomly selected stocks outperformed the pro picks. The lesson here is that the stock market is constantly fluctuating and unpredictable, so diversify your portfolio.

[Nemoide]

I recommend an indexing strategy. Read something by John Bogle from your library! I read The Little Book of Common Sense Investing earlier this year and enjoyed it (even though it basically confirmed that I was already on the right course). Or just go to your local library and browse their selection; I think it's good to find alternative viewpoints on investing strategies.

But IMO indexing wins. The basic principle is that you buy into an unmanaged mutual fund that contains either some sort of index (easiest: total stock market index from a company like Vanguard - more complicated and IMO less effective: specific sector ETFs) and then just holding onto it, steadily buying more through what's called dollar-cost averaging. I'd recommend doing your own research on the subject but from what I can tell, it's the best strategy for stock-success. You get maximum diversity, minimal fees, and even though the aim is "average" you will most likely outperform just about every mutual fund in the long term.

Trading the stock of individual companies might be more fun/exciting, but it's not likely to pay off as well in the long run!
HOWEVER, if you really think indexing isn't your bag, to my knowledge the great classic of what's called value investing is The Intelligent Investor by Benjamin Graham.

And I'll cap it off with a website: Clark Howard's Investment Guide. It's from a radio talk-show host I like, a pretty simple no-nonsense guide to starting investing. You can pick easy, medium, or advanced approaches to investing and figure out a good way to get your feet wet!

[Jagosaurus]

Thanks Nemoid. Bookmarking thread!

[RCBH928]

I just want to tell you that stats prove that over long periods of time the stock market goes up. If you look for a Dow Jones 100 years chart you will see the graph going up. The idea is to split you invested money equally overall Dow Jones stocks , and after 30-40 years (retirement) your money should have grown.

But who is wiling to wait 30 years? Plus it is not necessarily that you you will be rich by then , if you invest say 50k ,in the end it might turn out to be 500k . Instagram made over a billion dollars in a year and a half.
As a matter of fact , you can make a series of Youtube videos and if you turn out to be a youtube celebrity you probably can be worth that much next year , for 0 investment.

The thing is in the stock market you will wait for a long time to make small amount of money.

Most people who make money on the stock market take a percentage out of trading for rich people, so if you take 1% for trading for a billionaire's portfolio buy buying a $100m in stocks , thats an easy 1 million for you .

[RCBH928]

I just want to tell you that stats prove that over long periods of time the stock market goes up. If you look for a Dow Jones 100 years chart you will see the graph going up. The idea is to split you invested money equally overall Dow Jones stocks , and after 30-40 years (retirement) your money should have grown.

But who is wiling to wait 30 years? Plus it is not necessarily that you you will be rich by then , if you invest say 50k ,in the end it might turn out to be 500k . Instagram made over a billion dollars in a year and a half.
As a matter of fact , you can make a series of Youtube videos and if you turn out to be a youtube celebrity you probably can be worth that much next year , for 0 investment.

The thing is in the stock market you will wait for a long time to make small amount of money.

Most people who make money on the stock market take a percentage out of trading for rich people, so if you take 1% for trading for a billionaire's portfolio buy buying a $100m in stocks , thats an easy 1 million for you .