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Books for Investing in Stocks

Q

QueHuong

Platinum Member
Can anyone recommend books on picking and analyzing stocks? Preferably a book aimed at someone like me:

- Early 20s
- Moderate to high tolerance for risks
- Technically competent (ie, not afraid of technical analysis)
- Willing to devote some hours per week for stock research, but not willing to make it a full-time job
- Don't have a lot to invest (maybe $1-3000 during the next year, possibly $5k+ thereafter when I graduate)

Just FYI, I picked up "The Motley Fool Investment Guide" and "The Motley Fools Rule Breakers Rule Makers."
 
Originally posted by: QueHuong
Can anyone recommend books on picking and analyzing stocks? Preferably a book aimed at someone like me:

- Early 20s
- Moderate to high tolerance for risks
- Technically competent (ie, not afraid of technical analysis)
- Willing to devote some hours per week for stock research, but not willing to make it a full-time job
- Don't have a lot to invest (maybe $1-3000 during the next year, possibly $5k+ thereafter when I graduate)

Just FYI, I picked up "The Motley Fool Investment Guide" and "The Motley Fools Rule Breakers Rule Makers."
Click to expand...

I liked Real Money and Mad Money both by Jim Cramer - they introduce sound fundamentals.

Technical Analysis is NOT for the just getting started nuts and bolts investor.
 
I think you need to stop by a bookstore and just browse what they have available. Every person learns in different ways. Some like charts, graphs, and tables. Others like more text and examples. Find a book or two that fits what you like, and you will learn it the best.
 
Low cost index fund, no need to pick stocks, no need to do research. Market return is the best return. You can't really pick stock with couple thousand bucks...way too much risk.
 
Originally posted by: iversonyin
Low cost index fund, no need to pick stocks, no need to do research. Market return is the best return. You can't really pick stock with couple thousand bucks...way too much risk.
Click to expand...

No need to make actual money. You can pick the same stocks whether you have $1000 or $1,000,000, a good stock is a good stock. If someone is willing to learn and do research there's no need to waste his money in a fund.
 
I'd agree with iversonyin. If you're going to invest money, stick to index funds. If you want to maximize your investment returns, seek to improve your entry points as opposed to picking individual stocks. Basically when everyone wants to be a seller and people are afraid to buy, you want to be a buyer and add to your portfolio. If you stick with individual stocks you will more than likely be wrong, not to mention will look to make numerous entry/exit trades that capital gains tax can kill you on.
 
Originally posted by: bigdog1218
Originally posted by: iversonyin
Low cost index fund, no need to pick stocks, no need to do research. Market return is the best return. You can't really pick stock with couple thousand bucks...way too much risk.
Click to expand...

No need to make actual money. You can pick the same stocks whether you have $1000 or $1,000,000, a good stock is a good stock. If someone is willing to learn and do research there's no need to waste his money in a fund.
Click to expand...

What are you kidding? LOW COST index fund. What part of LOW COST you don't understand?

What is the percentage of $10-14 commission on $1000? 1-1.4% if you make ONE trade. What gurantee your research and hardwork will lead you to "beat" the market?

As a newbie, I suggest anyone to stash away in index fund while they learn. You simply can't trade with couple thousand dollar, the commissions will churn your account away QUICK.

No need to waste your money in commission and taxes. If you really want to invest, index fund is the way to go. If you want to trade, then learn while you have your money stash away and use a paper (fake account) to build your strategy.

Picking up couple of books and doing some research will make you a market genius within a year....yea fvcking right.

 
Originally posted by: iversonyin
Originally posted by: bigdog1218
Originally posted by: iversonyin
Low cost index fund, no need to pick stocks, no need to do research. Market return is the best return. You can't really pick stock with couple thousand bucks...way too much risk.
Click to expand...

No need to make actual money. You can pick the same stocks whether you have $1000 or $1,000,000, a good stock is a good stock. If someone is willing to learn and do research there's no need to waste his money in a fund.
Click to expand...

What are you kidding? LOW COST index fund. What part of LOW COST you don't understand?

What is the percentage of $10-14 commission on $1000? 1-1.4% if you make ONE trade. What gurantee your research and hardwork will lead you to "beat" the market?

As a newbie, I suggest anyone to stash away in index fund while they learn. You simply can't trade with couple thousand dollar, the commissions will churn your account away QUICK.

No need to waste your money in commission and taxes. If you really want to invest, index fund is the way to go. If you want to trade, then learn while you have your money stash away and use a paper (fake account) to build your strategy.

Picking up couple of books and doing some research will make you a market genius within a year....yea fvcking right.
Click to expand...

You sound a little bitter. Who said anything about being a market genius?
 
The books I'd recommend for starting out:

Intelligent Investor
Intelligent Asset Allocator

then, to decide if trading is for you:

Trading in the Zone
Technical Analysis of the Financial Markets

Read many of the articles on Investopedia and similar resources, get involved at EliteTrader and start there. This will likely take you a few years, but you'll at least know whether you're interested in it or not. If you do want to trade, then you could look to the following for actual resources and tools:

Interactive Brokers
MBTrader
AmiBroker
TradeStation
Wealth Lab
Worden
and many dozens of others.

Sorry, I don't feel like linking all of those. A quick Google will turn it all up for you.
 
Originally posted by: Descartes


Common sense doesn't apply in the markets. It's precisely common sense that leads most to fail, react irrationally, etc.
Click to expand...

irrationally .:. lack of common sense, imo

atleast, ive observed (not just here , but everywhere)

but to each his/her own. its your money. C.Y.A.
 
Originally posted by: LS20
Originally posted by: Descartes


Common sense doesn't apply in the markets. It's precisely common sense that leads most to fail, react irrationally, etc.
Click to expand...

irrationally .:. lack of common sense, imo

atleast, ive observed (not just here , but everywhere)

but to each his/her own. its your money. C.Y.A.
Click to expand...

Well, what I meant to say is that people apply common sense, find that they were wrong and then react irrationally. Perhaps I should have said emotionally.

Some traders have are better acclimated, but many have to deal with a different psychology when approaching the markets. This is why I suggested Trading in the Zone; it's a bit of a repetitive book, but it'll let the reader know whether they can hack it or not; of course, a few trades will likely do that too.
 
Originally posted by: Descartes
Originally posted by: iversonyin
Originally posted by: bigdog1218
Originally posted by: iversonyin
Low cost index fund, no need to pick stocks, no need to do research. Market return is the best return. You can't really pick stock with couple thousand bucks...way too much risk.
Click to expand...

No need to make actual money. You can pick the same stocks whether you have $1000 or $1,000,000, a good stock is a good stock. If someone is willing to learn and do research there's no need to waste his money in a fund.
Click to expand...

What are you kidding? LOW COST index fund. What part of LOW COST you don't understand?

What is the percentage of $10-14 commission on $1000? 1-1.4% if you make ONE trade. What gurantee your research and hardwork will lead you to "beat" the market?

As a newbie, I suggest anyone to stash away in index fund while they learn. You simply can't trade with couple thousand dollar, the commissions will churn your account away QUICK.

No need to waste your money in commission and taxes. If you really want to invest, index fund is the way to go. If you want to trade, then learn while you have your money stash away and use a paper (fake account) to build your strategy.

Picking up couple of books and doing some research will make you a market genius within a year....yea fvcking right.
Click to expand...

You sound a little bitter. Who said anything about being a market genius?
Click to expand...

Not bitter, just speaking from experience. People think you can actually pick a good stock and make money in the market by reading couple of books. And actually advising a complete noob that you can be under capitalize and make money?
 
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