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What is the best way to learn about the stock market?
I would like to learn pretty much everything there is to know about the stock market. It feels overwhelming, but I don’t know crap about it. What are some good resources either online or in print? I eventually want to start investing in the stock market, but that is way down the road. Thanks in advance for any advice.
b2fnow 5:01 pm on July 13, 2010
You don’t say if you’re interested in trading or simply investing for the long-term.
If all you had to do was "learn everything there is to know about the stock market," then most anyone could do it and every disciplined, hard-working trader would be a success.
But the statistics prove that is not the case, because 80% of all traders lose money, and 90% of day traders lose. Doctors and lawyers make the worst traders, because they are used to being able to control their environment. So there is a psychological element to trading that most people never address.
This quote from: Fooled by Randomness, by Nassim Taleb
It certainly takes bravery to remain skeptical, it takes inordinate courage to introspect, to confront oneself, to accept ones limitations. Scientists are seeing more and more evidence that we are specifically designed by mother nature to fool ourselves.
There is no one investment, there is no get rich quick scheme, there is no pot at the end of the rainbow. There is no one book or seminar or secret or answer that will make you successful.
Most novices focus on how much money they can make, which is basakwards to what they should be doing. If you focus on risk control and money management, you might stick around to play the game another day.
Books on Investing
"Which Is Better, Buy-and-Hold or Market Timing?"
"Do You Have What It Takes to Be a Market Timer
Droke, ClifTechnical Analysis Simplified
Kahn, Michael N.Tech. Anal. Plain & Simple
Kamich, Bruce M.How Technical Analysis Works
Lefevre, Edwin – Reminiscences of a Stock Operator
about Jesse Livermore
Lofton, Todd – Getting Started in Futures
Lowenstein, RogerBuffet (Warren)-The Making of a Capitalist
O’Neil, William J.How to Make Money in Stocks
Oz, TonyHow to Make Money From Wall Street
Rotella, Robert P.Elements of Successful Trading, The
Schwager, JackStock Market Wizards
Schwager, Jack D.New Market Wizards
Sperandeo, VictorTrader Vic-Methods of a Wall Street Master
Wasendorf, RussellAll About Futures
Slutsky, Scot and Darrell JobmanComplete Guide to Electronic Futures Trading, The
Extraordinary Popular Delusions and the Madness of Crowds" by Charles Mackay
The Intelligent Investor, by Benjamin Graham
One Up on Wall Street, by Peter Lynch
Common Stocks, Uncommon Profits, by Philip A. Fisher
Stocks for the Long Run, by Jeremy Siegel
Bulls Make Money, Bears Make Money, Pigs Get Slaughtered, by Gallea
Trading for a Living, by Alexander Elder
From Riches to Rags, by I.C. Freeley
Millionaire Traders, Lein & Schlosberg
Stock trading simulator and Education
http://www.howthemarketworks.com./
http://stockmarket.makemoneyideas.in/
http://simulator.investopedia.com/home.aspx
http://www.top10traders.com (also a simulator)
http://investopedia.com (for finance terms and definitions and simulator)
http://investing.sitesled.com/
http://www.stockcharts.com
http://www.freestockcharts.com
http://futures.tradingcharts.com/learning/
http://www.fool.com/school/basics/basics...
http://beginnersinvest.about.com/library...
http://www.mysharetrading.com
Stock Trading Warrior 5:01 pm on July 13, 2010
As you mentioned, learning about the stock market takes a bit of time, but it’s well worth it, and books are a great way to start. I recommend Stock Investing for Dummies (no offense). It’s good book for understanding the basics. I would also recommend How to Make Money in Stocks by William J. O’Neil. It’s also a good one because it tells you what kind of fundamentals to look for in a stock, a bit about how to look for patterns in stock charts and how to protect your capital. It’s the first book I read when I started my stock trading and a very good start for stock investing or trading. There’s also a link below to a beginning guide to investing. Any questions about terms or anything go to Investopedia online.
The great thing is that while you’re learning, you can “paper trade” as you begin to learn strategies. That’s basically where you keep a fake portfolio of your trades. This will give you time to really think about how you want to invest/trade stocks, control risk, position sizing, set goals, monitor your progress, etc.
I definitely recommend going ahead and opening an investing account to gain access to stock market information, watch lists (fake portfolios) and educational tools that you can use as you begin the stock investing process. You can also familiarize yourself with the broker’s trading platform so when you begin to trade, you’ll have familiarity with how a trade is placed and have access to any resources related to the beginner investor.
The stock market can seem overwhelming, but you can totally do this and it’s so great you’re interested in investing because when you learn how to invest you do it for yourself, your family and you act as an example to those who know you. Learning how to trade or invest will serve you your whole life!
John 5:01 pm on July 13, 2010
Dear Friend,
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Alex Anderson 5:01 pm on July 13, 2010
you can learn it by analyzing the market what happen daily and when the share goes high and when go down in which day market mostly grow ,and which share has no effect more if the market goes down
HiAll 5:01 pm on July 13, 2010
Read books it is a great way to start. I recommend New Trading Dimensions
http://www.stockpride.com/new-trading-dimensions-how-to-profit-from-chaos-in-stocks-bonds-and-commodities
Donavan Murray 5:01 pm on July 13, 2010
http://freestockmarkettips.info/ has a lot of good stock information, tips, and you can even have up to date stock information emailed to you as soon as they are released. Also, they have penny stock alerts to be on the watch for. They also have a starter’s guide for those who wish to learn about getting into the stock market.
Alex K 5:01 pm on July 13, 2010
The best way for me was to watch CNBC whenever possible. Whenever you hear the commentators or guests talking about any words or concepts that you don’t know what they are, write them down and look them help when you have the chance.
The most important thing to do is learn the basics- Dividends, P/E ratios, GDP, earnings reports, etc.
I have a daily blog where I talk about the market- check it out.
http://wallstblogger.blogspot.com
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