Basic Advice Please!

[stuartjhill]

Ok All! I am in need of some BASIC advice here! I have spent the last week starting to gather ideas about the best way to invest some $$ in the stock market. Problem is.....I have no idea about it. I need advice on a good book to read which will introduce me to the basics. I am also looking at subscribing to something like Fat PROPHETS....or the like. So suggestions please on a book and where to go from there. I have sent off for etrade and commsec accounts as well so any info or advice would be greatly appreciated.
Regards,

Stuart

 

[It's Snake Pliskin]

Hi Stuart,

I can't give you advice but I 'll inform you of some books.

Trading Secrets by Louise Bedford
Any books by Darryl Guppy ( Share trading, trend trading, chart trading, bear trading)
How to beat the managed funds by 20% by Gillham
The ASX Starting out and Trading the stock market series.

The subsription service is good to learn from, but it may not make you money. Remember, they make money by writing these newletters! If you want a cautious newletter service try "The Intelligent Investor"

Just go to the lybrary and read as many books as you can. The above books are not bad for beginners, but don't solely rely on those. I constantly buy new books for entertainment and education. It's a life long learning process, not something you can do over night.

 

[wayneL]

Hey Stuart,

You could have a look at my website below, there is some articles aimed at beginners.

....and do as Tina suggests, reads some books, ask questions here.

Cheers

 

[tech/a]

We all see this sort of query many times.

Firstly I think it important to try and narrow down the question as the answer could take up a few pages in itself.

(1) Look at your Capital base and see if you are attempting/wanting to.

(a) Invest your capital for the long run.
(b) Invest parts of it for quick small gains.
(c) Invest it as in a business which you intend to use as your full time occupation.

(2) How much time do you have to spend gaining your "Degree or doing your apprenticeship?"

(3) How much time will you spend a day on your investing.

Answering these questions can narrow down the field of learning considerably.

Capital under $50000 leaves you predominately out of the trading for a living catagory.
Time will determine extent of knowledge gained over time.
Time you wish to spend trading can/will determine style.

 

[Knobby22]

I agree with the previous suggestion of Trading Secrets by Louise Bedford as it may help you limit your starting losses.

I also think you should invest for long term. Investing for the longer time frame will help you learn and is less risky and just as profitable as trading frequently. Try to understand why you are buying a stock and make sure you learn from every trade. Don't let your emotions guide you, as soon as you join the herd, you will get slaughtered. Don't buy things in vogue as you will be paying too much. Don't listen too stockbrokers. Don't have too many stocks. Four or five is enough to keep track of for a beginner. Don't daytrade! Don't buy magic boxes that tell you when to buy and sell! Keep your costs down!

You also need to read a book focused on fundamental issues such as PE ratio, debt etc. This is what really matters.

I would make a few investments then when the Annual reports come, read them and learn to understand them.

Investing directly saves you fees and teaches you, which will become a valuable skill as you get older.

 

[emily]

a lovely website wayneL,easy to understand for beginers, doesnt jump straight to the mumble jumbles. well done mate!