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#1
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Learning About stock market
Hi guys,
How would you recommend a "CLUELESS" 18 year old would go about learning about stocks so he could potentially get a job in the future or atleast invest himself? It looks interesting, but it seems i'd have to do a degree to get any chance of a job in it. I just wanted to learn the basics so i could see if i have an interest for it. Thanks in advanced, PH. |
#2
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Re: Learning About stock market
motleyfool.com for basics
after that read books: "the intelligent investor" and "security analysis" by benjamin graham |
#3
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Re: Learning About stock market
You might also start doing some general reading -- Wall St. Journal, the economist, or take a basic class in economics in college. Just so you start to understand generally how the economy works.
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#4
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Re: Learning About stock market
[ QUOTE ]
motleyfool.com for basics after that read books: "the intelligent investor" and "security analysis" by benjamin graham [/ QUOTE ] Extremely good books. These 2 books got me hooked on stocks at 18. I would rec. the 1940 edition of Security Analysis as the later editions lost alot IMO. Portfolio Selection by Harry Markowitz is another great. But, if anyone I was talking to could only read one book on investing it would be The Intelligent Asset Allocator by William Bernstein |
#5
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Re: Learning About stock market
I also like
Stocks for the Long Run The Warren Buffet Way The Warren Buffet Portfolio Any of the three books put out by Peter Lynch There are about 10-20 others. But that's a decent start. Also possibly Dorsey Five Rules of Successful Investing |
#6
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Re: Learning About stock market
Warren Buffett's Letters
The above letters are free, and a decent place to start. Warren is probably the most successful investor in history, with a 50 year record. His letters are suprisingly readable and do a good job of explaining the philosophy he follows. From his 1988 letter, one of my favorites. "In past reports we have told you that our insurance subsidiaries sometimes engage in arbitrage as an alternative to holding short-term cash equivalents. We prefer, of course, to make major long-term commitments, but we often have more cash than good ideas. At such times, arbitrage sometimes promises much greater returns than Treasury Bills and, equally important, cools any temptation we may have to relax our standards for long- term investments. (Charlie’s sign off after we’ve talked about an arbitrage commitment is usually: “Okay, at least it will keep you out of bars.”) During 1988 we made unusually large profits from arbitrage, measured both by absolute dollars and rate of return. Our pre- tax gain was about $78 million on average invested funds of about $147 million. This level of activity makes some detailed discussion of arbitrage and our approach to it appropriate. Once, the word applied only to the simultaneous purchase and sale of securities or foreign exchange in two different markets. The goal was to exploit tiny price differentials that might exist between, say, Royal Dutch stock trading in guilders in Amsterdam, pounds in London, and dollars in New York. Some people might call this scalping; it won’t surprise you that practitioners opted for the French term, arbitrage. Since World War I the definition of arbitrage - or “risk arbitrage,” as it is now sometimes called - has expanded to include the pursuit of profits from an announced corporate event such as sale of the company, merger, recapitalization, reorganization, liquidation, self-tender, etc. In most cases the arbitrageur expects to profit regardless of the behavior of the stock market. The major risk he usually faces instead is that the announced event won’t happen. Some offbeat opportunities occasionally arise in the arbitrage field. I participated in one of these when I was 24 and working in New York for Graham-Newman Corp. Rockwood & Co., a Brooklyn based chocolate products company of limited profitability, had adopted LIFO inventory valuation in 1941 when cocoa was selling for 50 cents per pound. In 1954 a temporary shortage of cocoa caused the price to soar to over 60 cents. Consequently Rockwood wished to unload its valuable inventory - quickly, before the price dropped. But if the cocoa had simply been sold off, the company would have owed close to a 50% tax on the proceeds. The 1954 Tax Code came to the rescue. It contained an arcane provision that eliminated the tax otherwise due on LIFO profits if inventory was distributed to shareholders as part of a plan reducing the scope of a corporation’s business. Rockwood decided to terminate one of its businesses, the sale of cocoa butter, and said 13 million pounds of its cocoa bean inventory was attributable to that activity. Accordingly, the company offered to repurchase its stock in exchange for the cocoa beans it no longer needed, paying 80 pounds of beans for each share. For several weeks I busily bought shares, sold beans, and made periodic stops at Schroeder Trust to exchange stock certificates for warehouse receipts. The profits were good and my only expense was subway tokens." |
#7
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Re: Learning About stock market
Yes, that's great post by Cat. Very useful info.
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#8
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Re: Learning About stock market
Well I am a professional trader that works from home. I would recommend first taking a few classes in accounting and finance, so when you read a pr you know what the co is talking about. Second some books on technical analysis. If you want to do intraday trading such as myself, I would highly recommending downloading a free screen recorder so you can review the action on a stock whenever you want to. After that you pretty much gotta choose yourself what type of investing/trading you want to do. .
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#9
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Re: Learning About stock market
[ QUOTE ]
I would highly recommending downloading a free screen recorder so you can review the action on a stock whenever you want to. [/ QUOTE ] OK, I'll bite, what exactly are you recording and reviewing later? You don't have to record the chart, as you can review that at any time... are you recording the level 2 action? |
#10
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Re: Learning About stock market
Well really don't need L2 action if your trading bigboard but just 1 min chart and ticker so you get to know if a move is real or just a whipsaw.
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