Here’s a list of books you should consider, at least read half of them
Bulls Make Money, Bears Make Money, Pigs Get Slaughtered, by Gallea
How to Trade in Stocks, Jesse Livermore
Millionaire Traders, Lein & Schlosberg
One Up on Wall Street by Peter Lynch
Reminiscences of a Stock Operator, Edwin Lefevre
The Disciplined Trader, Mark Douglas
Trader Vic-Methods of a Wall Street Master, Victor Sperandeo
Trader Vic II-Principles of Professional Speculation, Victor Sperandeo
Trading for a Living, by Alexander Elder
Trading in the Zone, Mark Douglas
And when you think you want to trade, try some paper trading to test your skills without spending you money http://simulatorinvestopedia.com/ http://www.moneyworks4me.com/
and/or http://www.tradingsimulation.com/
Before you enter your first order you need to address four major policies and have very strong discipline to follow them
1 - You need a written sound trading/investment plan with rules that will not only help you but more importantly protect you, mostly from yourself. Always use stops either to protect you on the down side or to lock in profits on the up side. Never trade on emotions, when emotions get involved walk away. Don’t try to out-smart the market, you’ll loose but if you always take what the market is willing to give you, you’ll be successful. Other words, you don’t trade against the trend since the market is always right. And NEVER trade on emotions, once you let emotions in your trades you will loose
2 - A written money management program is essential. Remember never invest 100% of your capital into any one security and never have 100% of your capital invested. Never go into a trade without knowing when and where you are going to get out of it. Never let a loss on a trade get greater than 8%-10%, always take you loss and walk away - don't loose more than you need to and don't be afraid to take the loss. Remember you never can get hurt taking a profit. Never average down, but you can average up.
3 - You must have sufficient trading/investment capital. Use your own money, there’s no need to go into debt so that you can trade and/or invest. Margin can be used but only with restraints, never let the account wall below 45% equity. Unless you fully understand margins you should not use it.
4 – A full and complete understanding of the rules & regulations of the industry. If your going to play in the game be sure you know the rules of the game and always follow them.
Unless you are willing to study and follow the above you will never make it as a trader. To be successful as a trader it takes work and constant study of the markets and the products traded in those markets, there is no easy way.
Your desires need a leash, at least for a while. While vast sums are indeed made and sometimes quickly, they are virtually never made by beginners, and most long-term investors don't have a shot either. Investing is a very complex world. You can't learn it all, but what ever part you decide to tackle should be well understood. You have to crawl before you can walk, or you fall on your face.
Some people are instinctively better at investing than others, and there is a kind of mental wiring that is required if you are going to play the high-stakes games. The comment above recommending "The Intelligent Investor" book by Benjamin Graham is right, one of the very best you could read. Pay attention to his explanation of Mr. Market, this is an outstanding example of a critical understanding every investor needs.
You start safely, learn and progress when you are ready.
Manage your own stocks if at all possible, you will never have exceptional results otherwise.
Hey,
Penny stocks, also known as cent stocks in some countries, are common shares of small public companies that trade at low prices per share. They are notoriously risky but if you follow a special method I've learned you can earn good money at almost no risk. This is the site I use: http://pennystocks.toptips.org
I definitely recommend subscribing to this site in particular. Very good research, quality stocks. I was a bit weary of penny stocks from all the bad hype they receive but this guy is pretty legit. He's put my mind at ease with a lot of the fears I've had. I especially like that he doesn't send out announcements left and right. I've signed up for other websites that fill my in-box with one company after the other. I don't know where to even start with so many choices in front of me! Nathan sends me one idea a week and that's all I need. Working so many hours during the week leaves me with very little time when I get home to start doing tons of penny stock research. I'm always eager to see what Nathan's next suggestion is each Friday and I love having time on the weekend to do my research.
As said above if you want to make money with penny stocks you have to follow some proven methods. This one in my opinion is the best: http://pennystocks.toptips.org
Hope it helps.
I am very happy because u are starting at good age you have very much time to see your investment grow over the period
first thing first be an investor not a speculator
first gather some information some of book i love to recommend are
1) Rich dad Poor dad
2) learn anything which u don't understand from investopedia
3) The Warren Buffett Way,
First, avoid gambling! If you buy stock hoping that you can sell it for a quick profit because of the weekly or monthly swings in price, then you are not investing. You are trying to guess better than the public (including the professionals) how the price will change.
Choose a company that has steady earnings each year instead of losses. If your company has very little long term debt, it will likely not get into financial trouble.
Buy these sturdy stocks and hold on to them. When you hold these stocks over a period of time, the prices will go up for a real reason; the companies are earning money every year and becoming more valuable. This is not gambling; you are owner of a money making business. It takes time for that business to earn money.
If you save a portion of your income each payday and as it accumulates invest in stocks, over the course of several years you can grow very wealthy indeed. It is like hiring someone to get a job and earn money for you, and then using that money to hire more workers. Your money grows exponentially.
. .
A great way to start is to read the book, "Intelligent Investing". This is one of the best books written on investing.
If you are talking about short term trading, which I advise against, their is a web site at informedtrades.com which offers free instruction on short term trading. One of the best books on this subject is "The way of The Turtle". Which talks about the actual experience of someone who was randomly picked off the street and taught how to be a professional trader.
(I forgot my ID for that last account, so I made a fresh one)
Thanks everyone for advice
Should I avoid trading on penny stocks and just focus on larger companies?
Also I have ￡5,000 to spend on stocks and I am willing to allocate 20% of my money a year to trading
I've downloaded a PDF of several of the books that you all have told me about
Get rich quick schemes don't work.
Get rich slow schemes do work.
Instead of buying hot tips or penny stocks, invest in quality blue chip stocks that have a record of increasing earnings and dividends.
What amount of lump sum of money do you have to buy stock to start you off? You buy maybe 1000 shares in BP at ￡3 per share which will cost you around ￡3000 and when the share price goes up to say ￡5 per share then you sell your shares and make a profit. From what you say you dont know much about it and you need to learn before investing because what would happen if those ￡3000 of shares you have fell to 50p per share? Good Luck
Hey, I'm an 18 year old English male
I would like to know how to make a vast sum of money from trading stocks.
For reference, I've only just started work, making ￡14k a year... So yeah, any help would be appreciated
