Begin your education by learning why you should invest and the importance of being able to make your own decisions or how the pro’s make theirs. Start your education by reading “Investing for Dummies” by Eric Tyson.
To continue your education select some of the following
Beating the Street by Peter Lynch
Bulls Make Money, Bears Make Money, Pigs Get Slaughtered, by Gallea
From Riches to Rags, by I.C. Freeley
How to Make Money in Stocks” by William O’Neil
24 Essential Lessons for Investment Success by William O’Neil
The Intelligent Investor, by Benjamin Graham
Common Stocks, Uncommon Profits, by Philip A. Fisher
One Up on Wall Street by Peter Lynch
Stocks for the Long Run, by Jeremy Siegel
The Interpretation of Financial Statements by Benjamin Graham
The Lazy Person's Guide to Investing by Paul B. Farrell
Uncover the Secret Hiding Places of Stock Market Profits by Joel Greenblatt.
What Works on Wall Street by James O'Shaunessey
You Can Be a Stock Market Genius by Joel Greenblatt
Your Money and Your Brain by Jason Zweig
Websites that can provide instructions and help with procedures and terminology are Investopedia - http://www.investopedia.com/ http://www.investorshub.com/ and 1 Source for Stocks - http://www.1source4stocks.com/info/stock... or Smart Money
http://www.smartmoney.com/
Visit some of the more professional websites like Zacks Research - http://www.zacks.com/ Schaeffer’s http://www.schaeffersresearch.com/ Investors Business Daily - http://www.investors.com/default.htm?fro...
Some of these web sites will have advertisers who are worth looking into also. And remember, if they offer free information, get it.
When you think you want to invest/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/
You at least have made the right decision to start investing, this is the first big step and it won’t be your last. Keep taking those steps forward and along the way never take the advice from people that are not in the market or try to tell you not to invest.
Good luck on your journey, study hard and you’ll invest well.
Investing has to be done with a strategy. First you have to divide up your money, the money you need to buy food shelter and clothing, pay debts, save and invest.
The portion of your money to save and invest is what goes into investing. First I have to warn you of a gotcha: Insolvency. Insolvency is when you run out of cash. Even if you own lots of assets but run out of cash money you could be forced to file for bankruptcy. Its expensive and unless your can afford good lawyers your up the creek. So to start out you need to build a cache of safe investments.
First you need to have a checking account and a money market/savings account dedicated to your day to day financial needs, second open a money market account with checking for your investing.
Before buying stocks or whatever accumulate money in the money market account. Small initial investments are not worth it because of processing fees and commissions. First buy investments that are fairly safe. Start with buying a mutual fund that has a "value" or "growth" strategy. Yahoo has a nice research utility for mutual funds. If you would like for the near term to generate income you can invest in an income generating fund that pays dividends. I personally don't buy fewer than 50 shares of a stock per purchase, $1000 dollars worth of mutual fund shares, or $1000 dollars worth of bonds per purchase.
Investments offering big returns involve big risk of loss. Remember these guys are not running a charity they want to pay the least amount of interest, dividends, or other gains they can. Offers of high interest are made because the payer is desperate to get money.
My formula is: Market Tolerance = Small reward/small risk = medium reward/medium risk = large reward/large risk. If someone tells you different take you money and move on.
I'm not trying to invest just yet, and I know how the stock market works, from short selling to options. But my main goal figuring out the best way to study each company one at a time, and to see if they are a company with potential or not. Everything I find on the web teaches you how to invest in the stock market, where to put your money. Money aside I'm trying to find the best way to study the market.
Thanks!
