Develop a trade plan and test your plan on a simulator rigorously in up and down markets. Yes, you've played on a simulator before, hitting buttons at random. It tells you nothing unless you can repeat your actions and become consistent. Learn all you can about risk, liquidity, and good strategy. Learn well the dangers and exponential risk of leverage. Discover your time frame and incorporate good money management techniques in your plan while you learn and save and test your plan. Becoming consistent is your goal, not making money or finding the Holy Grail indicator or system or Secret. The money will come if you do something right. Avoid the human tendency to focus on mythological potential when none exists. Focus on method, strategy, and risk, not profits and money. Always have an alternate plan. Question what you think you know. It makes you focus on the plan, specifics, details, and risk.
Check out a video called "Trombone Player Wanted" by Markus Buckingham or "First Break all the Rules" also by him.
If you want a good strategy and method and plan
O'Neil, William J.- How to Make Money in Stocks
If you want to develop a trade plan
Nassar, David – Rules of the Trade
Psychology of trading, regardless of method
Douglas, Mark - Trading in the Zone
Schwager, Jack - Stock Market Wizards
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
Secrets For Profiting in Bull and Bear Markets by Stan Weinstein
Stocks for the Long Run, by Jeremy Siegel
Options as a Strategic Investment by Lawrence G. McMillan
The Millionaire Next Door, Thomas J. Stanley
Zurich Axioms: by Max Gunther
Against the Gods: The Remarkable Story of Risk: by Peter L. Bernstein
The Education of a Speculator: by Victor Niederhoffer
Justin Mamis' The Nature of Risk: Stock Market Survival and the Meaning of Life. I believe this book to be foundational to new traders because it discusses, what else?, the nature of risk in the market.
You can get all of these books at your local library through the Interlibrary Loan system for free.
There are probably books to tell you how to find capital that you can invest but regardless of how much money you have to invest all investments outside of private equity investing is available to you. If you want to be a fund or portfolio manager margin is what you should be focused on. If you can turn $1 into $2 you are doing better than most and people will give you money and pay a fee so that you can invest that money in stock or other investments that you feel are undervalued or overvalued if you want to short a stock. You can also trade on margin. That is how a lot of fund managers get started. They form a LLC and then hit up a broker to lend them money to invest in stock they think are going to produce a return. If the stock takes a dip and the broker calls then the LLC goes bankrupt. You should read books on valuation. Valuation by Mckinsey and Co Inc. is a good one I am told. I am going to purchase it soon for myself
Check out DaveRamsey.com ... He has several books about basic investing for beginners. Remember anything you put in a brokerage account is subject to loss. I like Fidelity, but that is me personally. Others - eTrade, Schwab, etc would be good.
I started by reading "How I Made $1,000,000 in the Stock Market" years ago, but it isn't published (and was from the days before discount brokers... think the 1950's).
If you could find (or start) an 'investment club' with several like minded friends, it is a great way to learn, invest real money, and grow as an investor before you pay to much 'stupid tax'.
BTW, over the years, my wife and I have paid LOTS of stupid tax before we did what was smart (for us). We got enough money together (more than $50K and got in a 'managed account' at fidelity.) They lost money, but have made much more than we would have and they are less emotionally attached than I was when doing DIY investing. Doing investing right is a full time job, and a hard one, IMHO. This is why I 'outsourced' this effort for us.
The basis is "Never bet more than you can afford to lose."
All good investing books, ALL of them, will tell you not to invest in stocks until you:
1) know what moves the market
2) know what moves the industries that you are looking to invest in
3) know what moves the price of the stocks of the companies you are looking to invest in.
4) don't invest in stocks without diversification
5) don't invest in a position where you will get eaten alive by trading fees.
With all that said, investing with really anything less than $5-10k...isn't really investing to make money, but it can be an investment in your knowledge of stocks and the market in general.
"How to win at blackjack" by Ida Haus - you'da sucker.
Everybody is getting 15% to 20% over the past couple years.
Can I interest you in some Microsoft stock at $60?? Got up to $100 in the 1990's. May get there again.
Hey, General Motors is a clue chip company. So was the old Kmart, the old Sears, and Enron might rise again.
Banks never go bankrupt ....
Just put your money in the bank until you have a year's wages saved up.
You possibly can instanly receive an online payday loan up to $1000 applying this site: http://loans.servermatrix.org I obtained the payday loan although I have a very bad credit rating.
I have little cash, but I am a finance student and I would like to start a brokerage account to get my foot in the door as far as really putting money in the market, instead of just fake accounts. What books would you recommend for this?
