I know the stock market is bad, but I'd like to start investing as I know there are a lot of great bargains out there. So if anyone can recommend any published books that they have read themselves, I would appreciate it.
Please hold on to your money for now. The stock market is still shaky and watch for sustained side ways movements before entering it. Their are technical graphs and fundamental analysis like P/E ratios and so on but even my brother a MBA finance major has lost money so just keep out of stock market for now
Hold on to your money the market is till shaky. Still some unexpected movements seen cannot say when the market gives a dip once again. Regarding books to purchase shares i would say it is better to take knowledge about purchasing shares from some experienced trader or watch the share you want to purchase when it comes down.
Just stay away from the markets for the nearest couple of years at least, and you'll be OK
Thanks Misha. I hear many stories about people who invested during the stock market crash and took advantage of the bargains. I'd look to do the same and I know I still have some time until everything turns around.
But now I know that certain stocks do well in uncertain times for example Mcdonalds.
I just want to be well informed and prepared when it happens
Any book to do with Warren Buffett's philosophies (shameful self promotion--you can see my hub on Buffett!) . Consider stocks you understand and are safe in that you know we will need the product in the future. Or, buy Buffett's stock, now down as the rest of the market.
Well, OK... I should also say, consider Buffett's philosophy and even entering the stock market for those bargains right now if you are in it for a long haul. I mean years. The only way I invest.
Books on stock market are very many and you should read as many as you can. Read a book every month.
You can read “How to Trade in Stocks” by Jesse Livermore, the wiped-out guy who put a gun to his own head.
Read as many books as you can because when you hunt for gold in rattlesnake country, you need a thorough knowledge of diamond-backs, sidewinders and two-legged snakes that bait the mines and sell apocryphal maps.
But it is not until you dip your head in the stock market with your real hard earned money that you’ll get to learn the difference between theories and practicals.
This is probably not the time for a novice to invest in the stock market. I would focus your research on discovering alternative investment avenues. Suggestion: gold, commodities, bonds, etc.
I think its a good time to buy stocks. You just have to know which stocks to choose. Don't invest in speculations and long shots. Go with the companies that withstand the test of time like Coca Cola, Mcdonalds and campbells soup.
No matter how bad it gets people still drink coca cola, eat Mcdonalds and buy campbells soup for home. Investing in these types of stocks even for a novice is a good direction to go.
Thanks Tom, that's pretty good advice.
And to Lita, yes I agree about Buffet's philosophy about keeping stocks in long fun and I have been reading his books currently.
No problem, since you're reading books from Buffet you should be fine. The man is one of the riches in the world afterall.
Now, if you can afford to invest your hard in cash then IMO you should go for it. I really don't agree with people who say tuck your money away under your pillow for years.
This type of fear is part reason why the stock market is doing horribly.
As long as you invest in solid companies with a strong global brand name then you're good. I used Coca Cola as an example before. Coca Cola is a global brand name. Any country you go people recognize their logo even in their native language. And even in a crappy economy people will still drink Coca Cola.
I came across this post looking for an answer to your question. I will look into Warren Buffett. I've just started researching buying individual stocks as opposed to investing in mutual funds or ETFs. I've read O'Niell's How To Make Money In Stocks, outlining his CANSLIM methodology for stock selection, as well as some of the Motley Fool investing books and some of Peter Lynch's books. These were good books about how to analyze a companies financial situation, and I learned a lot from reading all of them. However, they are all rather old books and none of them focus on using modern technology available to the individual investor today. But fundamental stock analysis in my opinion hasn't changed in the last 25, 20, 15, or 10 years. Best of luck on your research.
Thanks sonnyfab, I'm actually reading Motley Fool now. It's full of great info.
The CANSLIM method by Bill O'Neil is excellent. It will teach you how to read the market, know the difference between a bear and bull market and how to pick the right stocks. It is a must have for anyone looking to invest in the stock market.
I note that you posted this 7 months ago. The market then was not in a bottomed out position. Today the DOW is at 8500 after having reached it's highest position 13,000 early last year.
Consider entering the market this year and making conservative base blue ribbon investments initially. Do not play the markets at the moment unless you are taking a five year stance on the scrip that you buy.
Use this period as a LEARNING PERIOD. I think you will find some heavily undervalued stock atm, if you research properly. This means that you can find some good ground floor stocks, irrespective of what most will tell you. The Dow will move in the next year and I think you will find it will range up to 9500 over the period.
Don't be afraid.. Study the companies.. choose well and enjoy the learning curb. Bon Chance.
Like somebody said above, anything by Warren Buffet... the world's greatest ever investor. If Buffet ever lets slip a share tip (very rare) then you can be 95% sure that it will come good.
I would disagree with anybody that says not to invest in a recession, it is in fact the perfect time to invest - just as long as you are careful. Of couse it is the right time for LONG TERM investments, dont expect to make a quick buck. Do your reading before you place down real cash, and as a beginner you should always start a 'virtual' portfolio first. Practice with pretend money.
The whole principle about not investing in a recession is completely wrong, the same with any kind of pension fund, trust etc. Buying at the bottom is the right thing to do, buying at the top is going to lose you the money.
I would advise however that you stick with the main markets, the huge multi national and global corps. Stick with the Nasdaq/Dow Jones and the FTSE. Avoid the more volatile markets of Asia.
Get yourself signed up to a virtual account, do that for at least 6 months and learn, learn, learn. I am about 40% up in 2009, I only started trading in December 2008, but I was using virtual accounts from August 2007. Don't buy on instinct, educate yourself first.
As for tips, I never give tips... I would hate to be responsible for losing somebodies hard earned cash!
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