I've been thinking about starting out in the stock market. I'm totally new to this and am wondering about some good resources to learn more. I've seen some stock market training on the internet such as technitrader. Wondering if anyone could asist in pointing me in the right direction. Any recomended books or courses would be of great help. Any experiences share whould be well appreciated too. Thanks.
Learning the Stock Market
- Thread starter pooner144
- Start date
I did couple years of daytrading .... and what I can tell you is this .... no book will teach you what to do, and how to do it right. No seminar will show you how big guys manipulate the stock... within legal limits of course 
.
You have to experience it yourself.
Start small.
Do your own research.
Do a "dry" stock trading. Buy and sell on paper.
Do this for 3 months .... AT LEAST.
If you have a 75%+ CONSISTENT success rate .... then you can try. Remember.... Paper trading is not a real trading.
Choose what do you want to do.... long, mid, short, or daytrading.
RESEARCH RESEARCH RESEARCH ....
Hope you like to read, and search the Internet .... because you will spend HOURS glued to the screen
get yourself a large monitor .. 21" is a MUST
if you decide to do a daytrading .... get yourself two independent connections to the Net redundancy is the key.
and most important... have fun
just my 2c
. You have to experience it yourself.
Start small.
Do your own research.
Do a "dry" stock trading. Buy and sell on paper.
Do this for 3 months .... AT LEAST.
If you have a 75%+ CONSISTENT success rate .... then you can try. Remember.... Paper trading is not a real trading.
Choose what do you want to do.... long, mid, short, or daytrading.
RESEARCH RESEARCH RESEARCH ....
Hope you like to read, and search the Internet .... because you will spend HOURS glued to the screen
get yourself a large monitor .. 21" is a MUST
if you decide to do a daytrading .... get yourself two independent connections to the Net redundancy is the key.
and most important... have fun
just my 2c
Thanks for the input, I understand that this is an ever-learning thing because it's really about trying to predict a peoples Perspective on a given company on any given day... which is what prompts them to either buy or sell their stock. I want to start small and work on the short term. I would like to see if I can make a little extra cash on the side.
it was always easier to make money on a bad news, then on a good one ..... people are soooooo predictable
learn how to "short" trade .. and .... even in todays market.... one can make some extra $
learn how to "short" trade .. and .... even in todays market.... one can make some extra $
pooner144 said:
Never Trade OTC or PINK sheet stock.....
those are piece of shits.....
go for the good qualitys......
Ask me.... Pay me to help you learn what to buy stock....
my nickname is "godofstock"..... LOL
If you dont know how to look at accouting information about some companys, never buy it....
cause some businesses are losing $$$ in the millions every damn quarters....
and the stock will ended up in Chapter 11 Bankrupcty and it won't protect you as a "shareholder".....
I provide this advice for a living so I'll provide you with my insight for what it's worth.
For starters prior to investing you have to have a goal. Is this for your retirement, if so how much do you think you'll need and what other assets do you have available. So don't invest in a vacuum.
Secondly, trying to beat the market is basically a fools game. There are countless CFA's managing billions of dollars who trying to do the same thing. This is the mandate of most mutal funds as well. Guess what, most unachieve the index. Nobel prize winner William Sharpe said it best when he said it's basic math. Let's assume that for the most part mutual funds make up the market, if this is basically true, then their expected return as a group has to be the market less their fees. Now one could argue that individual mutual funds are different but the problem is there is no systematic way of determining which mutual fund will outperform the market in advance. Having said that there is a direct correlation between mutual fund fees and their performance and I do like some mutual funds (ie Mawer New Canada) which are in sectors in which indexing does make sense for whatever reason.
The best option is to diversify and buy into the market as cheaply and as broadly as possible. Why? Because the gains and losses of the market are out of our control. The only two things an investor can control are costs and risk. A well constructed portfolio is essentially an exercise in risk management.
Lastly, market timing is also a very difficult thing to do. Best just to create a well diversified portfolio and leave it at that.
In general terms this, in my opinion should be most peoples focus.
For starters prior to investing you have to have a goal. Is this for your retirement, if so how much do you think you'll need and what other assets do you have available. So don't invest in a vacuum.
Secondly, trying to beat the market is basically a fools game. There are countless CFA's managing billions of dollars who trying to do the same thing. This is the mandate of most mutal funds as well. Guess what, most unachieve the index. Nobel prize winner William Sharpe said it best when he said it's basic math. Let's assume that for the most part mutual funds make up the market, if this is basically true, then their expected return as a group has to be the market less their fees. Now one could argue that individual mutual funds are different but the problem is there is no systematic way of determining which mutual fund will outperform the market in advance. Having said that there is a direct correlation between mutual fund fees and their performance and I do like some mutual funds (ie Mawer New Canada) which are in sectors in which indexing does make sense for whatever reason.
The best option is to diversify and buy into the market as cheaply and as broadly as possible. Why? Because the gains and losses of the market are out of our control. The only two things an investor can control are costs and risk. A well constructed portfolio is essentially an exercise in risk management.
Lastly, market timing is also a very difficult thing to do. Best just to create a well diversified portfolio and leave it at that.
In general terms this, in my opinion should be most peoples focus.
Yo Pooner144
I speak through a lifetime of personal experience as an inverstor/speculator. The most important advice I can give you is NOT TO BUY ON THE HIGH SIDE OF THE INEVITABLE MARKET CYCLE of each individual stock. You should look to buy BEFORE the general public becomes interested in any single stock, because when the general public is buying, is when you should be SELLING. (Insiders usually sell stock in a market moving up.) There's usually less liquidity in a stock going down in price than when the stock price is rising. Now, if I can only successfully practise what I preach. Good luck.
bigguy
I speak through a lifetime of personal experience as an inverstor/speculator. The most important advice I can give you is NOT TO BUY ON THE HIGH SIDE OF THE INEVITABLE MARKET CYCLE of each individual stock. You should look to buy BEFORE the general public becomes interested in any single stock, because when the general public is buying, is when you should be SELLING. (Insiders usually sell stock in a market moving up.) There's usually less liquidity in a stock going down in price than when the stock price is rising. Now, if I can only successfully practise what I preach. Good luck.
bigguy
nooneasgood
Thanks for your help noone... somewhat dizmal, but I totally hear you and thank you for your honesty. I'm glad have a well rounded opinion. I don't think the market is bad to get into, but from what I'm reading from various posts here. Caution is of the utmost importance. My rule of thumb when it comes to investing... with anything risky that is.... is only invest what you can afford to loose, Maybe I'll do some paper trading as one suggested, while doing some reading and learning in the meantime. I appreciate everyone's varied opinion which is why I asked it here.
Thanks for your help noone... somewhat dizmal, but I totally hear you and thank you for your honesty. I'm glad have a well rounded opinion. I don't think the market is bad to get into, but from what I'm reading from various posts here. Caution is of the utmost importance. My rule of thumb when it comes to investing... with anything risky that is.... is only invest what you can afford to loose, Maybe I'll do some paper trading as one suggested, while doing some reading and learning in the meantime. I appreciate everyone's varied opinion which is why I asked it here.
In general terms you can sometimes know when a market is frothy. P/E ratios and the like compared to historical can provide some guidence. But really the purpose of a well diverisified portfolio is to make sure you have exposure in other asset categories as well. Case in point I just reviewed a clients portfolio earlier today. She had a return of about 12% last year. Bond returned about half that, she had about a 29% return on her REIT's and the stock market did well also in general. But her US returns were slightly down and the internatioin equities didn't do nearly as well as the Canadian equities, which are benefiting from high resource prices. But there will be times when these asset returns aren't correlated and they will go in different directions. But for stocks in general, only invest what you are prepared to hold for at least 5 years to reflect the possibility that the market will go down. Personally I think this bird flu could have horendeous consequences but who knows for sure. It's these unknowns that make the risk management aspect of it so important.pooner144 said:
Two words: Index funds
But, first be sure you are in it for the long haul.
If someone asked me for advice, I would say: "Never buy indivudual stocks." I never have, and I have no complaints.
But, first be sure you are in it for the long haul.
If someone asked me for advice, I would say: "Never buy indivudual stocks." I never have, and I have no complaints.
Top Tanker (Nasdaq)..... TOPT.......
low P.E....
good price to get in......
do your DD.......
and if you make a lot of $$$, remember to treat me out.......
Long Term Investment so hang on it to as least a year or 2.....
u get dividence as well....
Short MSO...... Over Price Stock.....
MSO is a laugh......
Google-overprice but good management...... 22222 expensive internet stock.
but i think it still can climb if good earning comes out.....
Google has a version..... Warren Buffet wannable......
they don't split their stock.... they don't really care about the price of the stock, all they care is make more $$$ every quarters....
Do not listen to message board....
do your homeworks.......
low P.E....
good price to get in......
do your DD.......
and if you make a lot of $$$, remember to treat me out.......
Long Term Investment so hang on it to as least a year or 2.....
u get dividence as well....
Short MSO...... Over Price Stock.....
MSO is a laugh......
Google-overprice but good management...... 22222 expensive internet stock.
but i think it still can climb if good earning comes out.....
Google has a version..... Warren Buffet wannable......
they don't split their stock.... they don't really care about the price of the stock, all they care is make more $$$ every quarters....
Do not listen to message board....
do your homeworks.......
Personally I think exchanged traded funds are even better than index funds, but they have similar characteristics and objectives.SFMIKE said:
Buy low, sell high - never fails
Seriously, if you are just starting here are some ideas
Buy companies that you are familiar with and like their products: Coke, McD's, Petro Cda, etc
Only invest what you can afford to lose
Reinvest dividends. Some companies have stocks that pay dividends. You can mark the dividends to be reinvested in buying additional stock. You benefit from being able to buy additional stock without broker fees plus other benefits
Continue to buy shares over time. Search the net for "dollar-cost averaging" this is a smart strategy.
Always remember if you are buying, someone is selling. What makes you right and them wrong?
Seriously, if you are just starting here are some ideas
Buy companies that you are familiar with and like their products: Coke, McD's, Petro Cda, etc
Only invest what you can afford to lose
Reinvest dividends. Some companies have stocks that pay dividends. You can mark the dividends to be reinvested in buying additional stock. You benefit from being able to buy additional stock without broker fees plus other benefits
Continue to buy shares over time. Search the net for "dollar-cost averaging" this is a smart strategy.
Always remember if you are buying, someone is selling. What makes you right and them wrong?
I was always asking myself this questionRain Man said:
and often .. they were right .. and I was wrong LOL LOL LOL
Here is some additional info on reinvesting dividends which is called DRIPS (dividend reinvestment Plan)Rain Man said:
Here's a link for those interested
http://www.investopedia.com/terms/d/dividendreinvestmentplan.asp
Brokers
P144,
If you are considering using a woman broker make sure she is ugly. During the tech fire i had this hottie with a bottom to die for,(or in). We would have these meetings and sometimes I would call the trade.she would always ask,are you an insider?-- all little henry heard was ,she wants you to be inside er,and I heard nothing.She made the calls and it ended up she was hustlin and I was fleeced like a lamb, ie. she had a ton of commission and I had a margin call. Bitch burned me on a trade, I said wait for the news she went long at $4 just before the close. The news hits next morning and the turd is then trading at $2. Ever since the burn I have been shy of her and the mkt.
To all this diversification advice on this thread ,wasn't it Buffet who said , "Diversification is for people who don't know what they are doing."
P144,
If you are considering using a woman broker make sure she is ugly. During the tech fire i had this hottie with a bottom to die for,(or in). We would have these meetings and sometimes I would call the trade.she would always ask,are you an insider?-- all little henry heard was ,she wants you to be inside er,and I heard nothing.She made the calls and it ended up she was hustlin and I was fleeced like a lamb, ie. she had a ton of commission and I had a margin call. Bitch burned me on a trade, I said wait for the news she went long at $4 just before the close. The news hits next morning and the turd is then trading at $2. Ever since the burn I have been shy of her and the mkt.
To all this diversification advice on this thread ,wasn't it Buffet who said , "Diversification is for people who don't know what they are doing."
don't play the stocks, any money that could be earn has already been earned, lol. unless you're gonna invest lots of money, don't expect a lot of returns. my suggestion would be trading in foreign currency, it has higher leverage and little to no commission involved
