Best books to read to learn about trading
Forums can be another source for question and answer. Two recommendations include Elite Trader and Trade2Win. Just be careful of who you listen to. The vast majority of participants are not professional traders, let alone profitable traders. Heed advice from forums with a heavy dose of salt and do not, under any circumstance, follow trade recommendations.
Study the greats Learning about the greatest investors of years past will provide perspective, inspiration, and appreciation for the game which is the stock market. One of my favorite book series is the Market Wizards by Jack Schwager. Read and follow the market News sites such as Yahoo Finance and Google Finance serve as a great resource for new investors. For in depth coverage, look no further than the Wall Street Journal and Bloomberg. By monitoring the markets each day and reading headline stories investors can expose themselves to trends, 3rd party analysis, not to mention economic concepts and general business.
Pulling quotes and observing fundamental data can also serve as another good source of exposure. Beware though, over time you may find that a lot of the investing shows on TV are more of a distraction and are overall full of junk recommendations. This is a natural evolution; you are not alone! Consider paid subscriptions Paying for research and analysis can be both educational and useful.
Some investors may find watching or observing market professionals to be more beneficial than trying to apply newly learned lessons themselves. There are a slew of paid subscription sites available across the web, the key is in finding the right ones for you. View a list of the services I use use myself. Two well-respected services include Investors. Go to seminars, take classes Seminars can provide valuable insight into the overall market and specific investment types.
Most seminars will focus on one specific aspect of the market and how the speaker has found success utilizing their own strategies over the years.
Examples include Dan Zanger and Mark Minervini. Not all seminars have be paid for either. Some seminars are provided free which can be a beneficial experience, just be conscious of the sales pitch that will almost always come at the end.
When it comes to classes, these are typically pricey, but like seminars, can also be very beneficial. Buy your first stock or practice trading through a simulator With your online broker account setup, the best way to get started it to simply take the plunge and make your first trade.
If trading with real capital is not possible initially, consider using a stock simulator for virtual trading. A variety of online brokers offer virtual trading for practicing. One of the most common mistakes traders make is to go all-in and try to score big with a full portfolio position out of the gate. Currently in its tenth edition, this book is a great first read for those starting a portfolio.
Indexing, diversification, trends, bubbles, the value of patience coupled with time, alongside many more core concepts are all pronounced within.
Author Jack Bogle is the founder of The Vanguard Group, known for providing the lowest cost funds in industry. The Most Important Thing Illuminated: Uncommon Sense for the Thoughtful Investor Author: Using his Oaktree Capital client memos as a foundation, Howard assembled a collection of the 21 most important things to know about investing. Explores the basic principles of investing in the stock market. An interesting, though perhaps not profitable, narrative of how Wall Street works.
Other Michael Lewis great reads: Inside the Doomsday Machine and Flash Boys. Alchemy of Finance Author: The book may be a bit dense but it is rewarding for those who are willing to finish it.
Fooled by Randomness Author: For traders, this would imply that risks are usually large than we expect. Japanese Candlestick Charting Techniques Author: This book introduces candlestick charting, which some investors may find useful in their trading. It sure helps to make charts more visual! Tulipomania, the South Sea bubble and the Mississipi Land scheme are covered in this book, showing how herd mentality worked to create bubbles in past eras. It may serve as an interesting read as well as a guide for dealing with future bubbles.
Common Stocks and Uncommon Profits Author: This unseeming book is written by Philip Fisher, who Buffett credits with most of his success. In the age of quantitative finance, this book is a must-read for those who want to understand how to inspect a company qualitatively. As the winner of the Nobel Prize in Economics, Robert Shiller understands the markets and has spent his career studying their movements.