# Good book for beginner?



## lliw (5 August 2009)

Hi, I just graduated uni and now I have a half decent paying engineering job.

I know nothing about stocks etc. I am about half way through the book "Rich dad, poor dad" but it does not give any guidelines to what is a good investment.

I was thinking about buying one of "The dummies guide to Investing" or similar.

I am interested in stocks or any other type of investment that would apply.

I am looking to spend around $1000/month.

Thanks.


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## jono1887 (5 August 2009)

lliw said:


> I am looking to spend around $1000/month.
> 
> Thanks.




1k on books of investments? 
have a look in the Trading/Investing Resources section.
https://www.aussiestockforums.com/forums/forumdisplay.php?f=20

or use the search tool...


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## cutz (5 August 2009)

lliw said:


> Hi, I just graduated uni and now I have a half decent paying engineering job.
> 
> I know nothing about stocks etc. I am about half way through the book "Rich dad, poor dad" but it does not give any guidelines to what is a good investment.
> 
> ...




Forget about those books you've just mentioned, have a read of this to start with. http://www.moneybags.com.au/default.asp?d=0&t=1&id=3712&c=0&a=74


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## ojm (5 August 2009)

I'd recommend buying Adaptive Analysis by Nick Radge. Very well spent $30. 

Trading for a Living by Alexander Elder.

Trade your way to Finacial Freedom by Van Tharp.

Maybe Technical Analysis of the Financial Markets John Murphy.


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## beamstas (5 August 2009)

ojm said:


> I'd recommend buying Adaptive Analysis by Nick Radge. Very well spent $30.
> 
> Trading for a Living by Alexander Elder.
> 
> ...




qft


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## Garpal Gumnut (5 August 2009)

ojm said:


> I'd recommend buying Adaptive Analysis by Nick Radge. Very well spent $30.
> 
> Trading for a Living by Alexander Elder.
> 
> ...




Good choices mate.

claim em off your tax.

I did.

gg


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## lliw (5 August 2009)

I am a total beginner, what things other than stocks could I buy?

Maybe something that starts right at the foundation would be good.

and no, I meant i want to spend 1k/month on investments.


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## Iggy_Pop (5 August 2009)

Suggest having a look through the ASX site and listed managed funds is a conservative approach to buying into shares. Also you could buy gold and silver?? 

http://www.asx.com.au/products/managed_funds/index.htm


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## Timmy (5 August 2009)

ojm said:


> Trading for a Living by Alexander Elder.




Nope.  
And I'm not too keen on Murphy either.


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## nunthewiser (5 August 2009)

lliw said:


> I am a total beginner, what things other than stocks could I buy?
> 
> Maybe something that starts right at the foundation would be good.
> 
> and no, I meant i want to spend 1k/month on investments.




a pencil and paper my friend and stick that 1k a month in a bank account until you can start making profitable trades on paper . this will only work if one is honest with oneself.

good luck

one of these other guys here may know of free demo accounts for stocks you may be able to do some training on also .

www.asx.com.au always a good place to start for the learning process


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## AlterEgo (6 August 2009)

The best book for you to start with would be, in my opinion, "Secrets for Profiting in Bull and Bear Markets" by Stan Weinstein.


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## ojm (6 August 2009)

Timmy said:


> Nope.
> And I'm not too keen on Murphy either.




I found Murphy good to start off with. 

The Elder book to get more ideas on money management. 

Wish I read more about money management when I started off.


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## lliw (6 August 2009)

Thanks for the help so far.

But i'm a little confused, are you talking about short term trading? (a few days?) or long term? (buying shares to recive dividends etc)

As I said I'm totaly new to all this...and hence need a book that starts right from the start.


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## Timmy (6 August 2009)

lliw said:


> Thanks for the help so far.
> 
> But i'm a little confused, are you talking about short term trading? (a few days?) or long term? (buying shares to recive dividends etc)
> 
> As I said I'm totaly new to all this...and hence need a book that starts right from the start.




lliw - spend some time cruising around the forum here, it will give you a feel for the various approaches people have.  Check out the Beginners forum for recommendations to books etc., but also check out the Trading/Investing Resources and the Trading Strategies/Systems forums.  The ASX website is going to be useful to have a look around too.

Individual stock threads will also give you a feel for how some people go about their analysis and make their decisions.  There is actually plenty to go on at ASF before you bother buying any books, if you like.


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## AlterEgo (6 August 2009)

lliw said:


> Thanks for the help so far.
> 
> But i'm a little confused, are you talking about short term trading? (a few days?) or long term? (buying shares to recive dividends etc)
> 
> As I said I'm totaly new to all this...and hence need a book that starts right from the start.




The book I recommended above, "Secrets for Profiting in Bull and Bear Markets" by Stan Weinstein is a very easy read without being too technical - ideal for a beginner, IMO. And it has a quiz at the end of every chapter to test if you've understood what you read. This book tends to discuss medium-term trading (ie. holding periods of weeks to months). There are many other good books available too, but this would be a good one to start with I think.


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## Gordon Gekko (6 August 2009)

Playboy or Hustler
Spend the rest on fast cars!


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## lliw (6 August 2009)

Righto, thanks.


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## ceasar73 (8 August 2009)

1. darvas.
2. douglas.

cheers

ceasar73.


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## nunthewiser (8 August 2009)

The Art Of War 

Sun Tzu


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## weird (9 August 2009)

nunthewiser said:


> The Art Of War
> 
> Sun Tzu




lol, with trading I feel like I am a flee riding on a dog, if the dog gets sick, a wash or a flee treatment, I jump off.

Not sure I need to apply much more deep philosophy than that.


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## ozymick (9 August 2009)

Trading in the Zone  -- Mark Douglas


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## kam75 (12 August 2009)

There's a lot of good books but for me the best handful in no particular order include:

1. Reminiscences of a stock operator - Edwin Le Fevre
2. How i made 2 million in the stockmarket - Nicolas Darvas
3. Secrets for Profiting in Bull & Bear markets - Stan Weinstein
4. Pitt Bull - Martin 'Buzzy' Schwartz.
5. Trading in the Zone - Ari Kiew


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## Timmy (12 August 2009)

kam75 said:


> 5. Trading in the Zone - Ari Kiew




Kam, can you check this one?

You talking about Ari Kiev _Trading To Win_
or
Douglas _Trading in the Zone?_


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## cutz (12 August 2009)

Hi Timmy,

Yeah Ari Kiev has also written a book called Trading In The Zone, it's actually a good read.


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## Timmy (12 August 2009)

Thanks Cutz, wasn't aware of that - thanks for clarification.


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## Kez180 (12 August 2009)

nunthewiser said:


> The Art Of War
> 
> Sun Tzu




Lol I got my copy from Penguin Paperbacks for $9.95...


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## MRC & Co (12 August 2009)

Kez180 said:


> Lol I got my copy from Penguin Paperbacks for $9.95...




I think I may have an E-book of it if anyone wants a copy, PM me and I will see if I can find it.


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## $20shoes (14 August 2009)

Okay, not so much a book as a documentary, but I reckon a trader could glean a lot from the excellent doco "When We Were Kings", about the Ali versus Foreman "Rumble in the Jungle" title fight. 

The Rope-A-Dope technique is literally as close to the torture you will feel during a long and protracted drawdown. Seriously. Think of being pounded round after round, and how you might move into a defensive mode to survive. Every trade is just another blow. How do you keep coming back week after week when you're on that losing streak. Your mind starts to mess with you (no, I'm not schizophrenic) and you question your plan and your ability to trade correctly. 

Even in these times, Ali knew the edge required to win that fight. He adapted to the conditions; he  had to bide his time until the moment was right. 

He had energies (capital) in reserve. Those  energies were unleashed at precisely the right moment, where the risk was least.

Its about survival. The wins come if you survive. Perfect defence; the moment of attack correctly executed; well planned and well timed. 

You will  even take heart from the correlation  that you will lose most rounds but still be able to win big at the end.  

And I won't even start on your opponents trying to psych you out. How easy are you swayed from your plan? How well do you know yourself and your ability to take a punch in the face week after week. 

Ah yes the glamorous life of a trader.  

The most bittersweet lesson is embarking on your own "ali foreman" fight. 

Protect what you have!! Mega amounts of patience and belief in your edge (know your edge)! Strike when the market provides the right risk/reward opportunity.


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## tasmanian (14 August 2009)

$20shoes said:


> Okay, not so much a book as a documentary, but I reckon a trader could glean a lot from the excellent doco "When We Were Kings", about the Ali versus Foreman "Rumble in the Jungle" title fight.
> 
> The Rope-A-Dope technique is literally as close to the torture you will feel during a long and protracted drawdown. Seriously. Think of being pounded round after round, and how you might move into a defensive mode to survive. Every trade is just another blow. How do you keep coming back week after week when you're on that losing streak. Your mind starts to mess with you (no, I'm not schizophrenic) and you question your plan and your ability to trade correctly.
> 
> ...




Well said.Maybe you should write a book.I like it!!


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## $20shoes (14 August 2009)

tasmanian said:


> Well said.Maybe you should write a book.I like it!!




Haha. I know what it will be called: " The Markets: you want a piece of this...huh? OH SO  you do want a piece of me!!...take that..and that...how do you like that...oh, you want some more of that huh..."

It's rather long winded but I already have some blurbs:

MegaRichy - Great read. Not much in there about trading. Actually, I'm not sure if the book is actually about boxing, Melbourne's street violence or if it's some fanciful allegory about the state of the economy. Nonetheless, it did make me feel better about losing all that money. Of course, this book was one of the only things my wife let me keep when she cleared out".

DollarsPouringIn - when I started in this game, I was so naive. I thought I would be raking it in. With the help of this book, I was able to turn 50K into 51K over the last 10 years. Not bad...I'm waiting patiently for that perfect moment..I''m not sure when that is exactly. You have to buy the sequel for that information and  I can't afford that kind of drawdown right now.


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## zartoop (14 August 2009)

You need to make sure that whatever investing or trading method, system, vehicle etc you choose matches your psychology - if you try something that goes against your brain then you will be doomed unless you change your psych (very hard) or pick something that matches your brain (much easier).

I can't think off the top of my head what books or tools help you figure that out (perhaps it's just an ongoing process) but the others more knowlegable than me could make suggestions? ...


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## MRC & Co (14 August 2009)

Good post shoes.


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## brettc4 (14 August 2009)

Your style of investing will influence they types of books you are interested in.  
My first book was 'Share Trading' by Darryl Guppy, fairly basic but gave a good grounding.

If you are looking at a business book, I liked 'Winning' by Jack Welsh and being into engineering, you may like 'Who says Elephants cant dance' by Louis Gerstner Jr about his time at IBM.

Brett


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## shoe crew (20 August 2009)

beginner books, 
seriously have a look at Twilight in The Desert,
_It is the most important book ever written on the topic of oil..._It clearly explains that the Saudia Arabian Oil industry is not a super power going foward, and I believe it because their oil fields are aging super giants that are not performing like the used to 4 decades ago...
and going forward they go into sharp decline (which is already happening, anyway, the sweet ones)... all thats left is heavy oil that needs more refinery, and higher cost to produce and refine...
more in the book...
very interesting read indead...


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## Judd (20 August 2009)

Why not start at the beginning?

You may wish to consider "Understanding the Sharemarket" by Nick Renton.  Costs about $40.

Also "The Intelligent Investor" by Benjamin Graham.  Get the annotated version.  Again about $40.

Then "Against the Gods, the remarkable story of risk" by Peter Bernstein.  About the same price.

The browse some articles at this site.  They have only been in business for about 80 years so I don't know how trustworthy or relevant their information may be.

http://www.tweedy.com/


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## Johno (25 August 2009)

Timmy said:


> Nope.
> And I'm not too keen on Murphy either.




I agree and apparently im one of very few who feel this way. I found Elder's book to be a hard read and full of pretty useless and overcomplicated indicators. Sure his veiws on trading psychology are good and also money mangement, but I didnt find the gem set ups in his book that I thought I would given all the hype.

IMO Charles D kirkpatrick's book on TA is a far better book to refer to for basic (and advanced TA) than Murphy's. It's well set out and easy to read.


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## swm79 (27 August 2009)

Here are my recommendations... (reading The Intelligent Investor ATM)

The Four Pillars of Investing - William Bernstein, 2002 - Portfolio strategy

The Intelligent Investor - Benjamin Graham, 1949 - Stock selection and value investing

One up on Wall Street - Peter Lynch, 1989 - Growth style investing

Reminiscences of a Stock Operator - Edwin Lefevre, 1925 - it's a fiction but most people believe it was (somewhat of) an autobiography - Speculating

Devil Take The Hindmost - Edward Chancellor, 2000 - History repeats itself, repeats itself


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## hkaqr (7 November 2009)

I was wondering, if there is an appropriate site or place where i can buy these books at a decent price.
I was just checking on dymocks online at Intelligent Investor was going at $45, seems a bit much.


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## Wysiwyg (7 November 2009)

hkaqr said:


> I was wondering, if there is an appropriate site or place where i can buy these books at a decent price.
> I was just checking on dymocks online at Intelligent Investor was going at $45, seems a bit much.



Same price as the book store here.


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## ThingyMajiggy (7 November 2009)

$20shoes said:


> I was able to turn 50K into 51K over the last 10 years. Not bad...




Erm...am I reading this correctly or did you make a mistake? 1K over 10 years???


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## Joe Blow (7 November 2009)

hkaqr said:


> I was wondering, if there is an appropriate site or place where i can buy these books at a decent price.
> I was just checking on dymocks online at Intelligent Investor was going at $45, seems a bit much.




Try the ASF Bookshop: https://www.aussiestockforums.com/shop

Sales from there help support ASF!


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## condog (8 November 2009)

Rich Dad Poor Dad and his guide to investing are excellent first reads , because you need the right mental attitudes and context ......

Roger Montgomery - Marketwise is an excellent read...

Each year top stocks is well worth a buy and read


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## condog (8 November 2009)

condog said:


> Rich Dad Poor Dad and his guide to investing are excellent first reads , because you need the right mental attitudes and context ......
> 
> Roger Montgomery - Marketwise is an excellent read...
> 
> Each year top stocks is well worth a buy and read




Sorry it was Brian McNiven who wrote Market wise, and he has since ut out a more concise version called 
Concise guide to value investing

Also Dale Gillham - how to beat the managed funds by 20%...


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## soren_lorensen (9 November 2009)

I read Colin Nicholson's book called Building Wealth in the Stock Market, and thought it was pretty good.

If you are after a safe, long term, investing type method, which has alot of merit, then this would be worth buying.

The good thing is the book is all about the Aussie market and has loads of examples at the end, he also puts down his actual performance and method, nothing too exciting but looks like it works well.

It also only recently released in 2009 so is quite current, I got mine from the local library but will consider buying it off his website, maybe an x-mas pressie.


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## condog (11 November 2009)

soren_lorensen said:


> I read Colin Nicholson's book called Building Wealth in the Stock Market, and thought it was pretty good.
> 
> If you are after a safe, long term, investing type method, which has alot of merit, then this would be worth buying.
> 
> ...




I agree -  a great read.....very sensible approach to investing...


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## SamLau (11 November 2009)

The Art of Trading by Christopher Tate.

Covers what a beginner should know.


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## beaul (19 January 2010)

I found "Trading in a Nutshell" by Stuart McPhee easy to understand and anything by Louise Bedford


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## newbie trader (19 March 2010)

Was just wondering if any of these books are a good read for a beginner?

Understanding investments: an Australian investor's guide to stock market, property and cash based investments - Beelaerts, Charles.

Building wealth in the stock market : a proven investment plan for finding the best stocks and managing risk  - Colin Nicholson

The complete guide to online stock market investing : the definitive 20-day guide - Alexander Davidson

Introducing the Australian stock market : a comprehensive guide for investors - Adam Steen and Keith Kendall

Share trading : an approach to buying and selling - Daryl Guppy

The next step to share trading success - Leon Wilson

Trading secrets : an Australian guide to successful share trading - Louise Bedford 

Trading tactics : an introduction to finding, exploiting and managing profitable share trading opportunities  - Daryl Guppy

Trading in a nutshell : an Australian share traders' guide - Stuart McPhee

N.T


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## Shuvalov (20 March 2010)

Reminiscences of a Stock Operator is the best choise.


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## newbie trader (20 March 2010)

The books I listed are ones that I can find in my university library, hence I can read them for free. That's why I had a specific list.

N.T


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## nulla nulla (21 March 2010)

newbie trader said:


> Share trading : an approach to buying and selling - Daryl Guppy
> 
> Trading secrets : an Australian guide to successful share trading - Louise Bedford
> 
> ...




Considering they are a free read, start with these. Guppy doesn't make it overly complex and points he made 10 years ago are still valid today.


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## craigj (30 March 2010)

just finished reading louise bedfords book
definately recommend it 
easy to read and understand


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## kazzumX10 (15 April 2010)

Are you kidding. Managed funds is a surefire way to losing all your money. You'd make better returns if you trade your own porfolio than rely on those 'professionals'.


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## luisenoz (2 May 2010)

Hi,
can I ask you, specially to the most experienced and active members, why Frank D's book ("The trader trading, principles of successful trading") it's never recommended within these kind os threads?
I'm curious why his trread is one of the most highly ranked but his books are not so appreciated.


Thanks,
Luisenoz


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## cutz (2 May 2010)

kazzumX10 said:


> Are you kidding. Managed funds is a surefire way to losing all your money. You'd make better returns if you trade your own porfolio than rely on those 'professionals'.




Dunno about that,

I'm sure many traders fail to even match the benchmark.


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## aramz (5 May 2010)

Newbie Trader,

imo the best book to read first would be darryl guppy's 'share trading' followed by his second book 'trend trading' then leon wilson's book 'the next step to share trading success' which is leon's 2nd book.

That is out of the books on your list although those 3 books are imo a must for any wannabe traders.


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## Kryzz (17 May 2010)

Can anyone recommend any good macroeconomic books related to trading? 

Cheers


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## Tyler Durden (16 June 2012)

I am currently reading 'The Rules of Wealth' by Richard Templar. I think it is an easy read for beginners, to help them get into the mindset of money and wealth.

I particularly like Rule 10:



> *Understand that money begets money*
> 
> There is no greater truth than this - money makes money. It likes clustering together. It breeds quietly and quickly like rabbits. It prefers to hang out in big groups. Money makes money. The rich get richer; the poor get poorer.
> 
> ...


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## tinytim1 (22 June 2012)

Here is a list of outstanding trading books for both beginners and experienced traders;

the everyday trader.com/trading-books/


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## amacdo23 (25 June 2012)

I can recall reading Adam Steen & Keith Kendall Introducing the Australian Stock Market.

For a beginner it was a good read, it is particularly good as it focuses on the ASX.
It doesn't go into any great detail but it will set out the basics and get the ball rolling.

It says it is a comprehensive guide and it certainly isn't that. It touches on the basics across the board from making a trade, choosing brokers, tech and fundamental analysis, terminology, and a lot of other aspects you may find helpful.


But if I could offer any advise it would be to read as may books as you can and build your own picture. You won't find one or two books and become a successful trader/ investor over night. You will certainly read some books that make no sense or do little to help but it's information none the less.


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