Educating beginners in shares, commodities, options, eminis and forex

[aldebaran3003]

For many years I have wanted to start investing but education is holding me back. There is soooo much information available that it's difficult to sift the chaff from the grain and I get bogged down with a brain overload. I could do a course like ********* ****** which has components on all these areas but for $11,000 before you even place a trade, it seems incredibly steep, especially with no iron clad promise of success. I'd get a better warranty on a new kettle for only $50. So, my question requires a lot of thought from those who will answer.

If you were to design a course educating rank newbies in shares, commodities, options, emini's and forex, where would you begin and how would you build on that information-references, websites, books etc. Remember you learn addition and subtraction before vectors and matrices so it's a slow build of information, not sink or swim.

I'm prepared put in the effort and do the research and reading but I don't want to waste time on spam, fads and charletans trying to scam other's hard earned money.

Cheers for the time and patience any posters will put into answering this question.

 

[BradK]

Re: Educating absolute learners in shares, commodities, options, emini's and forex

Hi,

I would make sure you lay a good foundation in personal money management to make sure you have things like budgeting under control. Any titles from guys like Paul Clitheroe or Noel Whittaker are great. Good conversative books giving solid advice on those matters.

For changing your mindset about money you could try Rich Dad Poor Dad by Kyosaki. Be warned, however, that the guy is an ABSOLUTE Ning-nong and pathological liar and gives only hazy information. I only recommend the book because it might go a small way to changing your mindset - but DONT take on board any of the recommendations.

Then you would want to get into something to do with shares. Try with some simple things like ABC books to share investing that you can get from brokers. Or the sections from Clitheroe to get you started.

Remember, that commonsense rules! If anything is PROMISING you any amount of return it is bull****. If after the first 12 months you end up in front even by 1% you are doing well. It will be how you handle your first loss that counts and analysing from it and learning from it.

Someone once said to me (and it was true in my case) that you can spend $5000 on an education in the sharemarket, or the sharemarket will take $5000 from you. Either way, you get your education. I thought that was pretty accurate and I chose the later!

Good luck with your education. It NEVER ends.

Brad

 

[mazzatelli1000]

Re: Educating absolute learners in shares, commodities, options, emini's and forex

Someone once said to me (and it was true in my case) that you can spend $5000 on an education in the sharemarket, or the sharemarket will take $5000 from you.

Brad

I like

For options education - from my experience:
1) Read "Options Pricing and Volatility" - Sheldon Natenberg

2) Read "Options: The Hidden Reality" - Charles Cottle
This book will keep your feet placed firmly on the ground

3) Find any information about volatility - there is a chap called Ron Ianeri who explains this stuff quite well, but by no means he is not the only one.

4) www.cboe.com has some pretty decent webinars - but beware of some sugar coating

5) This forum has some really good posts particularly sails, Magdoran, WayneL and others
- I learnt alot from these folk

For practical application:
1) Try OptionsXpress or thinkorswim - option brokers
They have paper trading accounts for you to throw some positions on and see how they work

2) ASX website has a free options tool called Hoadley's, download it and play with it. Try out the concepts from the above books.

Good luck!!

 

[aldebaran3003]

Re: Educating absolute learners in shares, commodities, options, emini's and forex

Thanks guys. Great answers and more than enough for me to cope with to begin with. Cheers!

 

[fimmwolf]

Re: Educating absolute learners in shares, commodities, options, emini's and forex

For my own education I have bought the following books:

The Australian Stockmarket - Ron Bennets
Getting started in Fundamental Analysis - Michael C Thomsett
Options Futures and Other Derivatives - John C Hull
Mastering Risk - Mike Lally
Financial freedom through electronic day trading - Van Tharp
Technical Analysis Explained - Martin Pring
Encyclopaedia of Chart patterns - Thomas N Bulkowski
Taming the bear - Christopher Tate
The secrets of candlestick charting - Louise Bedford
Coulda Woulda Shoulda - Charles M Cottle (arrived today)

Videos

Strategies for Profiting with Japanese Candlestick Charts - Steve Nison (DVD's)
Secrets to becoming a Samurai Trader - Steve Nison (DVD's)


I have also ordered:
Technical Analysis of the Futures Markets - John J Murphy
Technical Analysis of the Financial Markets - John J Murphy
Trading Systems That Work - Thomas Stridsman
Introduction to AmiBroker - Howard Bandy


There's probably a couple I've missed but that's pretty close.
Now I just have to find the time to read it all. lol

 

[aldebaran3003]

Re: Educating absolute learners in shares, commodities, options, emini's and forex

Now I just have to find the time to read it all. lol

Yep, that's my problem too. I work graveyard shift, have a baby, renovating a home, 3 dogs, a cow a sheep, 4 goats and 1 husband to look after. Time is a big factor which is why I'm here looking for advice on how to get to the right information instead of wasting time on some of the rubbish that's out there. Cheers!!

 

[Trembling Hand]

Re: Educating absolute learners in shares, commodities, options, emini's and forex

Yep, that's my problem too. I work graveyard shift, have a baby, renovating a home, 3 dogs, a cow a sheep, 4 goats and 1 husband to look after. Time is a big factor which is why I'm here looking for advice on how to get to the right information instead of wasting time on some of the rubbish that's out there. Cheers!!

But there is your problem. It is like anything you wish to become an expert at.

It takes a long and lot of time.

 

[mazzatelli1000]

Re: Educating absolute learners in shares, commodities, options, emini's and forex

For my own education I have bought the following books:

The Australian Stockmarket - Ron Bennets
Getting started in Fundamental Analysis - Michael C Thomsett
Options Futures and Other Derivatives - John C Hull
Mastering Risk - Mike Lally
Financial freedom through electronic day trading - Van Tharp
Technical Analysis Explained - Martin Pring
Encyclopaedia of Chart patterns - Thomas N Bulkowski
Taming the bear - Christopher Tate
The secrets of candlestick charting - Louise Bedford
Coulda Woulda Shoulda - Charles M Cottle (arrived today)

Videos

Strategies for Profiting with Japanese Candlestick Charts - Steve Nison (DVD's)
Secrets to becoming a Samurai Trader - Steve Nison (DVD's)


I have also ordered:
Technical Analysis of the Futures Markets - John J Murphy
Technical Analysis of the Financial Markets - John J Murphy
Trading Systems That Work - Thomas Stridsman
Introduction to AmiBroker - Howard Bandy


There's probably a couple I've missed but that's pretty close.
Now I just have to find the time to read it all. lol

Hey Firmwolf, have you read all that or have you just got them
Theres a few books on that list that repeat themselves and a few others that are very theoretically orientated.

 

[fimmwolf]

Re: Educating absolute learners in shares, commodities, options, emini's and forex

Most of them I've only had a month or so. But I'm usually exhausted by the time I get home from work and can't concentrate on the material. The weekend is pretty much when I read most.

With regard to the books repeating themselves, the reason is I find that sometimes a different authors approach can make the same bland subject more interesting. Must be their writing style.

So I'm hoping Murphy's book is not quite as dull reading as Pring's.

When you know nothing about a topic, like I do, theory is good. Knowledge first, then a hands on approach afterwards.

If I do it the other way around, I tend to find I learn too many lessons the hard way.

 

[mazzatelli1000]

Re: Educating absolute learners in shares, commodities, options, emini's and forex

There is Options Futures and Other Derivatives - John C Hull which discusses alot about how the Black and Scholes model is derived.
This text is used as the basis for university's to use to teach the theoretcial side of options and futures.


It would be good background to have, but not so neccesary to read yet.

John Murphy's books are very similar, reading just the latest one will suffice.

Just from my experience, thats all

 

[fimmwolf]

Re: Educating absolute learners in shares, commodities, options, emini's and forex

I haven't started on Hull's book yet. I've been reading pring, a book by "the motley fools", and Lally's book on risk.

I got Hull's book for $35 new, so I thought it was too cheap not to buy.

I've been thinking about buying "trading for a living" as well but I'm morally opposed to giving money to psychologists