First book to read for learner

[PropertyGuRu]

Hi Guys,

I hope no one asked this question before here. Where should I start to learn about share trading apart from this forum.

Cheers
PG

 

[still_in_school]

Hi PropertyGuru,

Louise Bedfords, books are great for all level of investors...

a quick easy book to read is... trading in a nutshell... sorry cant remember who the author is...

Cheers,
sis

 

[PropertyGuRu]

Thanks SIS,

I will get that book any other book?

Cheers
PG

 

[still_in_school]

Hi PropertyGuru,

david novac stuff... is great for psychology, money discpline and management... mainly this stuff is cd and cassette stuff...

also he has great learning material, for derivates such as options... but learn to trade shares first before options...

but... learn to paper trade first... because trading vs paper trading, are too completly things... and pulling the trigger on paper trades is easy.... but when its your own money... the psychology and emotions then get into play.... so learning to be neutral (or having no emotion in trading, is very important)

Cheers,
sis

 

[GreatPig]

I found Leon Wilson's book "The Business of Share Trading" pretty good. It focuses on technical analysis, but starts with quite a bit of basic info like choosing brokers, record keeping, and formulating a trading plan.

Daryl Guppy's "Chart Trading" was quite good too, although specifically about technical analysis. I also want to read his "Trading Tactics" book.

Cheers,
GP

 

[PropertyGuRu]

Thanks GreatPig and SIS I will try to get these books asap. any other advice will be helpful.

 

[stefan]

I would basically recommend to read whatever you can get your hands on. It will give you an idea of what other people do, but you will have to find your own way to trade the stock market. The more you read, the better you will understand it. However, nothing will replace experience. You will hopefully learn a lot from your mistakes as well as from your profitable picks.

I would recommend books who don't try to talk you into a trading strategy as none of them actually work. Read books about successful people like Warren Buffett. They won't show you how it's done but rather try to give you a better understanding of the whole picture. I for one have found that most "stock gurus" only produce books to get richer from people who buy them. Almost all book are full of things that happened in the past. Nothing is easier than being an analyst of what already happened. The trick is to find your own way to trade so that it suits your investment, your time at hand and your lifestyle. No harm done in reading how others did it, but you'll never succeed by following one particular method you took out of a book.

Happy trading

Stefan

 

[markrmau]

There are two books that I would read as a beginner:

1. A book on "technical analysis" such as 'Listen to the market' (very good book. Much better than the Tate books IMHO).
2. A book looking at more fundamental analysis "A random walk down wall street".

You need to study and understand the alternate theories. They are both right... And they are both wrong.

Cheers,Mark.

 

[Redwing]

Random Walk

Hi Mark..

does a random walk have anything to do with the random walk theory, when darts were thrown at the financial paper and those stocks invested in..outperforming the market?

REDWING

 

[markrmau]

Yes, if you want to see the random walk in action, take a look at the stock tipping comp. Each month approx 50% go up, and 50% go down. 1/2 the book is an interesting read, dealing with fads such as the tulip bubble and I believe the latest revision has the 1999 internet stock bubble. 1/2 is a bit boring (forgot what it was about as I skipped it).

Cheers,Mark.

 

[tech/a]

Personally,my veiw is BEFORE you belt off down to the bookstore you spend some time considering what it is you WANT from trading,what you EXPECT from trading and look into what it is that youll trade.

Firstly ask your self these questions.
(1) How much have I got to invest in trading (Business capital)
(2) How much time can I devote to trading.(Business Management)
(3) What do I want to trade(Shares,Options,Futures,Funds.)(Business product)
(4) How am I going to trade(Discretionary,Systematically,Mechanically)(Method of conducting business)
(5) What is my time frame(should be answered with (2) the shorter your timeframe,the more hrs youll need to devote within your business of trading.)

Answering these questions can eliminate a lot of pointless and un productive effort.
Develope the habit of being clear and concise in your methodology's from the beginning,it will pay off handsomely in the end.

tech

 

[tech/a]

Of course the fastest track to Trading knowledge is to find yourself a MENTOR.
I feel they only need 3 credentials.

(1) A proven Profitable longterm trading history.
(2) A proven Profitable longterm trading history.
(3) A proven Profitable longterm trading history.


A genuine mentor wont have any problem presenting the above as they will have one!!

Just as you would ask a business owner proof of his profitability.
You should expect that youll need to pay for your mentoring.

Much of what you read on Forums and some books is theory!When put to the test fails miserably(Which Jack Shwagger of Market Wizards and other titles found when he ventured into Futures Trading)

My mentor was Nick Radge.

tech

 

[Mofra]

I like "the art of trading" by Chris Tate for a beginner. On pure technicals, Martin Pring's book "Technical Analysis Explained" is a good reference tool for starters (but extremely dry reading otherwise).

I also believe reading company reports is an overlooked learning tool, at the very least it helps you become fluent in the different terms used and helps to determine how positive or negative market announcements can be to the underlying fundamentals of a company.