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Fundamentals/Mechanics of Oz share trading: Clearest, most Thorough book?

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TiminOz

TiminOz

Joined
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Hey traders!

Could anyone recommend such a book to me?
(or even a (free) YouTube video series?)

I'm a complete novice and I'd like:

* a book on the FUNDAMENTALS and MECHANICS (not so much massive DEPTH on WHAT to buy)
* it would cover SHARES, but a BONUS would be the coverage of other instruments like bonds, currency...
* it would cover MECHANICS but as a BONUS might include major POINTERS of analysing a company (at least short descriptions I could google further)

* It would give you the basic 'mechanical' know-how for both value investing and day trading

* I can think mathematically but would like a book that EXPLAINS it really well - explanation is an art!
(Could even be videos - think Kahn Academy for trading!).


TEST CASE:

As a test, it would explain SHARE CONSOLIDATIONS for example - a topic I've just come across but received two competing explanations about.
And stuff like, the 'advantage' (or dis) of the NUMBER of shares available.
That's just two random things.

It would be quite a FACTUAL book rather than opinion because its about the about the basic MECHANICS that are possible given the current laws, institutions and instruments.
 
TiminOz said:
Hey traders!

Could anyone recommend such a book to me?
(or even a (free) YouTube video series?)

I'm a complete novice and I'd like:

* a book on the FUNDAMENTALS and MECHANICS (not so much massive DEPTH on WHAT to buy)
* it would cover SHARES, but a BONUS would be the coverage of other instruments like bonds, currency...
* it would cover MECHANICS but as a BONUS might include major POINTERS of analysing a company (at least short descriptions I could google further)

* It would give you the basic 'mechanical' know-how for both value investing and day trading

* I can think mathematically but would like a book that EXPLAINS it really well - explanation is an art!
(Could even be videos - think Kahn Academy for trading!).


TEST CASE:

As a test, it would explain SHARE CONSOLIDATIONS for example - a topic I've just come across but received two competing explanations about.
And stuff like, the 'advantage' (or dis) of the NUMBER of shares available.
That's just two random things.

It would be quite a FACTUAL book rather than opinion because its about the about the basic MECHANICS that are possible given the current laws, institutions and instruments.
Click to expand...


Security Analysis, Benjamin Graham, 1951 Edition.

jog on
duc
 
TiminOz said:
Hey Ducati (awesome bikes btw!), you are specifically saying the 1951 edition?
I know I have one or two of his books...I'm glad to know he's still useful !
Click to expand...

Technology
For all the advancements in technology the market itself hasn’t changed much. It is still driven by the same two opposing forces, fear and greed & (IMHO) there is nothing new when it comes to trading ideas & all the old books are still relevant no matter how old they are.

The game is the same
I often hear that markets have changed and new rules are needed for the new game, well the markets do change but the underlying fundamental rules for success don’t seem to.

Skate.
 
TiminOz said:
Hey Ducati (awesome bikes btw!), you are specifically saying the 1951 edition?
I know I have one or two of his books...I'm glad to know he's still useful !
Click to expand...

Mostly because I find the 1951 Edition the best balanced. The 1934 Edition is survival of the Great Depression, the 1940 Edition is also good, but for me the 1951 Edition has it all.

The 1962 Edition brought in a new contributor, Sidney Cottle, who changed the feel of the book quite significantly.

But any edition will give you what you are looking for.

jog on
duc
 
I bought a purely fundamental analysis course called "The Dividend Key" about a decade ago that was good for filtering out companies with good fundamentals.

I don't think it is available anymore since I cannot find it on the HUBB financial website. They've gone into selling other products which I have not tried so cannot comment on.
 
(Definitely interested in analysing stocks)

but at this early stage I MOST need something that will explain the mechanics and fundamentals.

One way of putting this:
I need first to know what a person CAN do with stocks (etc?) before I find out what I SHOULD do.
And what companies/regulators MIGHT do with stocks before I see how I SHOULD react.

So for example I managed to find out from the net what a STOCK CONSOLIDATION actually is - the Americans call it a REVERSE SPLIT.

But that's the kind of fundamental level I need to know about, like: how do stocks work and what kind of things can happen/ can you do with them.

(But def interested as a BONUS in how to analyse value...charteology etc)
 
RE GRAHAM

I'm sure Graham is very useful (especially once I know the basics)
but so far I'm finding S.A and I.V are written in a way that assumes some knowledge.

He's very brief and to the point.
I really need someone to spell it out step by step, almost in a 'for dummies' kind of way.
 
More importantly, is it necessary to get an AUSTRALIAN guide (given the rules here)...because that will be harder and more expensive than getting a US one.
 
TiminOz said:
More to the point, is the Australian market so different to the UK MARKET....because I have a 'For Dummies' book on that
Click to expand...
The way of analysing stocks will not be different whether it is Australia, UK or the USA. However the stocks themselves that exist in each market differs so keep that in mind when investing.

For example a huge % of the Australian market is made of the big4 banks and BHP. US markets are mostly weighted towards the tech giants such as Google, Amazon, Facebook, Apple, Microsoft and the bank JP Morgan. The UK is a mix-bag.
 
aus_trader said:
The way of analysing stocks will not be different whether it is Australia, UK or the USA. However the stocks themselves that exist in each market differs so keep that in mind when investing.

For example a huge % of the Australian market is made of the big4 banks and BHP. US markets are mostly weighted towards the tech giants such as Google, Amazon, Facebook, Apple, Microsoft and the bank JP Morgan. The UK is a mix-bag.
Click to expand...

How difficult is it to invest in the US and UK?
 
TiminOz said:
Hey traders!

Could anyone recommend such a book to me?
(or even a (free) YouTube video series?)

I'm a complete novice and I'd like:

* a book on the FUNDAMENTALS and MECHANICS (not so much massive DEPTH on WHAT to buy)
* it would cover SHARES, but a BONUS would be the coverage of other instruments like bonds, currency...
* it would cover MECHANICS but as a BONUS might include major POINTERS of analysing a company (at least short descriptions I could google further)

* It would give you the basic 'mechanical' know-how for both value investing and day trading

* I can think mathematically but would like a book that EXPLAINS it really well - explanation is an art!
(Could even be videos - think Kahn Academy for trading!).

TEST CASE:

As a test, it would explain SHARE CONSOLIDATIONS for example - a topic I've just come across but received two competing explanations about.
And stuff like, the 'advantage' (or dis) of the NUMBER of shares available.
That's just two random things.

It would be quite a FACTUAL book rather than opinion because its about the about the basic MECHANICS that are possible given the current laws, institutions and instruments.
Click to expand...

Trading successfully - the learning curve is steep
TiminOz, you could read hundreds of books, watch the market for years and still not be profitable.

Books are very technical
All the excellent trading books will explain trading in very technical terms that are meaningless to the novice and they rarely mention what it takes to trade with confidence, failing to inform you about the emotional roller coaster you will soon start experiencing once you start trading.

I wasted a lot of time reading
Many of the books that I have read have turned out to be of little value at all, so I just wasted my time.

Need to know - expected to know
It’s time consuming just figuring out what you need to know and what you are expected to know, this leads to reading heaps of useless information that turns out to be irrelevant in the early stages of trading.

You have to sift through so much material to find out if you need to know that information or not.

You don’t even know enough
You’ll have so many thoughts floating around in your head that require answers, sometimes you don’t even know enough to ask the right questions.

Basic questions
Just starting out on your trading journey you’ll need answers to some basic question and my suggestion to you would be to watch a few videos instead of reading books to begin with.

Really enjoyable
Watching videos is my preferred way of learning & watching a video or two is really enjoyable & educational.

Time travelers
Whereas reading a book is exhausting & mentally draining & it’s hard to stay in ‘NOW’ because we are all time travelers in our own mind.

Mindfulness
The degree of concentration when reading a trading book is enormous because your mind will do everything it can to make you think in the future or into the past, mindfulness is difficult to achieve.

Human condition
Your mind is a time traveler & its been that way from birth & you may not even realise when it's happening to you. (mind wandering is a human condition & nothing to worry about)

'Mindfulness' & being in the 'Now' is another fascinating topic & it's a great skill to learn.

'Dump it here'
If you are interested I have a video link on my 'Dump it here' thread - just for you..
https://www.aussiestockforums.com/threads/dump-it-here.34425/page-83

Skate.
 
The ASX has a good Education series on their website. Just go there and click the education tab .
They also have a investing game that you can play . Also the watch list feature is handy if you want to follow stocks outside the 200 listed in the game.
If you want to get into the real guts (the rules) you can go here and look at Markets tab and Corporate Governance etc
https://asic.gov.au/regulatory-resources/
 
TiminOz said:
How difficult is it to invest in the US and UK?
Click to expand...
It's probably not that difficult to set up a brokerage account in the US and UK markets as a non-resident investor (if you an Aussie that is). Just have to declare that you are a non-resident as they have different tax treatment to that of the locals.

Also Skate and Triple B made very good points about reading and educating yourself. By all means read as much as you can but at the end of the day experience in the markets really come from getting involved i.e. by "getting your feet wet" so to speak. So have a go at paper trading and see how well you do and as Triple B suggested try the ASX share trading game. Investing/Trading is a difficult process and something you have to continually improve on. I publish my ASX share trading in two threads here at ASF for educational purposes only, so you are welcome to have a look at these:
Medium/Longer Term Stock Portfolio
Speculative Stock Portfolio
 

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