What Book Would You Recommend to Learn about Stock Trading?
December 4, 2008 4:06am CST
I am learning about investing in the stock market using Fundamental analysis and I found that fundamental analysis require investors to have a lot of money to invest for long term at which I do not have so much money to invest for long term. I even calculated the return of my investment for long term but the return is not much and it is too risky too. So, I am going to learn about technical analysis that is to trade in the stock market. I think that trading in the stock market is much safer approach to invest in stock market because if we are good at trading, then it would be a better way to invest to become richer. So, what book would you recommend me to read to learn about stock trading? Please help me. Thanks.
4 Dec 08
I have always been interested in this sort of thing and have only just recently bagan dabbling in the stock market too. Because I was a little daunted by the whole thing at the time I bought Richard Farleighs "Taming the Lion" which not only talked about how he became a multi-millinaire but explains fairly simply about the stock market and how to approach it. Another idea for buying a really good book to help might be to do a search on Amazon and see what results you get. It might then be advisable to read other peoples reviews of the books as these will give you a much better idea of how helpful it will be. Good luck and hope you make a profit.
11 Dec 08
I highly recommend the book Buffettology. It explains about the secrets behind how Warren Buffett became the second most richest person in the world, through stock trading only. He emphasizes the concept of investing from a business perspective. Meaning, trading in a way that you don't try to time the market so that you know what stocks to buy and what stocks to sell. He focuses on buying a stock because of the business that represents the stocks, and he focuses on developing strong long term returns instead of capitalizing on stock price fluctuations.
11 Dec 08
Hi, I read a lot of books of Warren Buffett. I know that he is using net tangible asset and intrinsic value to find the fundamental value of a company. He also like long term investment. He stresses a lot about long term investment. I read the book called "Value Investing" (Smart Investor")by Benjamin Graham who is the teacher of Warren Buffett. The book also teaches a lot about finding fundamental values of company. Personally, I think that using Warren Buffett methods to invest in stock market, we will need a lot of money to do it. We need to buy n stocks continuously when the price fall. My opinion is that if we can find the fundamental values of a company today, it will not be the same in the future. A company that is fundamentally strong today might become worse the next few weeks. So, stock price will fall extremely and if we do not have enough money, we will not be able to buy in at cheap price. Thus, we will lose our money. So, I am not trying to learn technical analysis. I am looking at the market at different angle. Looking at stock market as a marketplace to buy/sell stock. I am analyzing stock according to buying volumes, momentum, using candlestick and so on. Stock market is a place to buy and sell. So, we need to see the numbers of buyers versus numbers of sellers. If more people are buying, meaning that these people are going to have a similar mindset "I want to sell at higher price and take profit". Therefore, they will set to sell at higher price in their trading platform. So, the stock price will go up. When the buying volume come to peak, it means that all those buyers are going to sell to take profit. So, more people will sell than buying. That is why the price drop. I think that trading in stock market is better approach for me because I do not have a lot of money to trade as investor.