Looking to learn the stock market

[Bamafan3723]

Is anyone hear pretty knowledgeable of the stock market? I'm looking to learn more about it and get involved in some buying. I know some about it but would like to learn more. Ways to read trends, research different companies, etc. Any good websites I could look too to self-educate myself?

[KingV2k3]

Re: Looking to learn the stock market

I'm a big fan of the guys at Motley Fool:

http://www.fool.com/press/about.htm

The subscription for tips on buys costs a few bucks, but the info is invaluable...

Google the brothers Gardner, very interesting guys...

[allBthere]

Re: Looking to learn the stock market

look at forums like this....but don't treat it like this. Don't trust anyone, but reading posts about stocks will immurse you into the culture. You'll see pump & dumps, you'll see people trying to short stocks, you'll see people with good software and memberships that allows them to get up to the minute quotes on stocks called level2.

You need to educate yourself on all possible ways stocks go up and down which varies from industry to industry. Watch shows like mad money, and it will start to become more normal to you and you'll understand all the concepts w/ a little immersion.

You should look at gov't sites like edgar the national (US) filing system. You can look up any company on a recognized exchange and look at any and all of their filings. You'll have access to up to date quarterly and year-end audited financials. You'll also be able to see forms that are issued when management/owners are manipulating the stocks (selling/issuing/splitting).

Don't invest a penny until you have a base of knowledge - don't listen to anyone on the internet w/o checking things yourself. Only invest money you can afford to lose.

Another tip is to pretend you invested ina particular stock (maybe a risky one) and watch it for a week or two when you bought and when you'd pretend to sell) what happened to the ask and the bid? why? did a press release drive the stock price up for no reason? are market makers selling big time w/ no news?

this is one hobby/career/investment you can't go into w/o some know-how unless a pro is investing your money for you.

[shnuskis]

Re: Looking to learn the stock market

Read Warren Buffet's Book and Peter Lynches Books! I actually like Lynches books better. They emphisise investing in what you know.

Read other books to and get different opinions. How to Make $1,000,000 in the stock market automatically has an interesting investment strategy that looks likeit would work(haven't tried it) in any market, up or down.

I liked Motley Fool when I was learning about it too.

Be patient. Don't put your seed money into anything right away.

While reading, start an account with an online broker, research and put a small amount in a penny stock or two. Write this money off as an investment to your learning. You will have a vested interest in those stocks, follow them every day, follow their news, etc. If they go up great, but if not, no big deal. Any lesson you learn will be invaluable.

[Trevytrev11]

Re: Looking to learn the stock market

Do you want to be an investor or a speculator?

In other words are you looking to day trade stocks and try to make instant profits or are you looking to compile and invest in a diversified portfolio of stocks, bonds, etc. over a long period of time.

If you want to be a long term investor, like shnuskis said, I would reccomend reading books by those who share similar philosophies. Personally, I would suggest starting with "The Intelligent Investor" by Benjamin Graham. Graham was Buffet's college professor and mentor and they share many similar philosophies when it comes to long term investing. If you grab the latest edition, following every chapter of Grahams, is a follow up by the editor with modern day examples of what Graham is trying to convey.

If your looking to day trade, I can't help you there. I know a lot of people that have made money doing this, but almost all of them have lost even more. IMO it's basically gambling. Some will tell you they have made serious cash doing so, but usually over short periods of time. From what I have seen and experienced with people I know, over the long run, nobody I know has been able to keep that consistant.

[matt8204]

Re: Looking to learn the stock market

Do you want to be an investor or a speculator?

In other words are you looking to day trade stocks and try to make instant profits or are you looking to compile and invest in a diversified portfolio of stocks, bonds, etc. over a long period of time.

If you want to be a long term investor, like shnuskis said, I would reccomend reading books by those who share similar philosophies. Personally, I would suggest starting with "The Intelligent Investor" by Benjamin Graham. Graham was Buffet's college professor and mentor and they share many similar philosophies when it comes to long term investing. If you grab the latest edition, following every chapter of Grahams, is a follow up by the editor with modern day examples of what Graham is trying to convey.

If your looking to day trade, I can't help you there. I know a lot of people that have made money doing this, but almost all of them have lost even more. IMO it's basically gambling. Some will tell you they have made serious cash doing so, but usually over short periods of time. From what I have seen and experienced with people I know, over the long run, nobody I know has been able to keep that consistant.

Yeah, you REALLY need to know what you're doing to be a day trader, and even then there are no guarantees. In the very short-term, the stock market and individual stocks in general are too volatile and unpredictable to consistently generate positive returns. It's like chasing ghosts. Often times, even a good stock in a company that's doing well will have a poor day for a myriad of reasons. Maybe an executive sold a bunch of shares to generate cash flow for himself, the company had a product recall and some people panicked and sold their positions, the stock might be under pressure from short-sellers (people who borrow shares of a stock, sell them on the open market and hope to buy them back at a lower price), etc.