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Originally Posted by kmr321  thanks very much RT wolf that is exactly what i was looking for.
I am in fact a uni student and so have limited funds but if you were to recommend some tools to begin trading
what would you recommend?
i was thinking picking up an investing magazine per week
maybe some type of software to manage the information of stocks.
Out of curiousity does
short term trading or long term pay off more? |
There's very few investing magazines targetted towards value investors (of what I am, and so is Peter Lynch, Buffett and so on). One of them Outstanding Investor's Digest, but it prints on an on and off basis and it isn't cheap, it's great for interviews, though, and sometimes stock tips. Check out "You can be a stock market genius, too" by Joel Greenblatt. He's a very easy to read writer and at the end of the book, he lists a lot of good sources and practical information.
I use Excel to combine in the information and/or plug in the information into a specific valuation model.
A note about valuation models: you use different ones for differnt kinds of stocks. Kinda like if you're building a house, you wanna have different tools for different jobs, you want different valuation models for different kinds of companies. Or you can just choose to specialize in one.
Your question of what pays better, short term or long term investing is tricky. It depends on who you are and what your skill level is. My opinion is that long-term investing pays out a lot more (and that's why I'm in it). Others hold other opinions, clearly, depending on their preferences and so on. It's called incentive-caused bias.
Charlie Munger is a great thinker and speaker on matters of investing and models nad so on. I think teh following shold be mandatory reading for everyone:
Losch Management - Berkshire Hathaway's Holdings
BTW, Pagoda, getting out when the market is not right is a great thing to do.