Needing help to know more about stock market

[The Daredevil]

I wish to learn about the basics of stocks and shares and know about the daily working of stock exchanges... could anyone help in suggesting some e-books or some websites which will eanble to know more about it?

Regards,
The Daredevil

[James81]

The first book of Investing by Samuel Case.

It's dated (and an actual book), but the information in that book is absolutely priceless. I learned so much from reading that book alone. In fact, I've been meaning to reread it again, so maybe I'll go buy it soon (got it at the library the last time).

[The Daredevil]

Oh thanx... Is the book available everywhere or restricted to specified libraries??

[James81]

Originally Posted by The Daredevil

Oh thanx... Is the book available everywhere or restricted to specified libraries??

Well, man, you'll just have to check your library to see if it's there.

It's on Amazon:

Amazon.com: The First Book of Investing, Fully Revised 3rd Edition: The Absolute Beginner's Guide to Building Wealth Safely (0086874521339): Samuel Case: Books

And it looks like you can get a used version for pretty much the cost of shipping.

[SimonKincaid]

Warren Buffer heavily endorses Benjamin Graham's 'The Intelligent Investor.'

The book was written before 1950s but the principles remain true.

Give that a try.

[The Big D]

For more trading related activities, Market Wizards by Jack Schwager is invaluable. It's more about the concepts and attitudes of winning traders than HOW to trade, but arguably that's more important anyways. It also has a lot of currency and futures stuff to go along with the stock stuff.

There's a big trap in trading/investing books: those who are consistently beating the markets have big incentives not to explain how they do it since if others do the same thing it will just suck up precious liquidity, and they certainly don't need money from a book deal. So books by or about verified winners are rare and valuable things.

[James81]

Originally Posted by The Big D

There's a big trap in trading/investing books: those who are consistently beating the markets have big incentives not to explain how they do it since if others do the same thing it will just suck up precious liquidity, and they certainly don't need money from a book deal. So books by or about verified winners are rare and valuable things.

That's true.

That's why I think anybody getting into investing really just needs to learn more how the system works rather than what specifically to do/invest in.

The book I cited explains the basics of any type of investment you might get into.

[The Big D]

Originally Posted by James81

That's true.

That's why I think anybody getting into investing really just needs to learn more how the system works rather than what specifically to do/invest in.

The book I cited explains the basics of any type of investment you might get into.

One thought would be that opening some sort of dummy inventing account is a critical start. Just seeing a trading console and placing a few orders for the purpose of understanding how a computerized market works (since it's VERY unlikely you'll be trading in an open outcry market these days) is invaluable.

The one that Interactive Brokers provides is golden (unless you're trying to learn to move volume, which no newbie cares about). But it may not be worth IB's relatively high service fees just to get access to it.

I'm about to mangle a quote from Market Wizards, and I don't even remember who said it. But it goes something like this: when you're starting out, keep your positions small because you're the worst trader you'll ever be. I would replace "small" with "zero" since decent simulated trading is a new innovation after the publication of that book.

[Rebecca800]

"One Up On Wall Street" by Peter Lynch is a very good introduction and will teach you about fundamental analysis of stocks.

[The Daredevil]

In what way does the stock trading influences the economy of the country..??? Why all the major companies are releasing their quarter results with such a media glare??? When buying and selling stocks have direct implications only to the particular firm and their shareholders, how does it become very important to economic growth...

Also please to explain me about short selling???

[The Big D]

Another HUGE winner I forgot to mention is Reminiscences of a Stock Operator by Edwin Lefevre.

[NSS]

This list was written by this guy on another forum I frequent. The podcasts on his site are pretty good too.

-------------------Starting Points-------------------



Beginner Investing Books


The Intelligent Investor by Benjamin Graham

Often considered the bible (along with Security Analysis) by many value investors, Graham talks about certain timeless concepts which must be considered by any prudent investor.


Security Analysis 6th edition by Benjamin Graham, Foreward by Warren Buffett (omg warren buffett!!!!1)

Buffett calls this the single most important investing book, and its no stranger why, core company valuations start with ideas formulated in this book. A must read for anyone interested in valuing companies and making prudent investments.

Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets by Nassim Nicholas Taleb

Taleb could almost be considered a cult hero now days, after writing a book about the stupidity of Wall Street trader/banker types, and how the long run and fat tail effect will eventually turn around and crush them, as it has in the past. Personally, the book is a little overrated, since Taleb isn't sporting a beard, white robes, and a halo above his head, but he's a smart guy who makes some very sound points. If you're going to be a trader, or even if you're not, read this.

Market Wizards: Interviews with Top Traders by Jack D. Schwager

Everyone needs a little inspiration, and this is exactly what this book provides. Great stories about how great traders rose from different backgrounds to become the top of their field. If you read this and are still luke warm about finance/investing, find something else to do, because this book should be getting you excited.

Soros on Soros: Staying Ahead of the Curve by George Soros

A legendary trader who's infamy comes from breaking the British Pound single handedly, Soros talks about how he formulates ideas and why he does what he does. Great starting point for how to 'think' like an investor, even if Soros is a 'trader', because its all about conviction and understanding your strengths.

The Dick Davis Dividend: Straight Talk on Making Money from 40 Years on Wall Street by Dick Davis

I think this books better than Graham's, more current, more ideas, and advice that won't lead anyone astray. Based around dividends as both a signaler and a cash returner, Dick Davis is all about timeless wisdom. A classic value investor book that talks about the pros and cons of both index investing and active investing.

Stock Market Primer by Claude N Rosenberg

A straight forward book about what stocks are, why they do what they do, and how you get involved. A little better than the dummies books. Anyone can read this.

Martin Zweig Winning on Wall Street by Martin Zweig

I was exposed to this book through my Dad. This is a nice read to help you branch out into other ideas like market timing, reading statements, and understanding momentum without getting too Technical Analysisy. It's a little bit dated, but great for idea exposure.


Financial Fine Print: Uncovering a Company's True Value by Michelle Leder

The only book on financial accounting and company valuation I've ever read and I've never felt like reading another. Goes through all the methods that companies report as requires by law, and how to break them down and evaluate their true meaning. Great book, and not too huge a read either. I use it as a reference book sometimes too.




Beginner Economics Books


Principles of Economics by N. Gregory Mankiw

Probably the best introductory college level text book available. Mankiw runs a popular economics blog (talked about below) and is a traditional economists who is fairly respected by all (except durka). Even if you disagree with his economics, its hard to argue this book isn't a solid introduction to the concepts behind economics.

New Ideas from Dead Economists: An Introduction to Modern Economic Thought by Todd G. Buchholz

Ok, so you don't want to shell out 15 of your .05/.10 buy ins and buy a college level text book. Nor do you want to both to read one. No problem. This book is a great primer on economic history and where all our views came from. Well written and light for a beginner.

Against the Gods: The Remarkable Story of Risk by Peter L. Bernstein

This isn't really an economics book, but more a history lesson in finance, which I believe is essential to truly understanding the heart of economics. Bernstein talks about risk and all the advancements that have led to what the financial markets are today. Talks about more ancient history as well as modern history, a little heavy and name drops a little too often but otherwise a good read.

Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy by Barry Ritholtz

Not so much boring economics but more applied economics/finance. A very new book (only came out 2 weeks ago, I only received mine a week ago), Ritholtz goes into depth about why the economic crisis came about and the failings of governments. He also highlights the absurdity in trying to practice classic economics on a situation where there is no free market. Read this if you want to know more about the current problem, his research is top notch.

Freakonomics: A Rogue Economist Explores the Hidden Side of Everything by Steven D. Levitt

A famous book, very pop, but a must read. It turns economics into a statistical witch hunter, finding the truth in unlikely places. Use it for imagination expansion.

Naked Economics: Undressing the Dismal Science by Charles Wheelan

A more serious version of Freakonomics, Naked Economics talks about why stuff happens in the real world and tries to make it interesting to a newbie reader. Does a good job so here it is!




Beginner Trader Books


Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications by John J. Murphy

The bible of technical analysis, Murphy goes through price movements, oscillators, and gives an overview on technical analysis. Probably not profitable to read by itself, but an instrumental first step.

Martin Pring on Market Momentum by Martin J. Pring

I have a soft spot for this book, explains momentum trading really well, and why its an effective and staple trading idea.

Enhancing Trader Performance: Proven Strategies From the Cutting Edge of Trading Psychology by Brett N. Steenbarger

What an amazing book. If you've ever considered becoming a trader or at least dabbling, buy this book. Don't ask questions, just do it. Hell, even if you're just a poker player, replace the words 'trading' for 'poker' and you have the best poker psychology book ever written.

Trade Your Way to Financial Freedom by Van Tharp

Simple advice on trading, how to become a winner, and essential on understanding why multiple tactics can all be winners with the correct mentality and system design.

Reminiscences of a Stock Operator by Edwin Lefèvre

A classic tale about the ups and downs of being a trader, and how bad money management can bring a lifetime of pain, while a clear understanding of your edge can keep you fighting. Written before my grandfather was in school, very old but very timeless.

Trading Day by Day: Winning the Zero Sum Game of Futures Trading by F. H. Chick Goslin

Who needs complex system when you have simple momentum and cross over indicators? I've run some demos of his system and they all do pretty well at keeping out of trouble and letting winners run. Explains his technical analysis trading system in a simple way, another good starting point.

Options, Futures, and Other Derivatives (7th Edition) by John C Hull

The bible on options and futures pricing. A fantastic primer in the world of paper that represents an right to do something later, which is actually a really complicated concept and requires smart people to be paid lots of money to get it right. I heard all new options traders at both ibanks and prop firms have this book and the volatility pricing one (linked later) as the only required reading, that's how thorough this book is.

[Marth]

Check out this yt series. Helped me learn a lot, hope you do too mate
YouTube - 1. Technical Analysis Lesson 1: Intro to Technical Analysis

[PerDev]

You can check the book "Intelligent Investor" by benjamin graham
Warren Buffest's Guru

Go in the stock market onlt is you have millions of dollor to invest in the companied you belive.

otherwise its waste of time, energy.

Originally Posted by The Daredevil

I wish to learn about the basics of stocks and shares and know about the daily working of stock exchanges... could anyone help in suggesting some e-books or some websites which will eanble to know more about it?

Regards,
The Daredevil

[Leondegrance]

Dang, I slept in and missed this morning's rally. So here's an important tip when trading the market:

YOU SNOOZE, YOU LOSE - get up before the opening bell so you can see pre-open bids and asks, which should give you an idea of where stocks will open (higher, lower, same). Also, read the news online to see what's happening money-wise (market, economy). Again, this may help give you an idea in which direction stocks will push, if only for a little while.

[The Big D]

Originally Posted by Leondegrance

Dang, I slept in and missed this morning's rally. So here's an important tip when trading the market:

YOU SNOOZE, YOU LOSE - get up before the opening bell so you can see pre-open bids and asks, which should give you an idea of where stocks will open (higher, lower, same). Also, read the news online to see what's happening money-wise (market, economy). Again, this may help give you an idea in which direction stocks will push, if only for a little while.

All of the movement related to today's GDP report occurred in about 25 seconds in premarket futures trading as a variety of players bought every index future in sight. The totalk change in net positions was about $50B as far as I can tell. That information had little to no predictive value going forward.

Had you managed to go long partway through that move, you would have made a relative killing. But that takes a lot more than just getting up early.

[pjhaggerty]

To the OP

it would help us recommend books if you told us a little more about what you are hoping to learn or what you are hoping to do with what you learn. Right now, I would recommend you check out investopedia.com and something like the money section on Yahoo until you have a clearer idea about what you want to know about.