Ask HN: How can I learn how to invest in the market?

#1

Post by Retailslave » Tue, Sep 14, 2010, 1:23 AM UTC

Hello, I'd like to learn how to invest in stocks, bonds, options, etc. However I find that there are no classes, and no realistic( please no make 100K in 5 days!!) books that would teach me what skills I need to learn.

I'd just like to learn what to look for in market trends, how to accurately research stocks, and how to make money etc. I know some basic terminology and researching but I'd like to be better before investing any money.

Re: Ask HN: How can I learn how to invest in the market?

#2

Post by patio11 » Tue, Sep 14, 2010, 1:25 AM UTC

Nobody ever wants to hear this, but I have to say it anyhow: read A Random Walk Down Wallstreet, give up, and invest in index funds.

Re: Ask HN: How can I learn how to invest in the market?

#3

Post by mechanical_fish » Tue, Sep 14, 2010, 2:08 AM UTC

patio11 wrote: post #2

Nobody ever wants to hear this, but I have to say it anyhow: read A Random Walk Down Wallstreet, give up, and invest in index funds.

I'll see your Malkiel and raise you a Bernstein:

http://www.amazon.com/Four-Pillars-Investing-Building-Portfo...

The conclusion remains the same, however. Oh, how terribly dull it all is when compared to a nice game of craps.

Re: Ask HN: How can I learn how to invest in the market?

#4

Post by adrianscott » Tue, Sep 14, 2010, 2:18 AM UTC

patio11 wrote: post #2

Nobody ever wants to hear this, but I have to say it anyhow: read A Random Walk Down Wallstreet, give up, and invest in index funds.

malkiel's work is based on flawed assumptions which lead to flawed conclusions -- i recommend reviewing those before spending time on his book.

Re: Ask HN: How can I learn how to invest in the market?

#5

Post by AN447 » Tue, Sep 14, 2010, 2:20 AM UTC

Warren Buffets letters to shareholders would be a good place to start. Read all of them.

The intelligent investor and securities analysis by Ben Graham are essentially reading albeit abit dry.

I'd also recommend (when looking at equities) that you do lots and lots and lots of research on individual stocks and really get to know them before you take the plunge and fully understand why you've decided to buy.

Also, have an entrance and exit point on all investments. Unless you're going for the 'value investing' strategy buying and holding forever.

Re: Ask HN: How can I learn how to invest in the market?

#6

Post by adrianscott » Tue, Sep 14, 2010, 2:23 AM UTC

read jack schwager's books, the better biographies on warren buffett (lowenstein's, also snowball effect), lowenstein's book on ltcm is also worth reviewing.

i highly recommend the origin of wealth -- an amazing book

mark douglas' books can be helpful,

how to make money in stocks by o'neil,

steenbarger's book

george soros' books

hank pruden's book

you want to learn what a trading plan is, and you want a trading plan that will work in irrational markets (since humans are not rational etc.), has some risk mgmtn (risk does not equal volatility), rules to buy and sell, etc.

hope this helps,

Re: Ask HN: How can I learn how to invest in the market?

#7

Post by Retailslave » Tue, Sep 14, 2010, 4:29 AM UTC

patio11 wrote: post #2

Nobody ever wants to hear this, but I have to say it anyhow: read A Random Walk Down Wallstreet, give up, and invest in index funds.

I hope this is not "above me" I don't know as much as the average hacker would probably know about markets. I'm 20 and don't have THAT much knowledge.

>>give up, and invest in index funds. Alright, Any book recommendations for that?

Re: Ask HN: How can I learn how to invest in the market?

#8

Post by Retailslave » Tue, Sep 14, 2010, 4:31 AM UTC

adrianscott wrote: post #6

read jack schwager's books, the better biographies on warren buffett (lowenstein's, also snowball effect), lowenstein's book on ltcm is also worth reviewing. i highly recommend the origin of wealth -- an amazing book mark douglas' books can be helpful, how to make money in stocks by o'neil, steenbarger's book george soros' books hank pruden's book you want to learn what a trading plan is, and you want a trading plan…

But these are autobiographies, I would like a book that gives me APPLIED knowledge on trading in index funds, options, stocks, bonds, forex..etc. I'll start with stocks/index funds because they're easier.

I want to invest short term(less than a year)

Re: Ask HN: How can I learn how to invest in the market?

#9

Post by patio11 » Tue, Sep 14, 2010, 4:31 AM UTC

Retailslave wrote: post #7

patio11 wrote: post #2

Nobody ever wants to hear this, but I have to say it anyhow: read A Random Walk Down Wallstreet, give up, and invest in index funds.

I hope this is not "above me" I don't know as much as the average hacker would probably know about markets. I'm 20 and don't have THAT much knowledge. >>give up, and invest in index funds. Alright, Any book recommendations for that?

It is not a commentary on you, but rather on markets. On average, investor performance is market average minus expenses, and this holds regardless of investor sophistication.

Re: Ask HN: How can I learn how to invest in the market?

#10

Post by Retailslave » Tue, Sep 14, 2010, 4:32 AM UTC

AN447 wrote: post #5

Warren Buffets letters to shareholders would be a good place to start. Read all of them. The intelligent investor and securities analysis by Ben Graham are essentially reading albeit abit dry. I'd also recommend (when looking at equities) that you do lots and lots and lots of research on individual stocks and really get to know them before you take the plunge and fully understand why you've decided to buy. Also, have…

I'm looking for more applied advice. Your advice seems to have more of that, does Buffets' letters include such things?

Thanks for the entrance/exist point strategy. I am planning to invest for the short term so that should be useful