Your Questions About How To Pick Stocks Books

Laura asks…

Can you give me some investing advices?

I have 11 questions here. could you answer with easy words so that i can understand what does it mean easily?

1.What advice would you give to a college freshman about money?

2.What advice would you give to someone who just finished college about money?

3.What books, websites, and courses do you recommend about money or investing?

4.What is the biggest mistake that I never make with money?

5.What things would you like to be more knowledgeable about in terms of money or investing?

6.What are some negatives would be if I choose more than 5 picking stocks?

7.What are some strategies to predict a corporation’s future for choosing stock?

8.How do you get some information about big companies for stocks?

9.What should I keep in mind about investing?

10.If I didn’t know that the bank that I invested money was bankrupted, what happens?

11.Which bank would you pick when you are going to invest your money?

John answers:

1) Learn to be frugal. Income must exceed expenses. Save and invest as much as possible.

2) Put the maximum amount in your IRA. Pay off low interest student loans on time.

3) A good home economics course wouldn’t hurt. To learn to use coupons, cooking, baking. Food is now a premium expense, restaurant checks haven’t gone up yet, but WILL.

4) The biggest mistake to never make with money is try not to lose it. Don’t invest without reasonable expectation of profit, and don’t be in to big a hurry. True wealth takes time, that’s why there’s a long term capital gain period in most countries.

5) World interest rate fluctuations.

6) I think you can own too many stocks. Losing volatility takes away some profit potential.

7) Try to know the senior management team. Nothing will be more important than the decisions made by who guides the company.

8) Most information is online. I also ask around.

9) If I do this will I sleep better?

10) Ask another way please I don’t understand. Knowledge is power what you don’t know can hurt you investing. You lose invested capital maybe.

11) If you are capitalizing a corporation, by borrowing, I want a good interest rate, long term. I also want (more importantly) to have a good relationship with my banker. We don’t have to be drinking buddies, but I want them to know me and my company inside and out. They are an investor in me and mine.

If your buying banks I like Bank of America, and JP Morgan-Chase.

Robert asks…

What Books to Read To Start My Investment Career.?

Hey there,

I am currently a 20 year old college student with some extra cash that wants to start investing. However I am looking to pick up a good detailed introduction to the stock market and Investing in general. I have already started by reading “A Young Adult’s Guide To Financial Success – Rich by Thirty” by Lesley Scorgie, however I want to further my knowledge specifically in the stock market.

I don’t however want some 30 page stock market basics for someone in highschool. Im looking more for something that has a lot of detailed/technical/advanced information about how the stock market works but also some of the basics to get me started and up to par with all the lingo.

Thanks!

John answers:

When The Market Moves Will You Be Ready?
Written by Peter Navarro.

The Compleat Guide To Day Trading Stocks
Written by Jake Bernstein.

The Day Trader’s Survival Guide
Written by Christopher A. Farrell.

All About Exchange Traded Funds
Written by Archie Richards, Jr.

For general stock market information:

Real Money-Sane Investing In An Insane World
Written by James J. Cramer.

How To Buy Stocks
Written by Louis Engel and Henry R. Hecht.

Mark asks…

Best Stock Book to be Successful?

For the people who have had tons of success with stocks…What is the best book to read on stocks that really helped you to be successful? Also, would it be best to pick stocks but not actually buy them for practice just to see how my choices play out?

John answers:

Here is some reading material that can get you started in the right direction,
Beating the Street by Peter Lynch
Bulls Make Money, Bears Make Money, Pigs Get Slaughtered, by Gallea
From Riches to Rags, by I.C. Freeley
How to Make Money in Stocks” by William O’Neil
24 Essential Lessons for Investment Success by William O’Neil
The Intelligent Investor, by Benjamin Graham
Common Stocks, Uncommon Profits, by Philip A. Fisher
One Up on Wall Street by Peter Lynch
Stocks for the Long Run, by Jeremy Siegel
What Works on Wall Street by James O’Shaunessey
You Can Be a Stock Market Genius by Joel Greenblatt
Your Money and Your Brain by Jason Zweig

When you think you want to invest/trade, try some paper trading so that you can test your skills without spending any of your money. Check out these sites for paper trading
http://simulator.investopedia.com/ http://www.tradingsimulation.com/ to practice
trading/investing

Jenny asks…

Doing research in picking correct stocks question?

I’ve read several book on stock investing and they all say to go to various websites to find the stock companies P/E ratios, PSR ratios Price to book ratios, Income statements, cash flow, balance sheets, insider tradings, look at S%P 500 and other indexes, look at their filings with SEC.GOV under EDGAR, and other information. It says go to to go to many different various websites like bloomberg.com, wallstreetjournal, sec.gov, marketwatch, insiderscores and more. I’m looking into Ameritrade.com and it seems to have all the fundamentals needed on their site about the stock, so why go to various websites to give me the same information? How do you do your research? Do you also go to hundreds of sites?

John answers:

I look at the sector and how it is performing. Then, I check to seek if the stock is being accumulated vs. Being sold or “distributed.” We, as small investors, must remember that institutional buyers are investors who truly affect the price of a stock so I would look at the so-called: “Accumulation-Distribution rating. It gives you a good idea of what the likely direction of the stock is going to be. Now, I think you can be over-advised by the tons of material out there. Ultimately, you need to set your own rules and stick with those rules until you see an error in your system.

Mandy asks…

Investing money in the stock market & information about learning how to do it.?

I want to learn about the stock market and investing. In about a month I will inherit over $100,000. in cash and stocks with the closing of probate, not counting the properties, not time to sell them. I have an account with Fidelity Investments and they make decisions for me. I want to learn how to manage and invest the cash that I have in this brokerage account myself and not have them to do this for me. My mom was one to let my dad do all the business stuff cause she was afraid, but I am a divorced woman who wants to manage this herself. I am not that fearful woman my mom was. I have no family members in the finance industry to advice me.

I currently subscribe to Money Map, Money Morning, American Wealth Underground, Smart Investing Daily, Taipan Daily, Wavestrength Optional Weekly, Wealth Legacy, and Oil & Energy Investors Investors with Dr. Kent Moors. A lot of information to digest & figure out what is right to do. So many terms and to know which is right to use. These companies I subscribe to have a lot of information and tell the best stocks to pick.

Has anyone followed their advice with the stock picks they suggest and how have they done at making money? What other books, websites,etc. would you suggest to help me understand and learn the right path to take. Trying to weed out the wasteful information sites and books.

Thank you,
Dirah

John answers:

If you only read one book, read “The Little Book That Still Beats The Market”, by Joel Greenblatt. If you only read two books, then make that second book “Intelligent Investor”, by Ben Graham – described by Warren Buffett as “the best book on investment ever written”. One Up on Wall Street by Peter Lynch is also worth a read.

The single best website to look at is The Motley Fool.

As previous posters have mentioned, avoid tipsheet type publications. Anyone who was truly good at stockpicking wouldn’t need to charge money for their tips, right?

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