Archive for April, 2010
A timeless, easy-to-read guide on life-long investment principles that can help any investor succeed The Elements of Investing has a single-minded goal: to teach the principles of investing in the same pared-to-bone manner that Professor William Strunk Jr. once taught composition to students at Harvard, using his classic little book, The Elements of Style. With great daring, Ellis and Malkiel imagined their own Little Red Schoolhouse course in investing for every investor aro (more…)
I am looking for information on investing in both the stock market and other thingies (can you tell I’m a beginner?), such as mutual funds, hedge funds, really everything as I just don’t know anything about any of it lol.
I am young and currently don’t have much money to invest but am looking for information on it, and any information I can get is more than wonderfully helpful. Thank you in advance!
I think as an new investor it is important for you to learn both technical and fundamental analysis. Be aware that as a beginner you have a choice between being either an investor or a trader. I will make an attempt to explain this:
Historically, investors have typically focused on what are called the fundamentals of a business or fundamental analysis. Fundamental analysis essentially revolves around analyzing the financial statements of the company and thoroughly analyzing the business practices of a particular company. "Investing for dummies" covers this aspect of analysis very well but almost entirely ignores technical analysis.
An investor sometimes is more likely to hold on to a stock longer than he/she should even when the price is going down sharply against them. Many traditional investors will ignore technical analysis(explained below), which in my opinion is not a good strategy to follow.
Technical analysis is what traders use to make their decisions on the stocks to buy or sell. Typically, traders are looking to hold a stock (or any other financial instrument) for a shorter period of time. They rely almost entirely on the use of of the analysis of stock charts (technical analysis) to make their decisions on when to get into a trade, or when to get out.
A trader is going to have to pay more in commission charges as they are trading more often than an investor. A trader must also have a good system for managing their money in order to make money. A trader probably needs more skill in order to be profitable (not to downplay the knowledge and skills required to be a good investor).
"Stock investing for dummies" is a good book for introducing you to fundamental analysis.
"Come into my trading room" is probably the best introductory book into technical analysis, and more specifically trading.
I think it is important when you are first getting into the game to learn about both:
trading vs investing *and*
technical analysis vs fundamental analysis
so that you understand ALL of the methods that people use to make decisions on whether to buy a stock or not. If you are willing to spend the time here understanding all of this you will gain a huge advantage in the markets you otherwise wouldn’t have. Once you understand the differences between these two groups of people you can start to formulate your own strategy on how you want to approach the markets.
If you are not willing to spend the time to obtain this knowledge then yes, mutual funds are a better bet, but if you really want to learn how to obtain the best yearly returns you possibly can obtain you should learn all of the material I have outlined above using the two books mentioned and make your own decisions intelligently on what you want to invest in / trade.
With all this being said, there is no reason why you can’t use both fundamental and technical analysis at the same time. You could for instance you fundamental analysis to find undervalued stocks and then look at the charts (technical analysis) to determine the best time to buy a stock.
Hopefully this wasn’t too much to digest at once: if it is be sure to read both books. I think if you do this it will all start to slot into place for you.
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I’m brand new to real estate investing. What are the top 10 problems that I will face just starting out? I know that other ventures have like 20 top problems with starting anything that’s new or any kind of business. I’m just trying to get my bearings straight so I’ll know what to expect as a newbie. It is very interesting though with the potential you can make. All help is definitely welcomed.
Declining values in many markets
Long days on market
Limited accessibility to commercial funding streams
Large amount of inventory on the market
Low cap rates
Marketing successfully to potential buyers
Lack of investors
Commercial loan requirements are very stringent
Lack of experience in a challenging market
Lack of investors willing to mentor
I vaguely remember my professor naming a couple of websites where you invest ‘virtual dollars’. Can anyone out there in the world of the ‘internets’ (as the kids say nowadays) suggest a couple of websites?
Many currency trading platform offers practice curreny trading. It is a good place to start. Trading technicalities are same for all the financial products. Basically if you can trade currency, you can trade stocks, commodities etc.,
Sample site:
http://www.ac-markets.com/en/currency-trading/advanced-trader.asp