Investing techniques and style, books to read?

Question

I'm 21 and have 5,000 to invest. I don't just want to throw my myself in the market. My Father is a trader, so i know how the market works. Actaully if he would of followed my advice 4 years ago, he would of been a millioniare. I told him to buy Jones Soda (JSDA) at .20 per share, well last year it hit 30 bucks. What are some must read books to help create my own stock system. I'm giving myself 2-3 months of just studying the market and give myself time to develop a stock system. Any insights? thank you

Answer 1

The absolute best book in the whole world- the one i learned the most from was trading for a living by Alexander Elder-all his books are great.

Answer 2

Here is a link to my favorite investing books:

http://top10traders.com/ViewPost.aspx?po...

It also has others' responses with their favorite investing books.  Good luck!

Answer 3

Trend Trading.  By Daryl Guppy

This would have saved me thousands if I had read it first. . ..

Answer 4

I am partial to William J O'Neil's "24 Essential Lessons for Investment Success."  It is an Investors Business Daily publication, from McGraw Hill.  You are lucky to have a family member off of whom to bounce your ideas.   This book will underscore to you the importance of having rules to follow.  It is not a set of rules that you adopt or die!  I view the book as stressing the importance of having some kind of buy and sell rules.  They should be yours; but, I urge you to take the best of what you learn and produce your own set of rules.  I made a small amount on  JSDA; but, I fell in love with HANS.  Should not fall in love with any stock.  Including GOOG.  I bought at 220 and sold at 350.  I am happy for those who got the full ride.  I was buying the innovation and brains of the kids over there.  I don't know a search engine from a stop clock.   My personal view is to not worry about the first 15 percent or the last 15 percent.  Just try to get the middle 70 percent.  As a small investor that rule has served me well.  At your age, I would challenge the idea of diversification.  Mr. O'Neil does in his book.

Answer 5

Here is some reading material that can get you started in the right direction,

The first book you should read is Rich Dad Poor Dad by Robert Kiyosaki

Then try some of these

What Works on Wall Street by James O'Shaunessey

Beating the Street by Peter Lynch

One Up on Wall Street by Peter Lynch

Trading For a Living by Alexander Elder

Mastering the Trade” by John Caster

How to Make Money in Stocks” and 24 Essential Lessons for Investment Success both by William O’Neil

The Disciplined Trader by Mark Douglas

Rather than read the Wall Street Journal try the Investors Business Daily

Get into the habit of making daily visits to some websites like MSN Money and Yahoo Finance.  (http://moneycentral.msn.com/home.asp http://finance.yahoo.com/ )

Here's some other websites for you

http://www.investors.com/?tn=top

http://investorshub.advfn.com/default.as...

http://www.thestreet.com

http://www.brokerage101.com/

http://www.1source4stocks.com/

http://www.decisionpoint.com/TAcourse/TA...

http://stockcharts.com/

http://www.grahaminvestor.com/

http://www.thestreet.com/

http://www.morningstar.com/

http://www.stockta.com/

There are four parts of an investing/trading plan that you must have in place

1 - A written sound trading/investment plan with rules that will not only help you but more importantly protect you, mostly from yourself.

2 - Sufficient trading/investment capital.  Use your own money, there’s no need to go into debt so that you trade/invest.

3 - A written money management program in place.

4 – A full and complete understanding of the rules & regulations of the industry

If your Dad's a professional trader, especially on the street,  he has heard more "tips", "sure things" than he could count, if he listed to half of them he'd be broke since 99.9% of them were loosers.   Don't knock the old man.

Study hard and you'll trade even better

Answer 6

Well, this is one book that is a must read.  "The Intelligent Investor",  Benjeman Graham