Where does one learn about sectors in investing, and how the market works?

Question

Everyone in investing that knows whats up, has a grasp on how the market works.

Ie.) Investing in sectors of the market etc.

I do have a few questions for those in the know:

1)Where do you (or where can I) learn the technical aspects of investing - like investing in a certain sector of the market, or getting info on companies.

A good example would be that it might be a good idea to invest in housing or energy. Where and how do you know what companies/stocks are related to that sector?

2)How does the market flow? And by flow, I mean knowing that when one thing happens in the economy, its good to pull out here or invest there. Is there somewhere to read to see what affects one another?

I really want to secure myself a better financial future but am a newbie and completely overwhelmed by this.

Thank you in advance.

Answer 1

I'll help. If you are thinking about becoming a day trader be ready to pay a lot of money to learn (whether you take classes, go to seminars, or lean on you own you'll pay the price) and you'll also invest a lot of time.

Buy share on professionaly managed mutual funds.  Put together a diversified portafolio. Investing on a single sector is putting all your eggs in one basket. The sector with the best perfornace last year can be the sector with the poorest perfornace this year.

You can learn about the investment you're about to purchase by reading the PROSPECTUS. This contains ALL the technical data about the fund or company.

The best time to invest in the market is now. By "now" I mean anytime. When the market is going down is a great because you get to buy shares sale, when the market is going up you get to watch your investment grow. Keep in mind the orizon that you have for your investment: use income funds or money market for short term (0-2 yrs), blend funds for mid term (2-5 yrs), and so something more agressive on 5+yrs.

The market has average 11%-12% since inseption.

$2,000   => $22,000   @ 12% for 20 yrs

$100/mo=> $100,000 @12% for 20 yrs

Answer 2

Start learning here: http://www.stockmarketresources.blogspot... , or investopedia.  

You can get info on companies and sectors from various places on the internet, such as Morningstar, Standardandpoors, Edgar's, Zack's Investment Research, and really plenty of other places (the first site walks through these and gives links to them, and other resources).

You can search the databases of these sources as well as screening your own stocks by sector using yahoo finance and other screeners.

There are certain consistencies in the market, but nothing is fool-proof.  For example, crude oil has been going way up, and the stock market has been crushed about 8% over the past month or so.  It's because higher transport prices mean less profits and usually a slower economy.  Oil and energy sectors often thrive with rising oil.  However, as I said, nothing is fool-proof.  You will find that many stocks raise their earnings from previous quarters, and yet their stock immediately goes down after the announcement.

The best way to start is with an education, and the best of luck to you.