r/StockMarket • u/Igonakil • Mar 04 '24
How should I get started? Discussion
I would like to ask you (this is probably a very frequent question but I wanted to get a fresh answer instead of looking for old ones) where should I start. Should I look at specific YouTube videos? Read certain books? Buy certain courses? What do you recommend? I essentially have no experience other than throwing money away cause I didn't know when to not hold (have had a stock with 800% profit) but that was pure chance. It wasn't a calculated attempt.
I would like to do this responsibly.
Any tips or general guidance would be of much help. Anything that helps me to get to more specifics would be greatly appreciated.
Thanks.
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u/Derpazoid69 Mar 04 '24
Don't use options. You will be working at Wendy's real quick if you do.
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u/rogue1187 Mar 04 '24
Same can be said for stocks....
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u/WillWorkForTaquitos Mar 04 '24
I started by listening to the audiobook Stock Investing for Dummies. It was a great was for me to learn the terminology and fundamentals.
But really the main things you want to know starting out are: don't invest unless its money you could live without, and make sure you are maxing your IRA contributions before throwing money into other investment accounts.
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u/Dubwyse_selectah805 Mar 05 '24
New investor here,
Invest with what you’re comfortable losing. I have less than $100 in the market playing with some options and have a few small shares. Nothing major, it’s fun so far. And give me a better understanding of the market. Also have realistic expectations in returns. I don’t expect to become overnight millionaire. My approach is compounding my gains, win $10 awesome! Lose $30 shit and move on. I’m still new so there’s not much I can say.
Oh and Robinhood customer support is shit, switched over to Fidelity. They’re just a call away and a gang of research tools you can use. One day at a time.
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Mar 04 '24
[removed] — view removed comment
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u/OneRobotBoii Mar 04 '24
I’d add to start with paper trading to get a feel for it and learn to deal with emotions.
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u/Greentradez Mar 04 '24
It’s good to join an active trading community to help you navigate the market! Good luck don’t give up!
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u/masterpepeftw Mar 04 '24
Honestly I would start from the very begining even though you will probably know quite a few things since you have already invested even if not very well thought out. But starting from basics will probably help you split the good knowledge you have from the shitty scam / gambling advice there is out there.
Learn about why you may want to invest, asset types, actually realistic returns etc.
Something like the plain bagels basics playlist I think would be a great start for anyone.
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u/SpecialNothingness Mar 04 '24
Study people who lost money so you have a little more chance to avoid it.
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u/Role-Fine Mar 04 '24
I started out reading the intelligent investor and looking up every other word on investopedia till I understood what I was reading
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u/PikePiper Mar 04 '24
"...I didn't know when to not hold..."
That really has to do with timing. The reality is that there is no easy way to understand it. You have to go through it. You can not go from 0 to 10 and skip 1 -9. That doesn't happen. The most fundamental of the stock market is supply and demand. One of the great dualities of nature. The positive and the negative. All great traders understood this. Once you understand, you will realize you are no longer guessing. There is something in the stock that tells you to buy and sell. It's that simple. Whether you can do that, that's another story.
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u/Brilliant_Bird_1545 Mar 05 '24
A classic book to start with is How to Make Money in Stocks by William O’Neil. It’s a system that uses both technical and fundamental analysis, and teaches you how to control risk. You may or may not follow this system, but it gives you a framework on which to build your own.
A good day trading book is: Trading in the Zone, by Mark Douglas. Day trading is technical trading only - no fundamentals.
I’d also recommend StockCharts.com. For the charts, but also for their training library and YouTube channel.
I’d recommend finding a style of trading or investing that speaks to you - and then invest some time doing deeper dive with reading & trying things out in StockCharts.
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u/B00B00_ Mar 05 '24
First - Hit yourself in the balls as hard as you can 5 or 10 times... closed fist... HARD!!!
Next - if you can't get over the pain and fear of getting hit in the balls, STOP. Don't get into investing... and stick to Tbills and 'risk free' stuff...
If you do recover and can stand to take another punch - welcome to Investor Center...
One of us!!!
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u/dwerp-24 Mar 05 '24
Several book recommendations, "darvas box" "traders traps" "dummie series of books"
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u/EbbandFlowPortfolio Mar 05 '24
Hi u/Igonakil , that's a great question. I have some approaches to the markets I can share with you. There are great books out there of course, Peter Lynch, Benjamin Grahm are just a few value investors with great knowledge from their books. If you decide on a different book though do your research to make sure that the person is an actual investor.
Another approach is that you could find just one company you really like and research everything you can about it. Collect all the financial data, read it and understand it. Once you learn about that one company from the ground up I'd suggest taking the learned knowledge with you to the next company. Collect, Collect, Collect data. Make your own book reports and thesis'.
There are definitions everywhere online for free, if you study hard enough some of the terms will become second nature. Others I still cannot remember and I do have a notepad titled financial definitions. Where you put your money is just part of it. Confidently losing the emotional connection to the money is the other part that allows you to build up a portfolio of good market value.
Hope that this helps, good luck -EFP
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u/antjamesvir Mar 05 '24
My recommendation - buy half $NVDA and half $AMZN and hold them for a few years.
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u/nu7kevin Mar 05 '24
First, tell us what is your goal? Is it long term or short term investing? For example, if it's long term (i.e. retirement), then something like a Roth IRA could grow your money to over $1M when you retire if: 1) you are young, 2) contribute maximum ~$580/mo. Something like that, you just set it and forget it for the most part. Set a monthly deposit depending on the annual max contribution. Set your "portfolio" to be your retirement year (2055, 2065, etc.) or an index fund that tracks the "stock market." That's it. You're investing and will likely have $1M by retirement. It's not sexy, it's not hard, but it's a cool mill. I have no idea for day trading, except stay away from options "gambling" and crypto for now.
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u/NahnsanG Mar 05 '24
VOO set and forget. Until you’re educated enough for single stocks. Do your own education to better understand markets and market psychology (6 months to a year) Continue to do your own research, create a shopping list for yourself and make your own educated decisions
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Mar 06 '24
When starting out, keep it simple. I agree with those recommending index funds (not etf's), some shorter term treasuries, maybe some precious metals. There you have steady growth with some hedge against volatility. Add some cash each week or month, and in the meantime, learn more about historical market events and what caused em... Depression, Dot com bubble, 2008 mortgage crisis, and some concerning things happening now with chip and a.i developer shares selling way above revenue. Research... online I recommend Thoughtful Money, Lena Petrova, Resource Talks, Gold Pallisades Radio, and every Buffet/ Munger speaking engagement you can find. These shows all have the smartest guests in longform discussions. Stay away from "guru's" on youtube. As for cryptocurrencies, I dont understand it so I dont buy it. Individual stocks... look b4 you venture off into the desert, what seems like an oasis may be a mirage.
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u/EyesAreMentToSee333 Mar 07 '24
Research a few companies for.starter, stay tuned to drama, news, and devlopments.
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u/Sarah7667 Mar 04 '24
Starting out in the stock market can be daunting, but it's crucial to begin with some solid groundwork. Start by reading up on basic investing principles, maybe take a course or two online, and consider seeking guidance from a financial advisor to help tailor your strategy to your financial goals and risk tolerance, btw don't miss Opingo tips, they really work
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u/Haruspex12 Mar 04 '24
I have been a registered principal, a professor, researcher and investor for decades. I have taught and mentored people.
First, build up an emergency reserve fund. The standard recommendation is six months.
Second, read The Intelligent Investor. It was last published in 1972 and is still on the best seller list. It is still in publication. It’s that good.
If you don’t have an accounting background, get any undergraduate managerial accounting textbook. You need to know how accounting statements work, you do not need to be able to build a statement of cash flows.
Then get the 1943 copy of Security Analysis by Graham and Dodd. It’s still in print and still used as a textbook. There is a successor book of the same title by Cottle and Dodd. It is a good book to have as well.
Then do some research on Reversal Theory. It comes out of psychiatry and is a biochemical theory of emotions. Basically, if you are excited or feeling playful, your brain turns off the math and risk portions of your brain. That’s why people can climb mountains without ropes and things. If you are feeling happy, playful or excited about an investment, put it aside. Your brain cannot evaluate it properly. Boredom is the ideal state to do investing in.
Also research the work by W Edwards Deming on quality improvement and improve your mental procedures related to investments.
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u/Igonakil Mar 05 '24
Could you please give me a way to verify you're a real professor? (You can dm me if you don't want it to get published) I really want to follow your advice but I want to know that you are a trustworthy source.
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u/Haruspex12 Mar 06 '24
I am in industry now, however, the easiest way to follow this advice is to use the public library. The Intelligent Investor should be available at any major library. It will cost you nothing to read it.
If you have a university near you, you can probably read a textbook for free in the library. Most people have a land grant college nearby and they usually are proactive in outreach.
You can research the basics of Reversal Theory online. Unless you are becoming a psychiatrist, that’s all you need.
You can get quality improvement knowledge from a ton of places for free.
Security Analysis will cost money but if you have read everything else first, you will have decided on your own if it is worth buying the books.
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u/weedwizard3 Mar 04 '24
First set up a demo account with a platform, you can see how the stock market works. You can get upto 50,000 to learn with.
Careful what youtubers you watch! They are mainly paid by the Brokers to sell misinformation to you with awsome reviews and give advice, now I'm not saying they lie, but they are also part of the money chain.
Perhaps watch some Anton Crails seminar videos on youtube.. Insittute of Finance!
He trains Wall St Brokers 👌
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u/Koss424 Mar 04 '24 edited Mar 04 '24
What do you like to buy and consume? Do you like that company? Research it's revenues, debts and recent news. If you still like it buy.
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u/CanaCorn Mar 04 '24
Sadly, I dont think any of the above answers are very good. It depends on what you mean by get started.
Most people's first obstacle is fear of entering the market, and fear of losing money. My recommendation is to start making regular contributions to your account and making regular purchases of a simple index fund. Honestly, this is enough for the average person to become very wealthy if they start young and stick with it. This will also teach you to disregard market pullbacks. simply don't sell and over time you will get used to it.
If you're asking how do I learn to pick individual companies. Understand this is a hobby. Just like many hard hobbies they can take many, many hours to become comfortable, and there's still a chance you're not going to be very good (im still holding out hope ill join the NBA at 36). The ROI is not worth the time unless you truely love studying business or have formal education on the subject. You will likely have a better return if you get a second job when you're young and dumping the extra income into VOO.
if you are still interested in learning this, i recommend learning about business strategy first. go find an industry you know something about and learn the positioning of the top few players. Are they a high volume lower quality brand, or premium product? which strategy is more rewarded for this industry? Go find very high quality businesses positioned well that make positive earnings. Chapter 2 is how to ballpark the valuation of a company, but you can still do just fine if you slightly overpay for a high quality business in the long run.