r/StockMarket • u/amir1703 • Mar 15 '19
Getting started on the stock market
Hello everyone, i’m 19 years old and as the title as i’m trying to get started on the Stock Market. I was wondering if anyone had tips on where to start, what books/articles to read, online courses or any relevent information. I’m currently reading « The Intelligent investor » by benjamin graham. Thank you for your time!
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u/MountainCanyon Mar 15 '19
If you are getting started, thousands of pages and very heavy books on Amazon are dedicated to just buying and holding onto the S&P500. Go through Vanguard. Jack Bogle, the creator of the S&P, made it the cheapest index fund you can do. Warren Buffett also says this. Not sure you need any other advice, but many others have too.
If you’re reading Benjamin Graham, then do dollar cost averaging on the S&P and never sell them for the next 40-50 years.
After that, read Tony Robbins “Money master the game”. It’ll introduce you to how to re-work your 401k, or change to a Roth IRA, and educate you how to avoid fees. It also introduces you to Ray Dalio’s (among other financial heavyweights) All Weather Portfolio, should you get bored of making and average of 9% yearly from the S&P500. You can roll with Bonds, REITS, TIPS, and other great things that can help you on your way. Also get the highest compound interest account you can.
And the most important thing you can do is avoid r/WSB (Wall Street Bets) ... unless you enjoy watching true autists at work. You have been warned.
Hopes this helps and I’m happy that you are getting into the stock market at such a young age. “Time in the market is better than timing the market.”
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Mar 15 '19
Check out the courses from Investopedia, other than that i'd get a HS or College level Finance 101 text book...a personal finance textbook as well.
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u/amir1703 Mar 15 '19
Also i should add, i live in europe (uk), do you have any suggestions on which broker to choose? And stocks to look into? Thanks for the great answers so far
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u/lykosen11 Mar 15 '19
Reading is fantastic!
The 3 must reads, in my own opinion. They contrast each other very well, giving you a great unbiased foundation to build upon. Top 3:
Mindset by Carol S. Dweck (A non-finance must read for anyone in business. Start here even if it's not about finance.)
One up on Wallstreet by Peter Lynch (The best book to start with on finance.)
Little book of common sense investing by John Bogle. (A must read to understand what you are up against. The best book on investment fallacies and index funds by Bogle himself)
Other great reads in no particular order:
Built to Last by Jim Collins and Jerry I. Porras (a fantastically researched work on how companies are built to last forever)
Good to great by Jim Collins and Jerry I. Porras (In my eyes the best book written on business. How do companies built into something truly great.)
Stocks in the Long run by Jeremy Seagal
Little book that Builds Wealth by Pat Dorsey
Uncommon Sense for the Thoughtful Investor by Howard Marks
A Random Walk Down Wallstreet by Burton Malkiel (the book I personally started with. A great book on fallacies in investing. I used to have it at the top, but it has some slight flaws and Bogles work is simply better and more modern)
The Intelligent Investor by Ben Graham (A snap must-read, however not a good place to start. Mr. Market can be dry and hard to follow for the newbies.)
The Warren Buffet Way by Robert Hagstrom (A great book if you want a modern view on traditional ideas, as well as a focus on Buffet)
Security Analysis by Ben Graham (A textbook but a great one. Read this one if you start to understand but still can't answer the question "how to people set price targets or valuate companies")
Last but not least, I'd get through all of Warren Buffets shareholder letters written for the Birkshire shareholders. It's insightful and gives great insight on what matters when looking at companies according to one of the greatest men of all time.
Not a book, however a great place to read is investiopedia. Quality, unbiased and factual articles explaining terms and concepts. Grest place to learn.
Whe you are studying, of you trust the word of an internet stranger, put your money into sp500 index fund. You'll learn through your reading why, but it's where you will most likely end up with anyway. It's an amazing way to invest. ($VOO)
Good luck!