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POSTED BY ON September 25, 2010 9:44 pm COMMENTS (4)
When someone takes first step into the stock market, people tell him to study and lean about stock market first and then start Investing.
I want to know what exactly do we need to study to create a good foundation about stock market?
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Learning is a process which can be started but there is no end to it. Start watching business TV channels like CNBC TV 18, CNBC Awaaz, NDTV profit etc. Reading newspapers like Economic Times, Imint. You can read them / watch channels online also.
Next, go through some money related websites on regular basis:
MoneyControl.com
InvestmentKit.com
MoneySavingsHelp.com
DodaCharts.com
Check out the discussions /articles on these websites. When in doubt, ask – don’t hesitate. Slowly & slowly, you’ll learn. It’s not difficult.
Hope it will help you.
MoneySavingsHelp
Hi sunny,
Investing in stocks is not rocket science and can be self-taught by reading good books. Books on Warren Buffett are a must read. Some other great investors whose books you can read are Benjamin Graham, Philip Fisher and Peter Lynch.
1. Learn to Earn: A Beginner’s Guide to the Basics of Investing and Business. Authors: John Rothchild – Peter Lynch. This is the very basic and useful book to learn about business and investing.
2. The New Buffettology: The Proven Techniques for Investing Successfully in Changing Markets That Have Made Warren Buffett the World’s Most Famous Investor. Authors: David Clark – Mary Buffett
Besides books there are numerous blogs which will help you to learn about stock market investing. But the problem is there are numerous blogs and sometimes it may be confusing for the beginners.
I would suggest following blog for the beginners to learn about stock investing.
http://www.shyamscolumn.com/ – This blog is the collection of back articles written by the author in the column ‘FISCALLY FIT’ in The Hindu- Sunday Magazine. There will be only one or two update monthly but it will be of high quality.
Happy investing 🙂
One needs to have few basics.
First is basic understanding of accounts especially income statement, balance sheet and cash flow statements. For a person with non-commerce back ground like me, there are plenty of books available which explains basics of company accounts. Based on this, a person would be able to understand basic financials of company as well as various return ratios.
Second is how market interpretes and accord value to a company’s financials. There are few excellent books which are proven classics like “Intelligent investor” by Benjamin Graham and “one up on wall street” by Peter Lynch etc to understand how various type of businesses are valued in market and what investor needs to look for.
Third important thing is behaviour finance. This explains crowd behaviour, herd mentality, strong emotions like fear and greed which drives markets sometime in euphoria and sometime in dispair. There are quite a few books written on this subject. In India, Parag Parikh has published one good book on the subject.
I would also highly recommend to read as much as you can on Warren Buffett to understand the thinking and logic of world’ most successful investor ever.
There are plenty of on-line resources as well. I would highly recommend website called http://www.theequitydesk.com as well as sites like investopedia, articles especially interviews of well-known experts published in media etc.
Intially, all this would seem very confusing. However, I suggest you keep going. Things would start slowly getting sorted out.
I also must say that no one in this world knows everything or understands everything. Investment is process of continuous learning and enjoying this journey through out life, with aim of getting good profits in the process.
So, here I am, wishing you all the best and happy investing!!
Hi Sunny,
Stock market is of both science and art.Two ways to enter equities are
1) mutual funds( indirect)
2) Stock market (Direct)
New comer always have to go via mutual funds and then learn how market is performing and also you can get any basic books.However i feel no book can teach you mantra to reap money from stock market.We have to know basic concepts of stock market science and then you have to be associted with good people who really works in the market for many years. Ideally he can give his experience which is an art to tacle stock market.
So please be safe in equities as they are volatile during short term.
Regards,
Shree