Total amature

[Hakkaa]

Hello guys,
Am wondering if you guys have any recommendation for books or website for me to understand the stock market better.
I would like to understand more about stock trading, the short forms you guys are using in some of the threads, and also stuffs i should be looking out for when putting my money on a certain stock.

I am an engineering student, and have 0 knowledge about such stuffs.

As i am currently on my last year of my diploma study, i am trying to plan ahead, probably for the next 5 years.
Which i would probably be going overseas to take my degree, or get into a private Uni in Singapore. Both of which, would cost a bomb, and i hope to lessen my parent's burden.

I thought about going into stock trading, but i am unwilling to jump into something which i have 0 knowledge about. So i hope you guys would be able to recommend me some good books or websites, so i could understand more about the stock market, the strategies people used, and some other deeper terms which i probably would not have heard of.

I do understand that, there is no sure-earn in the stock market, and i should set a limit for myself so i would not go deeper down.

And one last thing, may i know how much capital i should have before i even think about going into the stock market?

Thanks,
Hakkaa

 

[Epps_Sg]

Get a good part time job and lower your living cost, for sure can get more money to lessen your parents load when you study. Part-time job may or may not be easy, but you earn and pick up some useful skills - stock trading is more difficult and no guarantee to earn.

Get yourself a good degree and job in future first, then think about stocks. Higher risk stock trading is to be done only with "money you can afford to lose" - start small first, to see if you have aptitude to pick up trading skills. Stock trading is not easy and not for beginners.
IMO better to learn how to invest with lower risk and lower returns passive strategy first, like long term investment and dollar cost averaging. If you can maker money this way, then consider higher risk trading activities - always start small first.

 

[Dividends Warrior]

Hello guys,
Am wondering if you guys have any recommendation for books or website for me to understand the stock market better.
I would like to understand more about stock trading, the short forms you guys are using in some of the threads, and also stuffs i should be looking out for when putting my money on a certain stock.

I am an engineering student, and have 0 knowledge about such stuffs.

As i am currently on my last year of my diploma study, i am trying to plan ahead, probably for the next 5 years.
Which i would probably be going overseas to take my degree, or get into a private Uni in Singapore. Both of which, would cost a bomb, and i hope to lessen my parent's burden.

I thought about going into stock trading, but i am unwilling to jump into something which i have 0 knowledge about. So i hope you guys would be able to recommend me some good books or websites, so i could understand more about the stock market, the strategies people used, and some other deeper terms which i probably would not have heard of.

I do understand that, there is no sure-earn in the stock market, and i should set a limit for myself so i would not go deeper down.

And one last thing, may i know how much capital i should have before i even think about going into the stock market?

Thanks,
Hakkaa

As you mentioned, your objective is to earn some money for further education, so your parents will be less burdened. If that is your sole purpose, my advice will be similar to Epps_Sg. Get a part-time job and save up as much as you can. Focus on your studies.

You are right. There is no sure-win strategy. I know some friends who got burnt by stock trading and their parents had to bail them out of trouble.

Imagine this, you try to do stock-trading, hoping to lessen your parents' burden. But what if you suffer losses, your parents will have to help you out. Isn't this potential burden? Your studies may be affected too. Think about the irony if this scenario happens.

 

[Hakkaa]

Thanks guys for the tip. I guess you both are right.
If i were to jump into something i have no experience in, instead of lessening my parents' burden, i'll be making it worse instead.
I'll heed the advice and concentrate on my studies first, and at the same time to get a part time job.

At the mean time, do you guys have any good books on trading to
introduce for a beginner like me to read on?
My friends intro-ed me investopedia, is it a good stock simulation web?

 

[peterchan75]

Thanks guys for the tip. I guess you both are right.
If i were to jump into something i have no experience in, instead of lessening my parents' burden, i'll be making it worse instead.
I'll heed the advice and concentrate on my studies first, and at the same time to get a part time job.

At the mean time, do you guys have any good books on trading to
introduce for a beginner like me to read on?
My friends intro-ed me investopedia, is it a good stock simulation web?

Written by Wall Street legends long long time ago. All these are free.
https://archive.org/details/abcofstockspecul00nelsiala
https://archive.org/details/studiesintaperea00wyckrich
https://archive.org/details/cu31924031269552
https://archive.org/details/stockspeculation00hami
https://archive.org/details/stockmarketbarom00hami
https://archive.org/details/scientificstocks00dowc
Caution: To a newbie, some of these of books maybe sound garbage. Only experience traders will appreciate. Amazon is still selling. Why pay if you can get it for free.

 

[Hakkaa]

Written by Wall Street legends long long time ago. All these are free.
https://archive.org/details/abcofstockspecul00nelsiala
https://archive.org/details/studiesintaperea00wyckrich
https://archive.org/details/cu31924031269552
https://archive.org/details/stockspeculation00hami
https://archive.org/details/stockmarketbarom00hami
https://archive.org/details/scientificstocks00dowc
Caution: To a newbie, some of these of books maybe sound garbage. Only experience traders will appreciate. Amazon is still selling. Why pay if you can get it for free.

thanks for the intro!

 

[pandasr]

I agree with Epps_Sg too. There is a reason why most people don't make it in trading. Have a backup before you start. How you go about learning and trading, I would say it depends on circumstances.

For books and recommendations, dig around this forum or other trading related forums and you'll get lots of results.

If you read interviews and stories about traders/investors, you'll realise that there is a huge diversity in how they go about trading/investing and all of them successful. The key is that they found a way that is suited to who they are. Their niches.

So while you are learning, my advice is to learn about as many different ways to invest/trade as possible while you learn who you are.

This is precisely the first step to take on the performance path. Before
committing to a market or style of trading, you need to experience what it is
like to trade frequently and how that differs—cognitively and emotionally—
from holding positions. You need to immerse yourself in different markets
and feel the difference between trading such instruments as large-cap stock
indices, microcap stocks, energy futures, Treasury notes, euro currency,
and equity options. Such experience teaches you much about yourself—and
about markets. -- Brent Steenbarger

Nowadays, popular investing/trading involves Price action, value investing and various forms of technical analysis combinations. They are not the only ways to profit. I'm writing this cause if you don't explore widely, these are probably what you will hear and read about and think that it is all there is about trading/investing, which is not so.

Dividend warrior here specialises in profiting in dividends for example. Other non conventional ways of profiting from stocks includes taking advantages of spin-offs, mergers, risk arbitrage, restructurings, rights offerings, bankruptcies, liquidations, and asset sales (joel greenblatt's book will give you a primer on these)

Other ways off my head are events/news trading, stops/option barrier hunting, global macro investing. scalping and tape reading.

So good luck learning.

PS: to answer your question, the best book to learn about the stock market and its participants is probably Trading & Exchanges by Larry Harris. A very very dry book........

 

[Nasdin94]

thanks for the intro!

May want to add Trading in the Zone by Mark douglas.
A must read for all enthusiasts

But as the guy before me, Price action is good.
There's some nice price action lessons on babypips.com school of pipsology
Particularly on chart patterns, trendlines, candlesticks, and a very very(must really stress this) elementary explanation of eliott waves.

If you wish to dive into price action a bit further, take a look at James16 thread on forexfactory.