Beginner Recommendation...

MDB · Newbie Joined: 04 Oct 2006 Posts: 2 Location: Minnesota.

I am looking for a decent book to give a newb the basics on the stock market and related investment "stuff."

Any information appreciated...
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Thank You.

HenryTo · Posted: Fri Oct 06, 2006 10:57 pm Post subject:

Hello MDB,

You can start with our book section on this site:

http://www.marketthoughts.com/stock_book.html

I would start with Reminiscences of a Stock Operator - which is a fictional biography of Jesse Livermore. It is a very easy read, but it has a lot of stock market and trading wisdom in there. Being a beginner, you won't get much of it the first time around, and so I would recommend coming back to it after you have gained more experience.

I would then read Warren Buffett: The Making of an American Capitalist, and then the Peter Lynch books.

An online publication that I like to read when it comes to individual stocks is the The Motley Fool, as well as Bill's website, of course: http://www.billakanodoodahs.com/

Best,

Henry

texfly101 · Senior Poster Joined: 22 Oct 2007 Posts: 108

I appreciate the reccomendations. Having read a couple of the suggestions, I now see that this is a truly needed thing for a new person to do. Just the jargon alone can be an impediment to understanding what is said and why. Reading books like The Way of the Turtle and Reminiscences of a Stock Operator helps fill in the blanks on the usage of the jargon. Both the recommendations of this site and Bill R's (billakanodooddahs) has proven to be very informative and I would say that following their suggestions is a wise course for anyone new to this. Anyway, reading the Dow Theory books now, lots of questions to come for sure.
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dj

texfly101 · Senior Poster Joined: 22 Oct 2007 Posts: 108

Finished the Dow Theory by Rhea. Really good for explaining both the basic aspects of the Dow Theory and giving a historical context. Its reassuring to see that it is as valid in a 13000 market as it was in a 130 market. Its a book that helps introduce both the interelated nature of the market and the potential paths of good and bad moves to possibly make. While it doesn't give any sort of market buying or selling systems, it does give the theoretical reasons that such systems are built around. Knowing the basis for the algorithms helps in understanding why systems have the biases that they depend on. For me, this book's basis, having the proof of time, provides a solid start and direction where to go next in an education on the stock market. It a great book for the novice, easy enough to understand but not simplistic in its explanations. It has a utility that was appreciated as I was reading it, using today's market charts to build my understanding of what it was teaching me. A good recommendation that shouldn't be missed, imo.
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dj

The Chartist · Veteran Poster Joined: 29 Jan 2007 Posts: 168

I would recommend the Discipline Trader by M, Douglas.

Over the years, I have read lots of technical analysis books, and applied most of what I have learned in the market with real money, and some of them work and some don’t.

That led me to create…

www.chart-dow-stocks.com.

Just to educate and give those that buy Dow Jones stocks examples about where most technical stock investors buy and sell.

rffrydr · Posted: Sun Nov 18, 2007 9:19 am Post subject:

"Philosophy of Money" --Georg Simmel
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Today is the Tomorrow you worried about Yesterday!

augustabound · Newbie Joined: 16 Oct 2007 Posts: 4

texfly101 · Senior Poster Joined: 22 Oct 2007 Posts: 108

Henry,
Currently reading Schaefer's "How I Helped More Than 10,000 Investors To Profit In Stocks". In the forward, it is said that some of the original Dow Theory philosophy has changed to reflect current times...and that was back in the 1950's...so what would you say has changed, if any, from then to now? Are there any similarities with Schaefer having had a business that offered basically an investor's information service based on the Dow Theory? I do notice that Schaefer's investor's letter service was on a weekly basis and in today's cybercentric world, 20 minute quote information is considered old news. I would think that the information age has had to have changed some of the concepts but at the same time, the first chapter is titled "Key to Stock Market Gains is Research". So some things never change. Anyway, just musing, and as I go thru the book, I will be thinking in this vein...dj
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dj