Intro to Stocks for Investments and Trading | Buying Options, Recommended Books and more | Blifaloo.com

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Stock Market Information

Stocks for Beginners, Virtual Stock Markets, Links, Books and Resources

After publishing “Intro to Gold Investing“, and “Dinars as an Investment” I received a few requests from visitors to expand the information into other forms of investing.

A big chunk of this article will relate to warnings for beginners…things to avoid. Before jumping into the stock market, forex, or other investment please read the following tips and advice.

Please feel free to comment at the bottom of this page with your questions or tips (reading recommendations are especially welcome). Thanks!

Image by Katrina.Tuliao

1. Beware of the Financial Expert

I am no expert on the Stock Market – if I was, I wouldn’t be writing this — I would be living on my own personal island. Same goes with every other “expert” when it comes to financial matters…don’t blindly follow tips or get sucked into buying expert advice through ebooks or other sources.

If they really were experts…they wouldn’t need to write for money. An expert who found a specific “get rich” method, would keep that method to themselves, as teaching others to do the same would water-down their source.

Be logical, and think for yourself — which leads to the next point:

2. Learn Everything You Can

Before you start learning about stocks, here are some topics you should have a basic understanding of: accounting, economics, personal & corporate finance and taxation.

Wikipedia is a good start… the local library is your next stop, and also check out my book recommendations below.

3. Practice First

Before you start with real money, you can learn the ropes and gain experience by virtual trading.

This can be accomplished simply by writing down a few stocks you would like to invest in, and keeping track of how they do over time. No software or money required. Just make a journal of the stock, date, and thoughts about why you would invest in the stock.

Check the prices over time and keep track in your journal. Alternatively, you could try one of the many online virtual stock market websites. I’m sure there is plenty of free and paid software that would accomplish the same thing digitally, as well.

There are tons of Fantasy Stock Market/Stock Simulation websites out there. Here are a few worth checking out:

WallStreetSurvivor – Free virtual stock market online game. Helps you learn as you play with $100,000 in virtual cash. They also have a good beginners library about the stock market, and investing in general.

Investopedia – Similar to WallStreetSurvior: this stock simulator website offers $100,000 of virtual money to invest. Learn by Doing. Also offers tons of free resources including CFA exam prep.

4. Re-Read #2 Learn Everything You Can

Information is your new best friend, if you want to grow to be a saavy investor. Also learn about Warren Buffett, his ideas, and portfolio. Have a look through our recommended investment links and books below:

Stock Investing Links and Related Websites

Stocks and Stockbrokers – An essay about the myths and pitfalls surrounding stock trading.

The Motley Fool – Founded in 1994, this is one of the oldest and biggest investing sites around. Plenty of information and discussions to fill your head.

Investopedia – Also offers tons of free resources from beginner to advanced finance-related tutorials including CFA exam prep, besides the fantasy stock market game.

Investing for Dummies – From the creators of the book featuring the same name.

Stock Market Basics – Great list to read that is easy to digest.

Recommended Stock Market Books:

Books on stocks and bonds for investment. Links go to Amazon.com where you can read more details about each book.

The Essays of Warren Buffett: Lessons for Corporate America, Second Edition

The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel

Stock Investing For Dummies – Understand stock value, assess your finances, set your investing goals, and know your investing style.

Check back for more recommendations as I find them. Also feel free to leave a book recommendation in the comments form below.

Smart Quotes about Stocks to Ponder:

“Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.” — Warren Buffett

“I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.” — Warren Buffett

“Stock market bubbles don’t grow out of thin air. They have a solid basis in reality, but reality as distorted by a misconception.” — George Soros

“Do not buy the hype from Wall St. and the press that stocks always go up. There are long periods when stocks do nothing and other investments are better.” — Jim Rogers

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