Stock Investing For Beginners
Investing is a touchy subject for a lot of Americans. Most of us know that we should be active in the market, but we're intimidated by what we don't know. The brokerage industry likes it this way.
So long as we think that we're not smart enough to engage in stock investing on our own, the few of us who do decide to give it a try will come stumbling into an Edward Jones or Raymond James office and pay commissions through the nose to a broker who may or may not have our best interests in mind.
But investing is not nearly as complex as some financial advisors would have us believe. It is something that almost anyone can do. With that in mind, here are some tips for getting started in stock investing.
Stock Investing 101 - You're Not An "Idiot" or a "Dummy"
People have become millionaires writing books that tell us that we're "idiots" or "dummies" - that we're too feeble-minded to understand the simplest of subjects, let alone something as complex as investing.
Even the books that aren't for "complete idiots" or "dummies" about stock investing typically feature one of two fatal flaws: They either assume that the readers know too much, or they assume that they are too stupid to understand the real ins and outs of investing.
The latter are even worse than the former, as they tend to cover only what their authors consider most important, and the authors are usually wrong.
The bad news is that in order to truly understand stock investing, you need to understand these basics that most writers think you're too dimwitted to comprehend.
The good news is that the financial writers are the real dimwits. The basics really are basic and you can understand them if you have a good teacher or a really good book.
You Can Be A Stock Investing Genius
In 1997 a Wall Street pro named Joel Greenblatt wrote a great book called You Can Be A Stock Market Genius. The subtitle, Even If You're Not That Smart, was a potshot at those insulting books for Dummies and Complete Idiots.
The book was intended to be for beginners, but Mr. Greenblatt inadvertently made it a little too complex for the average newcomer to investing. Ironically, the book became an instant classic among hedge fund managers - supposedly the smartest guys on Wall Street, who privately manage the play money of billionaires.
But teaching his hedge fund peers was not Joel Greenblatt's goal, so in 2005, he wrote a new book entitled The Little Book That Beats The Market.
The second half of The Little Book is devoted to a particular stock investing strategy that Greenblatt devised. Greenblatt's "magic formula" may or may not be right for you, but the first half of the book is what's really important.
It features what is probably the best explanation of investing for beginners to ever be published. The Little Book That Beats The Market is highly recommended to stock investing newcomers, and after reading it, you will be able to understand Greenblatt's first book and many other great books on investing.
Knowledge Is King - And Reading Is Fundamental
You can never hope to master stock investing in a matter of hours, days, months, or even a few years. To achieve only the basic level of knowledge necessary to begin investing will require you to read at least a few books.
After reading each of Greenblatt's books, consider reading Jim Cramer's Real Money and William O'Neil's How To Make Money In Stocks. They're both a little more advanced, but once you can comprehend them, you'll truly be on your way to becoming a stock investing pro.
Also, consider subscribing to at least one publication that focuses on investing. The best are the newspapers Investor's Business Daily and The Wall Street Journal, but if you don't have time to read the paper every day, consider the biweekly Forbes or Fortune.
Barons is a weekly newspaper that is great for finding stock investing ideas, and SmartMoney is a great monthly magazine, especially for newer investors.
- Related Videos
- Related Articles
- Ask / Related Q&A
- Stock Market Investment Software: A Helpful Trading Tool
- Getting the Best Stock Market Investing Guide
- The Nice To Know Things About Online Stock Market Investing
- The Use Different Stock Market Investment Tools in Making Investment Decisions
- What You May Not Know About Stock Market Investing
- More Stock Market Investment Tools: The Investment Newsletter
- Boosting Your ROI In Stock Market Investing
- What Are The Things To Know About Day Trading, Training, And Stock Market Investing




In Bible versus Quran: When God sends a curse upon the priests
By: Prof.dr. Ibrahim Khalil | 03/12/2009In the Bible, The Lord God says unto the priests: I will send a curse upon you, and I will curse your blessings; Yes, I have already cursed them, because you have not set your heart to honor me. In the Quran, Monasticism is man invented; it is not prescribed by Allah.
How To Write Memoirs - The Basic Principles
By: Trevor Johnson | 27/11/2009Many of us have at some stage of our lives thought about writing down our life experiences. But the idea often passes as quickly as it arrives. Most of us plainly don't know the basis principles of how to write memoirs.
THE VIBRANT SHADES OF VERMILLION
By: mamta | 27/11/2009The changes I underwent in life led me from a hatefulness to a strange fondness for the color red.. We always tend to relate colors with different moods and stages of our life..vibrant shades of vermillion brings about a few experiences that my heart encountered!
Random Things that Wake Me Up at Night
By: Kasan Groupe | 24/11/2009Title really says it all.
In Bible versus Quran: the Ostrich Forgets that a Foot may crush her Eggs
By: Prof.dr. Ibrahim Khalil | 23/11/2009The Bible says that the ostrich forgets that a foot may crush her eggs or that the wild beast may break and trample them. The ostrich is not mentioned therein in the Quran. On the other hand, the Quran says that the birds in general live in societies like human beings.
Why Should You Write Your Own Life Story?
By: Patrika Vaughn | 19/11/2009Writing your life story is embarking on a journey through the past. It’s a unique journey, one no one else has ever taken.
In the Quran: Why did Allah Say unto Moses, behold the mountain?
By: Prof.dr. Ibrahim Khalil | 18/11/2009The Noble Quran says that When Moses asked to see Allah, Allah Said, behold the mountain, which is stronger than you are, and if it remains, stays fixed, in its place, then you shall see Me’.
Bukit Merah
By: Jing | 17/11/2009A description of the town I live in. And humanity through my eyes.
Role of Online Brokers
By: William Smith | 08/12/2006 | FinanceOnline Brokers are people or companies who buys and sells stocks on behalf of another person or a company
Welcome to Online Stock Trading!
By: William Smith | 08/12/2006 | FinanceMany independent investors that no longer seek the help or advice of the most common stock brokers make the choice to Online Stock Trading.
Explaining Penny Stocks
By: William Smith | 08/12/2006 | Non-FictionPenny Stocks are amongst the most uncertain and unpredictable investments you can easily make in today's financial markets.
Explaining the Money Market
By: William Smith | 08/12/2006 | Non-FictionThe Money Market is the financial market for short-term borrowing and lending, usually up to a time span of thirteen months.
Financial Planning - The Key to Your Lifelong Success
By: William Smith | 08/12/2006 | FinanceFinancial planning is not limited to asset allocation, mutual funds, and fixed-income investments - financial planning should include every aspect of your life.
Explaining Online Broker
By: William Smith | 08/12/2006 | FinanceThe Online Broker removes the confusion and makes the process of obtaining a loan simple, clear and economical.
What is Online Forex Trading?
By: William Smith | 08/12/2006 | FinanceOnline Forex Trading is the arena where a nation's currency is exchanged for that of another currency of another nation.