If you want to start investing, you need to do some research before it all starts. Investing is no joke; you’re putting large sums of money into the hands of others. So where do you start? What’s the best way to handle your money?
It’s good to do a significant amount of research ahead of time. Not only do you need to research the market, but you should research books on the art of investing as well. It’s the best way, along with consulting a professional, to make sure that you won’t make poor decisions in your venture. Here’s a few places to start.
The Intelligent Investor
Often considered to be one of the best books ever written on investment for the do-it-yourself investor, the book differentiates between the “defensive investor” and the “enterprising investor.” According to the book, a defensive investor means something closer to the average investor who wants to use a safer method to grow their money and receive a decent return.
An enterprising investor, on the other hand, is an investor trying to earn far more than the average return. Luckily, regardless of which applies to you, the book does a good job to prepare you for either path and makes sure (if you read it thoroughly) that you have fundamental knowledge in the main goal of all kinds of investing: buy low, sell high.
This excellent investment book often gets considered one of the greatest (if not the absolute most successful) investing books ever published. Super Stocks shows investors ways to use innovative techniques and apply fundamental analysis so they can value stocks and try to predict profit margins for the future. You may have seen or heard of the author, Fisher Investments CEO Ken Fisher, in Forbes articles.
Fisher’s original thinking gives the reader valuable insight. Ken Fisher was a pioneer in the use of the Price Sales Ratio. Price Sales ratio offers itself as a powerful analytical tool that really helps businesses profit from investments. The book also gives a great, historical perspective on Ken Fisher’s successful research and application of companies and stocks. It shows what he saw, who he talked to, and how he investigated to better understand what would be the most profitable returns.
Technical Analysis: Using Multiple Timeframes
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As the third book on our list “Technical Analysis: Using Multiple Timeframes” offers a read on the more technical side of money and investing. Author Brian Shannon made this book as a complete guide for people to understand the structure of the market and, believe it or not, even the psychology behind price movements.
The book is authored by Brian Shannon, who according to the books website is “an experienced and successful trader, speaker, and educator.” He’s been involved full-time in the markets since 1991, working as a broker and owning a day trading firm. He has taught thousands of traders worldwide over the years.
According to one review, “I finally got the book and thought it was great. While other books only offer the nuts and bolts details of technical analysis, Shannon goes into the psychology of why the tape reads the way it does. He breaks down the price movement into stages. Now, when I look at a stock graph, I have a better idea of the ‘story’ being told about the stock.”
Rule Number 1 Investing
It’s nice to find a relatively new book on the scene in comparison to the earlier books mentioned in this article. People have said that Phil Town does a great job of putting a lot of fundamental knowledge from investors like Warren Buffet, Peter Lynch, and Benjamin Graham into one book in a way that’s both easy to read and understand.
The book walks you through different parts of investing, such as the best way to choose a great company, how to understand technical charts, how to value its stock, and just general advice to begin investing for those who’ve never done it before. Thanks to its everyday examples of money and investing, it has its reputation for its easy read, great for beginners.
So, now you’ve got some reading material to begin your journey into investing. Make sure you have a grip on the subject before you hand your money away.