how to get started

Can anyone recommend a good book/books on investing and trading in the share market?
There is such a large choice out there, that its hard for a novice to sort out the good ones from the bad.
I have units in the Navra fund but would like to further educate myself on the subject and maybe try some of my own gambling...

Thanks in advance..
Tal

 

Lesson 1 - don't gamble

I think you could do a lot worse than subscribe to the Intelligent Investor newsletter. They have a 3-issue free offer so you can try before you buy.

Great stuff and covering a universe of small and mid-caps which you don't get exposure to through NavraInvest.

They take a Buffett style value approach. In fact they have some satellite sites www.new2shares.com.au , www.warrenbuffett.com.au , www.incomeinvestor.com.au , www.agmcalendar.com.au etc

Check it out.

Books - I think the Masters of the Market (there's a new version out recently) is a good introduction to what's worked for some prominent Australian investors.

N.

 

Try DCT (In the InvestEd Paedia)

 

Hey, Steve,

Better still....try under 'Education'

And, Tal, it IS a good read, and fully deserves to be filed under 'Education'.

A MUST !!!

Jayar

 

Lesson 2 - Sell all Navra shares and place money on favourite in the caulfield cup. Pump money back in at post distribution price...

The favourite has won the last 4 Caulfield Cups

2001 - Ethereal
2002 - Northerly
2003 - Mummify
2004 - Elvstroem

Bob

 

hey steve..
read it... very good shpeal but i'm not sure how to apply it practicaly. i see no use in trading the shares that the Navra fund trades (might as well let you guys do it) but would like to try more volatile shares that don't answer your selection criteria (with smaller amounts of money of course)... there has to be some way of hedging in order to minimise losses..

 

thanks Nigel, i'll have a look at those.
tal

 

Hi Tal,

During 2000/1 I gave out a beta version of a trading system to my clients called MTS. (Margin Trading System)
In principle, it employs the same trading philosophy as NavTraDE . . . without the sophistication of the algorithm, of course (Perhaps some of the other members who used MTS might share their experiences in reply to this post.)

I will happily supply you with a version of MTS if you want to do some trading for yourself . . . HOWEVER a word of WARNING:

The essence of trading on a countercyclical basis (Buying as the price decreases and selling on the increases) is vitally dependent on the soundness of the stock selection. The fundamental accounting analysis of the shares is of critical importance . . . for to lose a stock (The share folds) would result in a debilitating loss.

Small caps etc . . . constitute an unnecessary and unacceptable risk with this trading methodology.

Regards,
Steve

 

Ahem . . . yes

 

thanks Steve,
I guess its like many other interests.. a begginer just doesn't know where to start. You yourself say that so much of the information out there is flawed and subjective, so where do you start? who do you believe?
Maybe i'll pick up the guitar again..
talk soon
tal

 

talbashan,
Books :

Christoper Tate - The Art Of Trading +Taming The Bear + ( options, futures )
Daryl Guppy - Share Trading + (and other of his books )
Dr. Aleksander Elder - Trading For A Living
Stan Weinstein - Secrets For Profiting In Bull And Bear Markets
Tony Oz - The Stock Trader
Howard Abell - The Day Trader's Advantage
Nicolas Darvas - How I made $ 2 000 000 in the Stock Market
Steven B. Achelis - Technical Analysis From A to Z
THE MUST = Edwin Lefevre - Reminiscences Of a Stock Operator
I guess that's enough to start with.

If you are serious about trading I might be able to post a few trading rules.

 

But surely if it's only Tal's "gambling money" he would by definition be prepared to lose it all...

I guess liquidity with small caps would be problem too...

perhaps mid-caps then

 

Tropo
thanks for the list. if you have the time to post some trading rules I'd realy appreciate it.

Nigel
any money i'd put into shares would be money that i could afford to lose.... that does not mean that i'd like to lose it..

thanks for your replies
Tal

 

Talbashan,

Give me a bit of time....
I will post it as a seperate thread.

Nigel,

You are 101% correct !!!.

 

Tal,

The best books I have read on shares (not that I've read many) are:

The Warren Buffett Way by Robert Hagstrom
Common Stocks and Uncommon Profits by Phillip Fisher
Buffettology by Mary Buffett

I've not read any trading books as I'm not really interested in trading stocks myself.

Mark

 

Hi Talbashan,

Louise Bedford's books on trading are really easy to read. Some titles are:
"Trading Secrets"
"Candlestick Charting"
Look out for hers at your city's investors bookshop, or at Borders.

Cheers, Medine

 

I have read a lot of books on the subject, the best I have ever come across
by a large margin is Dr Van K. Tharp's Trade your way to financial freedom.

If you look past the cheesy title there is plenty of interesting stuff that most
other books don't even mention such as expectancy and position sizing.

andy