From my little experience that I have gained so far in the market, I would urge the first time investors to understand some of the following points…
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Understand that there are 2 parts to investing, the most important as we know are the fundamentals and an equally important part is the technical analysis…
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On the other hand, there should be a balance of use of the type of analysis, technicals if given undue priority will shorten the duration of staying invested due to psychological factors and the design of the science, fundamental analysis in the beginning can be too overwhelming for a starter and I feel mastering it to independently usable level take considerable time and efforts and its very easy to step into a deleterious decision making.
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Both type of analysis should concurrently be used, if what you are seeing fundamentally attractive dosent, reflect in the market structure, you have a self rectifying system check that something is wrong, on the other hand if something which is technically attractive if dosent have a minimum fundamental backing to it, has absolutely no value at all… Basically going techno-funda, Is the best way for the beginners, and it creates a 2 point decision making.
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There are a lot of resources to read from regarding investing, buts let’s keep it simple…
Following are my suggestion.
For investing basics…
The intelligent investor–Benjamin graham
Rich dad poor dad- kiyosaki & lechter
Buffet’s letters to shareholders - berkshire hathaway
For technical analysis…
( the are a lot of schools of this analysis, this being a fundamental analysis heavy forum, I would like to elaborate a bit about this specific segement)
3 major used systems are
- Mathematical indicators devired from price using specific formulas
2.demand and supply analysis
3.crowd behaviour analysis
Personally I feel no 2, brings u more closer to price action than anything else…
My recommendations according to the above mentioned 3 points…
1.Profits in stock market by HM gartley
2. Wyckoff methods…
Back in 1920s wyckoff would only teach a select group of students and the system was kept as a secret for a very long time, hence I didn’t not find any authored textbooks to learn from, Google wyckoff power charting blog by fraser, go through the YouTube videos of wyckoff trading method, a site called wyckoffanalytics can be referred…
This needs a compilation of the materials available…
3.Elliott Wave Principle: Key to Stock Market Profits
By frost and prechter
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Study recent skeletons that came out of the closets-
Vakrangee, manpasand, dhfl, sankhaya infotech etc -
Besides following respective thread on value picker which is an excellent resource of both the bias side’s view, get access to analyst reports by various brokerage houses( some, rather most of the reports have a bias, never take any of their recommendations at face value without forming one’s own view about it), these reports have most of the quarterly activities and concall and annual report summaries which can be time saving tactic… I find a site called trendlyn useful in this regard…
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This is my personal tactic… Not a recommendation…
I scan though mutual fund holdings, a similar service called smallcase their specific segment holdings, scrips that come up in following thread here Hitesh portfolio, coffee can method, vivek gautam’s portfolio, commodity and cyclical plays and basically any portfolio in the Q&A segment, check the technical aspects of scrips, if I find something interesting, I start fundamental analysis on it… This save me a bit of time… -
From time to time, I feel there are alternative markets which can give handsome returns, bonds, commodities, real estate, crypto currencies etc.
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Last but not the least, stay away from the financial media at large, regarding analyst views on stocks and recommendations, i have a suspicion this is an all important vehicle for the institutions to influence us according to their needs, of course mostly against our advantage. No body is sitting on their time to help u make money.
As a parting statement, understand that there are the big institutions and then there are people like us, and we are in an ocean, the big fish feeds on the small fish…
Coming here in the money market is playing a game designed against us, what we all can do with all the analysis at hand is reduce the odds and surviving…
All the best…