Can anyone explain the basics of the stock market?

[KingCa$ino]

I'd love to learn more about the stock market and have no idea where to start. It all looks like a foreign language to me now. Is there a stock market for dummies or something?

[WarBus]

Check out the Finance & Investing forum. Look at the stickies.

[KingCa$ino]

Thanks!

[HNIC]

KC,

Check out investopedia.com. They have some really good tutorials that I found useful.

[stu_ungar]

Stock price Def. is the present value of all future cash flows.

CF/g-r=STock Price


There u go now you know how to calculate stock price to find out if something is over or underpriced.

CF= next cash flow
g=growth
R=Rate

Growth is most important. Now go make millions

[Gumbo]

http://www.morningstar.com/Cover/Classroom.html

Excellent link!

Gumbo

[stu_ungar]

My bad its actualy CF/r-g


Sorry i get typing too fast

[KingCa$ino]

Thanks for the replies! Also, are there any good books on explaining the market and strategies?

[Ron_Mexico]

Reminiscences of a Stock Operator. Its finctional and written by someone who wasnt even involved in the stock market but it is widely recognized as the single most important book ever written on the stock market. Its kinda interesting too. Check it out. Ive included a link to it on amazon.


http://www.amazon.com/Reminiscences-Stoc...F8&s=books.

[Ron_Mexico]

If you've ever spent weekends and nights puzzling over whether to buy, sell, or hold a position in whatever investment--be it stock, bonds, or pork bellies, you'll be glad that you read this book. Reminiscences of a Stock Operator is full of lessons that are as relevant today as they were in 1923 when the book was first published. Highly recommended. --Harry C. Edwards --This text refers to an out of print or unavailable edition of this title.



If there is one trading book that is universally considered a “must read” for anyone active in the markets, it is Reminiscences of a Stock Operator. Written in 1923, and profiled in Worth magazine as one of the four investment classics of all time, the text remains incredibly topical and timeless because it manages to capture with dead-on accuracy the trader's mentality. It recounts in page-turning detail, recollections of mistakes made, lessons learned the hard way and insights gained that virtually anyone active in the markets will encounter, relate to, and - ultimately - benefit from.


Professional traders like Martin Zweig give a copy of Reminiscences to all new employees. Other traders read - and re-read - Reminiscences every time the market shifts, to see what can be gained by Jesse Livermore's experience in a similar market cycle. And virtually every “Wizard” in Jack Schwager's “New Market Wizards” claims to have been influenced by what they learned from Reminiscences.