becoming a market wizard

[ActionTodd]

[ QUOTE ]
[ QUOTE ]
[censored] reading, make contacts and find mentors. the [censored] you learn in books is the conventinoal [censored] that everybody already knows. just reading a bunch of books and then paper trading is a surefire path to mediocrity, not market wizardry.

[/ QUOTE ]

You could say the same about poker. Could one not learn some fundamentals from books and then develop their own approach?

[/ QUOTE ]yeah but poker is rigged [img]/images/graemlins/tongue.gif[/img]

against me anywayz [img]/images/graemlins/grin.gif[/img]

[CrazyAce]

Just studying for the Series 7, even if you never take it, will do worlds to improve your knowledge.

Just go by a bookstore and look at "Series 7 Exam for Dummies," for instance. It is packed with info and if you get a handle on the material tested and can take practice exams and do well, then you will know FAR more than most.

Plus, if you decide to make a career of it and get in with a firm, you will already have that knowledge and won't sweat the test.

Just my .02

[jman3232]

I'm 19 and I just got into investing. I'm no "master" but I know the basics, or at least enough to have my own intelligent portfolio when I actually have cash. I would start with things such as the morningstar tutorial or whatever it may be called. I'm not sure how to find it, but its somewhere. Also just many books and check around online for any advice.

[maxtower]

OP,
If by wizard, you mean you want to beat the market average, then you need to read "The Intelligent Investor". If you get lost with that one, then someone can probably recommend a more basic book to start with.

After reading that, if you think you want to try and beat the market, I am going to assume you won't have too much money to invest. Put it into a IRA, invested in an index fund. While you are saving and investing into this index fund, begin paper trades/mock portfolio (whatever you want to call it). After a year or two you should have about $10,000 saved up. If you are satisfied with your paper portfolio performance during this time, then you can think about investing into individual stocks.

[ArturiusX]

Always be searching for the truth, never be satisfied with the answer you have.

[stephenNUTS]

[ QUOTE ]
What's he going to get out of a Series 7? That sounds like more of an impediment than a help.

edit: to answer the OP a bit, most online brokerages have a minimum of $1000 to $2000 so you should check around and consider that minimum to be your initial savings target.

[/ QUOTE ]

OP,and any beginning investors:

1.The series 7 books wont do much beyond preparing you to be a broker.If that is your goal..you cant just take the test alone..you MUST be associated with a BD.(I am assuming you do not have a degree in finance or college education with a prospective leading you into this field already)If the BD sponsers you AND you pass the test,you most likely will work under a senior broker...until you open enough accounts to go on your own.
You will probably start off cold-calling prospective clients,working 15 hrs a day,sharing all if not most of your commisions....and QUIT in six months

2.If you want to just learn about investing in the stock markets...read read read as many books,newspapers,articles,websites,forums as you can...rinse and repeat as often as possible,,,and ASK questions to friends with some experience in the market,other investors,post q's on various forums,consult a professional if you know one,etc

3.As you get familiar with how the markets work...start to paper trade(its not ANYWHERE like the real thing)...but you will get a sense of stock picking,diff. market sectors,buying/selling at certain price levels,having a very basic understanding of P+L's....and simultaneously watch/listen to the varios financial shows(just watching the ticker is fun in the beginning) and learnig the various symbols of each stock,listening about any companies you can,understanding how certain events effect markets,etc...rinse and repeat

4.When/IF you feel comfortable enough to dip your toe into REAL money investing....find a discount broker,ask as many questions about their policies/rules/deposit minimums/maintainace fee's requirements....and start SLOWLY.

5. As a beginner...DO NOT USE MARGIN/or play with options...until you have a thorough understanding of the consequences,losses,margin calls,associated interest rates with margin accounts,etc....and even afterwards I would make a strong arguement against it

6.Always have a game plan ......but one of the most important issues is an EXIT stratagy everytime you enter a postion or trade.Cutting your losses EARLY, is critical in even having a CHANCE at this game

7.OH and BTW.....You will NEVER MASTER the markets....so dont even try to [img]/images/graemlins/smirk.gif[/img]

GL,
Stephen [img]/images/graemlins/cool.gif[/img]

*** This is VERY basic,and there are SOOO many other things I can write about,but I am sure other experienced members will chime in as well....buts its a decent start at least

[JJay1231]

[ QUOTE ]
[censored] reading, make contacts and find mentors. the [censored] you learn in books is the conventinoal [censored] that everybody already knows. just reading a bunch of books and then paper trading is a surefire path to mediocrity, not market wizardry.

[/ QUOTE ]

I agree with you for the most part. Reading all the trading books in the world is no guarantee you will make any money let alone become a market wizard. You can almost guarantee that the mojority of traders who buy trading books are long term losers. After all, around 10% of traders are actually long term winners.

Ive read dozens of trading books over the years and If i had my time over again, the only books I would ever buy are;

1. Trade your way to financial freedom
2. Profiting in Bull and Bear Markets
3. Reminiscences of a stock operator.
4. Technical Analysis of the finacial markets.

and then in time develop your own method/ strategy that you are 100% comfortable with.

[Henry17]

[ QUOTE ]
As you get familiar with how the markets work...start to paper trade(its not ANYWHERE like the real thing)

[/ QUOTE ]

In the 80s Greenline (CDN discount brokerage) use to offer a simulated trading contest. Unlike paper trading this actually involved calling in trades to simulated brokers. It was pretty much as real as you can get from a simulation. On top of that they also paid out cash prizes in the $1000-3500 range for the top 3. I won it twice in a row and learned a lot (esp about options). Not sure if anything like this exists now but if you can find it I'd recommend it.

[Stake Monster]

stephen gave very very good advice. I am starting out as well and it's good to remind that EDUCATING myself in the market game is extremely important before I invest a dime in stocks. It can test your discipline but really learn as much as you can before sinking money into it.

I've bought 3 books so far and reading a ton every day. (One of them is The Intelligent Investor recommended above, and it's a good read so far)

good luck

[ImBetterAtGolf]

If you are going to start reading, read a book about efficient markets. It will be a little discouraging, but it's helpful for traders to have some grounding in reality.