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Good guide to investment in the stockmarket?


Could anyone recommend a good book for learnging the basics about the stock market? (I am a total beginner).

Whoah! Hold the bus! The advice that includes gregarious reactionaries and traders like Cramer or commodities needs to be held off with the proverbial "ten-foot pole."

Go to CNN Money, Motley Fool, MSN Money, Netscape Investing etc. which will give you a clear, comparatively safe starter advice. Ask your broker (I recommend Scottrade, sharebuilder, or schwab) about some Exchange Traded Funds (ETFs) like Diamonds or Spydrs or the like--these let you buy a cheap sampling of the Dow Jones Industrials or the Standard & Poors 500, comparatively safe but still very good, profitable companies. They are about as sexy as steak and potatoes, but they are as substantial as steak and potatoes.

As for individual companies, first--does it make a profit? As for any other features, news, or events, first, does it make a profit? Second, does it have a triple-digit price to earnings ratio? Then there are too many people thinking it will be big and it won't likely be big enough to please them all. If you divide the profit by number of shares (most stock sites will give this information for free, usually doing the arithmetic for you), and the result is higher than 30-something, stay away. If the number is a negative number, go back to the other rule, first, does it make a profit.

I know I'll probably catch some heat for this, but I personally found Jim Crames: Real Money (sane investing in an insane world) to be of great help. Very easy to read from a novice prospective.

"Which Is Better, Buy-and-Hold or Market Timing?"

"Do You Have What It Takes to Be a Market Timer

The Beginner's Bible in Technical Analysis is:
Edwards & McGee"Tech. Anal. Of Stock Trends"

Droke, ClifTechnical Analysis Simplified

Kahn, Michael N.Tech. Anal. Plain & Simple

Kamich, Bruce M.How Technical Analysis Works

Lefevre, EdwinReminiscences of a Stock Operator

Lofton, ToddGetting Started in Futures

Lowenstein, RogerBuffet (Warren)-The Making of a Capitalist

O'Neil, William J.How to Make Money in Stocks

Oz, TonyHow to Make Money From Wall Street

Rotella, Robert P.Elements of Successful Trading, The

Schwager, JackStock Market Wizards

Schwager, Jack D.New Market Wizards

Sperandeo, VictorTrader Vic-Methods of a Wall Street Master

Wasendorf, RussellAll About Futures

Slutsky, Scot and Darrell JobmanComplete Guide to Electronic Futures Trading, The

Learn basics of trading at this website

http://uscommoditiestrader.com/

OK, I disagree with most of that advice (except possibly the O'Neill book, and some of the websites including Motley Fool).

My recommendations would be:
"Intelligent Investor" by Benjamin Graham
"Stocks for the Long Run" by Jeremy Siegel
"One Up on Wall Street" by Peter Lynch

Best of luck to you

I can teach you.

Top 3 Answerer in Business & Finance. (Vote for me)

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