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Why do I have an hard time suggesting a book for a novice trader? June 25, 2009

Posted by deminvest in investment, investment strategies, Single stocks, stock I own, stocks.
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Yesterday Tjey, one of my 3 or 4 readers,  asked me: “[…] if you suggest book for novice trader what book would suggest to read and why”

First reason why It is hard to me to suggest such a book is simple: I never read a book about trading. I’m actually not a trader. All I do is:

  • read finance.yahoo.com everyday,
  • check my portfolio loaded on finance.google.com which gives news about shares I own,
  • read articles about Economics in regular newspapers
  • distrust financial gurus, economists, politicians, central banks, CEOs, bloggers, funds, whoever charges commissions, myself
  • think with my own head, knowing there great chances I’m wrong
  • buy $ 1000 worth of stocks every month and
  • get  $ 1000 back every  time one of my stocks goes 40% up. That way I try to build a “Free stocks Portfolio”

Since my investment attitude is distrust, I’m afraid to look for a book that my reader may trust. Anyway I must do my best to help. After keeping this Blog for years, I can’t afford to scale bach from 3 or 4 readers to 2 o 3 readers :-).

What I would do if I was TJ, would be go to Amazon.com and look for “trading stocks”. Here is what I found:

  1. “The Complete Guide to Investing in Short Term Trading: How to Earn High Rates of Returns Safely by Alan Northcott”: disgusting title. If our friend Alan was able to earn high rates he would not have wasted his time writing a stupid book. Don’t trust the author, don’t waste time reading him.
  2. “A Beginner’s Guide to Day Trading Online”: to avoid. In most cases day trading is just a good way to waste money in commissions and miss the best utrends
  3. “The Neatest Little Guide to Stock Market Investing by Jason Kelly” I don’t the title but the book may be ok. If they called it simply “Little Guide to Stock Market Investing” I would probably buy it for mysels. I read some pages and seem simple to undertand and still quite interesting.
  4. Seasonal Stock Market Trends: The Definitive Guide to Calendar-Based Stock Market Trading: bullshit Definitive is only death. Seasonal is agricolture.
  5. Core Trading Tactics: no. Trading is more about strategy than tactics

Comments»

1. RnS - June 29, 2009

“Seasonal is agriculture”, ROFLMAO 😀

2. Tjey - July 1, 2009

Thanks for life long advice deminvest! I having a hard days trying to understand the book called ‘ The intelligent investor’. By the way, Yesterday I made my first trade. It was IVN. It was quite successful purchase! I made 25% +++ in my initial investment. Thanks! for writing article. *_*

3. Deminvest - July 2, 2009

TJ,

you had a very nice start. +25% in a day is something quite special… don’t get used to that 🙂

Why did you pick IVN?

4. tostocktrading - July 11, 2009

HI,

Nice post whole material was informative

Regards,

5. Fabian - September 9, 2009

I also liked the “seasonal is agriculture” 😛 – and your little blogs – as my father sent me a link, I believe you have more than three or four readers 😛

Also, very recognizable what you write about how hard it can be to stick to your strategy – I find myself way too impatient from time to time, wishing to just buy and sell without taking the time to ride out a wave -whereas prolonging my portfolio for a month or two would have added much more than all the daytrading mayhem!


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