[Binaural Fusion]

Hi Folks,

Thanks in advance for any help,

I am hoping to start some investments. I am overwhelmed by the amount of data out there, and yet, still I can't find literature or resources particularily devoted to my situation, I am a young Canadian investor. Do you have any suggestions for reading/ resources?

Jeremy

 

[diogenes]

While I have taken a different path, I suggest Jason Kelly’s “Neatest Little Guide to Stock Market Investing.” Fairly clear and explanation of how a value investing hybrid strategy works etc.

 

[biph911]

Just be sure to take advantage of any employer sponsored programs with some sort of a match before you do anything else.

I'd consider consulting with a professional to help determine an investment strategy based on your risk tolerance. I'd also suggest creating a dummy investment account ( I used MSN finance for mine a while back) to see how you would/could do investing on your own. I learned that I mess around with the investments too much and end up hurting myself, so my money is in the hands of a professional.

Real estate is a decent investment in the US at the moment.

 

[PerformanceFirst]

Investopedia.com - Your Source For Investing Education This site has lots of information for beginners.

 

[wareagle69]

The sites in previous posts are a good start, and here are a few others. If you are working, make sure you max your RRSP contribution. Good luck.

Kiplinger.com - Personal Finance, Business Resources, Retirement and Financial Advice
Fool.com: Stock Market Advice | Stock Investing Advice
Education Center - Yahoo! Finance - The basics of investing and tips on managing your personal finances.

 

[OptionTrader]

I have posted this response to another member with a similar question:

You need to understand that trading in the market is an actual profession, not a hobby or a glorified savings account. It's just like any other profession such as being a surgeon, attorney, engineer or whatever else. None of those professions can be learned by simply reading books either. The problem is that the ease of entry into the market gives a false sense of what it really takes to succeed. A ridiculous amount of money can be made, but you need to know what you are doing. And no, stock picking is NOT the secret.

In my nearly 20 years as a trader, I have yet to see a book that is really worth a crap for teaching you how to properly protect yourself (hedge) in the market. My advice is to hook up with a trader (not a financial adviser or a broker) and work out a deal for some sort of mentorship. You might also want to consider getting some formal education on the subject.

Please understand that I do not want to burst your bubble. I just don't want you to get hurt.

 

[Uncle Erik]

Open a savings account. Find the best rate you can and set up automatic withdrawals every month.

There's plenty else to investing, but this is the first step.

 

[diogenes]

Quote:

Originally Posted by OptionTrader /img/forum/go_quote.gif I have posted this response to another member with a similar question: You need to understand that trading in the market is an actual profession, not a hobby or a glorified savings account. It's just like any other profession such as being a surgeon, attorney, engineer or whatever else. None of those professions can be learned by simply reading books either. The problem is that the ease of entry into the market gives a false sense of what it really takes to succeed. A ridiculous amount of money can be made, but you need to know what you are doing. And no, stock picking is NOT the secret. In my nearly 20 years as a trader, I have yet to see a book that is really worth a crap for teaching you how to properly protect yourself (hedge) in the market. My advice is to hook up with a trader (not a financial adviser or a broker) and work out a deal for some sort of mentorship. You might also want to consider getting some formal education on the subject. Please understand that I do not want to burst your bubble. I just don't want you to get hurt.

Yeah, right.
You goofs in the trading area just want the deltas.

However, I think there is a lot of undue mystique in trading and it is not as scary as you imply.
You can get hurt, true, but limit your money at first and see how you react to losing.
If you can handle it over a few runs, then I think you will be fine.
Now, if Taleb's swan hits, then that might be another matter.

 

[classicalguy]

As a business teacher, I recommend Andrew Tobias's Managing Your Money book as a great introduction to investing. Watch out for people with sure-fire trading strategies - a sure-fire way to lose money. Instead, buy things that are out of favor and hold. Always remember that the goal is to buy low and sell high, not the other way around. I believe strongly that markets are inefficient and driven by euphoria and panic. To be a good investor, you have to buy when others are panicing (and sell when they are euphoric). It takes strong nerves. It's almost impossible to pick the absolute bottom or top, so you lose some gains during the euphoria and you sustain some losses during the panic, but overall you make money. Investing is risky of course so you should have adequate cash reserves, and should understand the tax implications of what you're doing.

 

[Old Pa]

Quote:

Originally Posted by diogenes /img/forum/go_quote.gif Yeah, right. You goofs in the trading area just want the deltas.

X2. Like maybe being a cook is a "profession", too. Get off it.

Binaural Fusion: First step in investment? GET RID OF YOUR NONDEDUCTIBLE DEBT! Debt for housing or education may be rationalized, but not credit card or consumer stuff. Pay it all off or you are not investing.

 

[XGJFilmsX]

a wise man once said invest in water and funeral homes

they never go out of style

 

[OptionTrader]

Quote:

Originally Posted by Old Pa /img/forum/go_quote.gif X2. Like maybe being a cook is a "profession", too. Get off it.

You are actually comparing me, a market maker [floor trader] to a cook? That's pure genius!

Fair enough, I'll get off it and still take the other side your [investors] trades and have a better year at it. Just know that I wouldn't get out of bed for a mere 20-30% a year on my money.

 

[OptionTrader]

Quote:

Originally Posted by classicalguy /img/forum/go_quote.gif Watch out for people with sure-fire trading strategies - a sure-fire way to lose money.

Agreed.

Quote:

Originally Posted by classicalguy /img/forum/go_quote.gif I believe strongly that markets are inefficient and driven by euphoria and panic.

Markets are extremely efficient. Inefficiencies are arbitrage opportunities which institutions and quant houses jam down our throats to fix within seconds. There is truth, however, that the public is driven by euphoria and panic.


But then again, I'm just a cook...

 

[Old Pa]

Quote:

Originally Posted by OptionTrader /img/forum/go_quote.gif You are actually comparing me, a market maker [floor trader] to a cook? That's pure genius! Fair enough, I'll get off it and still take the other side your [investors] trades and have a better year at it. Just know that I wouldn't get out of bed for a mere 20-30% a year on my money.

Okay, let's do the math. Since $100K is a relatively small nut to start up on the floor with, and you've been doing this for twenty years and wouldn't "get out of bed" for 20% to 30% on your money, then we will assign you an average annual yield of a nice, conservative 40%. You should be sitting on $83.7 million now, plus whatever you have left over from your income and commissions, right?

 

[vagarach]

Still, wanting to become a trader vs. wanting to invest are two very different things!

You must realise that 'too much data' is something inherent in the system, and that people's livelihoods depend on their fundamental understanding of 'the system', so books are just books, writings on a very real entity. The learning is slow, and the progression natural.

As people get older their level of risk aversion tends to increase, until say, at age 80 they will have the majority of their portfolio in near risk-free securities like treasury bills. As a 'young investor' you will want to invest in securities that have high returns (and so come with higher risk), while time is on your side.

The best way to learn is not to read one author's opinion on how things work, it is to learn on your own, learn by doing.

So head on over to investopedia.com, start a free account in their stock market game, think of the outcome you want (if you can), and try and achieve it.

Otherwise, you can just as easily have a financial advisor type of service invest for you like Assante, etc, and pay them a commission.