What are some good resources (preferably video) which are not books, to learn these subjects?
Burton Malkiel Wrote "A Random Walk Down Wall Street" In ‘73. Have His Views Changed? -- https://www.youtube.com/watch?v=HLJCEP83QTM
Burton Malkiel | Talks at Google -- https://www.youtube.com/watch?v=wnCxlIQjT-s
Personally I would not recommend “trading” as an amateur at all. If you are investing over months/years that’s one thing, but making money long term over <1 week time spans on stocks is quite hard. I think the appeal of amateur “trading” is that it’s job-like but the reality is that you’re not going to make significant money with a smallish account, retail tools, and no professional experience.
In general I would never advise joining a course or “paid discord” or on stock trading. Those are pretty much all scams. There are some real, formerly successful traders that do these but the one I’m familiar with basically went broke several times because he opened himself up to too much risk (which is why you don’t see a lot of successful traders selling courses, they are too busy making money trading). Some of these courses also sell straight up misinformation like Technical Analysis
If you are looking to do some personal finance - in general it’s not a good idea to pick your own stocks. You are going against massive analysis teams in Goldman Sachs, and they are probably going to win. Instead look into index funds or similar!
Warren Buffet is such a firm believer in this principle that he bet a hedge fund manager $1 million that he couldn't beat the S&P over a decade[0]. Buffet won. The S&P beat the manager by 5% ANNUAL return.
Hedge fund managers pick stocks all day, every day. If these guys with Ivy League finance bona-fides aren't able to consistently beat the S&P, you should really think about whether you'll be able to beat it in your spare time.
if someone has bought FAANG + MS + TSLA 10 years ago - would s/he beat S&P ?
Also, just so little companies is very risky. E.g. if Tesla flopped you'd probably underperform
That's basically the point. It's easy to beat the S&P with knowledge in retrospect.
It already happened and we know the outcome. Hindsight is 20/20.
If you intend to learn about stock trading for personal finance reasons you can follow a lot of blogs or podcasts in the FIRE (Financial Independence Retire Early) community. Some examples are the stock series of JL Collins (https://jlcollinsnh.com/stock-series/) and the Mad Fientist (https://www.madfientist.com/, the blog is a bit tax focused, but it goes well with the Podcast).
If you want to learn about active trading then you need vastly different resources and not really my expertise.
Just wanted to mention that there are basically two philosophies here and based on either what knowledge you want to gain or how much risk you want to take as an investor you will need to choose what to learn.
You can also google study materials for the Securities Industry Essentials (SIE) exam which covers basic securities information that can be applied to investing.
https://www.finra.org/registration-exams-ce/qualification-ex...
You need a lot of context for what you’re seeing in your average quarterly. Perhaps start with reading something like The Intelligent Investor to understand fundamental analysis, then read them.
* If you want to gamble, go to Las Vegas.
* If you want to make money, invest in index funds.
Further reading: https://arachnoid.com/equities_myths/
Yes ... it really is that simple.
I see they have on-demand webinars, too. https://www.aaii.com/webinars
Local chapters have meetups with presentations and discussion. Now online, of course. There's a page on their website about local chapters and their activities. Presenters at chapter meetings are supposed to be educational and without a sales pitch. In practice they're 98% educational and may have a slide or a handout on the company they work for. Here's the YouTube page for past presentations from one chapter. https://www.youtube.com/channel/UCnxl8fQH-F4ooXb-U8IO6zQ
Ameritrade has videos on learning about investing, trading, and their platform features, including most basic "this is a stock, this is a bond" type videos. I thought E*Trade had a bunch of similar videos, but I'm not finding them now. Both E-Trade and Charles Schwaub have both live and on-demand webinars. Probably other brokers do also. https://us.etrade.com/knowledge/investing-basics (more textual) https://us.etrade.com/knowledge/events#events_tab2 (on-demand webinars) https://www.tdameritrade.com/education/investment-videos.pag...
Trying to look at it with the eye of a beginner, it seems to get pretty specialized pretty quickly. Hope you can find something in there that fits what you're looking for.
That said, I don't have a good resource on trading, but when I looked into it many years ago, most of them were either selling a platform/brokerage that promoted frequent trading (hence earning commission fees) or trying to sell information products by "gurus" that somehow decided to teach the ways of trading instead of becoming a trader themselves.
Accounting is incredibly dense, and you will come to appreciate the many ways in which companies can report the same information. You'll also understand what the terms you see thrown around mean, and you'll also see why financial math is not software math.
I think the problems are similar for both subjects. When you search for software development, where would you even start? What language? Web, mobile, embedded? The software development world is large and there's no good single resource to "learn" it.
Ditto for investing; it might even be a larger subject. If you want to "learn to invest" because you want to save money, your best bet is to use a service that buys ETFs, contribute money monthly and never look at it.
However, if you're interested in investing as an art/science, there's a vast literature. Stocks? Bonds? Private equity? Distressed assets? Real estate? Cryptocurrency? Options, futures or other derivatives? Long or short? Active or passive? Fundamental or technical? On what scale do you plan to hold your investments?
The fact is, there's no right way to start. You have to narrow it down. I see a few recommendations to read financial reports. Sure, maybe. But this isn't 1975; I bet 75% of financial professionals have never read a 10k.
https://www.amazon.com/Little-Book-Common-Sense-Investing/dp...
The one called "Trading Basics" by ISB seems like a good starting point.
Reading financial statements is a good exercise and certainly important if you are investing at the institutional level, but you’ll find that price has a lot more to do with supply and demand of investors who want the stock than anything else.
This supply and demand principle in economics is oft lost in investing principle books that try to teach theory of valuation, etc.
Assuming you are into tech, since you’re here, you will find that tech stocks will barely reflect what an investing value book would teach. Possibly even teach valuations that are off by orders of magnitude due to the money being thrown at tech growth stocks.
Price doesn’t equal valuation until you are trying to sell.
Some good memos - Baupost Group, Berkshire Hathaway, Howard Marks. Email me if you want any more info.
https://www.youtube.com/playlist?list=PLUl4u3cNGP63B2lDhyKOs...
Not only is it interesting in its own right, but it was coincidentally recorded as the 2008/2009 financial crises was unfolding, and many of the lectures open with a few minutes of discussion about what was going on in the economy at the time. Neat to hear an econ PhD give a play-by-play on an economic meltdown.
The discord associated with this twitch channel has an amazing help section, search and you'll find some remarkably well written answers. Just avoid the degenerate-chat topic though.
After learning the basics, I would recommend "The 80/20 Investor" book. The book has very good advice how to buy stocks, market bubbles and building the circle of competence.
Ernest Chan has written several books. He also offers live courses. He is one cool dude.
Learning to read candlestick charts and recognize patterns.
Backtesting your strategies is crucial.
Try to use data sources that haven’t introduced survivorship bias.
The page is hosted by us but the resources are not connected to us.
[1] https://marketgodfathers.com/best-resources-to-learn-about-s...
Introduction to Financial Accounting on Coursera is also great, will help to understand business valuation, read a balance sheet, etc.
The Plain Bagel on Youtube is a good investment channel, no bs.
If you think you can miss eg. 5k. Only buy 2.5 k. In stock, the rest is spare money for drops.
Only buy the ones that you have a good guess for ( happens once in a year).
If you get to 20 k. Congratulations. Now change tactics. Buy stocks that are undervalued and don't buy too much. If it drops pretty hard, buy again. The goal is to reduce your average purchase price.
Hold till you think it's appropriate to sell.
The more money you have, the more you can diversify your portfolio.
Don't use your savings, only what you will never need.
Be prepared to lose it all at the start. And lose up to 75% every 8 years when you begin to slowly diversify your portfolio.
If you don't know what you're doing. Buy an index when it's low/drops. I'm a big fan of the Netherlands.
Ps. Crisis ain't over yet.
It's not about how much it is now. It's how much it gained... Since it only started as a test...
Edit: picproof, since my word is not enough? https://imgshare.io/image/screenshot-20200710-230405-degiro....
You also say things that are unintelligible to someone who knows nothing about the market. Buy undervalued stocks? What does that mean? Most people think stocks with lower share prices are cheaper — let alone something that’s not dead wrong like evaluating based off P/E ratio, which is still incredibly wrong.
So I’d recommend against giving trading advice to someone asking for how to educate themselves.
I was just giving 2 cents on practical learnings, which is indeed not an answer to his posed question. But perhaps useful in the idea behind the question ( starting with trading stocks).
Most important take-away from it: you can lose a lot.
Additionally, I always asses for risk. Eg. I lost 0€ because of Covid, because I had no stocks when the markets dropped.
I didn't mention how to pick stocks though, which is the most important thing. Since there are multiple reasons why you would pick a certain stock.
Eg. Markets re-open worldwide => I bought WTI on 29/04, endresult was 40%.
I'm positioning myselve right now to multiple market scenarios with an expected (gamble) vaccine in December 2020 ( which is pretty early, I know) and where the vaccine test results come in at the end of the summer. I'm also taken into account the pumped up market by the US government and potential geopolitical issues.
These things can't be done by a AI/ML right now. There is literally no precedent for it.
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Just a question, what would your general strategy be? I did check out technical indicators in the past, but I have a hard time believing in it.
In the end, I believe the stock market is about emotions in a numbers "game". It's not that quantitive as most people think.
What's your take on that statement?