Thanks, sorry if that question may have seemed a bit dumb (lol) still new.....what good books would you suggest for investing in shares, Especially for guys starting out like me, prefferebly South African books which is easier to relate to? (if there are any good ones)Any imput from the othere experiance investors aswell would be appreciated, Thanks
THERE ARE MANY BOOKS ON THE MARKET. 1. Trading for a living :Alexander Elder 2. The complete guide to Day trading: Markus Heitkoetter 3. Become your own stock brocker : J. Magliolo the list is endless.
Magliolo is a day traders'book. Jesse Livermore (How to trade in stocks) and William O'Neill (How to make money in stocks) are traders' books and very good. The internet is also a very good source of trading strategies. All you have to do is Google.
Magliolo's "Become your own stockbroker" isn't a day trading book, and has a decent investing long-term strategy. "Richer than buffet" was his attempt to pander for the day traders, but I don't think he is a day trader himself.
he has some truely unbelievable examples in Become your own stockbroker .. in the one he buys three very dicey small caps at teh absolute lows and sells a few weeks/months later for massive profit .. firstly unlikely, secondly no risk management .. thirdly he buys based on quantity not rand value .. this was on about page 24 of the book and I stopped reading at that point ..
I'm also not the greatest fan. Only 2 books you'll need - "Greenblatt - The little book that beats the markets", for a longer term portfolio (by one of the best fund managers in America), and "Van Tharpe - Trade your way to Financial freedom" for trading.
Magliolo's long-term strategy was, if I remember correctly, to buy 5-10 performers in share price (strong shares), keep them for a year with a 15% stoploss on individual losers, and then rebalance yearly. Not too bad a strategy, methinks.