Anjum (Finance Professional) (24 Points)
12 November 2014I am 23 year old and very much interested in investing in stocks.I already have invested in the market. But I need to know the basic rules of the game. So please let me know some of the very good books that will be handy to know the basics of investing and share market.( I already red " Intelligent investor" by Graham. )
CA AnKiT BoHrA (AB)
(Manager)
(25955 Points)
Replied 12 November 2014
books would not b handy enough... you can search on google many things ... whatever u want study on google,, much clear and better info wil there to learn
Nisha
(Student MBA)
(33 Points)
Replied 14 November 2014
There are 2 methods to analyze stock market..
Fundamental analysis: here you study the company performance, strengths and future growth potential and current valuation.
Technical analysis: here you observe just 2 things basically.. the movement of share price of the company and the volume/number of shares being bought and sold of the company..
The idea is that big investors like FII and mutual funds to detailed fundamental analysis of 100’s of companies and identify the top shares.. they then start being the shares of these top companies.. this action can be caught by doing technical analysis.. then one can just follow these trends and make money while all the hard work has been done by big investors..
I started of doing fundamental analysis but then shifted to technical analysis because I found that the news we get is manipulated, they big guys know all the big news 1 month in advance.. if I followed technical analysis I could have seen it 1 week after them.. but as a fundamental analyst I saw it a full month late in most cases.. just when those big guys want to book their profit by selling their stocks to small guys like me..
So definitely study technical analysis books..
2 that I have read are
1. “technical analysis of stock trends” by Robert d Edwards and john magee
2. How to make money trading derivatives by ashwani gujral
they are both decent books..
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