Preparing for my first stock purchase – entry 001
(This post is part of a series of posts about being an investor newbie)
Investing $1,000 is not something to be taken lightly. So I decided the best first step was to understand the stock market and investing fundamentals, technicals, etc. I need to come up with a strategy to invest correctly in the stock market. I don’t just want to buy stock for the sake of being “in the market.” I want to invest so I can build wealth. That means I want to do it the right way. (I explain the background of this series of blog entries in a previous post – click here to read that one if interested).
Day 1 – I did some research on the internet to start learning about reading charts. I found this information to be overwhelming and perhaps too important to try and read on my iPhone. Note: Use the iPad or a computer next time.
Day 2 – I went to the college library and got a few books and even some old textbooks about the stock market. There wasn’t really anything good about investing, but some great information about the stock market itself if I was interested in what it is, etc. Note: I need to get our library to order some useful, modern (printed after 2005) books about investing.
Day 3 – I went to Barnes & Nobles and spent over $100 on books. Basically, I have to now earn a 10% return just to get my money back in the amount I spent on books! Note: Do a broader library search so I don’t have to purchase the books. I like sitting and using a highlighter so I would still find one or two books to purchase.
Days 4 – 7 – This concludes week 1 (The college was on Spring Break). I was reading sections of four different books. So far my favorite (and I believe most useful) is How to Make Money in Stocks by William J. O’Neil. I still have not completed my research so I am not ready to invest just yet. I have to research the various online trading services to determine which to choose. Note: What I have learned so far is that I will probably need to subscribe to a charting service (more $$) and watch the stock market EVERY DAY to track the progress of stocks and the overall market. More info will come next week as I complete my research.