What should I do first if I want to learn about investing?

Question

I want to learn about investing but I need a mentor and good resources. What should I do to get the mentor and resources? Thanks for answer...

Answer 1

One of the best ways to become a learned investor is to either join or form your own investment club. It's very easy to do, plus it allows you to quickly create a diversified portfolio and there are several web sites offering investment club advice. (ie the Motley Fool, bivio.com, etc.)
One thing our club does is teach members about investing by having them perform much of the work themselves. Researching stocks and completing stock selection guides is a 'hands-on' method of learning how balance sheets, cash-flows, and income statements work without having to sit in front of a computer reading endless mountains of peoples opinions.
Using Yahoo!'s stock screener is another good way to see how to set up criteria by using their pre-fabricated screeners (such as small cap growth companies discounted or trading below their 52 wk avg).
Mutual funds are another great way to get started and Morningstar is hands down the authority on funds. They also have screeners to find the right fund for you.
In my 20+ years of investing I've known a lot of people who tried to self-educate themselves about investing and they generally get bored with all the facts and terminology and usually end up with just enough knowledge to become dangerous to themselves.
Actively participating in an invesmtent club or investing in mutual funds to get yourself started is what I would recommend.

John FP

Answer 2

Look around at family and friends, maybe you have an older uncle, friend or relative that is successful (and I don't mean the uncle with the Beamer and the granite counters)...ask the one who seems to have the financial values you want to emulate (the one who's mortgage was paid off 10 yrs ago) . Ask questions.

Read.....it is nearly impossible to sort through the information available today but a good book is "How to buy stocks" by Louis Engel. It continues to be updated but it goes back 50 or so years. Buy it and read it. Then read it again.

I would avoid anything written in the past 5 years....it's advice is likely to look like bell bottom jeans when you are 10-15 years older. A better way to get rich today is to write one if these ridiculous books!!

Suze Orman, Rich Dad, Die Rich, Born rich, get rich,live rich, whats wrong with you..you aren't rich!!!....its all pablum.

There is no shortage of advice about what and where you should invest...that comes later

Try and learn first how money works, mathematically. The power and effect of time on money. How moneys grows.

Learn what the stock market is and how it works. You should have a good foundation before you get into the more esoteric aspects of investing.

I am a financial mentor but i don't recommend seeking paid advice yet.

Good luck!!!!

Answer 3

You have the same face with me except the glasses. Also same English name. Anyway, the first thing you need to do is to understand the law of risk in investment. Low risk, low return and high risk, high return. I realize that a lot of people still do not understand this law. As for mentor, if you could make yourself as your own mentor, then you find the best mentor in the world.

Answer 4

Master the academic theory. You can start with investopedia.

Answer 5

hey your guy is like mine!! were like twins!