• Login
  • Register
  • Home
  • Food
    • Entrees
    • Appetizers
    • Beverage
    • Dessert
    • Soup
  • Life
    • Events & Activities
  • DIY
    • Body Care
  • Reviews
    • Book Reviews
    • Product Reviews
  • About
  • Contact
  • Home
  • Food
    • Entrees
    • Appetizers
    • Beverage
    • Dessert
    • Soup
  • Life
    • Events & Activities
  • DIY
    • Body Care
  • Reviews
    • Book Reviews
    • Product Reviews
  • About
  • Contact
  • Home
  • Book Reviews
  • Getting Started in Stocks Summary

Getting Started in Stocks Summary

Posted on Apr 14th, 2020
by Ellina
Categories:
  • Book Reviews
  • Reviews
Getting Started in Stocks

Because of the current coronavirus pandemic situation, we all have to work from home and keep social distancing from others, but at the same time it’s an excellent time to read books. I bought “Getting Started in Stocks” at least 10 years ago when I first started working in financial industry. At the time I didn’t have the patient to read this book, but recently I went through my pile of books to reread them.

I recommend this book to anyone who are beginner investors, if you want to learn terminology of financial market and basic investment knowledge, this is a great book for reference. I have to say this book is super easy for beginner to understand. After you read this book, you will be ready to read some more complicated books to enhance your understanding.

What I learned from this book, please see the summaries below:

  1. One of the most important things you can do as a new investor is to set investment goals. Because it helps you to determine what you are going to invest and how you build your portfolio. The first thing I would like to talk about is to assess your risk tolerance. Different people have different risk tolerance, some people are wired in a way that fluctuations in their portfolio’s market value lead to enormous levels of emotional misery. Understanding your emotion and risk tolerance is the starting point to build your investment portfolio.
    After you determine your risk tolerance, the goal is to find the combination of the following objectives that make sense for your financial situation:

    • Capital Appreiation
    • Current Income
    • Capital Preservation
    •  Speculation
  2. Difference between fundamental and technical analysis. In details, the book described two different analysis and how to use each analysis for your investment purpose.
    • Fundamental analysis is based on external events and influences, as well as financial statements and industry trends.
    • Technical analysis is based on the idea to identify previous market patterns to examine and predict price movements in the financial markets, by using historical price charts and market statistics.
  3. Basics of Buying and Selling stocks. For those topics, this book introduced the basic terminology of stocks, trading and financial market. In order for a beginner to understand more complicated investment strategies, you need to understand the basic terms.
  4. Build your portfolio and invest in Mutual Funds. Diversification is the basic idea for build an investment portfolio and also based on your goals and investment objectives. For Mutual Funds, the most important takeaways from this book are the followings:
    • Start with your goals and risk tolerance as we talked before
    • Research the tracking records of the fund
    • Pay attention to expense ratio
    • Understand the fund manager’s philosophy and investment attitudes
  5. Stock derivatives. Warrants, Rights and Options were the ones introduced in this book. I think after you read the book, you should have enough knowledge to pass your series 7 exam, but it’s not enough for you to invest in those derivatives.
  6. Invest in international stocks. Especially at current situation, I think invest in international stocks is extremely risky. First we need to understand global stocks are different than international stocks. They are two different terminologies. Second, what you should be aware when we decide to invest in international stocks:
    • Currency risk
    • Political risk
    • Security regulations are different than US
    • Financial auditing system is different as well

Those are all my takeaways after I read this book. What did you learn from this book? How do you like this book? Please leave your comments below.

(Visited 229 times, 1 visits today)
Click here to bookmark this
  • investment
  • mutual funds
  • new investor
  • stocks

Ellina

I work and live in New York, and primarily I am working for a financial firm, on my personal life, I am a food blogger! Enjoy cooking, dancing and having good meals.

About Me

About Me

Welcome to my site! I hope you enjoy reading my site and find the recipes are useful to you!




SIGN UP FOR NEWSLETTER

Subscribe for our weekly recipes,tips and post, we promise to not spam you

Categories

DIY

DIY

Food

Food

Life

Life

Reviews

Reviews

Popular Posts

  • Green Bean Cake (绿豆糕)Green Bean Cake (绿豆糕) Green Bean Cake is a seasonal dessert for summer which…
  • Black Sesame Puree (黑芝麻糊)Black Sesame Puree (黑芝麻糊) Black Sesame Puree is one of my favorite dessert drinks.…
  • Rosebuds and Lemon Tea -- Recipe special for womenRosebuds and Lemon Tea — Recipe special for women A lot of my friends are always wondering why Asian…

Popular Cuisines

American

American

Chinese

Chinese

French

French

Greek

Greek

Indian

Indian

Italian

Italian

Japanese

Japanese

Spanish

Spanish




Popular Tags

Appertizer beverage book book review book reviews business book business books Date Paste Dessert DIY easy entrees fiction book fiction books greek food Historical Jewish Fiction Hyperloop investment Mediterranean Style Memoir Books Millionaire mutual funds new investor non-fiction books Out of the Gobi pasta psychology books public speaking quick relationship books romantical novel seafood self-help self-help books Self-improvement Soy Milk Maker recipes stocks sweet soup TED Talks Summary The cultural revolution vegan Warren Buffett women health wonton soup WWII Novel

Instagram Feed



Follow on Instagram


Popular Recipes

  • Green Bean Cake (绿豆糕)Green Bean Cake (绿豆糕)
  • Black Sesame Puree (黑芝麻糊)Black Sesame Puree (黑芝麻糊)
  • Rosebuds and Lemon Tea -- Recipe special for womenRosebuds and Lemon Tea — Recipe special for women

Popular Categories

DIY

DIY

Food

Food

Life

Life

Reviews

Reviews

Resources

Chinese Lawyers

Happy Home Keeping

Pinch of Yum Resources

  • Terms of Service
  • Privacy Policy
  • About Us