GO
Help
All content in the ZeccoShare community is generated by its members and does not contain advice or recommendations on behalf of Zecco Holdings or Zecco Trading. More>>
Content Name: CommunityDisclaimerShortLeftNav
Preview Revision #:
Active Revision #:
Edit Content
Zecco.com » General Investing » New Investors » Summer finance books
Last post 06-30-2008, 7:44 AM by lucasjkr. 2 replies.
Previous   Next
Content Name: ForumThreadInternal
Preview Revision #:
Active Revision #:
Edit Content

  •  06-30-2008, 4:26 AM 32688

    Summer finance books

    Reply Quote

    What are some solid finance books to check out this Summer? Indeed I am a student.

    I recommend:

    • Candlestick Analysis by Steve Nison (if I'm not mistaken)
    • Technical Analysis of the Financial Markets for the basics of tech analysis (if you are interested)

    Does anyone know of a book that talks about the history of the dow jones industrial average? Not Dow Theory, but the actual chart for the NYSE activity maybe for the past 100 years or so ... Can't seem to find many solid books at Borders and such. Not just the chart either, but the full 100 year chart with explanations of what happened would be greatly appreciated. Is there a 100-year crash?

    Any solid tech analysis books of the Dow &/or S&P?

    Thanks in advance

     

     

     

  •  06-30-2008, 6:31 AM 32689 in reply to 32688

    Re: Summer finance books

    Reply Quote
    Wikipedia has a great thing on the Dow history.

    Here are some great reads since it looks like you are looking only at technical analysis:
    1) Financial Counseling/Basic Financial Planning & Budgeting -     in order to have money to invest, first you must have the capacity to save it and designate certain funds towards E-Fund and towards investing

    Authors that Qualify:
    1) Dave Ramsey
    2) Suze Orman
    3) Clark Howard

    2) The Market as a Whole     - it's important to understand the mechanics of the market. This involves the understanding of why you should invest in a RothIRA, comparing the 401(k) to the Roth 401(k), different vehicles to the self-employed (such as the SEP and the Keogh which allow you to contribute 20% of net income up to $45,000), and the importance of holding index funds, broad-based mutual funds, and broad-based ETFs. Lastly, it would be important to learn about asset allocation so you can judge suitability; the last one is by far the most important aspect to investing, being able to judge suitability for yourself.

    http://www.bobbrinker.com/books.asp
    http://www.mfea.com
    http://www.forbes.com
    http://www.smartmoney.com
    http://www.morningstar.com

    3) Individual Stock Units - There are two ways that people analyze single equities. One is by fundamental analysis and the other is technical analysis. One uses data, while the other uses charts. You usually include these in a taxable account because it's extra money left over after you have utilized the Roth and the 401(k). Some 401(k)s allow you to invest in single stocks, but the main problem is that if the transaction costs exceed $8 for a self-managed brokerage account, simply keep the index funds. Also keep in mind that the 401(k) has substantial assets so the plan should limit your contributions into an SMBA to 20-30% at the very most.

    With the exception of reversals and rates of change, I am an avid fundamental analysis guy. I believe in reading annual reports, balance sheets, cash-flow statements, etc. I believe listening to conference calls. If the company is small, I'd like to see the place to make a VC or venture capital investment. When I invest in stocks, I act much like a bond investor. Most investors seek leverage to try to enhance their returns. I try to steer away from leverage because I'm more risk adverse.

    4) Advanced Techniques - Options & Community Lending

    These require advanced techniques. When you options invest, you are making the decision to buy a contract that allows you to buy or sell 100 shares of stock per option contract. Money management with options is critical. I believe a 1% limit to portfolio rule helps you not overspend on options. I honestly wouldn't even consider dabbling into options until you've hit your 2nd investment anniversary. In other words, you need to be in your 3rd year before you start with options. The main reason is because you lose your entire investment if your investment fails to beat the strike price (on a call, it needs to be higher than the strike price and on a put, it needs to be lower). Covered calls and cash-secured puts involves writing options and receiving an income in exchange for the obligation to buy or sell 100 shares of stock per contract.

    As with Prosper or other community lending, the most important thing is to be able to analyze their chance of default. I really like borrowers that will have less than $15,000 of total debt. Next, I like to see a borrower that's using up nearly all of their available credit (as that means a higher interest rate and lower score). I like to see as few delinquencies as possible or I like there to be a plausible reason for past problems (i.e. a failed business or a divorce). I use a modified DTI which includes rent + debt / total income. I think you look for reasonableness in the data. In other words, a secretary doesn't make in most cases $100,000 per year. And it doesn't cost $400 per month to rent in NYC. I'd use the same 1% rule for community lending that you use for options since it has a similar risk profile.

    4)
    Aqua

  •  06-30-2008, 7:44 AM 32691 in reply to 32688

    Re: Summer finance books

    Reply Quote
    1) Pioneering Portfolio Management by David Swensen, the man that manages Yales investment fund and has been returning 15-20+% through 2007. No idea how he's doing this year, but it's a great read, really enforces ideas of risk/reward, portfolio allocation, etc.

    2) A Random Walk Down Wallstreet by Burton G. Malkiel, its been a while since i read it, but it documents many previous booms and bubbles, going farther back than the DJIA.

    As for the book you're looking for, no ideas on that one. I suggest one on modern history; ie circumstances leading to the Great Depression, the controlled economy of the 40's, post war industrial boom, oil crisis' of the 70's, S&L issues of the 80's etc... None of that stuff is hidden from history, and it's all pretty straight forward, just like we're not at the point of this "crisis" that while we still don't see the way through it (if there is one), we can definetly look back and see the issues that lead up to it.
Content Name: StandardBottom
Preview Revision #:
Active Revision #:
Edit Content
 


ZeccoShare is currently in Beta mode. In case you wish to provide feedback, please post it in the ZeccoShare Forum.

ZeccoShare provides a confined and secured environment. The information you share (e.g. profile, holdings, trades, performance) is only displayed to other Zecco members. Guest (i.e. not signed in) are not able to see any individual member information. Guests will only be able to see anonymous, aggregated community data.

Zecco members marked with a ‘Zecco Associate’ medal are employees of Zecco.com. They are not registered representatives of any broker/dealer, and are not registered with any national securities exchange. All information displayed and all posts made by these users are their personal information and opinion, and not the opinion or information of Zecco.com. Zecco.com is not a broker/dealer, has no access to material non-public information about publicly traded companies, and does not make any recommendations regarding the purchase or sale of any security.

All content in the ZeccoShare community is provided for educational and informational purposes only, does not constitute a recommendation to enter in any securities transactions or to engage in any of the investment strategies presented in such content, and does not represent the opinions of Zecco Holdings or its employees. Your use of the ZeccoShare Community is conditioned to your acceptance of all Disclosures and Terms of Service.
Close [X]
Content Name: CommunityDisclaimerLong
Preview Revision #:
Active Revision #:
Edit Content

More details about online investing and trading stocks with Zecco Trading:


Zecco Trading has reconstructed the mold of options trading and stock trading online, making it easier than ever for you to get smart and act smart with your money. Need to sell stock or buy stock online, interested in penny stocks? With Zecco Trading, you get 10 free online stock trades each month with $2,500 or more. That’s right, free online stock trading. Otherwise, it's only $4.50 per stock trade. Where else will you find a discount broker who looks out for your best interest by providing you free online stock trading and a community of investors to share ideas with?

The ZeccoShare Community is a great compliment to Zecco Trading. With ZeccoShare you can learn online about stock trading and get advice on stock trades and options trades from people who invest like you and who have similar risk tolerance. Who says online investing is complex? It doesn’t have to be. With ZeccoShare you’ll be able to ask questions, contribute investing ideas, share your investment portfolio (but not any dollar amounts), share your stock trades or options trades and your investing performance to help everyone learn to be a better investor.

Read our education section for information on How to Trade Options.

Terms of Service - Privacy Policy


Zecco.com is a financial portal of Zecco Holdings, Inc., which also provides access to Zecco Trading, Inc.’s trading service. Zecco Holdings, inc. is not a securities broker/dealer. All securities and investments are offered to self-directed investors by Zecco Trading, Inc. Member FINRA /SIPC. More information is located on the disclosures page.

At Zecco Trading, you can make up to 10 free stock trades in any one month that you maintain a $2500 minimum account net equity. After that, you pay only $4.50 per stock trade. Options trades are $4.50 plus $.50 per contract. Only the first account of any account type is eligible for the Zecco Trading, Free Trading program. Any multiple accounts of the same type with the same registration are not eligible for the free trading program. Free Trading Program is only available through Zecco.com. $0 minimum to open cash and IRA accounts.

* Margin accounts require a $2,000 minimum balance for opening and trading on margin. Margin trading involves risks and is not suitable for all accounts.

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options.

Multiple leg options strategies involve additional risks and multiple commissions, and may result in complex tax treatments. Please read Spread Trading Disclosure.

Investors should consider the investment objectives, risks, and charges and expenses of a mutual fund or ETF carefully before investing. A mutual fund/ETF's prospectus contains this and other information, and should be read carefully before investing.

System response and access times may vary due to market conditions, system performance, and other factors.

The content of Zecco Holdings, Inc.'s and Zecco Trading, Inc.'s websites, including research, tools and securities symbols, is for educational and informational purposes and should not be intended as a recommendation or solicitation to engage in any particular securities transaction or investment strategy. You alone are responsible for evaluating the benefits and risks associated with the use of our services or products and to decide which securities and strategies better suit your financial situation and goals, risk profile, etc. The projections regarding the probability of investment outcomes are hypothetical and not guaranteed for accuracy or completeness. They do not reflect actual investment outcomes and are not guarantees of future results. Projections and tools' calculations do not take into consideration commissions, margin interest and other costs that will impact investment outcomes. All investments involve risk. Losses may exceed the principal invested. Past performance of a security, market, or financial product does not guarantee future results. Neither Zecco Holdings, Inc. nor Zecco Trading, Inc. offers any tax, legal or financial advice.

No consideration was paid for any testimonials displayed on this website. Your experience may vary, and the testimonials are no guarantee of future performance or success. Zecco Holdings, Inc., Zecco Trading, Inc.'s and their independent providers are not liable for any errors, incompleteness, or delays, or for any actions taken in reliance upon information contained herein. By accessing our websites, you agree not to redistribute the information found therein.

Market Data Copyright © QuoteMedia. Data delayed 15 to 20 minutes unless otherwise indicated. RT = Realtime, EOD = End Of Day, PD = Previous Day. Powered by QuoteMedia. Terms of Use.

© 2006-2008 Zecco Holdings, Inc. and Zecco Trading, Inc., Member FINRA /SIPC All rights reserved.