If you want to invest in stocks, find an advisor that you trust. You can easily avoid silly mistake simply by listening to the people who know the ropes.
Learning About Stock Markets
A main reason to get in the stock market is to make money.
The only way to make money in the stock market is to learn about it inside and out. When entering the stock market be ready to swim with the sharks as the people you will find there will be smart and ruthless and will not hesitate for even a second to take your money. It is more like playing poker where you will find yourself on the short end of the stick.
Perhaps in a more formal setting other ways that one can learn is to go back to the masters. If you look at Graham and Dunn for instance, they were professors at Columbia University and they wrote which really served as the back bone of the investing activity globally. Other masters that you can read include the annual report of Berkshire Hathway.
In the very beginning of that report there is a letter that the chairman, Warren Buffett writes to share holders. It is only a couple of pages but it’s great. Look at it for every quarter for the last 10 to 20 years to get a sense of how this legendary man invested the cash in their company to become one of the richest men in the world today.
Other things that you can look at include another fellow whose name was Peter Lynch who years ago worked for Fidelity Investments as a research consultant. He ran the Magellan fund and if you are old then you will most probably remember him. He has written a series of books that are wonderfully practical which you can pick up at any public library and read although the companies listed there might be a little old but the concepts are not, valid and live even today.
Once you are in the stock market you need to be careful as you are playing with pros and it is probably better to practice before you play with them. Learning stock markets inside out is much easier than it is made out to be, so get started. What are you waiting for?