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Stock WatchTower
Resources for New Investors


Buying and selling stocks can be very confusing.  The following are some resources to help you get started on the process.

Quick >>> What is the best strategy for investing in stocks?
The frustrating answer for new investors is:  "It Depends".  There is no one correct investment strategy.  Some people prefer a buy and hold strategy, some prefer high risk / high reward strategies, and some just want others to make their decisions and buy on a hot tip.

Develop your own investment strategy
Choosing an investment style that is correct for you is the place to start.  Some strategies require that you check your stocks every day in order to be prepared for buy and sell signals, some prefer low P/E ratios, and some prefer high growth regardless of P/E ratios.

Where can you learn more about investment strategies?
The following are all classic and highly regarded resources that discuss different investment strategies.  One of these would be a good place to start the learning process.

Books & Audio Books

Growth Strategy:  How To Make Money In Stocks: A Winning System in Good Times or Bad, 3rd Edition, by William J. O’Neil, founder of Investor's Business Daily.  This is the best book to learn about combining chart patterns with fundamental stock information.  It explains the terminology behind the "base" of a stock using the Cup with Handle base pattern.   William O’Neil also has other excellent books that you should also read.

Buy what you know:  One Up On Wall Street:  How to Use What You Already Know to Make Money in the Market, by Peter Lynch.  Peter Lynch summarizes his approach of finding companies based on useful products and services that you use yourself.

Growth Strategy:  "Big Picture Investing", by Peter Navarro, 2003, Audio Book, ISBN 1-4025-4780-3.  Peter Navarro also has several print books that you could consider.  This audio book provide a system for selecting stocks suitable for finding growth stocks.  It emphasizes how the economy is tied to the stock market, understanding the current stock market trend, and selecting stocks in synch with the trend.

Organizations

; American Association of Individual Investors.  Membership fees are nominal, and they have an excellent website and newsletter to provide information for new investors.  They have a second newsletter called Computerized Investing to discuss software and web tools for investing.

Websites

IBD:  Investors Business Daily.  IBD publishes a daily newspaper and maintains an excellent website.  Both contain resources for new and experienced investors with the main focus on growth stocks.

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