How do I get started in investing at the age of 19? What books would you recommend, and what steps to take after reading them? - Seedly
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Anonymous

Asked on 11 Sep 2018

How do I get started in investing at the age of 19? What books would you recommend, and what steps to take after reading them?

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Isaac Chan
Isaac Chan
Level 8. Wizard
Updated on 30 Jul 2019

Hello!

It would be a great help if you could understand how to read financial statements, such as income statements, balance sheets and cashflow statements. These statements can be found in the annual report of companies listed on stock exchanges. These statements form the basis for quite a good number of investments, as they tell about the financial health of the company!

Companies can smoke investors by saying that they their company has performed very well over the last few years, but numbers don't lie. More importantly, asset classes such as stocks, bonds, ETFs and REITs all utilises financial statements to understand what kind of investments to develop.

You can read more about financial statements at the following sites:

https://www.sec.gov/reportspubs/investor-publications/investorpubsbegfinstmtguidehtm.html

https://www.thebalance.com/guide-to-understanding-financial-statements-357512

https://corporatefinanceinstitute.com/certifications/financial-modeling-valuation-analyst-fmva-program/

Video:

https://www.coursera.org/learn/financial-statements

https://www.youtube.com/watch?v=Jkse-Wafe9U

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Jia Ni Toh
Jia Ni Toh

30 Jul 2019

I totally agree. There are a couple of other things, I like "You Can Be a Stock Market Genius" by Joel Greenblatt. It's a book that's not too technical and gives you a good sense of how to get started.
Leonard Tan
Leonard Tan
Level 6. Master
Updated on 19 Feb 2019

*Benjamin Graham's "An Intelligent Investor"

-the founder of value investing, a must read for all investors

Phillip A Fischer "Common Stocks & Uncommon Profits"

-More qualitative take as compared to Graham, Warren Buffett calls himself 80% Graham and 20% Fischer

*Burton Malkiel's "A Random Walk Down Wall Street"

-Classic on financial markets valuation techniques

*Pat Dorsey's "Five Successful Rules of Stock Investing"

-One of the most practical investing books out there

1.Start a investment stock simulator account(investopedia has one) (not for everyone)

2.Accumulate savings in the meantime

3.Open a trading account(do some research on brokerages available- charges and commissions especially if you intend to trade more actively)

4.Trade when you are ready

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Soh Sing Heng
Soh Sing Heng, Financial Blogger at SG Young Investment
Level 5. Genius
Answered on 11 Sep 2018

For a list of books I recommend, you can refer to this link: https://sgyounginvestment.blogspot.com/p/books-i-recommend.html

The next step is to get started in investing. Start small and have a feel. When you put your money in, you'll start to learn even more :)

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Davin
Davin
Level 7. Grand Master
Answered on 24 Feb 2020

I would recommend some easy to read books like Rich by Retirement and Quit Like a Millionaire. Not too technical and easy to execute.

Start small and you will be fine. I hope I started at 19 years old like you.

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Frankie Aufhauser-Rappaport
Frankie Aufhauser-Rappaport
Level 9. God of Wisdom
Updated on 21 Feb 2020

Hi, optimum choice to start investing in your young age.

the book recommendations already mentioned are fine.

you don't need to read a lot of books, though.

what you should incorporate into your actions early however are timeless 'truths' of investing:

-time horizons for equity to hold are at least 10 years (patience ...)

-invest periodically (cost averaging)

-reduce cost of investing as much as you can (brokerage commission fees and account maintenance fees, cheap products like ETFs)

-diversify (ETFs)

-avoid trading (nobody can time the market), instead Buy&Hold

-don't trust finance professionals too much (they often are biased to recommend their own expensive/underperforming products like unit trusts or incomprehensible structured products)

-avoid the 'bad ones' (unit trusts, options, CFDs, ETNs, ...), also investing into single stocks as a retail investor is controversisl when studies show that even the pros are incapable of picking stocks successfully over the long term (compared to market benchmarks)

-avoid greed, with equity investing 3-5% nominal annual performance averaged over longterm is good, 5-10% very good, 10-15% would be fantastic

more on my thinking:

https://seedly.sg/questions/what-is-your-general-investing-philosophy-strategy​​​

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