Where Should I Start?

by Manoj Kumar Das
(West Bengal)

Respected Sir,

I am a small investor today and am trying to understand this market. I think it is not enough to read a book and learn everything.

Today market is totally change like swing, volatility and not to be assume any particular stock give some money. I think if I do not know about fundamental strategy I cannot do anything, because technical analysis does not solve all problems and is not a good guide. If I have no knowledge about market today what to be done, so how can i do the job and invest my money?

I hope you understand my problem. If you understand my problem, please suggest to me and send material of fundamental analysis and good website to develop my knowledge absolutely free.

Thanking you,

Manoj

Editor's Comments: Thank you for getting in touch Manoj. For new investors we would normally suggest some of the broader based investment books. Our favourite - without a doubt - is by Lawrence Cunningham and is the edited version of Warren Buffett's annual reports for Berkshire Hathaway. We feel that this is a wonderful book for any investor, fund manager, businessman or manager and has excellent logic that could be applied to most - if not all - businesses.

However, with regards to the current market, you are not alone. The months towards the end of 2008 have been incredibly volatile. Trillions of dollars has been wiped off the values of the US stock markets, and much more elsewhere.

This has been in part due to the demise of several major investment banks. As their trades and derivatives have been unwound, there has naturally been a lot of selling. This has depressed values.

It is worth remembering though that investment is never a sure thing and there are no guaranteed returns in the stock market.

But all is not lost. When values are low and prices depressed, value investing can be an excellent strategy for the long-term. It is always important to select sound businesses to invest in, now more than ever.

Therefore, we would suggest that you look to read anything and everything that you can find about Warren Buffett and Benjamin Graham. We even have a value investment section on this site!

Good luck and Best Wishes!

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