My First Investing/Trading Books

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When I was learning about investing in the stock market, I needed books for more information. There are a lot of free pdf on the web but the books that I like, I want to have a hard copy of it so that my children maybe can read it someday. Maybe that will be the legacy that I'll be leaving them. I want them to know money management as it is very important. If only I have known that when we were kids, maybe I have chosen a different path. So, I went to check the bookstore and EXPENSIVE!! I searched for online bookstores that offers affordable books like amazon and I found at about BOOK DEPOSITORY. These are my first books. Jesse Livermore's Methods of Trading in Stocks - Richard Wyckoff This was my first ever book about trading. It has only 32 pages and can be read in one sitting but full of information. It tells about how Livermore's preparation before and after trading, money management, news, stocks to trade and pyramiding.   How To Trade in Stocks - Jesse Li

Term of the Day: Inflation

Inflation is the rate at which general level of prices of goods and services is rising and, consequently, the purchasing power of currency is falling. For example, if the inflation rate is 2%, then a pack of gum that costs $1 in a given year will cost $1.02 the next year.

Inflation is generally measured in terms of a consumer price index (CPI), which tracks the prices of a basket of core goods and services over time.

In the Philippines, as of January 2017, inflation is 2.7% matching DOF's internal forecast which is within the target range of 2% - 4%. Source: http://www.dof.gov.ph/index.php/dof-expects-inflation-rate-within-government-target/

Because of inflation, people invest. Assuming the 2% inflation, a savings account that was worth $1,000 would be worth $903.92 after 5 years and $817.07 in 10 years assuming that you earn no interest rate on the deposit. (Interest rates in the banks usually ranges from 0.25% to 1% which is lower compared to the inflation rate of 2%). That's why it's important to invest in assets that can be reasonably be expected to yield at a greater rate than inflation. (Before doing any investments whether in stocks, bonds, real estate, business etc., due diligence must be done.)

Source: Investopedia

 

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