How to help my kids learn more about analysis?

Recommendation for getting teen and early 20s sons who are starting to save and invest to get their head around the basics of trading (e.g stockpicking). I've got them DCA into VAS and VGS, and suggest they should have a slush fund to tilt into individual stocks and/or industry ETFs.

Looking for recommendation for a couple of books/sites they can use to get their head around basic analysis, etc. and even play with demo account with what they read about.

Thanks

 

Short term trading or value investing?

Always liked Beating the Street by Peter Lynch for value investing.

 

I am currently reading Shareplicity. It's fairly broad, simple to understand and a good introduction.

 

The Concious Investor by John Price is a good read in that regard. Detailed enough without being as heavy as the Intelligent Investor by Ben Grahem.

It doesnt really go into security analysis but I think one of the best books to come out of Australia is Motivated Money by Peter Thornhill.

I studied Finance at uni (so including security analysis) and I honestly believe psychology combined with a very basic understanding of what to look for is more important than any great analytical ability for most people.

I've been moving out of individual share holdings and towards ETFs while simply trying to perfect my discipline.
Most success I had 'picking winners' was in my humble opinion as much luck as anything else.

 

Louise Bedford Charting Secrets is an excellent intro to technical analysis and risk management.

 

Study mathematics, psychology & finance. These are the things that describe how the world works.

 

Thanks everyone for your recommendations. Have passed onto the boys. Now its up to them (with some handholding).

 

Not sure what industry they’re in. But if they were remotely interested in finance, I’d encourage them to go to NY or Hk to work in finance.

Why restrict their thinking to something like an industry ETF?

 

One is studying mechatronic engineering (robotics) and the other psychology - no finance.

The thread is more about how to get them started with a good foundation in buying and selling stocks - e.g. books, videos to follow, "paper money" trading sites to test their learning before using real money, etc.

 

Does it also make sense to teach them financial basics? Saving, compounding, cashflow, jobs, business, gearing, etc as well as specifics like shares?

 

Those are regular dinner table conversations I have shown our (parents) financial strategy, plan and investments (property, SMSF, ETFs, etc). Given them lots to read, they're ready to get started. I'm just not the right person to guide them through stockpicking. I'm just looking for the "wisdom of the crowd" for them to not have to waste countless days finding good quality guides on stockpicking. We have ETFs, DRP, buy/hold covered.

Whilst I really appreciate the generic suggestions, the original question was around guides on analysis to do stockpicking. If there are those available from the experience of the members here, whose experience I respect enough to ask, that would be great. Thanks.

 

Once you understand TA enough to create a method or system, you can program software to do the picking based on your own criteria. Or you can manually trawl the charts to see the right set up.

Is that what you mean?

 

Thanks Jess, it's more like a "Stockpicking for Beginners/Dummies" starter kit for teenagers wanting to get going on stockpicking. As Buffett has said, as someone who bought their first stock at 12, his only regret is he didn't start earlier.

I guess I'd like them to understand the fundamentals of how stock prices are determined (projected net profit x industry multiple / dividend distribution, etc.), what kinds of research to keep their finger on, how to set up stock screeners, how to do "paper money" investing to test their system before they jump in with their real hard earned cash, etc. etc. I speak with them regularly abut investing and have them DCAing into VAS and VGS. This is more about learning how to pick a handful of stocks for their own portfolio and manage that. It's to get them to get themselves up to speed faster and on top of what I talk to them about.

There have been lots of good books recommended here. A "soup to nuts" guide would be great.

 

Yeah, because of compound interest.

Why have them waste their time and efforts on stock-picking then? (only to under-perform their passive portfolio in the long run)

 

My son is currently reading The Barefoot Investor, he is 19 and he also started investing into Vanguard ETFs and index funds

 

The best way to learn something is to actually do it. Tell them you will match their investment, with a cash contribution, if they analyse an investment and report back before jumping in.

 

I like that Terry, thanks

 

Thanks Nanette, I've got them on the ETF wagon. Now lookiong mfor them to get some "stockpicking fundamentals". I have, in my research, come across the podcasr series by EquityMates, which I have found to be a good "basics" intro (no technical or business analysis, just a step by step "what to do" guide)., if that will help your son, here's the link: Equity Mates Investing Podcast - Equity Mates Investing Podcast