How can one explain how to start investing in stocks?

I was actually a hedge fund manager, and I started looking for stocks during college.

Unfortunately, my investment experience changed dramatically between a few thousand dollars and I actually got a job where I was paid to invest in other people.

Here is a big difference:

Principal-Agent problem: as you invest in someone else’s name, how do your incentives fit in? There are many models in the investment industry.

Market impact: If you have money in your pocket, you probably do not think about it.

Scalability: there are a variety of strategies that can consistently make a small amount of money. If you are a great player, you may not bother.

Costs vary from institutional investors. It doesn’t mean it’s cheap, but it is designed differently. This has an effect on what you wake up to.

Investment horizons: Most investments have a monthly report of some kind, which you want to look good. Each person can make his own choice.

Info: You will not have conversations with buyers in your home trading account. This can be good or bad.

Stock market fetish: for some reason, everyone who stays at home thinks about shares in public companies when they think of “investment”. There is a large investment area there: Single Shares, Business Bonds, Government Bonds, Interest Rates, Finance, Assets, Assets, etc. The smallest part of my job was trading stocks. Whatever you end up doing, you need to make sure you keep an eye on the big picture. See Soros, Alchemy of Finance. He talks about the whole burden of the market.

Instrument fetish: for the same reasons, you read many DIY vendors talking about stocks and options. They go on and on about expired graphs and so on, without really understanding how the options work. (Hint: it is about volatility, not quantity.) Other resources you need to understand are bonds and volatility. Any financially sound introduction book will do. I usually give Hull.

Tip:

Do not dwell on details, read more about various topics. FT or WSJ. An economist. Have a thesis about what happens.

Do not follow any particular opinion. You need to see them all before you make a decision. I think of everything basic / technical.

Danger: you need to know what this is, even though there is no substitute for experience. Nassim Taleb’s books are good (pop). He also has a technical book on metals from other sources. I have signed in person