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by WJW 2241 days ago
First off: Well done saving up! If you are paralysed about (getting started with) investing, I can recommend the books "A random walk down Wall Street" and the (very thick but well worth it) "The intelligent investor".

Especially the last one opened my eyes a lot about how to approach investing. I have the revised edition from 2006, though the original publication was in 1949. The 2006 edition has a section after each chapter discussing how the original chapter fared in the decades after publication. Without exception, the lessons discussed in the book from the 1929 recession and earlier turned out to have been very applicable in the dotcom crash of 2000, the "black monday" crash of 1987, etc. It really shows how most things are nothing new and gives a lot of perspective on the markets.

Reading up and understanding how the stock markets work can take away some of the pressure. Finally, there is no rule about having to start big or small. If it makes you feel better, start with $500 and see how it goes. The sister comment by "ForHackernews" about starting with a diversified index fund is good advice (and probably what you'd conclude anyway after reading the books).

1 comments

One Up On Wall Street, Peter Lynch
I am currently reading this and I can't help but think every single page is a puff piece on how many stocks he owns and which opportunities he did and didn't see.

It doesn't feel like learning about investing for a beginner but rather an autobiography on his portfolio. What did you like about it?

The idea that one can go about his own world, think for himself, and get into positions based off his own information advantages before wall street catches on. As a type 1 diabetic, this idea has paid off handsomely with my returns on $TNDM and $DXCM