For a long time, I passed by The Neatest Little Guide To Stock Market Investing because I thought the title sounded hokey. So, as I would peruse the book store for new and exciting stock market investing strategies. You can’t find that in a hokey book like stock market investing for dummies type thing. No way. So for a long time, I overlooked Jason Kelly’s book in search of greater books. Finally, because I had pretty much checked every other stock market investing book out that was available at Borders and there was nothing else to do, I skimmed through it.
I was pleasantly surprised. And here is what I learned. The first secret of the of the book is that he does give you some specific and easy to understand investment strategies. While he does go into good detail about the options you have as far as investment philosophy, he also delves into what you can do right now to start investing in the stock market. While I didn’t look at the previous edition, the 2010 version also shared with me the biggest secret I thought that I picked up on from his book and that is how to use a watch list.
This is an area that I don’t find discussed much in many of the books. Sure they all give the topic of lip service, but nobody really walks you through the mechanics of how to set one up and how to use it. I only wish that he would have gone into greater detail about how to prune stocks from the list. He recommends that you keep a list of ten top notch stocks and when you find a better one, you get rid of the worst one on your list.
That’s great in theory but when you have 20 different criteria, how do you decide what is exactly better if all your stocks meet certain thresholds. I wondered that and emailed him. His book said to do that if you needed additional information. But alas he doesn’t respond so I was left to my own methods and that was to let your list grow for all the stocks that meet your minimum standards. If your list gets to big, raise your minimum standards for earnings and sales or for some other category until your list shrinks. As soon as a stock falls below your minimum requirements then let it go.
To me that was the biggest “secret” I learned but I guess I taught part of it to myself. Nonetheless, this stock market investing book might deserve a look for your library.