If you are new to IBD, you might agree with a comment like this: Compared to the Wall Street Journal, Fortune and the Financial Times, IBD has so much more useful data and columns designed to help me make money. But I feel overwhelmed. Where do I start? How can I make it work for me right now
It doesn't matter if you are a mechanical engineer, a hotshot lawyer, or had straight A's in AP calculus. One walk through the newspaper would make some folks think that IBD's road to supreme profits is paved with data crunching and charts.
Truth is, you really cannot succeed in investing without being comfortable analyzing a stock's price and behavior. And if you are not willing to use IBD's ratings to compare a stock's profit and sales strength vs. its peers, then maybe IBD's investment method is not for you.
But investors who are motivated to learn how the market truly works and make great trades have a new guide to help speed the learning curve. It may also make the entire investing process a lot less frustrating and painful.
That's the mission of IBD's new book, "How to Make Money in Stocks Getting Started: A Guide to Putting Concepts into Action.
Author Matt Galgani, co-host of IBD's weekly radio show, rightly points out that Bill O'Neil's groundbreaking book, "," contains the facts, insights and details needed to select, buy and sell stocks correctly. But Galgani wanted to create a guide that simplifies the process and helps readers produce good results fast.
"I wrote this book with two types of folks in mind: the new investor and those who have been reading for a while but are not getting as much progress as they like," he says. "The key is to master the fundamentals right from the start, like in sports. After that, you can then do some tweaking in your moves.
How does one get started right
Galgani suggests understanding the three "big rocks" of investing: 1) Only buy stocks in a market uptrend; 2) Focus on the big profit growers and true innovators; and 3) Buy stocks that are being heavily bought by the fund managers and avoid those they're heavily selling.
The book makes a strong case for having sound checklists for buying and selling stocks. And by following a repeatable daily routine (page 99 features a 10-minute one), one can invest without emotion. Making money becomes the priority, not proving to the market or hoping that you are right.
Galgani strives to make you become comfortable with charts. So the book features case studies and quizzes to help readers train their eyes to find the next great Apple (AAPL) of the market.