Reddit reviews The Neatest Little Guide to Stock Market Investing, 2010 Edition

The Neatest Little Guide to Stock Market Investing is probably the best beginners book that covers most things. I don't think it is too deep on technical analysis (and I never really read that section). I might check out the Visual Investor as mentioned by VictoryGinAndJuice.

Neatest Little Guide to Stock Market Investing

I read a lot of books on investing, and trading. This was by far the shortest and most insightful. It's primarily focused on stocks but it will give you a really good foundation on some basic principles of buying and selling investment products.

I read an interesting snippet the other day which covered how people are generally more risk seeking when trying to prevent losses, and more risk averse when trying to make money.

In the example, a study group was given two options. Option A, they would lose $3,000. Option B, they were given an 80% chance to lose $4,000 and a 20% chance to lose nothing. Even though there is an 80% chance of losing more money, people still will take the risk in order to stop losses, even though 80% of the time they will lose more money.

On the other hand, if Option A is that you will be given $3,000, and option B is that you have an 80% chance of being given $4,000 but a 20% chance of receiving nothing, then most people will opt for Option A and just receive the $3,000, even though now you have an 80% chance of receiving the $4,000.

It came from a great book I am about halfway through "The Neatest Little Guide to Stock Market Investing"