HOW TO INVEST IN STOCKS

A personal finance book explores stock market theories and mechanisms.

In this guide, Tello takes readers through the methods of stock market investing, defining key terms and explaining basic elements of the analysis, purchase, and sale of publicly traded stocks. The author explains what stocks and options are, which factors influence share prices, and how investors analyze performance in the short and long term. The book also discusses the digital platforms and human brokers who enable investors to buy and sell stocks, addresses risk management and loss mitigation, and introduces the common strategies used to choose stocks for investment. Tello also includes a section guiding readers through the major financial industry publications and makes frequent reference to experts in the field like John Bogle and Warren Buffet. For readers who are unfamiliar with investment terminology and concepts, the volume can provide a high-level introduction to key vocabulary, but it does not serve as a manual for getting started in stock investing. Tello acknowledges early in the book that it is not meant to be comprehensive, but the guide frequently addresses its topics in such general terms and in such a cursory way (“Investors could benefit from assessing how much disposable income they have”) that readers will need to do substantial additional research before they are in a position to consider investing. Informing readers that, for instance, a given metric “can be plotted on charts, and its placement can be calculated using indicators like Pivot Points, Fibonacci Retracement Levels, Bollinger Bands, and Donchian Channels” is of limited use without an explanation of those indicators, which is not provided in the text. While the work is an easy read that may appeal to those in search of basic familiarity with relevant language and concepts, it is much less comprehensive than existing books in the genre. Readers looking to actually begin investing will need to seek more information from other sources.

An accurate but limited overview of investing.