Hacker Newsnew | past | comments | ask | show | jobs | submitlogin
Ask HN: Where did you learn about stock market/startup economics?
4 points by zuck9 on Dec 15, 2015 | hide | past | favorite | 3 comments
In the startup world, you come across terms like equity, shares or vesting very frequently, like when you're reading how Steve Ballmer got rich.

I've got a vague sense of what those terms mean and I feel like I don't understand a lot of what everyone knows, like I have no idea how to talk about equity/stock options if I get a job, or how do they relate to other things, or how the whole stock market works. Let's just say I have zero knowledge of economics.

So where did you learn about it? I'm looking for resources which teaches you only the essential stuff. In depth resources on are also welcome.



In terms of startups, I can't really comment but what I would advise everyone to do is open your own direct trading account. I've learnt more in the past couple years trading my own stocks (and made better returns) than by sitting on the sidelines like most in a bank managed mutual fund.

This will give you a direct line into the transactional world of finance. I learn best by getting my hands dirty.

Start simple, start with a little bit of money. It's crazy exciting to see when you're making money but terrifying when you're seeing it go down. The best thing about having your own trading account is that you're in control. Buy and sell, whenever and whatever you want. Major banks can open one up for you, or there might be other services that offer this as a service (more so in the US than Canada).

Basically, it costs money to put in an order (to buy or sell stuff). The cost for an order generally gets lower with the higher amount of money in your account and varies by companies offering trading accounts. It's usually around $10 a trade. So $10 to put in an order to buy stuff... then $10 to sell stuff.

My 2 cents, buy what you understand. If it's tech, go with tech. If it's farming, go farming. The biggest burns I've personally had was getting into things I don't fully understand.

Do your research on companies, learn what they're doing, read the news. When are their quarter reports released? Are they making money or not? This is the biggest key to make it work. You have to invest time researching what you think can be profitable.


Is this really true? A significant amount of actively managed funds are beaten by index funds. [1] Unless you're an industry expert on a certain field, I feel that this advice will make a lot of people lose a lot of money.

[1] http://www.marketwatch.com/story/whack-a-mole-fund-managers-...


venture hacks is a good resource [1]. Check the employees section for some of the stuff you are talking about.

http://venturehacks.com/archives




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: