Value Investing; learning by doing. How to.

[FBeyer]

Contrary to popular belief reading is not learning. Reading is a fast way to make fewer mistakes when doing, but you don't learn until you do something.
I can't figure out a good way to practice security analysis, and specifically how to frame and execute Deliberate Practice, and I would love some inspiration from you.

Is there a good way to get better at analysis without actually buying the actual stocks and watching your trainwreck investments unfolding in real-time?

What did you wish you had done when you started out with fundamental analysis? What DID you do, and how would you have improved upon it?

I have a 30+ year history of doing things the wrong way initially so this time I figured I'd consult with people smarter than me before heading out in the wastelands of my ignorance. I appreciate any help, as well as any links/flaming/harrassment that helps me over this analysis paralysis hurdle.

[NPV]

What about starting by "paper trading" - either literally (doing your research, writing down what you "bought", monitoring performance) or through one of the virtual trading platforms?

[Farm_or]

What I learned the hard way from my couple of years of day trading is that there is no such thing as a sure thing. Short term trading is playing your luck.

Fundamentals do work, but the unknown is the time frame. It takes time for fundamental analysis to take affect. Emotions happen quickly and they're unpredictable.

I now view investing as a long term commitment.

[Sclass]

What did you wish you had done when you started out with fundamental analysis? What DID you do, and how would you have improved upon it?

What I'd tell a younger me: A discounted cash flow analysis will give you a number that is pure fantasy. It can become a reality but at the time you do it you need to make many assumptions about future earnings and interest rates. These things can eventually go very much against you for a myriad of reasons given time. Paraphrasing what was suggested above "the market can stay irrational longer than you can stay liquid." I wrote a python program years ago to do quick DCF before I bought stock to make sure I was getting fair value. I lost a lot with that tool. After getting snared in classic value traps enough times I decided to only use value investing as an ingredient in a more holistic approach.

Thankfully I was never a pure value investor. Early investments in tech that had absolutely insane valuations have erased my history of stupidity. I am really happy I bought a few things with infinite P/E.

I feel it's kind of like what I eat. Given how little I know about what is correct, I mix it up. A little of everything.

[TheRedHare]

I'm in no position to start investing as I want to pay all my student loans off before hand, but I have been looking into marketwatch.com which will allow me to at least learn until I can actually invest.

[Italiano]

Always use a stop/loss and or a trailing stop loss to protect your assets. When you feel you have made your decision to purchase something based on your research stick to your thesis right or wrong. Once you let emotion get in your mind, your back to guessing what already is a Vegas game. Start small to see how the action effects you , what lets you sleep at night. Maybe start with 4 or 5 stocks in different sectors. Gotta get your feet wet if your going to do it but you dont have to jump all the way in.