{"id":57615,"date":"2025-01-09T09:00:00","date_gmt":"2025-01-09T08:00:00","guid":{"rendered":"https:\/\/www.captrader.com\/?p=57615"},"modified":"2024-12-27T11:12:01","modified_gmt":"2024-12-27T10:12:01","slug":"stock-market-easy-to-understand","status":"publish","type":"post","link":"https:\/\/www.captrader.com\/en\/boerse-leicht-verstandlich\/","title":{"rendered":"STOCK MARKET EASY TO UNDERSTAND"},"content":{"rendered":"
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by Rolf Morrien and Judith Engst is a very popular financial book that aims to give beginners a structured introduction to the world of the stock market. The eighth, completely updated anniversary edition has now also made it into my hands and provides practical tips on the stock market that can be implemented even without prior knowledge. At 250 pages, the book is aimed at readers who are looking for a sound basis for building wealth and investing successfully in the long term.<\/p>\n\n\n\n

Content and structure<\/strong><\/p>\n\n\n\n

The book is divided into ten clearly structured chapters, ranging from the basics of the stock market to portfolio optimization. In the first chapter, Rolf Morrien and Judith Engst explain in practical terms how stock markets work and what historical lessons investors can learn. Vivid examples, such as the \"tulip mania\", illustrate the risks of speculative bubbles and the importance of rational decision-making.<\/p>\n\n\n\n

Chapter two is dedicated to the various stock exchanges in Germany and their specific characteristics. Readers learn which stock exchanges are particularly suitable for certain asset classes. In the fourth chapter, the authors advise against risky investments such as penny stocks or cryptocurrencies, as their risks are often difficult to assess, and not just for beginners.<\/p>\n\n\n

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Practical tips for investors<\/strong><\/p>\n\n\n\n

Rolf Morrien and Judith Engst offer a wealth of practical advice on how to successfully enter the stock market. Chapters six and seven are devoted to fund savings plans and share savings plans. Readers learn how to invest small amounts on a regular basis in order to build up long-term wealth. The so-called \"cost-average effect\" is explained clearly and shows how average costs can be reduced.<\/p>\n\n\n\n

The ninth chapter focuses on portfolio hedging. Readers learn how they can protect their equity portfolio in times of crisis. The authors describe various instruments for portfolio hedging and explain why these are not a magic bullet, but nevertheless offer important security.<\/p>\n\n\n\n

Financial education and retirement provision<\/strong><\/p>\n\n\n\n

A central concern of the book is to raise readers' awareness of the importance of private pension provision. The authors emphasize that traditional forms of investment such as life insurance are becoming increasingly unattractive - in essence, they are no longer relevant. They motivate their readers to use the stock market as a tool for long-term wealth accumulation in order to avoid poverty in old age.<\/p>\n\n\n\n

I was somewhat critical of the strong focus on analyzing individual stocks in the later chapters. However, space was also given to investment opportunities that are sometimes completely irrelevant - especially for beginners. This could have been better used to talk about opportunity costs or the inadequate forecasting skills of the supposed financial experts. However, in view of the authors' activities, they would obviously have had to cut themselves in two.<\/p>\n\n\n\n

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\"In view of the major challenges in the area of private pension provision, staying away from the stock market is the wrong decision. Long-term investments offer high and comparatively secure returns that cannot be achieved with short-term savings. Demographic trends and structurally low interest rates make private pension provision a must.\" <\/em><\/p>\nRolf Morrien and Judith Engst<\/cite><\/blockquote>\n\n\n\n

A few words about the authors at this point:<\/strong><\/p>\n\n\n\n

Rolf Morrien<\/strong>born in 1972, studied history, economics and politics in M\u00fcnster and Vienna and trained as a business journalist. Since 2002 he has been editor-in-chief of the stock market service The depot optimizer<\/em> and specializes in value stocks. He has also published a series of books on stock market legends such as Warren Buffett and Benjamin Graham.<\/p>\n\n\n\n

Judith Engst<\/strong>born in 1970, is a business and financial journalist with an MBA. She specializes in investment, personal finance and tax. With her ability to make complex topics understandable, she has written numerous guidebooks and has set herself the goal of empowering readers to develop a clear and well-founded financial strategy.<\/p>\n\n\n\n

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\"There are trading strategies that have achieved good results in the past, but without any guarantee of profit. Automatic trading strategies can be supportive, but in the end it is the human mind that counts. Investing for the long term and avoiding emotional decisions lays the foundation for a successful investment.\" <\/em><\/p>\nRolf Morrien and Judith Engst<\/cite><\/blockquote>\n\n\n

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\"Person<\/figure>\n<\/div>\n\n\n

At first glance, the book looks professional and tidy. It gives the impression that it was planned from the outset as a standard work for beginners. The anniversary edition shows that it has been on the market for several years and has been regularly updated.<\/p>\n\n\n\n

As soon as you look through the table of contents and the first few chapters, it becomes clear that the book is clearly aimed at absolute beginners to the stock market. However, some sections may seem a little too detailed for experienced investors. One example is the detailed description of how to choose a broker, or the explanation of the legitimization process via video or postal ID over several pages.<\/p>\n\n\n\n

The language of the book is simple and clearly aimed at beginners. Technical terms are explained in detail and the individual steps are divided into many sub-steps. For readers with stock market experience, this could lead to them skipping chapters and still having the feeling that they are not making progress. However, this approach is understandable for the target group.<\/p>\n\n\n\n

However, it remains questionable why beginners are later confronted with superficial chapters on complex topics such as equity analysis. The situation is similar with the description of various asset classes such as participation certificates or mixed funds. The impression is created that the authors wanted to write something on many topics without expressing a clear opinion or in-depth analysis. Diversification is above all else - everything goes in the shopping cart.<\/p>\n\n\n\n

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\"There are two major issues when it comes to funds: - Should investors invest in (expensive) funds at all, or would it not be better to filter out the most promising bonds and shares? - Are actively or passively managed funds better? We have already answered the first question in the equities chapter: it depends on the factors of time and knowledge. If you as an investor have a lot of time and the necessary expertise to evaluate the stock and bond markets, you have a good chance of achieving a better performance with the stockpicker strategy than with a pure fund portfolio. In practice, the factors of time and knowledge are likely to mean that private investors have the domestic stock market relatively well under control, but will have to pass when analyzing the Chinese stock market or the international commodity markets at the latest. Our recommendation right at the beginning of this chapter is therefore to focus on individual stocks (shares, bonds) and funds. As a rough rule of thumb: When selecting individual stocks, concentrate on the markets that you are familiar with. \"Exotic\" markets, on the other hand, can be covered more successfully in the long term with funds.\" <\/em><\/p>\nRolf Morrien and Judith Engst<\/cite><\/blockquote>\n\n\n\n

The discussion on passive investing in particular shows that scientific findings do not have the highest priority. The authors argue that private investors can be successful with individual stocks on domestic markets such as Germany or the USA. However, this statement ignores the high information efficiency of these markets. It is precisely here that active investing makes little sense for small investors. Paradoxically, less noticed stock exchanges and second-line stocks offer more potential, but are hardly discussed in the book.<\/p>\n\n\n\n

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\"A fund savings plan allows investors to regularly enter the market with small amounts and benefit from the cost-average effect. This method reduces the impact of market fluctuations and is ideal for investors who want to strategically build up assets with manageable sums.\" <\/em><\/p>\nRolf Morrien and Judith Engst<\/cite><\/blockquote>\n\n\n\n

Conclusion<\/strong><\/p>\n\n\n\n

In the end Stock market easy to understand<\/em> A solid book for beginners. However, it remains too superficial in the important areas - such as scientifically sound investment strategies. Instead, the focus is intensively on small details, such as opening a securities account or a separate section on the Hanover Stock Exchange, which offers little added value for beginners. A greater focus on well-founded findings would have given the book more depth.<\/p>\n\n\n\n

With practical examples, clear instructions and valuable tips, the book nevertheless helps its readers to build wealth and achieve long-term financial success. It is particularly suitable for those who prefer active investment strategies and want to use the stock market as the key to private retirement provision. From my point of view, however, there are several books in this subject area that are much more recommendable.<\/p>","protected":false},"excerpt":{"rendered":"

von Rolf Morrien und Judith Engst ist ein sehr beliebtes Finanzbuch, das Einsteigern einen strukturierten Einstieg in die Welt der B\u00f6rse geben m\u00f6chte. Die achte, komplett aktualisierte Jubil\u00e4umsausgabe hat es nun auch in meine H\u00e4nde geschafft und vermittelt praktische Tipps rund um die B\u00f6rse, die selbst ohne Vorkenntnisse umsetzbar sind. Mit 250 Seiten richtet sich […]<\/p>\n","protected":false},"author":6,"featured_media":57619,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[54],"tags":[4407],"class_list":["post-57615","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-literatur","tag-boerse"],"acf":{"blog_summary":"","blog_faq_schalter":"nein","faq_uberschrift":"","blog_faq_loop":null},"_links":{"self":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/posts\/57615","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/comments?post=57615"}],"version-history":[{"count":1,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/posts\/57615\/revisions"}],"predecessor-version":[{"id":57636,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/posts\/57615\/revisions\/57636"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/media\/57619"}],"wp:attachment":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/media?parent=57615"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/categories?post=57615"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/tags?post=57615"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}