The first steps new investors should make is to learn the basics of stock trading as well as gain access to sources of quality finance education. Just as riding a bike or playing the piano, trial and error are help investors progress and gain helpful experience that will ultimately lead to success.
One significant advantage to following stock exchange is that the game will last a lifetime. This allows investors to gain years of experience and develop their skills, strategies, and even advice.
Here are eight ways new investors can learn stock trading.
Finance books provide a ton of information and can be found anywhere. Books are also a great substitute when compared to the costs of seminars, courses and DVD’s sold on the web. Be sure to check out the top-selling books on trading. For new investors, consider How to Make Money in Sticks by William O’Neil.
Articles online are an excellent way to find useful resources for investment education. You can check out recommended websites for investments on Google search and investopedia.com
Open a Stock Broker Account
Search for a quality online stock broker and set up your account. Learn the ins and outs of the site and become familiarize with the layout. Use the free trading tools and researched that are offered on the site to your full advantage some brokers even offer virtual traditions where you can trade with play funds. Check out StockBrokers.com to compare online brokers that meet your interest.
Find a Mentor
Whether the mentor is a relative, friend, professor, or even your neighbor, find an individual with a fundamental knowledge and understanding of the current stock market. Mentors should be able to provide help, motivation and recommend useful sources to help you get through. Remember, success doesn’t always mean you have to start by yourself. In fact, all successful investors today have had mentors in their early years.
You can also use sources of forums for questions like Trade2Win and Elite Trader. Just stay cautious of who you listen to as a vast majority are not professional traders. Be careful of any advice and use it to your best decisions.
Read up on the market and stay updated
Follow news sites such as Google Finance, CNNMoney, and Yahoo Finance. These sites serve as a great resource for new and old investors alike. If you’re looking for broad, in-depth coverage, check out the Wall Street Journal. Monitoring the stock markets every day and reading the latest news can help you gain a thorough knowledge of reoccurring trends, economic concepts, general business and third party analysis.
Observe fundamental data and the news on TV to help monitor the market every morning. Watch CNBC to get the most out of the stock exchange market and broaden your knowledge in finance. Simply follow the interviews, discussions, and commentators to get a good description of what experts think.
Consider Subscribing to Paid Subscription
Paying for valuable research and analysis can be educational and benefit the user. Investors even find that observing market professionals be more beneficial than applying new lessons. Be cautious as many paid subscriptions are from free services and traders that make significant claims. Nearly 99 % of these paid subscriptions are scams.
Go to Seminars & Take a Few Classes
Attending seminars can provide valuable information and insight in the overall stock market. Most workshops will also focus on a particular aspect of the market and discuss how to utilize their strategies to achieve success. As many workshops are free, some are often paid with certification. Just be cautious of the sales pitches that may come towards the end.
Be careful with courses that cost well over $1,000 as many offer false promises. Their foreign sales will suck you up and take your money, providing a strategy that offers little to no profit.
Practice trading with a simulator and purchase your first stock
Using your online broker account, the best way to get started is to take the plunge and buy your first stock. Don’t be afraid the make your first trade and start small. You can start with as little as 1 – 20 shares. Starting small will help you build your confidence and get you in the game.
If you don’t want to trade with real capital, consider using a stock simulator for virtual trading. One common mistake traders make trying to go all-in with a full portfolio. This painful mistake is why many investors end up losing their investments early on.
Got any tips for new investors? Comment below and let us know what you think!