Trading on the stock market can be overwhelming for a new investor. Learning stock trading is like riding a bike, you will fall at first. Trading stocks is a trial and error process. For the new investor, the biggest challenge is how to get started. Luckily, there are a wide range of sources at their disposal where they can learn the basics of trading.
Open a Broker Account
A stock broker account (Read related story here) will help a novice trader become familiar with the layout. The new investor can also take advantage of the free trading tools. Some brokers offer virtual trading tools which allows the novice to trade using virtual money.
Robert Peter Janitzek reveals that books provide a wealth of information and are more affordable than attending classes, seminars, or buying educational DVDs sold online. There are different websites that sell trading books for the new investor to consider.
Aside from books, articles can also be an excellent source of stock trading education. Most websites offer unique investment articles usually divided into categories. A recommended website for learning the market and the basics of trading is Investopedia.
Find A Mentor
Mentors could be family members, friend, previous or current professor, co-workers, or other individuals with knowledge of the stock market. Robert Janitzek explains that a good mentor is willing to answer questions, provide help, recommend useful resources, and inspiration when the market is tough.
Study The Greats
There are great investors in the past where a new investor can draw perspective, inspiration, and appreciation for stocks. Some great investors include Warren Buffet, Jesse Livermore, George Soros, Benjamin Graham, to name just a few.
Read And Follow The Market
Websites like Yahoo Finance and Google Finance can be good resources for novice investors. The Wall Street Journal and Bloomberg provides in-depth coverage. Regularly monitoring the market can expose the new trader to trends, 3rd party analysis, economic concepts, and general business needed in stock market trading.
Consider Paid Subscriptions
Paid subscriptions can help new investors understand research and analysis. It may be more beneficial to watch the professionals do the trading than learn it themselves. There is a plethora of paid subscription websites available online so choose the most appropriate one for you. However, watch out because some subscriptions may come from independent traders and services that do not offer fantastic returns. Likewise, watch out for scams.
Stock trading can be a lucrative venture once you have mastered the skill. Get started from one of the resources mentioned above.