It has become important in today’s time that the new investors who are starting to take their 1st step towards the basics of the stock trading have an access of many quality education sources. It is almost like when we are learning to ride a bike, we need to keep pushing the paddle to keep moving and maintain a good balance.
One of the most important benefits of stock trading is that it is like a game that can last a lifetime! The investors in the markets have years for developing and honing their skills. The tactics and all the great strategies which were in use 20 years ago are yet considered very useful in today’s date. This game can be said be in complete force all the time.
Given below are a few steps for the new investors who want to go ahead in this field. These are the tips for you to understand how you can get started!
1. Opening an account for stock broker
Your first step should be to look for a great online stock broker and to open the account. Learn about the layout and about taking benefit of the tools of free trading and the research which are only given to clients. There are many brokers who also give virtual trading. This can be very beneficial for you as you can then trade with the play money. There are many helpful sites which you can follow for knowing about some of the good online brokers.
2. Reading books
Why books you may ask when there are many better options? Well, the simplest answer is they are a huge amount of information for the lifetime! Also, they are inexpensive than most of the other options like seminars, educational DVDs which are sold worldwide, classes (they are quite costly, honestly) etc. The one book which is most liked by many people is called ‘How to make money in Stocks’. It is written by William O’Neil who is also a author of CANSLIM Trading.
3. Reading articles
Other amazing resources of education are the articles. Some of the articles that are recommended are- investopedia.com and Google Search (most obviously).
4. Look for a mentor
An advisor or a mentor can be anyone, a member of the family, a current or past professor, a friend, a co-worker and just anyone who has a good knowledge of the fundamentals of stock market. The quality of a great mentor is that he always there for you to give guidance, willing to give you answers for your questions, suggest good and profitable resources and helps in keeping your spirits high when the exchange is playing tough. All the successful investors who have been there have had good mentors in their beginning stages.
You can also participate in the forums for any kind of queries that you may have about the trade. Two of them are Trade2Win and Elite Trader.
5. Studying and analyzing the greats
To learn about the great investors from the past can provide you with inspiration, perspective and acknowledgement of the trade game. Among the great investors are- Jesse Livermore, Warren Buffet, Benjamin Graham, George Soros, Peter Lynch, Paul Tudor Jones and John Templeton, including many more. One of the best book series that you can look for learning about online trading is- ‘Market Wizards’ written by ‘Jack Schwager’.
6. Reading and following the market
Some of the new sites which aid the new investors are- ‘Google Finance’ and ‘Yahoo Finance’. For an even better analysis and study, you should go for Bloomberg and Wall Street Journal.
By having a good look on the market and reading about it in the headlines religiously, you can expose yourself to the third party analysis, trends and also general business and economic concepts. Observing the fundamental data and pulling quotes can also be good source for exposure.
TV can also be a good way for monitoring the market. CNBC is among the best channel for the same. Even if you watch the channel for mere 15 minutes every day, it can help you broaden your perspective about the trading market. Do not let the way of the news or the lingo be a problem, all you got to do is just watch and let the commentators, discussions and interviews soak in.
But you should also be beware because as the time passes and you start learning about the trade, you may realize some of the shows on investments that are telecasted on the television to be completely just an aberration and you may realize that most of them are just full of junk. Well, to be honest, this is a natural change. That’s when you know you have started to understand the trade in a lot better way and you’re not alone to think this way.read more