New investors wishing to trade in stocks should take steps to start learning the basics. There are multiple sources to get quality education and just like you ride a bike, stock trading will require trial and error and ability to remain focused. A fact about stock trading is that the game lasts for a lifetime. You need to keep on learning and understanding the market trends. Investors in stock market have years to hone and develop their skills. The good thing is that strategies used many years are still applicable today. In regard to that, here are 10 great ways to learn stock trading for new investors.
1. Start by opening a stock broker account
The starting point when you want to trade stocks is to open an account with a preferred legitimate broker. Alvexo’s Trading Academy offers you an opportunity to open a broker account. Alvexo is a leading, regulated global Forex broker that is dedicated to offer transparency in pricing and cutting-edge execution.
2. Read books about stock trading
While there are many sources you could access for stock trading education and information, some may be expensive, for example seminars, educational DVDs, and training classes. However, reading books provides you with an inexpensive way of learning more about stock trading. A good example is a book by William O’Neil entitled How to Make Money in Stocks.
3. Read articles
There are many credible sources for articles published about stock trading. Investopedia.com is an ideal site where you can find articles about stock trading. There are other sources you can find on the internet. Make sure you find articles from authority sites that offer information about finance, stocks, and global economic trends.
4. Find yourself a mentor
You will need help to understand the ins and outs about stock trading. Finding a mentor who understands the stock market and is willing to answer questions and provide insights about stock trading can help you succeed in the trade. The mentor can recommend useful resources and keep the spirit up when things get tough. Many investors have had mentors in their early days for their stock trading.
Forums may also be ideal sources to get answers and pose questions about the market, however, be careful of the people you listen to because some of the participants in these forums are not professional traders or even profitable traders. Take the advice with a heavy dose of salt and don’t follow trade recommendations that may be provided in these forums. You may ask other questions regarding stock trading but when it comes to following trade recommendation, you ought to be careful.
5. Learn about the greatest stock investors
Often, those who have succeeded in stock trading will provide inspirations, perspectives, and appreciation for the stock market. These people include Jesse Livermore, Warren Buffett, George Soros, John Templeton, Benjamin Graham, and Paul Tudor Jones.
6. Follow the market
You will need to monitor the market each day and read headline stories touching on stock trading. Sites such as Google Finance and Yahoo Finance are a good bet, but Wall Street Journal as well as Bloomberg are better. These sites provides third party analysis, trends in stock market, and economic concepts that shape the market.
Another way you can monitor the market is by following financial news on TV channels such as CNBC. It helps increase your knowledge base. However, the information provided in these channels can at times be full of junk recommendations, but this is the natural evolution in this game.
7. Consider paid subscriptions
While there are free subscriptions for research and analysis, you want to consider using the paid subscriptions because they tend to be more authentic and favor traders. It is educational and resourceful to use paid research and analysis. You can consider Morningstar and Investors.com because they are well-respected sites with a lot of information. Also, be careful because some the paid subscriptions are run by independent traders or services which claim to teach investors to be 99 percent successful.
8. Take classes and go to seminars
While it may cost you to join stock trading training classes and seminars, it is also a viable way to learn about the market. Many classes and seminars allow speakers to show strategies they have used over the past years to succeed in the market. You may also find free seminars but be conscious of their sales pitch, which may be offered at the end of the sessions. Others sites such as alvexo.com are resourceful.
9. Practice stock trading through a simulator
Before you start real trading, you want to do some practice. Virtual trading allows you to test your strategies and find out if they are working. If you are not confident to start with real capital, you can use virtual trading,
10. Start trading with real capital
Don’t be afraid to start real trading but in a small way. A few shares can help get you in this game. Starting in a big way can be painful when you suffer big losses.
These tips will help you start your stock trading activity and advance with time. You may want to sign up for free daily stock market recaps to get real time information about the current trends and shifts in the market.