Beginners who are interested in learning the basics of stock market trading must have access to several proper sources of quality.
It is similar to learning any other ability, like learning to drive through error and trial, and still striving to learn will eventually lead to success.
The greatest advantage of stock market trading is that it lasts forever. All the strategies used a decade ago are still in practice.
Therefore, new investors have the required time and sources to learn, practice, and develop their stock market trading skills.
Ways to Learn Stock Market Trading
In the following article, you will learn about the 10 great ways to learn stock market trading.
What is stock trading?
First of all, let us know what stock trading is before getting into 10 great ways to learn stock market trading. The process of purchasing and selling the shares of a company that are publicly traded is known as stock trading.
Some popular US stocks are Apple (AAPL), Facebook (FB), Microsoft (MSFT), Google (GOOGL), Disney (DIS), Amazon (AMZN), Netflix (NFLX), and some others that have recently gained popularity are Pinterest (PINS) and Uber (UBER).
For every buyer, a seller is present in the stock market. A continuous buying and selling of shares is always happening, where you buy 200 shares and someone sells you 200 stocks.
In the same way, when you offer to sell your stock shares, there will be someone who will buy them. When there are more buyers than sellers, the price will come down. But when there are fewer sellers and more buyers, the price will increase.
10 Great Ways to Learn Stock Market Trading
If you are looking for a beginner guide to understanding how to trade online, then you must go through the points below:
#1. Opening a broker account of stocks
For trading stocks, you will require an online broker. All the brokers have different services to offer. While some are known for the tools and platform of trading, others do excellent research and give you a bare-bones service that is simple and easy.
#2. Reading books
The best source of information is by reading good, informative books. They are an inexpensive source compared to the educational DVDs that are available across the globe.
#3. Reading articles
Reading articles is also a great resource for education. One of the most informative sources for learning about stock trading is investopedia.com. You can also do a quick Google search to find and read informative material in one click.
#4. Finding a learning partner or a mentor
You must find a mentor from your family, college, friend circle, seniors, workplace, or any other individual who has fundamental knowledge about the stock trading market.
A good mentor will be there to answer your questions, help, suggest informative resources, and motivate you when market movements are not good. Every successful investor has had a mentor when they were beginners in the market.
Online forums are also available to get your questions answered quickly. You can look up Trade2Win and Elite Trader for help. You must also be careful and not listen to everybody.
The majority of participants do not have a professional background in trading. Do not follow any trade recommendations blindly.
#5. Reading about successful investors
Reading about successful investors provides appreciation, inspiration, and perspective for the stock market.
Some of the great investors’ names include Jesse Livermore, Warren Buffett, Benjamin Graham, George Soros, John Templeton, Paul Tudor Jones, and Peter Lynch, among many others.
#6. Following the stock market movements
You must also be following the stock market movements by watching news sites such as MarketWatch and CNBC.
They are a great and resourceful way of learning market trends. You can also watch Bloomberg and the Wall Street Journal for in-depth information.
If you keep looking and following the stock market and headlines of the stories every day, you will expose yourself to the general investing lingo, economic trends, and third-party analysis.
#7. Considering paid subscriptions
You must be careful when considering paid subscriptions for trade and research ideas. These are educational resources where new investors find observing the stock market or watching professionals more beneficial than applying the newly learned skills.
There are plenty of paid subscriptions available online; you just need to find which one is most suited to you. The two most reliable subscription services include Morning Star and Investors.com.
#8. Exploring online classes and seminars
Classes and seminars provide valuable insight into specific investment types and the overall market.
You must remember that not all seminars require payment. They can freely give a beneficial experience to the subscribers.
#9. Buying stocks or taking the help of a stimulator
After you open a broker’s account online, you will have to buy your first stocks in a small amount, i.e., 1, 10, or more. You can even use a stock simulator to take part in virtual trading.
#10. Following the “Buy and hold the market” advice of Warren Buffett
Warren Buffett is one of the greatest investors who recommends that new investors simply invest passively (buying and holding) and not try to beat the stocks by themselves.
On a closing note
The stock market is simply a concept of a network of buyers and sellers trading shares of a company that are trading publicly. In simple words, the stock trading market is a marketplace.
The shares of these companies are listed on the stock exchange. The NASDAQ and the New York Stock Exchange are the two largest and most popular exchanges in the United States.
The market cap of NASDAQ is over $11 trillion, and that of the NYSE is over $31 trillion. Therefore, to learn the strategies for making a big stock exchange, you must observe the stock market closely and keep reading.
From taking the help of a mentor to attending seminars, this will give you an open idea about the movements of stocks.