10 Great Ways to Learn Stock Trading as a Beginner
For beginners who want to learn how to trade stocks, here are ten great answers to the simple question, “How do I get started?”.
1. Open a stock broker account
Find a good online stock broker and open an account. Become familiarized with the layout and to take advantage of the free trading tools and research offered to clients only. Some brokers offer virtual trading which is beneficial because you can practice trading stocks with fake money (see #9 below).
2. Read books
Books provide a wealth of information and are inexpensive compared to the costs of classes, seminars, and
educational DVDs sold across the web. See my list of 20 great stock trading books to get started. One of my personal favorites is How to Make Money in Stocks by William O’Neil (pictured below), founder of CANSLIM trading.
3. Read articles
Articles are a fantastic resource for education. My most popular posts are listed on my stock education page. The most popular website for investment education is investopedia.com. I also highly recommend reading the memos of billionaire Howard Marks (Oaktree Capital), which are absolutely terrific. Naturally, searching with Google search is another great way to find educational material to read.
4. Find a mentor or a friend to learn with
A mentor could be a family member, a friend, a coworker, a past or current professor, or any individual that has a fundamental understanding of the stock market. A good mentor is willing to answer questions, provide help, recommend useful resources, and keep spirits up when the market gets tough. All successful investors of the past and present have had mentors during their early days.
Despite being “old school,” online forums are still used today and they can be a great place to get questions answered. Two recommendations include Elite Trader and Trade2Win. Just be careful of who you listen to. The vast majority of participants are not professional traders, let alone profitable traders. Heed advice from forums with a heavy dose of salt and do not, under any circumstance, follow trade recommendations.