A new year and inevitably we are inspired to think about how to make more money in the coming year. Over the years Hollywood has kept us entertained with many movies about Wall Street and stock trading, so much so, that I am sure we have all thought about testing the waters at one time or another.
Those who are thinking of taking the first steps towards learning the basics of stock trading should keep in mind that in this digital age, there is a never-ending parade of sources for information online, but which ones actually offer legitimate and quality education, can be difficult to discern.
First and foremost, remember that successful traders didn’t get to where they are by paying for subscriptions hyped by independent traders and online services. Ones that claim to teach you how to trade and make a fortune – according to Stockertrader.com “99% of them are a scam and come with higher prices of $99 – $149 per month, or more.”
That said, there are key online sources for accurate and free information that will assist you in increasing your understanding of the market, and provide you with the information needed to make an informed choice, before you actually start trading.
It is realistic to study at least six months and do some practice trading with real-world data before investing your money. Start with this article reading list:
- Day Trading Stategies for Beginners lays out the must-knows for anyone who wants to learn day trading with the assistance of tutorials, definitions, and related reading.
- Trading Stocks Online: A Guide for Beginners teaches you the basics and various analysis styles needed so you understand the language of the industry.
- Top 5 Online Stock Brokers offers up StockTrader.com’s picks for the best online stock brokers to trade with. Whether it is their inexpensive stock trades, powerful trading tools or exceptional customer service, these are definitely worth checking out.
In addition, successful traders suggest starting with a visit to the library to check-out the classics of investment literature, watch videos on YouTube, and sign-up for a massive open online course (MOOC) in trading.
Prepped and ready to proceed?
Now that you have your groundwork covered and are ready to getting started, always be patient and never trade with real money until you are confident with a proven approach to trading in the markets. Five final key points to print and keep next to your work station:
- Practice– Put what you have learned to the test before you start using real money. Two sites are Questrade and Vantage Point Trading. Go in with your eyes wide open – be realistic. Market trading is not a get rich quick opportunity.
- Respect the process– Learn where your comfort level lies and let it guide you.
- Track your trading activity– Learn from your gains and losses by keeping track of them in comprehensive spreadsheets.
- Be willing to adjust your profit expectations– Not making what you initially expected? Avoid a knee-jerk reaction to take more risk too quickly.
- Keep learning– it is impossible to know everything about trading. Always stay up on the latest news and developments. Bookmark websites that have proven themselves valuable to you.