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10 Great Ways to Learn Stock Trading as a New InvestorNew investors taking their first steps towards learning the basics...
06/26/2017

10 Great Ways to Learn Stock Trading as a New Investor

New investors taking their first steps towards learning the basics of stock trading should have access to multiple sources of quality education. Just like riding a bike, trial and error coupled with the ability to keep pressing forth will eventually lead to success.

One great advantage of stock trading lies in the fact that the game itself lasts a lifetime. Investors have years to develop and hone their skills. Strategies used twenty years ago are still utilized today. The game is always in full force.

So for new investors wanting to take their first steps, I offer 10 great answers to the simple question, “How do I get started?”

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 trade with play money (see #9 below). A great tool for comparing online brokers can be found at StockBrokers.com.

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. Here on the site we have a full list of 20 great stock trading books for investors to consider. My personal all-time favorite is How to Make Money in Stocks by William O’Neil, founder of CANSLIM Trading which is pictured below.

3. Read articles
Articles are a fantastic resource for education. Our free Stock Education page here on StockTrader.com lists over 100 unique investment articles broken down into categories. Recommended websites for investment education are investopedia.com and of course Google search.

4. Find a mentor
A mentor could be a family member, a friend, a past or current professor, co-worker, 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.

Forums can be another source for question and answer. 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.

5. Study the greats
Learning about the greatest investors of years past will provide perspective, inspiration, and appreciation for the game which is the stock market. Greats include Warren Buffett, Jesse Livermore, George Soros, Benjamin Graham, Peter Lynch, John Templeton and Paul Tudor Jones, among others. One of my favorite book series is the Market Wizards by Jack Schwager.

6. Read and follow the market
News sites such as Yahoo Finance and Google Finance serve as a great resource for new investors. For in depth coverage, look no further than the Wall Street Journal and Bloomberg. By monitoring the markets each day and reading headline stories investors can expose themselves to trends, 3rd party analysis, not to mention economic concepts and general business. Pulling quotes and observing fundamental data can also serve as another good source of exposure.

TV is another way to monitor the market each day with CNBC being the most popular channel. Even turning on CNBC for 15 minutes a day will broaden an investor’s knowledge base. Don’t let the lingo or the style of news be a nuisance, just simply watch and allow the commentators, interviews, and discussions to soak in. Beware though, over time you may find that a lot of the investing shows on TV are more of a distraction and are overall full of junk recommendations. This is a natural evolution; you are not alone!

7. Consider paid subscriptions
Paying for research and analysis can be both educational and useful. Some investors may find watching or observing market professionals to be more beneficial than trying to apply newly learned lessons themselves. There are a slew of paid subscription sites available across the web, the key is in finding the right ones for you. View a list of the services I use use myself. Two well-respected services include Investors.com and Morningstar.

IMPORTANT – Be careful. Many paid subscriptions come from independent traders and services that claim to have fantastic returns and can “teach” you how to be successful. 99% of them are a scam and come with higher prices of $99 – $149 per month, or more.

8. Go to seminars, take classes
Seminars can provide valuable insight into the overall market and specific investment types. Most seminars will focus on one specific aspect of the market and how the speaker has found success utilizing their own strategies over the years. Examples include Dan Zanger and Mark Minervini. Not all seminars have be paid for either. Some seminars are provided free which can be a beneficial experience, just be conscious of the sales pitch that will almost always come at the end.

When it comes to classes, these are typically pricey, but like seminars, can also be very beneficial. Will O’Neil workshops, Investools, Warrior Trading, Bulls On Wall Street, and Online Trading Academy provide a variety of courses on investing and trading.

IMPORTANT – Like paid subscriptions, be careful with classes and courses. Most are easily over $1,000 and are sold with false promises to acquiring valuable knowledge. Their fantastic sales funnels will suck you in, take your money, excite you during the course, then leave you with a strategy that wasn’t even profitable to begin with.

9. Buy your first stock or practice trading through a simulator
With your online broker account setup, the best way to get started it to simply take the plunge and make your first trade. Don’t be afraid to start small, even 1, 10, or 20 shares will serve its purpose of getting you in the game.

If trading with real capital is not possible initially, consider using a stock simulator for virtual trading. A variety of online brokers offer virtual trading for practicing.

One of the most common mistakes traders make is to go all-in and try to score big with a full portfolio position out of the gate. This is an often painful mistake and why many new investors suffer big losses early on. Proper portfolio allocation is extremely important. For more tips of wisdom, see my article, 60 Stock Tips for Investment Success.

10. Passive Index and follow Warren Buffett

For the majority, trading will be losing proposition. Warren Buffett, the greatest investor of all-time, recommends individual investors simply passive index instead of trying to beat the market trading on their own.

Would you like to buy one ? ;)
12/13/2016
The 35 Most Expensive Homes in America Today

Would you like to buy one ? ;)

Here is a look at the 35 most expensive homes currently for sale in United States. Not surprisingly, some of these homes are in playgrounds of the rich, such as Aspen, East Hampton and Key Largo.

France's Amundi to buy Pioneer from UniCredit for $3.75 billion
12/12/2016
France's Amundi to buy Pioneer from UniCredit for $3.75 billion

France's Amundi to buy Pioneer from UniCredit for $3.75 billion

French fund management company Amundi (AMUN.PA) is to buy asset manager Pioneer from Italian bank UniCredit (CRDI.MI) for 3.55 billion euros ($3.75 billion), and will finance the deal with a debt and equity issue.

OPEC, non-OPEC agree to their first global oil pact since 2001
12/11/2016
OPEC, non-OPEC agree to their first global oil pact since 2001

OPEC, non-OPEC agree to their first global oil pact since 2001

OPEC and non-OPEC producers on Saturday reached their first deal since 2001 to curtail oil output jointly and ease a global glut after more than two years of low prices that overstretched many budgets and spurred unrest in some countries.

Beginner's guide to the currency markets - MoneyWeek
12/08/2016
Beginner's guide to the currency markets - MoneyWeek

Beginner's guide to the currency markets - MoneyWeek

Tim Bennett explains the key features of the currency markets: the influences affecting an exchange rate, what currency 'pairs' are, and how to trade them.

Asia shares at one-month peak, bonds bet on ECB support
12/08/2016
Asia shares at one-month peak, bonds bet on ECB support

Asia shares at one-month peak, bonds bet on ECB support

Asian shares hopped higher on Thursday after Wall Street strode to new records and bonds rallied on wagers the European Central Bank would extend its asset buying campaign at a policy meeting later in the session.

Apple supplier Foxconn is in talks to invest in the U.S.
12/07/2016
Apple supplier Foxconn is in talks to invest in the U.S.

Apple supplier Foxconn is in talks to invest in the U.S.

Taiwan-based Foxconn is a giant contract manufacturer that plays a key role in assembling iPhones for Apple, says it's in talks to invest in the United States.

East Asian stocks set for better 2017 if Trump thump turns into Trump bump
12/07/2016
East Asian stocks set for better 2017 if Trump thump turns into Trump bump

East Asian stocks set for better 2017 if Trump thump turns into Trump bump

East Asian stocks are expected to have a better run next year, provided U.S. equities perform well on U.S. President-elect Donald Trump's tax cut plans and investors overcome concerns about a pending rise in protectionism, a Reuters poll found.

Best US Companies to Work For in 2017
12/07/2016
Best US Companies to Work For in 2017

Best US Companies to Work For in 2017

Source: ThinkstockAnyone who’s been in the workforce for a few years has probably discovered that not all companies are created equal, at least as far as being good places to work goes. And while pay is important, it’s not the only thing that makes one company more desirable than another. Online job...

12/06/2016
Is The Jump In Treasury Yields A Bull Signal For The Economy? | The Capital Spectator

http://www.capitalspectator.com/is-the-jump-in-treasury-yields-a-bull-signal-for-the-economy/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+TheCapitalSpectator+%28The+Capital+Spectator%29

Is The Jump In Treasury Yields A Bull Signal For The Economy? Treasury yields and market-based inflation expectations have taken a sharp turn higher in recent weeks. Is the shift a sign of regime change… or just noise? A convincing answer is on hold until sometime in 2017. Meantime, let’s review wha...

Economix Meets the Gales of Change
12/06/2016
Economix Meets the Gales of Change

Economix Meets the Gales of Change

Economix is coming to an end, but it will be succeeded by The Upshot, a new politics, policy and economics site.

Will Trump keep his promise to women on maternity leave?
12/06/2016
Will Trump keep his promise to women on maternity leave?

Will Trump keep his promise to women on maternity leave?

Donald Trump promised women he would enact six weeks of paid maternity leave and make child care more affordable. So far, he's still talking about child care.

U.S. productivity in third quarter fastest in two years
12/06/2016
U.S. productivity in third quarter fastest in two years

U.S. productivity in third quarter fastest in two years

U.S. worker productivity rebounded sharply in the third quarter as initially estimated, marking its quickest rate of growth in two years, but the trend remained weak.

Productivity Outpaces Labor Costs in Q3 2016
12/06/2016
Productivity Outpaces Labor Costs in Q3 2016

Productivity Outpaces Labor Costs in Q3 2016

Is it possible that the endless decline and stagnation in worker productivity is ending? The third quarter increase in nonfarm business sector labor productivity was the first after three consecutive declines.

Amazon opens a grocery store with no checkout line
12/05/2016
Amazon opens a grocery store with no checkout line

Amazon opens a grocery store with no checkout line

Amazon unveiled a new physical store on Monday that sells grocery essentials and ready-made meals. But the key selling point is what's missing: checkout lines.

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