Six Easy Ways to Learn Trading the Stock Market
By Space Coast Daily // February 18, 2020
If you want to venture into the stock market trading, it’s essential to set your foot on the right path right from the beginning by getting quality education from the right sources.
The learning curve isn’t as smooth as you would expect, but effort and consistency will eventually lead to success. One of the best things about learning to trade stocks is that the skill lasts for a lifetime. You may spend a few years horning the skill, but once you learn the tricks, you will be good to go.
What’s Stock Trading?
Before we delve too deeply into the topic, let’s define stock trading. Simply put, stock trading refers to the act of buying and selling shares of publicly traded companies.
Some of the most popular stocks in the U.S include Facebook (FB), Apple (AAPL), Microsoft (MSFT), Disney (DIS), Netflix (NFLX), Uber (UBER), and Google (GOOGL).
Buyers and sellers usually run the stock market. There’s always a buyer for every seller. For instance, if you buy 500 shares of stock, there must be someone selling the 500 shares to you. Similarly, when you put your shares on sale, there must be someone to buy them. Forces of demand and supply control of the stock market. For instance, if there are more sellers than buyers, the stock price will drop. Conversely, the stock price will go up when there are more buyers than sellers.
Easy Ways to Learn Stock Trading
For beginners, stock trading isn’t as easy as ABCD. It is also not a get-rich-quick scheme. It takes effort and dedication to become an expert stock trader. As with any other career, you have to invest your time to learn how to trade the stock market. But how do you get started?
1. Open an Online Account
One of the best ways to learn stock trading is by opening an online trading account. Find a reputable platform such as Saxo that allows you to start with a free demo account.
Familiarize yourself with the platform’s layout and also take advantage of the free trading tools offered by the platform. Free online trading accounts allow you to practice trading stocks with fake money until you are ready to open an active trading account.
2. Read Stock Trading Books
Stock trading books provide you with a wealth of information on how to trade the stock market successfully. Besides reading books, attend as many courses, seminars, and stock trading conferences as possible. Reading opens up your mind and helps you acquire the knowledge you need to succeed in your stock trading career.
3. Research the Internet and Read Articles
The internet is an invaluable source of information on stock trading. You can subscribe to articles from expert stock traders to learn from them.
Also, you can get investment education from websites such as Investopedia.com, where experts are continuously giving critical information.
4. Work with a Mentor
The best way to learn stock trading is by working under a mentor. A mentor could be a coworker, a family friend, or any other individual with a fundamental understanding of how the stock market works. Find a mentor who will provide you with useful resources, willing to answer questions, and motivates you when the going gets tough.
If you can’t find a mentor, you can turn to online forums to get your questions answered by other traders or even experts. However, don’t take every opinion or answer to be the gospel truth. Most of the people in these forums aren’t professional traders, and they can easily lead you astray.
5. Learn from Experts
If you want to become an expert stock trader, you have to learn from the best. It’s always good to get inspiration from industry experts such as Jesse Livermore, Warren Buffet, George Soros, John Templeton, among others.
6. Follow the Latest Trends
Lastly, follow the latest trends in the stock market by watching news sites such as MarketWatch and CNBC. Bloomberg and the Wall Street Journal are also a great sources of information regarding stock markets, especially for beginners.
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