What may seem like a world filled with savvy suit-clad investors shouting with phones in hand, the stock market is a playing ground for average traders too. If you want to join the millions of individuals who are making profits riding the market, it’s important to know the basics. From learning about factors that drive the market to the different kinds of stocks (growth, dividend, new issues, defensive etc.) and the basic elements of stock value, you’ll have to put the hours in if you want to gain an insight into the best places to put your money. Let’s explore four great ways to learn about stock trading in 2020.
To gain an edge in this volatile marketplace, you should have an impressive collection of books on your shelf. Some of the top sellers include ‘The Intelligent Investor’, ‘The Little Book of Common-Sense Investing’, and ‘Berkshire Hathaway Letters to Shareholders’. Tracking what you’re reading and making notes are two ways to ensure what you’re learning is sticking. Be sure to practice what you do learn once you feel confident enough to open a dummy account.
Follow A Mentor
Want to learn more about pattern day trader rules? Find someone who’s crushing it as a day trader and dissect everything that he/she is doing. What holdings do they have? Does he/she recommend a specific resource to cope better in the fast-paced world of day trading? Perhaps you’re in it for the long-term and you want to know everything there is to know about growth investments? If so, find someone who specializes in backing new or small companies whose earnings are predicted to increase at an above-average rate. Learn from their experience and make sure you’re clear on what factors determine their decision on whether to invest or not.
Following a mentor who is successful will give you the knowledge and motivation you need to take the first steps into trading. Robert Prechter, Toshko Raychev and Lan Turner are three names that pop up time and time so take a look at their profiles and see which person is compatible with your goals.
Take A Trading Course
You don’t have to go to business school to learn about the stock market and how it operates. There are countless online and in-person beginner and more advanced courses available today that will teach you everything that you need to know. Normally, there are no entry requirements but you must be prepared to disclose your financial goals and what kinds of markets you’re most interested in. Only then will you maximize your efforts.
Open A Dummy Account
There is no better way to learn than doing and this is very true when it comes to making money on the financial market. Once you’ve gained insider knowledge and determined your strategy, find a trusted platform that you like and sign up for a dummy account. This is the only way you’ll get to test your strategies, get familiar with the platform’s tools and tables and, most importantly, you’ll get to experience what it’s like to execute trades on the live market. And all of this without putting a cent of your hard-earned cash at risk.