The only way to succeed at anything is to learn and understand how it’s done before getting started. Stock investing is no exception. If your dream is to invest your way to six figure profits, then you need to first educate yourself about stock investing. This first critical step will help you understand the basics of stock investing, how to identify lucrative stocks, how and when to buy or sell your stocks, how to build your investment portfolio, and every other thing you need to know.
Taking your time to learn stock investing before taking a plunge will help you avoid the common pitfalls that plague newbie investors. It will also make you aware of the various challenges in the stock market as well as effective strategies for dealing with these challenges. If you are looking to learn and master the art of stock investing, here are the best ways to achieve that.
6 Best Ways to Learn How to Invest in the Stock Market
1. Read articles and other online resources
You can find volumes of free online resources that teach stock investing. Just do a simple web search with the right query, and you will get links to relevant articles, blog posts, free e-books, and reports on how to play the stock investing game and be successful at it.
Websites like Investopedia.com are very helpful for beginners in stock investing, as they explain the basics of stock investing, from ETFs to margin trading, and from fundamental analysis to technical analysis. If you are looking to get information on stock investing that you won’t spend a dime for, these websites are for you.
2. Read books-: Books also provide a wealth of information and are usually inexpensive. While you will get a lot of quality information for free online, you will later discover that the information in books is of even more quality.
So, it’s highly recommended that you spend some buck on books when you are trying to learn how stock investing works. One of the best books on stock investing is “How to Make Money in Stocks” by William O’Neil. You can find this and other great books on the topic by scouring the Amazon bookstore.
3. Find a mentor-: Another highly effective way to learn stock investing is to find a mentor and learn from him or her. Your mentor could be a family member, a friend, a past or current professor, co-worker, or any other individual that has a fundamental understanding of the stock market or has already built a huge investment portfolio.
A good mentor will grab your hand and teach you everything you need to know. He or she is willing to answer your questions, provide help, recommend helpful resources, and keep your spirits up when you start facing the harsh challenges of the stock market and thoughts of quitting start frequenting your mind.
Virtually all successful stock investors have learned from a mentor at some point in their career, especially during the early days.
4. Attend seminars
By attending seminars, you can get valuable insight into the stock market and specific investment types and strategies. Most seminars will focus on one specific aspect of the market and how the speaker has found success with that aspect by utilizing certain strategies over the years.
While most seminars on stock investing will require you to pay an attendance fee, you will find some few free ones that can also provide a beneficial experience. However, one or more sales pitches will almost always come at the end of free seminars.
Before you really dip your feet into the investment market, you need to find a good online stockbroker and open a virtual trading account with them. This “demo” account will familiarize you with the layout and provide you with free trading tools that you can practice with before taking a plunge into the real stock market. You can visit Stockbrokers.com to see the list of stockbrokers that offer virtual trading accounts.
6. Watch financial shows on TV
Another smart way to learn about stock investing is to watch TV shows. CNBC is the number one TV source for financial news. Watching this channel for at least 20 minutes a day will greatly increase your knowledge about stock investing. Don’t worry about the lingo or style of news; just watch and listen to the news, the commentaries or interviews, and you will learn a lot by osmosis.
In addition to all these, you must ask questions each time you feel stuck or lost. This will also help improve your knowledge and experience over time.