How do I Educate Myself for Trading? – Trading Fuel:
The stock market is not as difficult as we thought it to be.
Anyone can trade stocks, but you must first learn the basics.
Beginners who are taking their very first step towards learning the basics of stock trading should have access to multiple sources of quality education.
The best advantage of stock trading is that it will last a lifetime.
What is Stock Trading?
- Stock trading is nothing but buying and selling the shares of publicly traded companies.
- In the stock market, for every buyer, there is a certain seller.
- So, when you purchase 100 shares of any company, someone is selling those 100 shares to you.
- Similarly, when you are selling the shares, someone is ready to buy them from you.
The stock market is running on the following principle:
Top 10 Ways to Learn to Trade:
Trading is everyone’s cup of tea but to make the same, you will require good knowledge.
Must Read: How to Learn Intraday Trading?
The following are the top 10 ways to learn to trade:
#1. Open a stock-broker account:
- To trade stocks, you will need a stock broker account.
- Every broker will offer you different facilities and will have varying features.
- Some brokers are best known for their trading platforms as well as their tools.
- Some are known for excellent research, while some will provide you with a great experience while trading.
- Investigate your stock broker before opening your account.
Read More: How to Open a Demat Account?
#2. Read books:
- Books provide us with plenty of information and are inexpensive compared to the cost that you will incur for classes, seminars, or other learning sites.
- Some of the best books on trading include How to Make Money in Stocks by William O’Neil.
Read More: Top 10 Intraday Trading Books
#3. Read articles:
- Articles are considered to be fantastic sources of information.
- This arena of educational websites has grown in recent times, with the best contenders like TradingFuel, etc.
- You can also search on Google for any particular article that you wish to read.
Read More: Trading Fuel
#4. Find a mentor or a friend to learn with:
- A mentor could be anyone, be it a friend, or family member, a co-worker, or a doctor with a basic as well as a fundamental understanding of the stock market.
- A good mentor is one who is willing to answer all your questions, provide you with help, recommend useful resources, and keep your spirits high when the market gets tough.
- All the successful investors now have had mentors during their early trading days.
- Nowadays, with the help of online forums, you can subscribe to your mentors and listen to their podcasts.
- On online platforms, the vast majority of participants are not just professional traders but profitable ones as well.
#5. Study successful investors:
- It is critical to learn from previous investors because it will provide you with the proper perspective, inspiration, and appreciation for the game that you wish to play, which is the stock market.
- Great investors include Warren Buffet, George Soros, Jesse Livermore, etc.
You Also Like: How to Buy Shares in Share Market?
#6. Read and casually follow the stock market:
- New sites such as CNBC and CNBC Awaaz serve as great sources for beginners.
- For in-depth coverage and learning, you can check out the Wall Street Journal and Bloomberg.
- By watching the stock market each day and then reading the headline stories, you will be able to widen your horizons through economic trends, third-party analysis, and general investing.
- Television is yet another way to get you familiar with the stock market.
- Simply watching CNBC for 15 minutes a day will help you learn more.
Carefully consider the paid subscriptions:
- You can pay for research and trade ideas.
- There are many investors as well that are coming up with package schemes that state that they will guarantee you a considerable sum of profit after you pay a lump sum of money to them.
- Some investors find watching and observing the market professionals to be more beneficial than trying to impart their newly learned lessons.
#8. Cautiously explore the seminars, online courses, and live classes:
- Seminars and classes will provide you with valuable insight into the overall market as well as specific investment types.
- Most of the seminars will focus on a specific aspect of the market.
- Not all seminars come with a cost.
- Some are absolutely free.
- You can also attend the free seminar by Nifty Trading Academy.
#9. Buy your first share of stocks or practice through a simulator:
- When you open your trading account, the next step you will take is to buy your very first share.
- Don’t be afraid to start with small trade.
- If you are initially afraid to start with your own money, then you can practice through a simulator.
- This practice is also known as “paper practise trade.”
#10. Follow Warren Buffett’s advice:
- The biggest advice from Warren Buffet is to buy and hold the market.
- For most people, online trading is not like buying the entire market and then holding it for years.
- Warren Buffet recommends individual investors keep it simple.
- This will mean that you have to passively invest.
- Passive investing means buying and holding.
Also Like: How Can I Learn Share Market?
Three Favorite Stock Tips:
I personally trade almost daily.
These are my three favorite tips:
We hope that the preceding blog has clarified how you can educate yourself to trade.
Trading Fuel is our website for blogs where we provide you with knowledge about finance, economics, the stock market, and intraday trading. We hope that you like our blog”How do I Educate Myself for Trading?”
~Stay tuned with us for more such blogs~