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Stock Trading Tips

Do you want to trade on the stock market? These tips will help you do so more successfully.

1. Open an account with a stock broker

Open an account with your preferred online stock broker. Learn the system; use your client access to conduct research and practice on free trading tools availed by the broker. For instance you can take advantage of the opportunity to learn from trading with virtual funds (tip 9 covers more about this) through virtual trading accounts. If you want to compare online traders, StockBrokers.com provides users with a useful tool.

2. Read Up On Some Relevant Literature

In comparison to the price you have to pay for seminars, classes and educational DVDs available for sale online, relevant books are not only more affordable and also more enriching. We have a collection of twenty books on stock trading investors can look at on our site. My favorite, CANSLIM Trading founder William O’Neil’s “How To Make Money In Stocks” is displayed below.

3. Find articles to read up on

A great educational resource comes in the form of articles. On StockTrader.com, we have a Stock Education resource page made up of more than a hundred pages of unique articles on investment classified into different categories. Google Search and Investopedia.com are our recommended investment education websites.

4. Seek Mentorship

Do you have a close friend, family member, professor (past or current), colleague or anyone else with a good understanding of how financial markets work? Consider using them as your mentor. Your mentor is supposed to answer your enquiries, offer assistance, encourage you when the market goes against you and suggest valuable resources. To put things into perspective, all great traders underwent mentorship at some point when they were starting out.

If you are looking for answers to your questions, forums can be a great place to look. Trade2win and Elite Trader are our top 2 recommendations. However, exercise due caution when it comes to following anyone’s advice. In most cases, the members are not stock trading professionals, leave alone profitable. The main rule of thumb is to be very critical of the advice you receive, most importantly, avoid following the trading recommendations provided.

5. Be an understudy to the best

To get a better view, appreciation and inspiration for stock trading, it’s vital that you find out more about the best stock traders in history. George Soros, Warren Buffett, John Templeton, Benjamin Graham, Paul Tudor Jones, Jesse Livermore and Peter Lynch are among the best in history. Jack Schwager’s Market Wizards is a personal favorite.

6. Research and keep up with the stock market

Some of the news resources available to new investors include Google Finance and Yahoo Finance websites. If you want a deeper look, then Bloomberg and the Wall Street Journal are all you need. Aspiring investors can gain invaluable insights into third party analysis, market patterns, general business and economic concepts by keeping up with markets and relevant news headlines.  Another additional source of insight is studying fundamental information and getting quotes.

CNBC is a popular channel when it comes to keeping up with the markets through following the news on TV. Your market knowledge will gain a lot from watching CNBC for as little as a quarter of an hour. Stock alerts can also be ideal for this purpose. The main thing is to allow the discussion among the commentators sink in, instead of being distracted by the technical language used. However, you will find that most of these TV shows can be distracting with time, as their recommendations are more or less useless. You are among many, as this is simply the natural course of things.

7. Paid subscriptions are worth your consideration

There is value in educational value in paid analysis and research. Following established professionals might be more valuable to some investors than applying the lessons they have learnt. Since there are numerous websites offering paid subscriptions, all you need to do is find the right options.

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