Thursday, March 22, 2012

4 Great Ways to Learn Stock Trading

Aspiring stock traders should have access to multiple source of learning. Just like learning to ride a motorcycle or swimming in a river is about making calculated moves, accepting mistakes and improvising errors - learning to trade stocks is not very different!

Read on to learn about the 4 great ways to learn stock trading!

1. Research online and find a good stock broker

First of all, you need to open an account with a trusted and reliable stock broker. Start playing with the layout of the interface provided by the stock broker. A large number of useful tools are provided to registered clients only. If possible, you should choose a broker who can provide you with a free simulator account. With these accounts, you can learn to trade stocks without risking real money. It is advisable to spend sufficient time practicing on these simulator accounts before you start investing your hard earned money.

2. Read good books on trading and investment

Online tutorials and video lessons on the internet are helpful. However, none of these resources can match the wealth of information that books provide. A good book can focus on one topic and make you really good at it. You can order two or three good books on stock trading in the beginning. Only when you are finished reading them, you should think of buying few more. As you continue to read books on market investments, fundamental analysis, technical analysis and other important topics, you'll also be in a better position to understand expert articles published on the internet.

3. Read online articles

You need to develop a habit of reading online articles on a regular basis. Instead of relying on one or two weekly financial magazines, you can go through multiple articles on famous publications online. Many online blogs and stock market journals provide complex information in a simple manner. You can even find articles that illustrate complex concepts in an easy way. It is one of the best ways to gather deeper knowledge on specific topics. For example, if you want to learn about day trading and its pros and cons, you can find all the information on the internet with great ease. Online articles may not provide comprehensive information like books but they do serve as easy and quick sources of information that you need immediately.

4. Find an expert who can guide you

If possible, you should try to find a mentor who can guide you. A mentor or teacher can be a friend, family member, office colleague or anyone else. Anyone who knows about fundamental trading concepts and has direct trading experience in the market can be a mentor. A good mentor is a person who can keep you in high spirits and teach you to make informed decisions under all circumstances. Nearly all successful investors have received some mentoring during their early days. A good mentor can really push you beyond limits that you've subconsciously created in your mind.

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