New investors taking their first steps towards learning the basics of investing should have access to multiple sources of quality education. Just like riding a bike, trial and error coupled with the ability to keep pressing forth will eventually lead to success.One great advantage of stock trading lies in the fact that the game itself lasts a lifetime. Investors have years to develop and hone their skills. Strategies used twenty years ago are still utilized today. The game is always in full force. So for new investors wanting to take their first steps, I offer some tips to answer the simple question, "How do I get started?"
1. Open a brokerage account
Find a good online brokerage firm and open an account. Become familiarized with the layout and take advantage of the free trading tools and research offered to clients only. Most brokers offer virtual trading which is beneficial because you can trade with play money until you are comfortable with the technology.
2. Read some books
Despite the vast array of great information on the internet there are still some "must read" books for newbies. Books provide a wealth of information and are inexpensive compared to the costs of classes, seminars, and educational DVDs sold across the web. First, decide what type of trader / investor you want to be and the book search will be less time consuming.
3. Read articles
Articles are a fantastic resource for education. We constantly try to bring you articles that involve education, current events, and specific market information to help you along the way. Start with the basics and work up to the more current market information before you begin to place your trades.
4. Find a mentor
This is a big one. A mentor can be invaluable in any endeavor but is especially useful in investing. A mentor could be a family member, a friend, a past or current professor, co-worker, or any individual that has a fundamental understanding of the stock market. A good mentor is willing to answer questions, provide help, recommend useful resources, and keep spirits up when the market gets tough. All successful investors of the past and present have had mentors during their early days.
5. Study the greats
Lastly, look at what those who were successful did before you. Learning about the greatest investors of years past will provide perspective, inspiration, and appreciation for the game which is the stock market. Greats include Warren Buffett, Jesse Livermore, George Soros, Benjamin Graham, Peter Lynch, John Templeton and Paul Tudor Jones, among others. One of my favorite book series is the Market Wizards by Jack Schwager.
Before you begin, know that investing is not rocket science. You can learn it, just as many have before you, and you will be successful. With some knowledge, discipline, and patience you will find your way in this game that we love to play.