Stock Market from Scratch: How to Learn Stock Market?
What is the Stock Market and How to Invest? 10 Great Ways for Beginners to Learn the Stock Market. Learning the stock market is possible step by step by trial and error, just like learning how to ride a bicycle.
One of the important advantages of the stock exchange is hidden in its lifetime. It is a process that takes years for investors who want to improve their abilities and reap the benefits. The strategies used twenty years ago are still used. The game still continues with all its might, so to speak.
I was only 14 years old when I bought the first stock. After more than a thousand transactions, I am now 33 years old and I still continue to learn new lessons.
What is the Stock Market?
First of all, let's briefly define what is the stock market. The stock market is where the shares of publicly listed companies are bought and sold. Well-known American stock market stocks: Apple (AAPL), Facebook (FB), Disney (DIS), Microsoft (MSFT), Amazon (AMZN), Google (GOOGL), Netflix (NFLX), Uber (UBER) and Pinterest (PINS) ).
There is a seller for every buyer in the exchange. When you buy 100 stocks, someone is selling you 100. Likewise, when you sell it, someone has to buy it. If the number of buyers (demand) is greater than the number of sellers (supply) then the price of the share will rise. Conversely, if there are more sellers than buyers, the price will decrease.
10 Great Ways for Beginners to Learn the Stock Market
For those who want to learn about the stock market and buy and sell stocks, "How do I start?" 10 great answers to the question:
1- Open an Account in a Brokerage House
Find a good online brokerage firm and open an account. Get familiar with the interface of the site and take advantage of free investment and research tools available to customers only. Some brokers offer virtual trading with counterfeit money, which is a very useful tool (see number 9).
2. Read a Book
You can find unwanted information in books and they are more affordable compared to online lectures, seminars and training sets. You can find many important investor and author names such as Warren Buffet and Michael Lewis. Our recommendation is Warren Buffett's favorite "Smart Investor" book and William O'Neil's "How to Make Money in the Stock Exchange?" is named book.
3. Read Article
Articles are great resources for free education. You can find dozens of articles suitable for all levels from our category titled "Stock Exchange". If you want English resource advice, Investopedia is currently the most popular investment training site.
4- Find a Mentor or Friend
Someone you know from your family, workplace, professors or elsewhere with basic stock exchange knowledge can mentor and guide you. A good mentor is someone who is willing to answer your questions, help, recommend useful resources, and give you morale when things go wrong. He has had a mentor in the early days of all successful investors in the past or present.
Although outdated now, online forums are still used and can be a great place to get answers to your questions. But be careful who you listen to. Most of the participants are not even professional investors, let alone being successful investors who have made a profit. Do not put into your life without thoroughly reviewing the advice from the forums and do not follow investment advice under any circumstances. In addition to these, you can also follow the major Twitter accounts to be informed about current information and developments and benefit from the share recommendations given.
5. Review Successful Investors
Learning about the lives and actions of the great investors in the past is crucial to gaining a new perspective, getting inspired and understanding the value of the stock market. Names like Warren Buffett, Jesse Livermore, George Soros, Benjamin Graham, Peter Lynch, John Templeton and Paul Tudor Jones are examples of legendary names.
6. Follow Stock Market News Daily
You can be familiar with economic trends by following the stock market news every day, and you can master the investment language by examining the analysis of third parties. On the other hand, it is another useful endeavor to monitor share prices on investing in a graph, look at news headlines and examine the basic information of companies.
Television is another way to get involved in the stock market. Bloomberg is arguably the most popular channel for this. Watching even 15 minutes a day will increase your knowledge. Don't let the jargon or news form scare you. Just watch. Let your brain digest comments, discussions, and interviews slowly. Keep in mind, over time, you might think that many investment-related television shows are just for the purpose of distracting attention and adrenaline rather than being useful.
Keep in mind that it is very rare that advice given on television turns into profit.
7. Get Paid Subscriptions
Giving money to research and investment ideas can be educational. Some investors may find it more useful to watch or observe their professionals in the market than trying to apply what they just learned. There are many websites on the internet where you can get paid subscription. The key is to find the one that suits you best.
ATTENTION! Many of the paid memberships, especially those marketed online through social media, come from individual investors who claim to have incredible return rates and can teach you how to succeed. 99.99% of these are very bad investments and they work for $ 99 to $ 199 per month or even higher. The biggest harm is that you try to do what they do, invest too much money on a stock tip and exhaust yourself when it doesn't work.
8. Go to Seminars, Attend Online or Live Classes
Seminars can give you valuable insights into the market in general or specific investment patterns. Most of the seminars focus on a specific area of the market and how they have been successful over the years using the speaker's own strategies. Also, not all seminars are paid. Some are free and can be a rewarding experience. But what you need to be extremely careful and aware of about free seminars is that whatever happens is the future of the sales pitch. Whatever they offer, you can politely decline!
Online or live lessons are often expensive, but they can be useful, like seminars.
ATTENTION! Be careful about courses and courses just like paid memberships. Most of them cost over $ 500. Often they are sold with promises that they contain valuable information. Fantastic sales funnels will immerse you and excite you during the lesson and eventually leave you with a strategy that was profitable 5-10 years ago and is no longer valid. Of course, the strategy they give is successful, and you may not have the expertise to implement it.
9. Buy Stocks or Use Simulation Now
The next step after opening your online brokerage account is to directly purchase the stock you have decided on. Don't be afraid to start small. 1, 10 or 20 stocks will also serve its purpose.
If entering the stock market with the money you barely earned will be very difficult for your nerves, consider starting with a virtual account first. Some online brokers offer virtual investment services for you to practice.
ATTENTION! One of the most common beginner mistakes is that they buy too many stocks on their first trade. Taking too much risk as a novice will likely result in unnecessary losses. Instead, start small, more cautiously and increase your investment by buying more stocks over time.
10. Follow Warren Buffett's Advice: Don't Stubbornly With The Market!
Warren Buffett, the greatest investor of all time, advises individual investors to simply passively invest and buy and wait for the long term rather than trying to beat the market.
Because trying to predict when the market will fall and when it will rise cannot go beyond a futile effort. Nobody in the world can know this. The market is like an emotional teenager. Sometimes it inflates prices, and sometimes it can drive prices to the bottom of the ground with extreme pessimism. The only thing you need to pay attention to here should be to calculate at what prices the stock you want to buy is expensive and at what prices. If you know the true value of the stock you will buy, you will not be losing it by buying it at a very high price. The cheaper you buy the stock, the more your return will increase in the long run.