Last updated on: May 10, 2020
How can you learn stock market trading?
There are ten ways with the help of which it would become easier for you to understand and learn stock market trading.
- Opening a Demat and Trading Account with a broker: The first thing that you need to learn and start with stock market trading is to have a Demat and Trading Account in your name. A Demat Account holds your securities in a dematerialized format, whereas a Trading Account helps you in buying and selling the securities. For having a Demat and Trading Account, you need to contact a broker. You can opt for an online stockbroker as well. A stockbroker acts as an intermediary between you and the stock exchange. It can be an individual or an entity that places buy and sell orders on your behalf. Stockbrokers charge a brokerage for providing their services. You can compare a number of stockbrokers and then can select the one that matches your financial goals and requirements.
- Read Books: Reading books is always a good habit. Make it a regular habit to read as many books as you can on stock markets, different investment strategies, lessons from successful investors, etc. Books are not only informative but are also less expensive compared to any other medium of learning. By continuous reading, you will get a better grip on the subject. Some of the books that you can consider reading are Basics of Financial Market, A Guide for Intelligent Investment, How to make money in stocks, to name a few.
- Reading articles: The other method that you can opt for learning about the stock market trading is reading articles. Articles act as a great source of information. You can go to various financial sites and read articles that will give you an insight about how the stock market works, how to analyze different stocks, what different trading strategies you can use, and much more. The other ways is simply searching for popular articles on Google and give them a good read.
- Learn with a mentor or a friend: The other way through which you can start learning stock market trading is by finding a mentor or a friend. This mentor can be a friend, a family member, or even a co-worker. It is essential to have a mentor when beginning to learn stock market trading as it gives you proper guidance and tricks and tips. You can also learn from the experiences of your mentor and avoid making mistakes that they made when they were learning.
- Studying successful investors and traders: The other way to learn stock market trading as a beginner is to study successful investors and traders. Learning from their past will help you in having a better understanding regarding the stock market trading. Some of the great investors include Warren Buffett, George Soros, Benjamin Graham, John Templeton, and Jesse Livermore. You can learn very well from the steps they take, the strategies they follow, and what lessons they have learnt so far since the time they started stock market trading.
- Read and follow the stock market: If you want to learn stock market trading, then one of the best methods is to follow news sites and news channels. Some news sites like Market Watch, CNBC, money control, economic times, etc. serves as a good source of learning for beginners. Checking the stock market even casually on a daily basis will help you expose yourself to the economic trends in the country, an insight about third-party analysis, and information about general investment terms. On the other hand, news channels talking about stock markets too are a great and free of cost source of learning about stock markets. Listening to the discussions of experts on these news channels can act as a great source to expand your knowledge base.
- Consider paid subscriptions: Start paying some amount for research and trade ideas. At times listening and watching the market professionals is more beneficial than trying to apply newly learned life lessons by yourself. There are a number of paid subscription sites all across the web. All you need to do is to find the right one for yourself. Though these sites are a good source of learning, what needs to be kept in mind is that you need to be cautious when selecting these sites for yourself.
- Explore online courses, live classes, webinars, or seminars: Seminars and webinars act as a great source of learning. They provide valuable insights about the market and about specific types of investments. There are seminars focusing on a specific aspect of stock market learning. You can also look for online courses and certifications in the field of stock market trading. These courses help you get equipped about the various essentials of a stock market trading.
- Start practicing with the help of a simulator: Buy your first stock once you have opened your Demat and Trading Account with the broker of your choice. Start by making small investment at a time. The other useful and popular method of learning stock market trading is through stock market simulators. Stock market simulators provide you with virtual money and replicate the stock market for you. You can buy and sell shares with the virtual cash in your account. They are a live replication of the stock market and thus provide you a first-hand experience of the stock market.
- Follow Warren Buffett’s advice of buying and holding the stock: Warren Buffett is one of the most successful investors. The best learning that you can take from him is to buy and hold the stock. Holding a stock for a long period helps you take the benefit of compounding.
Stock market trading is not as difficult as it seems to be and can be learnt by anyone interested in learning the same. Stock markets though volatile, offer the huge potential of growing one’s wealth in the long term. There are various ways through which investors can learn about stock market trading, the different strategies, tools, and techniques of market analysis, and much more. Though it is easy to begin with stock market investment, beginners in the field need to be cautious before putting their hard-earned money in the market. You can choose any of the methods suitable for you and can start learning stock market trading at your own pace.