Learning stock trading is not difficult if you are determined to work hard and learn every day. Below you will find a step by step guide to learn stock trading:
Step 1: Open a free simulator account
You can start learning stock trading by practicing on a simulator account in the beginning. A large number of brokers offer such accounts for free to their prospective customers. Without risking a single penny, you can test your trading fundamentals on these simulator accounts. The trading experience is not completely real until 'real money' is involved but it's still a good way to practice.
Step 2: Read books and articles
You need to learn trading fundamentals in order to become a successful investor. It is important that you learn to do fundamental as well as technical analysis on your own. Books and online articles can provide you with wealth of information on various topics related to stock market trading.
Step 3: Join forums where you can ask questions
A new investor should naturally feel an urge to ask dozens of fresh and new questions every day. Online forums are the best places where you can ask questions and get quick replies from both new and experienced investors. A large number of members on popular forums are willing to help novice investors.
Step 4: Find a guide
You need to find an experienced investor who can stand by your side. More than anything else, you need expert guidance from someone who has experienced stock trading. A guide can be a friend, professor, co-worker or even your family member.
Step 5: Keep up with the latest financial news
You need to start browsing popular financial news websites on a daily basis. It is important that you stay updated with all the latest news from around the globe. Google Finance and Yahoo Finance are two most popular portals that provide financial news. As you read financial news stories on these portals, you'll automatically begin to learn a large number of new terms and concepts.
Step 6: Get paid subscriptions
It is not bad idea to spend some money on important subscriptions. Paying few dollars every month for the much needed research and analysis is quite a good idea in fact. Many popular market-related publications can provide you with extremely useful information on current and past market trends. You'll not only learn from this expert information but also get useful tips on making fresh investments in the stock market. As you have to learn stock trading, you can always compare your trading decisions with expert opinions published in some esteemed publications.
Step 7: Watch Television
You need to develop a habit of watching financial news and related shows on the TV. This may sound like a crazy idea especially if you've been watching Discovery and Star Movies all the time. Since you want to be a successful investor, it is now time to watch CNBC for financial news every day. You do not have to start picking ideas from the day one. Just watch the TV and let commentators, interviews, journalists, experts etc. have their say on the television screen. Your mind will slowly begin to process the information on its own.
