The stock market can offer you as much as 10% annual returns. Although this may sound like much. It is more than what you can get when money is sitting in your bank account or invested into bonds.
I know you’ve heard the stories of people who got burnt in the stock market. Well that’s probably because they didn’t stay invested long enough.
Before you can learn how to make money trading stocks, you should first open a brokerage account. Having a brokerage account is the only way to trade in the US stock market.
If you are disciplined, focused and driven, you will learn how to make money trading stocks in no time.
Which is why you need to take advantage of all available resources in order to learn how to make money trading stocks the right way.
1. Read Books and Articles
The best place to start in your quest to be a stock investor is to acquaint yourself with the stock market.
This you can do by reading books and articles scattered all over the internet. We’ll recommend you ready books by William O’Neil.
As for articles, bookmark the Investopedia website and look out for articles on stock trading. There’s also the memos of Howard Marks of Oaktree Capital on stock trading. Don’t stop there, there are millions of resources to digest all over the internet, use Google.
2. Learn With a Mentor
You should first jump start your interest for stock trading by reading books and articles. This will make it easier for your mentor to teach you without having to go through the basics.
If you want to be successful at trading stock, you can not go at it alone. You will need a mentor.
You should also join stock trading online forums and see questions being answered on more advanced stock trading.
3. Understudy Successful Investors
Take your time and learn about other great and successful stock investors. Past or present.
Look into the trading acumen of Warren Buffet, George Soros, Peter Lynch, Benjamin Graham and many other stock trading giants.
This will open your eyes to the perspective and inspiration behind their stock trading and investment ideas. There’s always something to learn about their trading pattern and strategies, out of which you can come up with yours.
4. Follow The Stock Market on a Daily Basis
To learn how to make money trading stocks, you have to be in the news. Keep the pages of the Wall Street Journal, Bloomberg and CNBC opened on your smartphone. This is to allow yourself be immersed in stock market trends as it occurs by the minutes.
Visit Yahoo Finance and check out the stock charts, check out the news headlines and dig deeper into the fundamental data. Don’t stay on the surface.
5. Take Classes on Stock Trading
It takes a lot to be part of the few that has the patience and consistency it takes to make money trading stocks. Which is why you need to go deeper by exposing yourself to expert knowledge through seminars, online courses and webinars.
Rely on your mentors and readings to know which paid classes you should attend. Don’t be too excited by the sales pitches, attend only the ones that can add value to your stock trading journey.
