Stock Market for Beginners – Where Do I Get Started?
In today’s blog post, we cover how to get started in the stock market for beginners. There is a variety of resources on the internet ranging from free, to tens of thousands of dollars. Unfortunately,the price points are not always indicative of the quality of the training you will receive.
At TRADEPRO Academy, it is our belief that any place that you go to should at least offer a free trial to some of the actual resources available to paid subscribers or members. For example, we offer the first 12 hours of lessons of the Trading Foundations Course for absolutely free, no credit cards or trial periods. This is a good way to sign up and find out if the teaching approach is suited for your learning style, as well as how much effort the company has put into building resources to ensure you are successful.
The benefit of paying for education is that you receive a well structured course that will take you through the learning curve in a strategic way. When I first started trading 14 years ago, I scoured through all the library books, free videos and forums that I could. This literally took me hundreds of hours to get to the point I was trading at break even. The very first 8 lessons we offer as a trial cover the majority of what I learned the hard way, in a course format that is easy to follow. In essence, to learn the stock market as a beginner, you can invest in a course or invest the time to self learn through the vast resources available for free online. The one benefit of the paid approach is that you only need to go through the materials that are effective, because there are thousands of websites that will teach you theory that has no practical application. That is a waste of both time and money.
When it comes time to figuring out the stock market for beginners, there are a few key points I would strongly recommend:
- Research how the markets work. Know the players of the game, their motives and how they make money. An interesting read can be found here.
- Explore the different styles of trading and discover which one is most suitable to your personality, schedule and other personal factors. Our TRADEPRO Success Coaches are here to help you with this important step. You can be a day trader, swing trader, position trader, value investor, and many more.
- Study and compare the two main branches of security analysis, fundamental and technical. Fundamentals help you value a company based on a number of ratios, factors and financial statement analysis. This is too much work for us, and not an accurate approach. We focus on technical analysis in our Trading Foundations Course to study momentum and predictable behavioral cycles and trader psychology.
- Start virtual trading as soon as possible. Nothing can replace the feeling and motions of actually trading. Some people get too caught up in focusing on finding the perfect strategy, method or holy grail to make millions. Sad news, this doesn’t exist. Your holy grail will be different than any one else’s, the key is to get started, trade in a virtual market and document your experiences. Then learn from them and make adjustments. We offer you a free trading journal and training along with access to a live coach. Sign up and get started!
Some words of caution, from a guy that has been trading the markets since 2001:
- Focus on learning how to be the analyst and decision maker for your trades. Stay away from systems that promise profits, return and income without your involvement. See point two for more.
- Don’t believe the advertisements promising you 500% returns in a few short weeks. Or the system based trading that promise to give you an entry signal the moment you should buy without having to analyze the markets for yourself. This is equivalent to those spam emails you get, promising a million dollar estate if only you send them $100 to clear the estate processing fees. There is no substitute for hard work. Trading is a massive time and energy commitment. You get nothing with no effort.
- Stay away from penny stocks services that stand to profit from your lack of knowledge. Penny stocks are companies that trade in very thin quantities, allowing them to be manipulated with a small amount of capital. Example: ABC Alerts says buy a tiny company called TINY, trading at $0.10. There is big news coming out and if it goes to $1 you’ll make 1,000% profit. So you say heck yeah, I want in and start buying the shares at prices closer to $0.30. Guess who’s shares you are actually purchasing? The ones sold by ABC Alerts – at a 300% profit because they bought them at 10 cents. That $1 target they talked about? Good luck waiting for that – the $0 target is far more likely. Classic bucket shop scam.
- Trading is really challenging! There are a lot of scams out there and the stock education industry has gotten a bad wrath as a result. Always run the is it too good to be true test. 500% returns a month, if I just subscribe to an email service for $69.99 a month. Fail!
- There will be dark days on the climb to the summit. Stay focused, motivated and inspired. A trading mentor or coach is a must. Like any good athlete, you need a sounding board, someone who has been around for a long time and gone through your experiences multiple times. Someone like one of our TRADEPRO Success Coaches.
Some good resources that are free:
- Trading Foundations Course – 8 lessons, 12 hours of education to get started in the stock market for beginners
- TradingView – clean, social and simple to use stock charting
- Investopedia – straight forward trading education and dictionary for terms
- BabyPips – a structured education class if you are interested in currency trading
- TheOptionsGuide – options strategies explained in simple terms
- FinViz – a good technical and fundamental screener for stocks
- ForexFactory – calendar of economic events and major news releases
- ZeroHedge – alternative news source focused on economics, finance and politics
- VisualCapitalist – powerful and interesting visuals on numerous finance and business related topics
- Broker comparison chart in the United States
And last but not least, a short video of myself talking about getting started and what makes us different and special as an education source:
And there you have it, an insight on getting started in trading the stock market for beginners. I will continue to update this page as more thoughts and questions come my way. If you wish to contact me with a question or suggestion for this page, I would love to hear from you at my personal email: firstname.lastname@example.org
Have a fantastic day. Good luck and good trading.