The stock market is a marketplace for investors to buy and sell investments, most often stocks, which are ownership shares in a publicly traded firm. Everyone is aware of the stock market, but few are aware of how and when to invest in it. Success depends upon the ability to move forward by learning and applying the skills and practices involved in Stock Market Trading. In this article I am going to highlight the seven different ways through which you can learn about investment in the Stock Market, but first let’s begin with the brief introduction of the topic.
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What is Stock Market Trading?
Shares or stock is traded on stock markets. Stock exchange is the secondary market of shares, bonds and other financial instruments. Public limited companies first issue shares in the primary market that comprises underwriters, agents or financial institutions. Once issued the shares can be bought and sold through the stock market. For every buyer, there is a seller in Stock Market Trading and vice versa. When you are going to purchase a specific number of shares, someone is selling those shares and when you are selling, there is someone who is ready to purchase them. The stock price depends upon the ratio of buyers and sellers. More buyers than sellers result in price up, and more sellers than buyers mean the price will go down. Simply a bearish or a bullish trend may prevail in the market. Bearish trend is known as a trend in which there is a fall in the prices and in the bullish trend stock prices go upward.
Here are several methods to learn stock market trading for newbies.
Follow a Mentor
If you want to learn quickly, sign up for a training program like Prosper Trading Academy by Scott Bauer (here’s a review of the course).
A mentor does not always have to be a paid coach. A mentor could be your friend, relative, colleague or a teacher who has the knowledge of stock trading. A true mentor will answer every question and teach you about the procedure by providing useful resources as well. A person with practical knowledge or a counselor who is ready to face the market’s harsh time as well, might give you very useful skills as compared to other learning methods.
Read Books
Books are a valuable, affordable and easily available source of information for every aspect of learning. Books provide useful insights into the understanding of the companies, the shares, fundamental and technical analyses of the companies, stock markets and about the trading of shares on stock markets. There are plenty of books available on Stock Market Trading. Here is a list of some of them.
· Stock Market Wizards by Jack D. Schwager
· Trading for a Living by Dr. Alexander Elder
· Technical Analysis of the Financial Markets by John Murphy
· Winning on Wall Street by Martin Zweig
· The Nature of Risk by Justin Mamus
Online Learning Sources
It is the age of information technology where the information is digitally public and there are a lot of sources of knowledge available. One can learn the stock ups and downs in a variety of online learning resources like, reading articles, listening to online seminars, watching YouTube video tutorials or the expert’s opinions or through social media. One of the popular websites for learning is Investopedia.com.
Watching Television
One of the great sources of information, every day the news bulletin covers the Stock market rates, ups and downs in the companies’ stocks and starting and closing indexes of the stocks which is a useful information and learning step. Some of the TV channels like CNBC host the shows based on the stock market displaying the guest’s conversations and opinions on the stock market.
Setting Up an online broker account to practice trading
One can actually start it by having a little investment until he knows the procedure and dynamics of a market. Stock markets usually behave differently and may have different dynamics. Virtual trading is another best strategy to learn the stock trading game. Opening an online broker account and practicing through a simulator helps you most in learning the investment procedures, providing the real time environment and allowing the newbie to watch market movements and make purchasing and selling decisions that build the outline of a notional performance record. However, virtual trading varies from a real-life scenario in which there exist emotions, such as joy and fear of profit and loss, but it will effectively instruct a novice in stock market investment decision-making.
Conclusion
The stock market trading involves the sale and purchase of shares of public limited businesses. Many individuals and business owners invest in this, and their profits and losses are determined by the stock market’s demand and supply of the shares. Knowing and analyzing market estimates is critical in this industry. One can learn the stock market trading through the above-mentioned basic ways and make a practical step into the market applying these strategies.
