Even the Wolf of Wall Street was a novice in the financial world before taking it by storm. They say a journey begins with a single step, and if this is your first one, looks like you are already headed in the right direction! You may not become the next Warren Buffet, but that doesn’t mean you can’t learn some basics about the stock markets and make a decent profit out of it. Here are some Trading Tips For Beginners to help you get it right:
- Open An Account: Rule 1 – you need to have a trading account before you start buying and selling like a pro. It is good to go through, and take the journey with, someone who knows his stuff, like a broker. Here is a tip though: Don’t allow him/her to bully you into doing something because they tell you to do so. It’s your hard earned money and no one will be held liable for any losses. It’s in the contract. Go slow at first. Buy a few shares, check up on their prices, how they are doing for a few days and then sell when the timing is right. Practice makes perfect, so don’t be hasty because haste makes waste. Ok, enough of the proverbs. Moving on…
- Research & Development: There are departments in organizations built upon this principle, because going around in the dark is going to end up with you stubbing your toe, or worse still losing money. There are a bazillion books (maybe a little less than that) written by “experts” including our favorite philanthropist, Warren Buffet. There are also umpteen online sources, including mock trading apps like Stock Wars and what-have-you that go the virtual way before taking the actual jump.
- Watch TV: We are not talking about Netflix and the latest HBO drama, but good TV that helps you invest wisely. CNBC, CNN and other online portals allow you to view the scrolling stock prices live. For sure, at the start you will feel so lost and almost like you want to quit, but stick with the game and with practice, you will get in the flow. If thousands of others over generations can do it, so can you.
- Learn From Others: Those who have been there, done that and are still killing it in the markets should be your best mentors. Such kind of people also happen to be egotistical and want to spread their “knowledge” to all the world, mostly for free, so grab a-hold of it as much as you can. There are umpteen videos online as well as resources by the dozen that will point you in the right direction. The best thing you can do for yourself is to learn from other people’s mistakes so you don’t make them yourself. You can either make friends with an actual guru of the markets, or read up on a popular face who regularly does interviews for financial media.
- Start Small: This happens to many people, be it in Vegas or NYSE, whether they are drunk with alcohol or happiness – they get beginner’s luck and then go all in for the “gamble” and end up being such sore losers, they can’t handle it and back out of the game. Please, start small. Take a little bit of spare money that you would have otherwise spent on an expensive outfit or dinner and put it in the market. Play with it and re-invest the profits. Don’t get caught up in any hype and most importantly, follow your gut.
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