If you are thinking about buying stocks then there are a lot of things
you need to learn. The internet is full of advice and courses, but the
difficulty knows where to start.
Firstly you need to break down what you need to learn before you start buying. There are several different aspects to trading.
first thing to learn is the terminology. It is essential that you
understand this. Without a comprehensive understanding of this you will
always be reliant of other people’s interpretations and advice and this
will mean that you are never truly in control.
The second thing
to learn is the process. For every purchase and sale there are certain
steps which need to be understood and followed. If these are not
followed in order then it is possible that you trade will not be placed
or you will not get it as the price you were hoping for.
and selling stocks has an emotional side. It is all well and good when
you are playing a fantasy game to sit out a position and to remain calm.
next thing to look at is the market analysis; bear in mind that there
are people out there who spend all day every day performing analysis of
this information. There is no way that you will know more than them, so
taking their interpretations is not a bad move.
comes when the experts are all saying different things and you don't
know who to follow. At times like this there can be a lot of potential
money to be made, but you have to be brave and take you own advice. To
maximize your chances of getting this right you need to have a basic
understanding of the market reports and analysis.
Once you have
got a basic grasp of the above three areas then you are technically read
to start buying stocks. However, there is one more learning curve which
you need to discover. Many people do not understand the importance of
this until it is too late.
Buying and selling stocks has an
emotional side. It is all well and good when you are playing a fantasy
game to sit out a position and to remain calm. When your hard earned
money is on the line you have to have some method to apply to prevent
you from making emotionally charged decisions.
traders will often say that the emotional and guy trades they do often
make them the most money. This is not a method which someone new to
trading should rely on; it is a sure fire way to lose a lot of money.
only real way to keep your emotions in check is to be as confident of
your facts as possible. This is why the first three lessons are so
important. Without a basic level of understanding you will find that you
are drawn to decisions when buying stocks which do not stand up to
scrutiny in the cold light of day.