Hey there! Are you one of those who want to invest in the stock market and get lucrative but don’t know where to start?
First off, let me begin by saying that the stock market is an excellent choice for earning an additional income stream. So, in this article, I shall tell you how to learn stock market and how you can start investing in the stock market by educating yourself on its various aspects and features and many more things.
Before that, let me give you a disclaimer. A stock market is a tricky place, which comes with a certain risk factor. In no way do these ways or techniques guarantee a 100% return. But I’ll say that these will increase your chances of getting returns. If you want to earn from the stock market, then you have to take balanced risks.
There are many ways to learn the stock market, like reading books, joining a good stock market course, a proper trading strategy, and many more. We will discuss all these one by one in detail.
Let us begin with the topic.
1. Books, Articles, and other Media
You must be wondering how books can help you in being a woke investor. There is an arsenal of excellent books on the stock market, from personal experiences to various techniques of analysis, to biographies on stock market wizards, and so on.
These books will provide you with the knowledge you require to step into the stock market. If you don’t like reading books, listen to audiobooks and podcasts. They are equally helpful. You can search online for the best books available on the stock market.
In my personal opinion, the books that will help you in being a smart investor are – The Intelligent Investor by Benjamin Graham, A Random Walk Down Wall Street by Burton Malkiel, One up on Wall Street by Peter Lynch, and Reminiscences of a Stock Operator by Edwin Lefèvre, The Little Book of Common Sense Investing, Stocks to Riches: Insights on Investor Behavior, Value Investing And Behavioral Financ, Japanese candlestick charting techniques.
These books contain the experience of decades and the wisdom of legendary investors. For instance, The Intelligent Investor has stats and figures from the time it was written to paint a picture of market conditions in those times.
Reminiscences of a Stock Operator provides you the life course of the legendary stock market investor Jesse Livermore and how he made money from the Great Depression of the 1930s.
Not only do these books give you the tools to invest, but they also tell you how to deal with risky situations and make the best out of the worst.
There are dozens of books apart from these that may help in educating you, and as I said, you can look them up on the net.
These books are readily available online on various sites and also in audiobooks.
Along with books, you can find tens of thousands of articles on the stock market online. Everything from blogs to YouTube videos to pretty much anything. The Internet saves the day. There are thousands of sites that post articles almost every day on various topics about the stock market. These can be pretty educational if you’re willing to read them.
There is a site called Investopedia, which has every topic on finance you can think of. It also posts amazing blogs on those topics to enlighten its readers.
Many YouTube channels post videos on stock market topics and explain its various fascinating terms to the viewers. Recently, I saw this one channel named The Swedish Investor, which summarized all the great books on the stock market perfectly in the videos. Hats off to him!
So I suggest that you spend a decent amount of time reading articles and watching videos to educate you on the stock market. Reading and watching the content on the stock market will definitely help you to learn stock market in the long run. This is one of the best ways to learn stock market.
Courses? Huh? What kind of courses? The stock market kind. Books alone cannot provide you the knowledge required to jump right into the stock market. You need to train under experts who have mastered the techniques of analysis of the stock market. There are two main analysis types in the stock market – Fundamental and Technical. Both of these are useful for predicting the movement of any stock price or the market itself. Many stock market courses will surely help you start investing and be prepared thoroughly.
You can find many courses online that’ll teach you the analysis of the stock market and graphs and a lot of other things in a period of 6 months to 1 year for small fees. These courses are explicitly designed so that anyone can start earning money from the stock market immediately. They provide the best live practices and expert sessions. Real-time investing simulation is quite common nowadays in such courses.
Plus, once you complete a course from an established institute, you will be provided with certifications. These certifications come from NSE and BSE, and other bodies of government. Plus, these certifications will help you find jobs in the field of finance. Some of the courses provide an internship and even a career in various stock market spheres.
A few courses that come to mind are The Thought Tree, NCFS, NIWS, etc. These institutes provide the best stock market courses in the country and give their students the best certifications and modules. Among these institutes, I will highly recommend The Thought Tree as they provide both practice and theoretical knowledge of the stock market in a balanced manner. They also offer free mentorship to their students.
Let us see what we have next.
Ah yes, the good old experience. In my opinion, experience is the best way to learn anything. You make mistakes; you learn from them and become a better version of yourself. That’s what it is in the stock market. Start trading yourself, and you’ll find yourself learning and observing new things by the day.
It is pretty simple to start trading. All you need is a Demat account and a broker that’ll trade for you. Start by investing a small amount of capital and keep on investing over a period of time rather than investing in a lump sum. This reduces the risk of heavy losses.
Any average investor has the upper hand over a financial broker due to the flexibility and independence from clients. So, essentially an individual investor has a better chance of getting returns than an analyst. You’ll lose money once, twice, even thrice, but eventually, you’ll get the hang of it and become aware of the market and start investing smartly.
While various courses will provide you with the tools, you will find that analyzing the market in the best way will come from your intuitions and experience.
Start practicing trade first in a simulated environment; then, you may even go real and start investing in the market. (Of course, after you think that you’ve got the hang of it) But before you do that, read the next point.
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The next step is in tune with the previous one.
4. Have a Strategy
Before you start investing in the real stock market, you must prepare a thoroughly planned strategy based on the experience and courses that you have taken. This strategy must include every single aspect of your requirements. Be it a financial requirement, a long-term or short-term requirement, risk-bearing capacity, the main source of income, even your knowledge of the stock market.
Once you analyze all these aspects, it becomes clearer how stocks will be beneficial for your portfolio. Yes, you will need to make a portfolio, and then and only then will you invest in the stock market. Your personalized portfolio will yield you an excellent amount of return over the long term. You need to have a proper and clear investment strategy for both long and short term. You have to be prepared for the worst-case scenario.
And remember, keep an eye out for the stocks that may need changing in your portfolio. Crazy stuff goes down in the market every day. The stock market is affected by any rumors, news, or events happening in the world. So, if Israel were to declare war on any country tomorrow, you will see a change in the stock market. Be it good or bad, but you will see a change.
That is it for now, dear readers. These are major ways by which you can learn the stock market in depth. If you want to dive deep into the stock market world, please check out some great courses on the stock market. These stock market courses will guide you in the right direction.
Prepare yourself completely and then rule the world.
Also, stay safe in your homes and wear a mask every time you step out of the house. Carry a bottle of sanitizer with you.
Thank you for reading my article. I appreciate it and it means a lot.