New Investor: 10 Ways to Trade, Make Money on Stock Markets

This is a place where shares of pubic listed companies are traded. The primary market is where companies float shares to the general public in an initial public offering (IPO) to raise capital.

Once new securities have been sold in the primary market, they are traded in the secondary market —where one investor buys shares from another investor at the prevailing market price or price agreed upon.

The secondary market or the stock exchanges are regulated by the regulatory authority in different countries. In India, the secondary and primary markets are governed by the Security and Exchange Board of India (SEBI).

Strategies used twenty years ago are still utilised today – and still work. The game is always in full force. So for new investors wanting to take their first steps, and here are 10 simple strategies for you.
How to Make Money on the Stock Exchange

How to get started As a potential investor, you must have access to multiple sources of quality education. One great advantage of stock trading lies in the fact that the game itself lasts a lifetime. Investors have years to develop and hone their skills.

Stock broker account
Find a good online stock broker and open an account. Become familiarised with the layout and to take advantage of the free trading tools and research offered to clients only. Some brokers offer virtual trading which is beneficial because you can trade with play money.

Read booksBooks provide a wealth of information and are inexpensive compared to the costs of lectures and seminars. The most recommended book is: How to Make Money in Stocks by William O’Neil.

Read articles
Magazine, newspapers and online articles are a fantastic resource for education. Here you can access practical information by experts on ways to trade on the stock market with ease.

Find a mentor
This can be anyone of your choice. A great mentor is willing to answer questions, provide help, recommend useful resources, and keep spirits up when the market gets tough, while this cannot be availed by literature. All successful investors of the past and present have had mentors during their early days.

Study the greats
Learning about the greatest investors of years past will provide perspective, inspiration, and appreciation for the game which is the stock market. Greats include Warren Buffett, Jesse Livermore, and George Soros among others.

Read and follow the market
News sites such as Yahoo Finance and Google Finance serve as a great resource for new investors. For in depth coverage, look no further than the Wall Street Journal and Bloomberg. By monitoring the markets each day and reading headline stories investors can expose themselves to trends and learning new tricks.

Seminars and classes
If you can afford, seminars can provide valuable insight into the overall market and specific investment types. Most seminars will focus on one specific aspect of the market and how the speaker has found success utilising their own strategies over the years.

Buy your first stock
With your online broker account setup, the best way to get started it to simply take the plunge and make your first trade. Don’t be afraid to start small, even 1, 10, or 20 shares will serve its purpose of getting you in the game. One of the most common mistakes traders make is to go all-in and try to score big with a full portfolio position out of the gate.

Follow Warren Buffett
Warren Buffett, the greatest investor of all-time, recommends individual investors simply passive index instead of trying to beat the market trading on their own.

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