KL Trader Investment Research Articles

Just In! 10 Tips to Succeed In Stock Trading

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Publish date: Fri, 27 Dec 2019, 09:40 AM
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This is a personal investment blog where I keep important research articles relating to KLSE companies.

 

The image of a stockbroker frantically trading in Wall Street can present this activity as quite complicated. Unbeknown to many, it is a skill you can acquire; just like learning how to ride a bike, or even baking. Sounds too easy? Well, it may need a little more education and attention to detail, but is just as attainable a skill.

Starting on your stock trading journey can elevate you to extraordinary levels of financial success. The success stories of Billionaire investors like Warren Buffet seem lofty ambitions, but aiming for the sun might land you on the moon. What is great about stock trading is that you have an entire lifetime to hone your skills.

Here are some tips to make impressive returns in the stock market:

1. Read Books

As with every profession, more information and experience always helps. Every field of life is a constant learning process, and stock investments are no different. Relevant books are a front-row ticket to how the best minds in the business think. Besides, you often get them at a cheaper cost than classes or seminars.

2. Open a Stock Broker Account

Every journey of a thousand miles begins with one step. Finding a good online stock broker and opening your account can be a place to start in stock trading.  Such accounts come with unique trading tools and research which are exclusive to clients. Besides, you can sign up for virtual trading on some platforms which simulate actual trading for learning purposes.

3. Read Articles and Online Material

Articles offer an extra resource to expand the scope of your knowledge. Popular investment education sites like Investopedia.com are a free resource to find content. The advantage that articles have over books is that they can be updated to reflect the latest trends.

4. Find a Mentor to Take You through the Ropes

A mentor doesn’t have to be someone who has made millions of dollars or talks like a seasoned fund manager. Instead, you can have any friend who has some understanding of the stock market. After all, society in an information value chain and some people happen to be ahead in the learning curve. Useful advice, answers, and even professional help can be a lifeline in this journey. The path to success can be a simple as finding the path of those who made it before you and engaging them to guide you chart yours.

5. Study Successful Investors

The pool of consistent successful stock investors may not be personally accessible. However, the operational patterns of successful investors like Warren Buffett, Jesse Livermore, and Peter Lynch are easy to find in various media. Study them to know what gave them the edge over the average stock trader.

6. Always Track the Stock Market

Constantly checking the stock market helps you observe economic trends, third-party analysis, and all that pertains to investing. This tracking includes media like CNBC and Bloomberg. Such information is vital in developing the firm yet flexible hand necessary for stock trading.

7. Consider Paid Subscriptions

Where appropriate, paying for research and trade ideas can be educational. Select market professionals offer such subscriptions to their clients. However, it would be best if you were careful not to sign up for one-off traders who promise wild returns yet use poor investment models.

8. Check out Seminars and Online Classes

A seminar can provide useful insight into the health of the stock market and return for specific investment types. Such workshops typically involve a successful investor focusing on an aspect of the market and how they carved a niche for themselves. This tip is yet another instance where you take the good and leave out the bad. For example, you can follow an online class or seminar but analyze carefully any unrelated aggressive investment pitch given out.

9. Conduct a Demo before Buying Significant Amounts of Stock

Start trading using a small amount of stock or virtual trading to learn the ropes. Using stocks, worth as little as $30, give you hands-on experience. Stock trading requires you to be on top of things. If trading stocks is too nerve-racking at the start, virtual trading tools from online brokers can be a shallow end to dive.

10. Consider the Buy and Hold the Market Strategy

Few people are consistently lucky with day trading and short-term holds. The likes of Warren Buffet have made significant fortunes by simply buying and then holding for a considerable period. Generally, stock indices like the S&P 500 have appreciated over long periods, despite occasional shocks. Therefore, the seemingly passive buy and hold instead of aggressively competing with the market can be a long-term sure bet.

 

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