419,000,000. This is the total (estimated) number of Google searches for “how to trade stocks”.
Those making an entry into this money-making opportunity, or career choice, will quickly find how overwhelming it can be. Where do I start? Who should I trust? These questions race through your mind as you pour over dozens of articles, videos, and maybe even podcasts.
Stock trading is something you’re committed to getting into, but it’s intimidating, especially since real money is on the line. So where do you start?
Stock trading would comprise thousands of individual articles and videos if you were to follow the rabbit hole of links and related content. This would cover everything you’d want to know, but there’s no rhyme or reason behind the learning.
The scientifically proven way to improve learning is by “chunking.” This process uses a mix of interleaving (mixing it up), deliberate practice, and spaced repetition.
Structure means everything – you don’t find this when you skip around individual subjects. Instead, focus on a main topic, (i.e. common stock, IPOs, terminology, platforms), in an organized manner, while skipping ahead and coming back to reinforce what’s learned.
You’ll find this structure through:
· Bestselling books on stock trading
· An interactive stock trading strategy guide
· Workshops or boot camps
· Following the experts
The information gained through the sources are both A) condensed and B) vetted. Meaning the info is broken into “chunks” that’s easy to process but sound in judgment.
Outside of the strategies contained in these resources are the daily commitments:
· Following stock & business news
· Subscribing to a membership site
· Using virtual trading
The final, big realization is to get out of this idea of the “lifestyle stock trader;” the images you see of someone trading on the beach and perpetually traveling. Get ready, because the day-to-day is quite intensive and somewhat boring. You must treat this like a job.
Does one person have all the answers?
You’re not Warren Buffet and even suggestions from the master himself aren’t always correct. Mistakes will be made during the learning process. You should be comfortable with losing money, not only when you’re getting a start, but when you’re in the thick of it all.
Learn by Doing
Stocks are often built on speculation, and the same can be said about your knowledge of trading.
Spending hundreds of hours learning about stock trading or keeping up with stock news will certainly help you avoid costly mistakes and pick up the basics. Yet, the better learning tool is to jump right in.
Learn from your mistakes.
Stock trading isn’t gambling — it’s calculated.
You’ll lose money on a bad investment but you’ll learn and make improvements in your calls. Eventually, you’ll understand what makes for a good pick, resulting in a positive portfolio.
Take the above resources and try this:
1. Create a portfolio on paper to plan out your picks
2. Get comfortable with a platform
3. Invest a couple hundred dollars
4. Work on new picks while others mature
5. Track your returns and mitigate losses
This will show the logic behind what you learned through the resources. Before long, it will click.
What helped you get into stock trading?
