What is the best method to learn to invest in the stock market?

Question

I have very little funds to devote to this, but am interested in learning how to invest in stocks.

Answer 1

Before you invest in any security, the first investment you should make is in yourself, and the best investment you can make is by educating yourself.

Start your education by learning why you should invest and the importance of being able to make your own decisions or what the pro’s make theirs.  Start by reading,

What Works on Wall Street by James O'Shaunessey

Beating the Street by Peter Lynch

One Up on Wall Street by Peter Lynch

The Warren Buffett Way by Robert Hagstrom

How to Make Money in Stocks” by William O’Neil

Get into the habit of making daily visits to some websites like MSN Money and Yahoo Finance.  (http://moneycentral.msn.com/home.asp http://finance.yahoo.com/ )

While at MSN following the strategy lab analysts to get a feel for what the pros are doing and why.  This site has some basic information for beginners. If any site offers free information, take it.

Other website that can provide instructions and help with procedures and terminology are

Investopedia - http://www.investopedia.com/  Stock Charts - http://stockcharts.com/

http://www.investorshub.com/  http://www.1source4stocks.com/



Visit some of the more professional websites like Zacks - http://www.zacks.com/

Smart Money - http://www.smartmoney.com/  Schaeffer’s – http://www.schaeffersresearch.com/

Some of these web sites will have advertisers who are worth looking into also.  And remember, if they offer free information, get it.

Attend all the free seminars you can, just be careful and don’t get pressured into anything you really don’t want or need. Most schools offer courses in finance and economics, but very few will have courses on the mechanics of the investment markets, if they do try taking the course. You may want to consider on-line courses, the New York Institute of Finance use to have such courses.  Try to get some fee information from the stocks exchanges they all have (had) free booklets, SIAC and some of the regulators (FINRA SEC MSRB CBOE) may provide some free literature.

Answer 2

It is simple.

Buy some stock for a low price.

Sell the stock for a higher price.

If you do that, you will always make money.

Answer 3

First thing is to decide what your goal is with the money you invest in the market. Of course, to make money, but I mean retirement, buy a house, college education, etc.

Second, don't listen to all the talking heads on TV, analyst recommendations, friends, etc.

Third, either educate yourself or follow the guide of someone, i.e. advisor, newsletter service or trader that has a proven track record of success. Not just during good times. The good news if you have a small amount to start with, even if you take some hits, the learning process will not be that painful, and with time and guidance you can  be very successful.

Take a look at www.caromcapital.com to start. Other books, William O'Neil, How to Make Money in Stocks.

Answer 4

You don't learn how to swim by reading a book then go jump in the ocean, right? Same with investing.

Go to updown.com and open a virtual trading account. Buy and sell stocks with that account until you can tell when to trade and when not to trade. That is going to be your trading method. Keep trading so you can fine tune your method.

When you are trading with your method and show profits three months in a row, then can you open a live trading account with  an online broker of your choice. Trade only with money you can afford to lose at this time.

Again, trade this live account using your trading method, and fine tune, while striving to preserve your trading capital. Once you have traded and show profits three months in a row, then add more funds to your account.

Feel free to contact me through my profile if you need more information on this. http://jsforex.blogspot.com