#1 Focus → EDUCATION:
It’s in everyone’s nature to chase a quick buck and find the fastest path to gains, but jumping into the stock market uneducated and unprepared will most likely result in the opposite – losses. Just like any other undertaking worth your time and effort, it takes a dedicated period of studying and practice in order to get up-to-speed. When traders look back on their past mistakes and break down their biggest blunders, failing to paper trade when they first started always seems to be the greatest regret. So many success stories begin with failure (ex. blowing up an account) before taking the practice phase seriously, but that can be avoided with Paper Trading.
So where can beginners turn for the best education? I’m a big believer in having a mentor – someone who can provide you with 1-on-1 support in times of need. You simply can’t be a Jack-of-all-trades when it comes to trading. There’s too many potential strategies and approaches to consider, so finding someone with a focused niche to learn from is paramount.
Related Post: What is the Cheapest Way to Trade Stocks? Avoid Learning the Hard Way
I honestly cant agree with your more. You hear more people screaming scam and that they got screwed over for every reason in the book other then they simply didn’t take the time to do their research…
I read a lot about this topic and I’m really happy you are taking the time to not only advise on investment topics but telling people to educate themselves.
Do you have any favourite books or websites you like to go to use for your stock education?
Hi Stephania – you’re 100% right. So many people get sucked into the marketing hype that tries to make trading sound easy and promises huge profits without much effort. But blindly mirroring some guru’s trades won’t get you very far. In fact, you’ll probably go backwards (aka lose money). The only way to become consistently successful is to invest in your own education. Learn trading concepts that you can apply on your own so that you can reap the rewards for years to come. In the end, that’s where the most value lies.
My favorite books and websites for stock trading education and research can mostly be found on the Free Resources page. For books – I’m a big fan of anything Steve Nison writes about candlesticks and technical analysis. For websites, I see a lot of value in a handful of newsletters, including Jason Bond Picks, BioTech Breakouts, Penny Pro, etc. At the core, these services are heavily focused on education – and that’s what it’s all about.