Fortunately for beginners there are numerous methods available to learn the basics of online trading:
Books – both hard-copy and ebooks are available that guide you through your investment decisions and how to pick both investments and a broker.
Online sources – just perform a couple of searches on the internet and you can find literally thousands of companies and individuals with a wealth of information and guidance for you. A word of caution – as in any business endeavor there are unscrupulous resources just waiting to take advantage of inexperienced or naïve individuals. Check credentials before proceeding with these contacts. One well-known source of investing information is investopia.com.
Personal mentors – perhaps you know a friend or family member who is familiar with online stock trading. Their experience can be invaluable to you with guidance on what has worked for them and what strategies failed them. Due your due diligence on any “hot tips” provided though.
Study – before investing it is important to understand the company or vehicle you’re investing in. Do some research on the company and its recent stock trend and earnings potential. Some of the most successful investors such as Peter Lynch have suggested that investors participate in what they know. This means that if you have in-depth knowledge of a market such as health care or commodities such as metals or agriculture products it may be to your advantage to invest in markets that you understand.
Monitor news and company announcements – when companies announce financial events such as restructuring, earnings expectations, or looming layoffs it will impact your investment decisions. Global news events such as political unrest or economic conditions will similarly impact stock markets, possibly with either for short-term or long-term results. There are many excellent sources for news including CNN.
Experience – once you have selected an online stock broker, start slow. Don’t risk considerable capital with your first trade however lucrative it may appear on the surface. Remember that all capital is at risk in the stock market. Don’t participate in markets that you have no understanding of such as stock futures until you’ve had time to truly feel comfortable with such vehicles.
Learn how to read stock charts – there are multiple forms of stock charts investors utilize to track stock performance and market trends. Some are reasonably basic for use by beginners and others are extremely complex that tend to be utilized by more experienced savvy investors. Stockcarts.com is a good site for beginning chart reference. At the least get a basic understanding of standard stock ticker information that’s available on nearly every financial page or brokerage site.