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Tips for Learning the Stock Market for Beginners

Tips for Learning the Stock Market for Beginners
September 22, 2021 Martha Stokes CMT

Tips for Learning the Stock Market for Beginners

7 Things You Need to Know to Get Started in the Stock Market

For most beginners, the Stock Market is a confusing and complex place. Here are 7 Tips to help you start your investing or trading career with success.

1. Never buy a stock on impulse. If you feel an overwhelming urge to rush out and buy a stock, STOP. Do not buy the stock because you are buying purely on emotion, greed, or fear.

2. Always study the stock’s chart before you buy a stock. Is it at a new high? Is it at an all-time high? If it is, you are buying a high-risk stock and could easily lose money on the trade.

3. Never buy a stock someone mentions in passing. Sure, a co-worker may know about stock trading, but that doesn’t mean you will make money if you buy the stock. Know what you are doing before buying any stock.

4. Most beginners lose money on their first stock purchase. This is because they feel a compulsion to buy the stock and do not do the homework they need to do first. Do your homework. If a stock is a good buy, it will be a good buy for a while. You don’t need to buy it immediately. If you wait and learn what you need to know before buying a stock, then your first purchase is likely to be a success.

5. You can’t learn everything you need to know in a day or over a weekend, or even by reading a few articles on the internet. The Stock Market has many opportunities, but it takes time to learn what you need to know. Give yourself the luxury of time to fully understand the Stock Market. Who are the 9 Stock Market Participant Groups?

Stock Market Basics

Watch 12 Beginner Lessons to learn the basics, for New Investors and Beginning Traders. Start HERE

How to Trade Webinar

Learn how to find stocks to trade, how to choose most profitable stock, and identify risk of the trade. Begin HERE

5 Steps to Trading Success

Webinar to learn entry candlestick signals, indicator analysis for tracking Dark Pools and Professional Traders, how to put on the trade, how to use trailing profit stops, and when to exit the trade and take your earned profits. Click HERE

How does each one affect the stock price? What stock order types are best (not At Market and Limit Orders)? What is a Stop Loss? How do you calculate Risk? How do you determine the profit potential? What Trading Style should you use? There are more things to learn about trading the Stock Market than you might realize.

6. Do-It-Yourselfers are common. Do It Yourself (DIY) is fine for some things such as fixing your car or repairing a gutter on your house, but doing it yourself in the Stock Market ends in disaster most of the time. Beginners believe they can learn about the Stock Market because they do not comprehend the amount of education they truly need.

7. Scams, Ponzi Schemes, Trade-with-a-Pro schemes, and many other get-rich-quick schemes lure the beginner in the false sense that they will get rich without any effort on their part. The reality is that these schemes are only lucrative for those who promote them. If it sounds too good to be true, it is probably a scam. If you don’t have to do any work, then it is a scam. You have to remember to check out the credentials of any educator. Be skeptical, and do not believe everything you hear or read on the internet. Most of it is not factual.

Summary

Beginners need to learn a complete process for trading stocks. There is no such thing as a get-rich-quick scheme. There is no such thing as Professional Traders giving away their secrets. There are no secrets in stock trading. In order to be successful, you need to learn about how the Stock Market works and how to trade stocks for consistent success, not just one or two big gains followed by many losing trades.

If you have no experience investing or trading, this is your self-paced course, the Walk Around the Market Course for the Absolute Beginner.

Trade Wisely,

Martha Stokes CMT

Chartered Market Technician
Instructor & Developer of TechniTrader Stock & Option Courses

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Martha Stokes, CMT is co-founder and CEO of TechniTrader. She is a retired professional Buy-Side Analyst and was awarded the Chartered Market Technician designation for her thesis, "Cycle Evolution Theory." Martha is a passionate teacher of the financial markets and a prolific writer, having created over 40 stock, option, and financial market courses.