You want the dream — to get rich by investing in stocks. It’s easy money, right? Not so fast. It requires hard work and dedication. And, many don’t make it. In fact, even if you do, you might end up with a shattered psychology.
You’re bound to lose money along the way, there’s a good chance you’ll come out broke. But, for the few that do make it, they often become some of the richest people in the world. Here’s what the most successful investors of all time can teach you.
Open A Good Brokerage Account
Find a good online stock broker and open up your account. One of the ways to kill your savings is to let it get eaten up by fees. So, make sure you’re investing in a “low fee” environment. Choose the broker who charges a reasonable fee for trades and don’t get caught up in the glitz and glam of “full service” brokerages.
These days, all that means is that you’re overpaying for trade executions. Your broker, even if it’s an online broker, can provide assisted trades either free or for a very reasonable cost.
Read More Books
The best stock market growth hacks can be found by reading books and educating yourself either online or offline. Books provide a wealth of information about the stock market and are an inexpensive way to educate yourself, compared to the cost of classes and seminars or personal instruction.
Educational DVDs are sold across the web, too, and are another low-cost method of learning investing. Some classics include “The Intelligent Investor” and “One Up On Wall Street,” and “How To Make Money In Stocks.”
Another way to educate yourself is to read articles. After you’ve read through some of the classic texts on investing, you should read articles for current news and information. For example, some websites, like StockTrader.com lists over 100 unique different investment articles that are broken down into various categories. Investopedia is another major free educational site that gives investors a free basic education on investing.
Find a Mentor
A mentor might be a family member, a friend, or a past or current professor, a co-worker, or anyone that has a good understanding of the stock market. A good mentor will answer your questions, and help you make better investing decisions. He or she can help you dig up good resources and keep your spirits up when the market isn’t.
Forums can be another place where you might find an investment mentor. Two recommendations are Elite Trader and Trade2Win. These forums are populated by veteran traders who know what they’re doing, who’ve lost, and made, money over the long term.
At the same time, you need to be cautious of who you trust. These forums are also populated by newbie traders and amateurs who don’t really know what they’re doing.
Study The Greats
Investors like Warren Buffett, Jesse Livermore, George Soros, Benjamin Graham, Peter Lynch, John Templeton and Paul Tudor Jones, have all proven themselves in the investment community. Study them, their methods, and how they got rich. Rather than study their specific investment picks, study the methodology they used and try to replicate it.
Wayne Leonard is a budding investor who entered the world of stocks and shares 2 years ago. He made some newbie mistakes when starting and is keen to share his experience with others, so they learn the ropes faster.