So you are serious about investing in the stock market and maybe dipping your toes into “options trading”? I admire your courage and sense of adventure. In fact, having made some investments myself over the years I know what it feels like to see something you spent money on accrue value.
I just wish I had sold those stocks at the right time.
We all make mistakes. But that is what is so great about the Internet. If you’re going to do something you have a chance to learn how to do it right. I can tell you that I enjoy finding good sites that provide a lot of information.
Here, without further ado, are my five pieces of required reading for newcomers to the trading hobby.
The investment staff at Morningstar have 1,000+ years of investing experience between them. The site is one of my go-to spots for anything related to investment. It’s not my only source, by any means, but if you’re looking for a one-stop shop for trading tips and help, start here. This link is just one part of a massive and totally-free investment “course” put together by the site that I can’t recommend enough.
If you’re going to invest in any financial market, you need to start reading as much about investing as you can get your hands on. This one seems like a no-brainer, but basic financial literacy is no longer something you can assume everyone has. You may be surprised at the number of trading professionals who are ten or fifteen years behind the times because they stopped reading and stopped learning. The nine books on the list in the link are a wonderful beginning to your education. Read them all this month, then read nine more books next month. MAYBE then you’ll be educated enough to make a successful trade.
I’ll never understand why people don’t read more reviews of trading platforms before they jump in and start investing their hard-earned cash. The link above goes to a concise and well-written review of seven different popular options traders – and it’s just one of many such review sites you can find in just a few minutes on Google. Read up on these popular platforms before you decide which one to use for your specific needs.
I have this link bookmarked and pretty much use it as my landing page during the week. I’ve learned more over the years reading the expert blogs at this link than from any other single source. Even if you don’t learn anything specific about trading, as a newcomer, you need to know what’s going on in this blog in order to know what’s going on around the world of finance.
You may be thinking: What can I learn here that applies to the life of a small-time day trader? I think it is simply good practice to have a quick source for real answers to investor’s financial and tax questions. I think it’s even better practice to learn about the rules and regulations ahead of time, before you think you need to know about them. The SEC provides a wide range of resources at the site besides just legal information. You can get news and alerts on major financial news and other helpful tools for beginners.
Will you need other resources during your trading career? Of course. Think of this list as a foundation. You’ll build your personal financial resource list from this basic framework.
Have any ideas for things I can add to this list? Drop me a line – I’d be happy to expand my go-to resources for newbies if I come across a good suggestion.