A stock market education for a beginner should begin with an understanding of where to go to for company and market research and it should constantly involve evaluating and monitoring your stock portfolio once you have chosen stocks to invest in.
Perform Company Research to Find Valuable Stocks
You can find out about a company that you’re considering investing in by looking at company profiles in your national newspapers, by going through a firm’s annual report, and via internet research. Some excellent websites for financial company research are Business Week, Wiki Invest, Market Watch, Standard and Poor’s and Yahoo Finance.
Conduct Market Research to Determine Investment Opportunities
Once you have identified companies you like, the next step is to do a thorough analysis of the identified stockst, for which you will need analytical reports such as those produced by Market Watch, Moneycentral at MSN, Reuter’s Investor Page, Zack.com and Hoovers. Carrying out company and market research is just the beginning of a stock market education for a beginner investor.
Find an Online Broker
If you’re willing to learn as you go and have an appetite to analyze risk yourself, then you could set up an online broker account and manage your own stock portfolio. Obviously you cut down on brokerage fees but you add time and effort on your part to carefully select and monitor your stock portfolio. Many websites offer both free and subscription based services to help you set up an online account. Investopedia and Ameritrade offer such services.
Monitor your Stock Portfolio
A stock market education for a beginner does not end with finding the right stocks to invest in. No, a savvy investor must constantly keep abreast with the latest developments with their stock investments and also stay updated on the varying factors that will affect stock prices. For this purpose, you need to monitor stock tables and stock ticker tapes such as those that can be found in the newspapers or on TV channels such as Bloomburg or CNBC.
Stock Market Investing Essentials for Beginners
Other places that can help you in your beginner education are books, brokerage sites, financial planners and government and exchange resources. Books such as theStandard and Poor’s Stock Guide and How to Pick Stocks like Warren Buffet, are well-known and offer valuable information. Magazines such as Forbes, Money magazine, the FT and the Wall Street Journal are also valid reading for a knowledgeable investor.
Brokers such as Charles Schwab, Ameritrade, Scot Trade and Merill Lynch offer various services ranging from full service brokerage to online stock management. And finally stock exchanges like the NYSE, NASDAQ, S&P500, and AMEX, as well as financial planners such as The Financial Planning Association or The National Association of Personal Financial Advisors are places to visit for background and current information on the stock market.
If you’re looking to understand some basic stock market terminology and abbreviations and trader-speak, then look no further than Investopedia’s financial dictionary and a website called Investor Words – both offer an easy reference for starting stock market education for a beginner.
These are just some of the places to help a beginner investor get started with learning about the stock market so he can turn it into a viable financial venture.