So you want to become the next Warren Buffett, but you have no clue where to start?
Thinking back to when I began my investing journey, I remember how I was flabbergasted and simply overwhelmed by the sheer volume of data, jargon and metrics I found on the internet. The flood of information was quite intimidating at first, but with determination and dedication I managed to conquer the tricks of the trade.
My biggest challenge as a beginner investor was identifying trustworthy educational resources. Through the trials and tribulations of independent learning, I was able to distinguish between valuable and unworthy resources. It took a significant amount of time that would have been better spent focusing solely on quality resources.
In an attempt to save you time and the agony of sifting through thousands of resources to find the best ones, I am sharing the resources that I find the most valuable for beginner investors.
1. Investing Dictionaries
Kick-off your investing journey by becoming accustomed to the industry jargon. Without prior knowledge of the typical investing terms, you will have a tough time making sense of the majority of articles you’ll find.
Investopedia has a colossal index of investing terms and their definitions. That dictionary was my go-to resource when I started out learning about investing, and it should be yours too.
Blogs are handy for gaining knowledge from experienced investors. You get to learn from peoples’ past mistakes and triumphs so that you don’t fall into the same traps.
In a recent article on 8 Value Investing Blogs Worth Bookmarking, I identified some of the best blogs on investing strategy, insights, education, stock analysis, asset allocation and more. I also recommend subscribing to our blog for great investing articles.
Books will always be an indispensable resource for any investor. They provide a wealth of information and are affordable in comparison to online courses. Unlike blogs, books handle topics in granular detail making it easier to grasp specific concepts.
4. Educational Videos
Reading books and blogs can become time-consuming. Not all of us have the necessary time available to allocate to reading. So how can we continue learning in-between our busy schedules? By watching educational videos.
Videos can be loaded with information, via a combination of text, visuals and audio. It allows us to consume information much faster than when reading a blog or book.
Investopedia has a great video section explaining concepts of investing. It is a great resource, especially when your schedule is watertight.
Tutorials are another great way to learn about investing concepts.
A comprehensive list of tutorials covering Active Trading, Forex, Personal Finance, Investing and more features on Investopedia. The topics are categorised, making it easy to find the information you seek.
6. Stock Simulators
After doing sufficient research, identifying the type of investment strategy you want to follow and understanding the metrics you need to monitor, you should put your knowledge to the test by signing up to a stock simulator.
A stock simulator gives you virtual money to invest in actual companies under real market conditions. It enables you to take the theory you have learned and practically apply it to the stock market without the risk of losing money.
A free stock simulator I recommend is Wall Street Survivor. It processes your trades in real time to give you an authentic experience.
There is an endless supply of educational resources available for investing in the stock market. It’s impossible to go through every single one of them, but knowing which resources to focus on saves you time and builds your expertise exponentially. Taking my recommendations into account will advance you from a beginner-status investor to a well-educated investor in no time.
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