Trading is one of the most effective ways to grow your money in the long term.
Using a good investment mix of stocks, bonds and short-term investments, you can significantly raise your income, save up for a big purchase such as a house, and ensure you have a nest egg for retirement.
However, the key to successful trading lies in seeking out the right trading knowledge so you can avoid the common pitfalls encountered by many investors. Fortunately, there is an abundance of good information available to guide you on your investment journey and ensure that you reach your financial destination with the minimum of loss and risk.
Below are 5 great resources you can use to get started in trading.
5 Resources to Help You Start Stock Trading Successfully
1. “Economics in One Lesson: The Shortest and Surest Way to Understand Basic Economics” by Henry Hazlitt
An essential economics book, Henry Hazlitt’s “Economics in One Lesson” provides an introduction to the basic concepts of economics, presented clearly in everyday English.
The book covers each topic in short and easy chapters, with the overall concept being that you should plan with the prosperity of all groups in an economy in mind.
Hazlitt presents core economic principles in an easily palatable form, making this book a must-read for anyone who wants to understand economics and the nature of money.
2. NASDAQ’s “Getting Started in Stocks”
Stocks outperform gold, bonds, treasury bills and other securities in the long term, and NASDAQ has an excellent guide (courtesy of Investopedia, mentioned below) on how to approach stock market investing.
The guide discusses deciding what type of risk taker you are, how to make trading decisions in accordance with the amount of time you have to invest, and how not to put all your eggs in one basket.
Simple, easy to understand, and chock-full of practical information, the NASDAQ guide is essential for anyone interested in stock trading.
3. The Wall Street Journal’s “How To Choose A Financial Planner” Guide
In addition to having the right information before you begin trading, procuring the services of a qualified and experienced financial planner is crucial to success in investing. However, it is important to pick one who will invest your money wisely without charging exorbitant fees that will eat into whatever profits you make while trading.
WSJ provides guidelines on how to go about picking the right financial planner, one who will help you maximize the returns on your investment while minimizing risk. This means looking for a financial planner with qualifications from an accredited school, asking for recommendations from friends and looking for leads from the National Association of Personal Financial Advisors (or another reputable financial professional body).
This is a detailed guide, making it ideal for beginner traders.
[RELATED: 5 Money Mindsets You Need For Career Success]
4. How The Economic Machine Works
An in-depth understanding of how markets work is crucial to making investment decisions. This podcast by Larry Summers, President Emeritus of Harvard University and former U.S. Treasury Secretary, examines the forces that drive economic growth.
The podcast looks at both long and short-term debt cycles, productivity, the formulas necessary for economic success, the rise and fall of economies over the last five centuries, and many other topics. Summers goes in-depth here, and that makes this podcast an essential listen for any trader.
Investopedia is one of the leading online sources of investment information and financial content aimed at educating everyone — from beginner investors, to financial planners, to high-net-worth individuals, to anyone else interested in learning more about investing.
Run by a team of highly qualified team of financial experts and data scientists from NASDAQ, the site provides financial information to different types of people to enable them to make trading and investment decisions. User-friendly and full of great content, this is the go-to site for anyone who would like detailed information on how trading works.
Latest posts by Casey Meehan (see all)
- 5 Resources to Help You Start Stock Trading Successfully - December 3, 2016