Investing in the stock market is not generic, that is, there is no single and exclusive recipe that works for everyone, simply because we are not equal, and we do not react in the same way to the same stimuli.
Before I start I would like to ask you a question why did you decide to learn to invest in the stock market? Most likely, you want to monetize your savings, but keep in mind that the returns on the stock market are not safe, have you thought about a term deposit? The risk is zero, the time you have to dedicate to your training is non-existent, and you do not run the risk of getting hooked by the markets. Are you still insisting? Are you really involved and want to learn to invest in the stock market? I will tell you that for me there are three types of investors in the stock market: traders or aspiring traders, buy and hold (buy and hold) and finally those who seek dividend yields. I think there are tips that could be applied to any of the three groups, but then there are some specific for each of them.
- Books to learn how to invest in the stock market
Reading books on the stock market is one of the first steps that should be taken. The knowledge I possess is largely due to the books I have read. If your approach is to Trading, you should read books about Trading (for example Live Trading), if you are a long-term investor or in dividends, you should read books that are appropriate to that discipline (the Intelligent Investor, for example).
- Visit stock exchange forums
The forums are a hive of thoughts, often contradictory and in which there are some people in search of notoriety, offering advice on investments that sometimes are really disastrous. It is good to contrast opinions, but not get carried away by the thoughts of others; the only way to make money in the stock market is to have their own criteria.
- Should we listen to the economic news?
I recommend you not to listen to economic or political news. It is true that the economic decisions adopted by politicians can move stock markets, but if you learn to read the graphs or study the balance sheets of companies (depending on how you approach) what happens outside your world will not matter, and also you will be free of the stress caused by the news.
- Find a good broker to invest
Choosing a good broker does not have to be a headache. Traders will need a broker with low commissions and a multitude of available assets. Long-term investors and dividend investors, one that is cheap and does not charge maintenance fees. We all need something: security. It is not necessary to search too much to find a decent broker, nor will the broker be the cause of your success or failure. Visiting forums, I have sometimes been able to read brokers who have swept stops, or who have performed some unethical technique. I must have been lucky not to run into any, and most of my failures have been due to my personal awkwardness.