How to Learn The Stock Trading Basics

by Contributor ; Updated July 27, 2017

If you are serious about investing in stocks, you need to know the basics. Without a good base of knowledge, you can be lost in a sea of jargon. The first step to making money in the stock market is to understand how it works. The basic information is readily available online and through a number of different sources.

Step 1

Read as many books as possible on trading. As the saying goes, it takes money to make money, and investing in a couple of books can help you get started. .

Step 2

Practice trading stocks online. Some websites have a free stock trading practice option that can acquaint you to trading. You can try out strategies with pretend money before investing any real money.

Step 3

Sign up for a brokerage account. Most brokers offer information about trading stocks. Traditional firms have brokers who can give you one on one advice on investing and some offer classes or tutorials on the process. Traditional brokerage firms may charge high fees.

Step 4

You can join a stock trading forum, providing free information for users. Forums give you the opportunity to share knowledge with other traders.

Step 5

Visit the various stock exchange websites. The American Stock Exchange, Nasdaq and the New York Stock Exchange are all good places to start. The stock market government watch dog organization, the Securities and Exchange Commission has an investor education program.