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Erik Larson writes about the job market, resume improvement, and career advice

Investing for Beginners Resources and Advice

Written by Erik Larson, Community Blogger | Jun 28, 2017 7:14 PM

Investing in stocks can be intimidating for beginners, especially if you have decided to manage your investments rather than paying an advisor. Taking advice from friends and family is certainly not the best way to get started because their financial situation and investment risk tolerance may be different from yours. However, relying on investing experts and expert resources allows you to make informed decisions that can potentially grow your investment. It also gives you assurance and peace of mind as you commit your finances.

Reliance on expert advice and resources doesn't just give you vague information about the stock exchange. It provides a wealth of knowledge regarding types of stocks, the stock market, investing, transactions, and personal finance related topics. This allows you to gain understanding and proficiency that will enable you to formulate an investment strategy that works for you. Read on for insights into some of the valuable expert resources that are useful for beginner investors.

Research Resources

Both beginners and savvy investors need to carry out research on the market and possible investments before engaging in trade. There are numerous research tools that you can obtain accurate information about stocks and the market. However, as a beginner, it is critical to focus on research tools that provide information that is easily understandable. As you gain experience, you can look for more complex material. Remember, research is a continuous process that you have to undertake as an investor if you want to realize good profits.

Some of the best research sources are reputable websites and library books. When going through them, avoid those that are full of terminology that you don't understand as these will prevent you from absorbing info about the particular area. Also, avoid publications that are directly produced by investing houses as their advice may be biased in their favor. When using online resources, you may want to avoid websites that provide opportunities to buy certain stocks as this is usually a sales pitch. The information you get probably aims at steering you towards their chosen investment.

Simulated Investing Resources

Acquiring information about investing is not enough to beat the street. You may want to gain confidence in your skills before actually trading in stocks. This way, you can avoid investing in stock only to realize later that it was not a viable option. Such a mistake can cost you lots of money or even frustrate your investment objectives. Online stock simulators enable beginner and savvy investors to practice their investing skills such as stock-picking without putting their money on the line.

Simulated investing tools can be accessed on both desktop and mobile devices, and they offer a guide before commencing the trade. You get a live market experience and learn how to pick the best stocks without actually investing in them. All you have to do is create a forex demo account and get started.

Budget and Management Tools

The most important rule of investing for beginners is coming up with a trading plan. Determine how much money you want to invest, what you want to trade, your tolerance for risk, and how much you expect to make. After determining all this, you also need to come up with a way of controlling your budget so that you can manage the investment properly. There are excellent online tools and apps that you can utilize for this purpose. However, you need to choose the best one from the hundreds that are available.

Choose a platform that allows you real-time tracking of all your accounts and investment. You can even go for one that provides recommendations on diversification and management of stocks. Some even connect you with a financial planner who can help you set a budget. As a beginner, you want a tool that can provide as much advice and insight into the market as possible. Take the time to experiment with a few free apps before paying for premium ones. Also, find one that's simple to use with a user-friendly layout and navigation.

Whether you are utilizing a traditional broker or an investing app, these resources will come in handy if you want to excel as a beginner investor. Even as you gradually understand stock trading and the complexities therein, you will still need these tools to steer your decisions and help you choose your investments wisely.

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