Invest To Financial Freedom - 3 steps to train yourself become great stocks investor!

March 4, 2006 · Filed Under Learn How to Invest, Stocks

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Stocks, is one of the investment that we can access very easily. Today, by using a computer and internet, we can invest in stock with a few clicks on mouse. Investing the in stocks is easy, but profit and make money from stocks market is the main point.

Learning to invest in stocks is just like learning to ride bicycle. By gaining more and more experience, one day you can be a professional stock trader. However, you must prepare and tell yourself to keep on learning. Below is some of the simple steps that you can take to train yourself become a great stocks investor!

Everything needs Practice

To learn anything, we need practice. In stocks, we must learn a lot of knowledge and skills to analysis the market trend and the point we enter and exit the market. There are thousands of skills to learn, but to get started, there are no reason to overwhelm ourselves to learn everything at the same time. Just make it simple and easy. For example, you may choose 1 or 2 technical analysis skills and concentrate on it. Trade the stocks market using the 2 technical skills until one day you fully control it and use it as a weapon for you. You must remember, weapon does take time to produce.

Stock Simulators

Thanks to internet and computer, nowadays, we can learn how to trade stocks by using stock simulators. As what I said in last paragraph, we need practice, a lot of practices. We also need to loss a lot of money too. From my experience, I lost almost $100,000 in 3 months of learning. But I donÃ¢â‚¬â„¢t play with my real money, what I lost is just virtual money in stock simulators. If I play with my real money, I think I definitely will become bankrupt and give up. Yes, maybe sometimes you heard some advice from people that Ã¢â‚¬Å“we must pay real money to learn real lessonsÃ¢â‚¬Â. Yes this is true, but not at the stage that we learn the basic skills. At this stage, there are no points for us to learn using our money, since most of stock simulators is FREE. According to my mentor, the time we learn from our real money is the time we want to train our emotion, not trading skills. So before that, you must learn from stock simulators.

Trading Journals

This is my experience. By tracking my trading process in a book, I learn a lot! When I start invest in stocks market (using stocks simulator), I make a lot of open position. However, after 1 or 2 days, I forget the reason why I open the position. The more I invest, the more I forget. I know there are a lot of lessons to learn in every action I take. Especially the time I lost money, I really learned a lot. However, I forget very easy. So I decide to make a trading journal. What I did is just open a notepad (Most of the computer will have this little software) Write down the amount that I have right now. Then I write down my buys, record the price, record the trends, record the reason why I buys at this price (This is the most important) and also record down the price I sell. After that I can refer back what happen to my decision and action. In this way I really learned a lot. You may learn in this way too.

Above are some of the tips that I learned from my experience. I hope it can help you. But anyway, please remember that there is a lot of knowledge to be learned in stocks or other investment. Maybe you will feel lazy and overwhelm but donÃ¢â‚¬â„¢t give up. Once you get used of them, it will be your lifetime knowledge and bring you - MONEY. (This is what we always wish about,