Hey guys, I'm in my early twenties , trying to figuring out why do I exist ( lolol) I was always interested about finance,stock market and all that sorts of speciality. I decided to take a free Academy course on the Khan Academy website here's the website( https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds) I also start reading the The intelligent Investor book by Benjamin Graham. I'm not sure if it's a good start or not but I still use it. Anyway, I try to use it sometimes I felt stuck so I found this forum and people answer my question which is really nice. I I'm trying to learn how does it work. I don't want to start right now to buy shares and such before getting a good understanding of how it works. Sorry for the long post. Thank you, NewbieStocky
Welcome to the forums! We all start somewhere. Just ask questions and get involved and you'll learn a lot quicker. I would suggest opening a PAPER trading account somewhere to get some practice in risk-free. That's the quickest way to learn, and the cheapest. Just remember to paper trade the same amount of money that you will be trading when you actually start trading. It helps you understand how much you really stand to make/lose when you get started for actual money.
Thank you! Do you also know an another website than khan academy I could learn about trading&stocking? Should I use this website https://www.thinkorswim.com/t/pm-registration.html for paper trading?
Yes, ThinkOrSwim is great software for trading and will definitely emulate actual trading. Just make sure to use it as a learning tool and not going all-in on penny stocks to try and make your "free money" as big as possible! I can't stress enough how important it is to trade that account the same way that you plan to trade your normal account. If you're only going to have $1K to trade when you start trading, make sure you don't invest more than that in your paper trading account. Got to make the learning experience as real as possible.
I understand! also i'm learning all these formulas P/E EBITA , EBIT, D&A, RoA , EPS is it really important to master all these or it's just to give me a perception about the income statement of the compagny.
It depends on the type of investor you want to be. If you're going to be a long-term investor (hold for 1 year or longer), you'll want to know how to value a company with the formulas above, etc. If you're going to be a swing trader (holding for a few weeks to a few months), you won't be in long enough to need to know EVERYTHING about all the fundamentals, but a general idea will help. Obviously what I just said shouldn't be taken as gospel, but that's how I see it. I do very little fundamental analysis because I'm in a stock for a few weeks to a couple months usually so I'm basically trading a chart and getting in or out based on support/resistance/technical indicators/etc.
Alright perfect! Also the trading website asked about what product : Equity, Option, Futures, forex, ETFs. Should I take them all?
Only if you will trade them all. I never trade FOREX so I wouldn't include that personally, but that's always up to you. Once you actually get set up for real money with a broker, you can always reach out to them and add them in the future.
The Intelligent Investor is probably too difficult for a complete newbie. Besides, it was written many decades ago and considered outdated by many. Maybe do some research and find something more newbie friendly. I liked A Random Walk Down Wall Street when I started.
I posted this in a PM to @NewbieStocky and figured I'd copy/paste it here to make sure others can give their opinions as well.
