This article is for newbie traders that want to learn the basics of stock trading. The first and foremost aspect for new traders is having access to multiple sources of good quality education. The best teacher for a new stock trader is however trial and error experience coupled with persistence. It is this that will lead them to success.

What can be seen as an advantage of stock trading is that some of the skills that you need to learn can be used for an entire lifetime. Strategies that were used many years ago are the same as those being used today. Given below are ten tips which are particularly directed to new traders on how to get started in stock trading.

Tip #1: Open an account with a stock broker

It is good for you as a new trader to pick a stock broker who is reputed and reliable after due research and open a trading account. The next job would be to become familiar with the trading platform layout and the tools that are provided to get started in stock trading. Ensure that your broker offers a demo account and that you can use play money to practice what you have learned.

Tip #2: Read up on the subject of stock trading

Books provide an immense amount of information on the subject of stock trading and are cheaper than attending classes or seminars or buying DVDs on the subject from the web.

Tip #3: Read up articles on the subject

Articles on stock trading form a great resource for educating the new trader. The internet has many good quality articles on investments and trading that are classified into numerous categories.

Tip #4: Pick a good mentor

It is for you to choose a god mentor that has a firm understanding on how the stock market works. It could be someone from your family, friends, or a co-worker. A good mentor is one that has good knowledge, would answer questions that you have, recommend resources of good standard, give help, and help to keep your spirits up during the tougher times. It is interesting to note that successful traders in the world have had great mentors to guide them to the right path.

It is also worthwhile to join forums to have your doubts cleared and questions answered. However, it is a good idea to join the forums after doing diligent research. Ensure that you take advice and trade recommendations from professional and profitable traders and not just anyone that is part of the forum.

Tip #5: Copy the trades of well-known and successful traders

Learning how the stock market legends learned and conducted their business to highly successful levels, their stories and experiences will provide both knowledge and inspiration. The stock market greats include Warren buffet, George Soros, Peter Lynch, Jesse Livermore, Benjamin Grahasm, Paul Tudor Jones Jack Schwager, and John Templeton. Some of them have written books that you can buy and read.

Tip #6: Follow the market regularly

It is important for the new trader to go through information regarding the stock market on a daily basis. Keeping up-to-date is important. There are many sites on the web including Yahoo Finance that give the latest on stocks. The Wall Street Journal and Bloomberg are others. Monitoring the markets on a regular basis is of utmost importance. All this would give an idea of the market trend, in-depth knowledge about economic principles and business in general. Observing fundamental data is yet another useful practice. Watching TV channels such as CNBC regularly can help to broaden your knowledge about the market.

Tip #7: Paid subscriptions can be helpful

It is good to pay for studies and research. This is a chance to observe market professionals in action and learn from their practical experience. The Internet has a wide variety of paid websites that one can choose from to learn. However, you need patience to identify the best quality website that suits your needs perfectly and which will help you to learn from. In this context, it is important for a beginner trader to be wary and choose the right one. Very many of the sites are scams and come with high amounts of fees that are to be paid up to access them. It is important that you are able to discern the genuine ones from the lot that appear on Internet.

Tip #8: Attending seminars/classes on the subject is a good idea

Seminars are a good source that would provide high quality information about the overall market trend as well as specific types of investments that would give the best returns. Many seminars cater to a specific subject and are extremely helpful for the beginner traders to widen their knowledge base. There are many free seminars that are available and are very beneficial for the attendees. However, many of these seminars try to sell something at the end.

Attending classes on the related subjects of stocks are more expensive but are truly helpful. These classes provide a variety of relevant subjects that one can learn from. Ensure that the classes you attend leave you with a strategy that you can use and gain from and not otherwise. Many of them promise the sun but leave you with practically nothing when you finish the class.

Tip #9: Use a simulator in the beginning

If it is not possible for you to start stock trading with real capital, it is a good idea to use a stock trading simulator. Otherwise called virtual trading, there are many brokers that offer this type of trading. You can start to use real money once you have learned the basics clearly. However, it is always true that the best way for any beginner to start trading is to jump into the market and take the plunge. However, it is always advised that you start small. Starting with 10 or 20 shares will also serve good purpose as the game is all the same for any number of shares. Investing large amounts of capital at start is risky in that it can lead to huge losses in the very beginning and this can be very discouraging. It is also important to allocate the portfolio appropriately.

Tip #10: Follow Warren Buffet

It is known that only a minority of traders succeed in stock trading. According to Warren Buffet, the all-time great investor, for individual investors, it is better to follow the passive index rather than trying to get the better of the market.