How to invest for beginners?
This is the most common question people ask me. I can relate to them because it can feel like a very daunting task especially when you have no clue what is the first step to take. Luckily we live in an age where technology and information makes everything very accessible. I would like to share 3 very simple actions you can take right now to begin your journey to financial freedom.
1.Read up more
Read more books, books are a great way to gain more knowledge about any subject matter. Of course this means you have to be reading the right books! You don’t necessary need to buy these books, you can always check out the library first to see if they are available. There are lots of great books on Technical Analysis and on investing but here is a list that you can look at. My personal recommendations are,
These books are more for investing or fundamental analysis
Common Stocks and Uncommon Profits by Philip Fisher (Not yet read but planning to!)
The Intelligent Investor by Benjamin Graham (Currently reading, halfway through. Enjoying it!)
One Up On Wall Street by Peter Lynch (Waiting for my friend to give me his review on this, heard a lot of great things about it)
Trading in the Zone Mark Douglas (This is one book that I feel everyone should read. It covers important topic like how to view each trade as a probability and the risk to take on each trade)
Technical Analysis books
Technical Analysis Plain and simple by Michael N Kahn (I found this to be simple and it covers quite a lot on TA. But rather wordy)
Getting Started in Technical Analysis by Jack D Schwager (Heard very good reviews on this)
Technical analysis of the financial markets John J Murphy (Heard this to be very good, can’t wait to read this)
Japanese candlestick charting techniques Steve Nison (More advanced methods after you understood the basics of TA)
2. Build income
You need money to make money. The more money you have, the more you can make. If you start investing with a small amount of money, it is harder to earn profits because the commission charges and volatility of the market will have a greater impact on your portfolio. Try to earn some side income while learning how to invest. Some ways to begin earning
- Start a blog and learn how to monetize it
- Do some part time work for more cash
- Do freelance work if you have a skill, eg video editing or graphics design
- Teach music if you know how to play an instrument
- Set up a simple e-commerce store
Remember, don’t just rely on one source of income, don’t put all your eggs into one basket.
3. Take a MOOC (massive open online courses)
There are plenty of highly rated courses online, taking a course is easy since you just have to follow the lessons to learn and the content you get is normally much better and richer compared to free content. Some courses also allow students to discuss or ask the creator questions.
One place to find a lot of these courses is on Udemy. It is a marketplace that has plenty of online courses for you to enroll. They offer a wide selection of free and paid course.
I have a course on Technical Analysis on their site and if you are interested, you can take a look at my course over Here
Let me know what were your biggest hurdles when trying to learn about investing or just learning a new skill. What method did you use to overcome it? What work for you and what didn’t? Thanks for reading, appreciate it and hope you have a great day!