Stock Market Activities for Beginners

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    • Learn the ropes of the stock market before you invest.graph and a girl image by Dmitri MIkitenko from Fotolia.com

      Getting started in the stock market can be intimidating for beginners. It is easy to feel overwhelmed by the breadth of available information, the variety of investment vehicles to choose from, and the options you have when it comes to deciding when and how to begin building your portfolio. But like many things in life, you must crawl before you can walk. Newbies to the world of stock trading and investing can get their toes wet by studying the paths of successful traders who came before them.

    CNBC and Bloomberg TV

    • Individuals who learn best by watching will garner a lot by checking out these two channels, both during trading hours and when the market is closed. Beginners may want to start off with slower-paced shows that discuss the day's performance of particular stocks and sectors.

    Books from the Brightest

    • Peter Lynch and Warren Buffet are two historically successful traders whom have both written books and had volumes written on their trading styles. Take the time to read up on their strategies for success and the tools they used to pick their portfolios' top performers. Also, read the editorials written by Charles Dow and subsequent books on the Dow Theory to really delve into the history of the markets.

    Fundamental Analysis

    • The areas of fundamental and technical analysis are vast, but exploring them is necessary. Fundamental analysis covers nearly every aspect of a company's financial health and stability, from comparisons of debt-to-earnings and price-to-earnings ratios and everything in between. Fundamental analysis will help you understand the book value of a company before you invest your money in it.

    Technical Analysis

    • Learning and understanding how to read charts and find trend lines will help beginning traders know when the best times to buy and sell stocks come during a trading day. Technical analysis delves into a stock's performance, patterns and overall trading history.

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