Trading for Newbies

Hi everyone, and welcome to the site. Here we will be sharing our 80/20 of what beginner traders should focus their energy on when they’re coming up to speed. We will also provide pointers to sites with solid information that can be gradually consumed, as well as info on how the markets work. Our goal is to provide you with enough information that you can feel confident enough that you can begin paper trading with virtual funds before you use your own.

More discerning traders will want to learn how to follow Warren Buffet’s first rule of investing, which is “don’t lose money.” An 80/20 analysis of this (read more about Pareto’s Principal to see what we mean when we refer to this) would indicate that you want to apply the minimum amount of effort to get the bulk of the return – meaning what are easy ways I can follow along with someone who knows what they’re doing to not lose money and preferentially make a decent return on your money. For DIYers, you can read about the clean surplus method. For people who want a more automated experience, consider places like WealthFront  that will auto-allocate your money for you. Others like Acorns will automatically round up purchases you make on your Visa and will squirrel away the extra cents into an account that will automatically be invested for you based on your risk tolerance. If nothing else this is a good way to gradually build a pile of reserve cash that’s stashed away for a rainy day until you need it.

Eventually, you may want to begin using leverage in the form of derivatives to make your money work for you even more. One way to do this is in the form of options, and we will add more info here at a later time.

So, here we go – the pages linked above will provide you with some of the best information you will ever come across to help get you started. Hopefully these pages and reviews will help you weed out a lot of the noise and will get you on your way to trying out or more of the avenues provided here. Alright – let’s continue!