Stock Market Basics
Before a beginner even thinks about buying a stock as a part of a self-directed trading strategy, they should have some knowledge about the market’s basics.
A Brief History of the Stock Market
The stock market has a rich and volatile history. It can be helpful for beginning traders and investors to take a look back to get some perspective and an idea of what they might expect as they start trading stocks.
Learn more: Stock Market History
What Are the Different Types of Stocks?
Investors should also know about the different types of stocks they may be able to purchase on the stock market. And yes, there are a number of different types, and each may or may not have a place in your portfolio, depending on your strategy and risk tolerance.
Learn more: Different Types of Stock
How to Evaluate a Stock Before You Buy
Aside from knowing the types of stocks that are out there, investors need to understand the basics of how to evaluate different investments. Being discerning is a critical part of being an investor and not something a beginner will want to overlook.
Learn more: How to Evaluate Stocks
What Is Stock Volatility, and How Do You Measure It?
Investing in the stock market may feel like riding a roller coaster at times, as stocks are naturally volatile. But some are more volatile than others. What does that all mean, and how do you measure and take it into consideration? Learn the basics.
Learn more: Managing Stock Volatility
How to Know When to Buy a Stock
Learning to evaluate a stock is one thing, and learning which types of stocks may be a good fit for your particular investment strategy is another. With that knowledge in hand, though, you still may be wondering when the time is right to buy a stock. Again, there are several things investors will need to keep in mind.
Learn more: When to Buy Stocks
How to Know When to Sell a Stock
For investors who are ready to realize the gains (or losses) they made on a stock purchase, knowing when to sell a stock — and the possible outcomes of doing so — is another important thing to know.
Learn more: When to Sell Stocks
FAQ
How do beginners invest in stocks with little money?
Beginners can invest in the stock market with little money by purchasing fractional shares of stocks, or funds like ETFs. This allows them to purchase only what they can afford, though some platforms require a minimum purchase amount per trade.
How long does it take to learn the basics of the stock market?
Learning the basics of the stock market can take a few days, weeks, or months. It all depends on the individual investor, how much time they can or are willing to dedicate to learning, and then put it into practice. As such, there’s no definitive answer.
How can I practice stock trading?
Beginning investors can practice stock trading by using a paper account, which effectively acts as a stock trading simulator. This allows them to test strategies and build confidence without risking real money.
Start Investing With SoFi
Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest®. You can trade stocks, ETFs, or options through self-directed investing with SoFi Securities, or simply automate your investments with a robo advisor from SoFi Wealth. You'll gain access to alternative investments and upcoming IPOs, and can plan for retirement with a tax-advantaged IRA. With SoFi, you can manage all your investments, all in one place.
¹Claw Promotion: Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 45 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify. Probability percentage is subject to decrease.