A New Investor Guide: Steps to Learn how to Invest

New Investors have often asked about the best way to learn about investing. To get started, all you need is an interest in the stock market, some time to commit, and a few inexpensive tools.

You should spend at least one hour per week on your investments. Anyone can learn about investing, but you must be willing to commit some time. Our software is a great way for you to track your weekly progress.

The best way to invest is by following the methods and strategies that have withstood the test of time. These strategies are described in the Checklists included in our software and workbook. All of these strategies recommend an unemotional, consistent evaluation of each investment opportunity. Checklist Investor was designed to help you follow this Fundamental and Systematic Approach to investing.

Click to view an excellent article Common Traits of Successful Investors that every investor should read.

You can do it! 11 Steps for Investment Success

1. Make a commitment to investing, and start using Checklist Investor.

2. Read the Checklist included in our software based on the book "One Up on Wall Street" by Peter Lynch.

3. Read the Checklist included in our software based on the book "The Intelligent Investor" by Benjamin Graham.

4. Read Fortune Magazine and the Wall Street Journal as often as you have time for.

5. Use Checklist Investor to get stock quotes and read news on the companies that you begin to follow.

6. Begin to follow and research your favorite company:

  • Listen to the company quarterly conference calls. The calls are a great way to learn the details about a stock, especially during the analysts questions. As you listen to the call, take notes using Call Notes feature of Checklist Investor. This will allow you to build up a history of the accuracy of management forecasts.
  • Use the Checklist Investor News Reader to read the news related to the company, get stock quotes and graphs, and analyst views of the company.
  • Read the company quarterly reports filed with the SEC. You can access these by Right Clicking on the Company Name from Checklist Investor. Reports are generally issued a few weeks after the end of each quarter.

7. Save related news and web pages using Checklist Investor. Create a Thinking Transaction to record your thoughts and checklists about this company. The answers needed to complete the Checklists questions will help you learn more about the stock.

8. When you are ready to make a stock purchase, use Checklist Investor to create a Buy transaction. Complete the Intelligent Investor, Up on Wall Street, and Basic Numbers checklist. These checklists will help you focus on what is important in an investment. Once you are satisfied that this stock fits in with your investment strategy, you are ready to purchase it.

9. Place the stock trade directly from Checklist Investor (using the TD AMERITRADE interface).

10. As time goes on, use Checklist Investor to record your predictions, thoughts, and news articles about your stocks. You will begin to see patterns in your decision process. You can now adjust your strategy based on these patterns (i.e. what worked and what didn't).

11. As you gain experience, you may want to create your own Checklist. If you like, you can even share your Checklist with other users.

Other Resources

Seeking out experienced hedge fund management firms like GoldenTree Asset Management and other hedge fund advisory firms can help provide direction and strategy.

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