Best places for novice investors to find investing advice

Investing in stocks and funds is challenging, but determining a strategy before adding shares to a portfolio can result in less frustration. Learning the risks of an investment beforehand can make it less vexing, says Michael Antonelli, managing director and market strategist at Baird, a Milwaukee-based investment bank. There are dozens of stock trading strategies, but the two primary styles of investing are active and passive management. "You need to understand what your goals are and how single stock investing can help you reach them. It is not a task for the fainthearted," he says. Here are seven ways to learn more about how to invest.

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Investment blogs

Financial blogs are one way to keep up with the latest movements in the stock market and learn how geopolitics, earnings and economic data affect investments. Several blogs are written by investment bankers or market analysts, focusing on finance, value investing and indexing. An investing blog serves as a guide to review investment options and analyze different investing strategies. "I think it's important to learn from your peers, to make their thoughts part of your process even if you completely disagree with them," says Antonelli, who writes the "Bull and Baird" blog. "When you surround yourself with differing opinions, you make your content stronger."

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Best places for novice investors to find investing advice

Investing in stocks and funds is challenging, but determining a strategy before adding shares to a portfolio can result in less frustration. Learning the risks of an investment beforehand can make it less vexing, says Michael Antonelli, managing director and market strategist at Baird, a Milwaukee-based investment bank. There are dozens of stock trading strategies, but the two primary styles of investing are active and passive management. "You need to understand what your goals are and how single stock investing can help you reach them. It is not a task for the fainthearted," he says. Here are seven ways to learn more about how to invest.

Investment blogs

Financial blogs are one way to keep up with the latest movements in the stock market and learn how geopolitics, earnings and economic data affect investments. Several blogs are written by investment bankers or market analysts, focusing on finance, value investing and indexing. An investing blog serves as a guide to review investment options and analyze different investing strategies. "I think it's important to learn from your peers, to make their thoughts part of your process even if you completely disagree with them," says Antonelli, who writes the "Bull and Baird" blog. "When you surround yourself with differing opinions, you make your content stronger."

Videos

Many financial services firms and brokerages offer educational tools, such as videos, which explain movements in the market, how to analyze a stock's history and how to understand different types of technical analysis, such as candlestick charts for daily charting or line charts for ratio analysis. Watching video clips can also explain the nuances about more complex trading assets like futures, options, shorting a stock or buying on margin.Investors can also learn how to buy and sell stocks through articles, videos or infographics provided by brokerage firms, says Rick Swope, vice president of investor education at E-Trade, a New York-based brokerage company.

Financial advisors

Financial advisors help investors develop a detailed financial plan and an investment portfolio, depending on the amount of risk and volatility they are seeking, says Evan Kulak, co-founder of Polaris Portfolios. "When you are working with a financial advisor, you want to make sure the advisor is a fiduciary and has no conflicts of interest," he says. Investors can also work with digital wealth management firms to gain a better understanding of their investments. These firms are similar to a financial advisor, but opt to provide financial planning and investment analysis with digital interfaces and can answer questions via Skype or Google Hangouts.

Robo advisors

Robo advisors are automated platforms that utilize computer generated models and algorithms to analyze an investor's time horizon, risk tolerance and financial goals to provide them with an appropriate portfolio, says Kulak, whose firm Polaris Portfolios also offers robo advisory services. These platforms are popular among novice and younger investors because these companies require very low minimum balances to begin investing and provide financial guidance without the traditional human financial advisors that charge higher fees. "Robo advisors perform these services for a significantly lower fee and account minimum than a human advisor," he says. "The benefits of robo advisors include ease of use, 24/7 accessibility, automated portfolio rebalancing, account aggregation and financial education resources."

Research tools

U.S. News, Yahoo Finance and other companies provide free stock quotes, charts and other information about the history of a stock or fund, including its 52-week high or low, dividend yield and price-earnings ratio. Investors can track a stock or fund for several weeks and months before an investment is purchased or sold. Investors who want more technical analysis can utilize websites like Koyfin or StockCharts.com, Antonelli says. "Putting your money to work has never been easier, but making educated decisions on what works best for their financial situation can be challenging," Swope says. "Having the tools and education you need at your fingertips help make some of those difficult decisions a little bit easier."

Investment courses

Taking classes at a college or university on the basics of stock investing can help a retail investor understand the movements in the stock market, when to sell a stock and avoid emotional-driven decisions. Webinars are a great way to apply the tools and topics into real-life situations, Swope says. "Investors can find webinars on how to create a tax-efficient retirement account or learn about strategies for saving for college," he says. In-person events are a tool for investors to get a greater grasp on the nuances of the market." After drilling down on some of the online tools available, attending live events and prerecorded webinars can help deliver additional clarity," Swope says.

Paper trading

Brokerages have tools for investors to practice trading a stock or derivative or adding alternative investments, such as commodities or cryptocurrency, to a portfolio. By conducting virtual trading known as "paper trading," investors can learn the risks of trading a specific asset before sinking their funds into the investment. Investors can trade in a real-time environment without risking their money and can test new strategies and determine what works and what fails for their portfolio. The data from the trades can help an investor create profit and loss analysis on a particular strategy and decide whether it's a good fit.

Resources for investing newbies

Investment blogsVideosFinancial advisorsRobo advisorsResearch toolsInvestment coursesPaper trading1 of 10

Ellen Chang, Contributor

Ellen Chang has been a contributing investing and financial writer for U.S. News & World ...  Read more

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