If you’re thinking about getting started with stock trading but don’t know where to begin, honestly, many people have the same concerns. Most people feel like stock investing is like gambling because they jump in without proper preparation.

You need to understand what stocks are exactly. A stock represents ownership of a portion of a company. If you buy 1 share of Samsung Electronics, you own an extremely small fraction of Samsung Electronics’ total equity. If that company does well, you can receive dividends, and if the stock price rises, you can earn a capital gain.

But the very first question stock beginners should ask is: “Am I the right person for stock investing?” This is really important. Chasing high returns is certainly attractive, but it also means that stock prices can swing significantly in the short term. During the COVID-19 pandemic in 2020, the index even dropped by more than 30% in just one month. You should check first whether you can handle that kind of volatility and whether your financial situation can afford the investment.

There are also several different ways to trade. You can invest directly in individual stocks, or you can diversify by investing in a collection of stocks through ETFs or funds. If you’re a beginner, starting with ETFs or funds is better from a risk-management perspective. Fractional trading, which has been trending recently, is also a good option—you can invest in expensive stocks even with a small amount of money.

Opening an account is easier than you might think. Choose a securities firm, install its app, scan your ID, and complete identity verification. Usually, it only takes a few minutes. That said, you need to pay attention when choosing the type of account. A standard brokerage account is the default, while an ISA offers tax benefits and is good for long-term investing. With a CMA, you can also earn interest on your deposits.

One tip is to carefully choose the securities firm where you’ll open your first account. Trading fees differ from firm to firm. With online trading being the mainstream these days, starting with a low-fee option can make a big difference over the long run.

When choosing stocks, there are two main analysis methods. Technical analysis predicts future price movements based on past price trends and charts, while fundamental analysis determines a company’s true value by evaluating its financial statements and actual performance. Both are important, but as a guide for stock beginners, it’s better to understand fundamental analysis first.

Investment strategies can be broadly divided into two types. One is to trade frequently in the short term, buying and selling often to seek quick profits; the other is to hold for more than 5 years to take advantage of the compounding effect. For beginners, long-term investing is strongly recommended. It also involves lower transaction costs, and as time passes, profits tend to grow larger.

Risk management is really important. Just like the saying “don’t put all your eggs in one basket,” you should invest in multiple stocks so that losses in one stock can be offset by others. Set stop-loss orders to limit losses, and develop the habit of reviewing your portfolio periodically. It’s also a good strategy not to invest everything at once—invest in portions instead.

These are tips that stock beginners should remember. Don’t invest a large amount of money from the start. Building experience with smaller amounts is important. Don’t get swept up by “hot” theme stocks or the frenzy of stocks hitting the daily limit and surging right after—make decisions with calm analysis. Get into the habit of reading a little economic news every day, and keep track of when the companies you’re interested in release their earnings results. And for every trade, record the reason for your investment and the outcome so you can analyze your patterns—that can be a big help.

To be honest, stock investing isn’t a way to get rich quickly. It’s more like a marathon—you need to proceed with steady, careful study and patience. Thorough analysis, risk management, and choosing an appropriate strategy are the keys to success. If you build a solid foundation at the beginner stage, I’m confident you’ll be able to achieve stable long-term asset growth.