Hi Karabo. Best I can answer is just get started. Open a brokerage account and buy a stock. Not with the object of making money (that comes later), but to learn. A world of financial freedom awaits, but slowly. The stock market is a lifelong love affair. Below are some pointers.
1/ Open a stockbroking account. For small amounts (absolutely fine) I'd look at @EasyEquities. For larger amounts or once you've built up more capital, I'd go with @SharenetZA or @SBGTraderZA. Service and help is crucial. Standout for that is Sharenet.
2/ Buy a stock. Many will shout ETF! but imo you learn little from an ETF or unit trust, but an enormous amount from owning an actual stock. This stock will almost certainly not make you rich but it will be your teacher. Owning a stock is only one step, but it's the first step.
3/ Which stock? Because you are buying to learn, pick a company that interests you. Perhaps you've received good service from Santam or Vodacom, or you shop at Woolies. Otherwise buy a diversified solid stock like a Bidvest which will also teach you about the SA economy.
4/ Follow your company closely. Read all their SENS and reports. Visit their website & download the presentations. It may not make sense initially but it will in time. In this way you will learn how earnings and dividends work and the ups & downs that shape a company's fortunes.
5/ Listen to biz programs, read the fin press and follow other investors, traders & commentators on twitter, but take everything with a pinch of salt. Avoid anyone peddling paid-for tips and be wary of courses. Educate yourself - it is the only learning that sticks and endures.
6/ Read books but don't overwhelm yourself with 50. Start generally and as your interest develops, read wider. Suggestions:
One up on Wall Street~ Peter Lynch
The Intelligent Investor~ Benjamin Graham
Market Wizards~ Jack D Schwager
The Successful Investor~ William O'Neil
One up on Wall Street~ Peter Lynch
The Intelligent Investor~ Benjamin Graham
Market Wizards~ Jack D Schwager
The Successful Investor~ William O'Neil
7/ Finally, if you are unsure where to find info or how it works, just tweet and ask. Do not let the patronizing 'experts' frighten you away. The market is not an easy beast, but in essence it is simple and anyone who puts their mind to it can be a successful DIY investor.
Please note that the twitter handle for Sharenet is @SharenetSA not ...ZA as given above. My apologies. My comments re their unmatched service and always-pleasant, timely and expert help can only be reiterated.
