The stock market can have big implications for world events and your own finances, but many investors find it too complex and cumbersome. Increasing your knowledge of the stock market can help you better understand its impacts, but how do you get started? Consider taking the following steps.
Study common investment terminology. The stock market is littered with complex concepts, so start by understanding frequently used terms. First, it helps to understand what all the abbreviations mean, from NASDAQ to NYSE and beyond. To break it all down, use an online investment dictionary that provides plain English definitions of common investment terms, or ask your financial advisor to explain them to you.
Sign up for a class. Take advantage of free investment fundamentals webinars, seminars, or workshops. If you prefer to learn in a classroom, seek out basic courses on investing, how the stock market works, or personal finance at a local college or university.
Follow the news. Start following the business and financial sections of your favorite media outlet to get a good dose of investment knowledge. You will begin to understand the types of business activities that influence the market (for example, oil prices or the construction of new homes) and gain an appreciation of what is considered newsworthy. As you get more in tune with global markets, you’ll start to see the ripple effect of mergers and acquisitions, product innovations, and even front-page news, from natural disasters to general elections to terrorist events, on Wall’s confidence. Street.
Look at the investment programs. Public television and radio stations often present investment programs aimed at new and experienced investors. Even your local news channels can include a market segment. However, beware of infomercials masquerading as informational investment shows.
Take a look at the stock market applications. There are hundreds of apps available today that focus on helping consumers understand investing. Do you have friends who know finances? Ask what apps they use to keep up with the stock market. Before downloading an app, check the reviews and opt for those that have been vetted by trusted sources.
Keep track of your favorite companies. To better understand the movement of individual stocks, choose several of your favorite publicly traded companies to follow. Then check your stock price, company newsroom, and social media accounts every day. Tracking stocks over time will help you understand how company announcements and actions, such as a product launch or executive comment, can affect the stock price.
Work with a financial professional. A professional can help you understand your investment options and help you make the best financial decisions for your individual needs. Work with someone who is willing to explain investing concepts and provide educational materials. Tell your professional about your desire to learn more about the market. They are likely willing to send you news articles, add you to a newsletter, or call you to discuss market news that may interest you.