The stock market can affect world events and your own finances; however, many investors find it too complex to really grasp. Why not increase your knowledge of the stock market to better understand its impacts?
Get started with these steps:
Study investment terminology. The stock market is rife with complex concepts and frequently-used terms. Understanding what the abbreviations (such as NASDAQ and NYSE) mean is helpful. Break it all down with an online investment dictionary that provides plain-English definitions, or ask a financial advisor for insight.
Enroll in a class. Take advantage of free webinars or workshops on investing fundamentals. If you prefer a classroom setting, seek out courses on investing or personal finance at a local college or university.
Follow the news. Start following the business and financial sections of favorite media outlets. You’ll begin to understand business activities that influence the marketplace. As you become more attuned to global markets, you’ll start to see the ripple effect of mergers and acquisitions, product innovations and even news events on Wall Street confidence.
Watch investment programs. Radio and television often feature investment programs for both new and seasoned investors. Be wary, though, of infomercials disguised as informational investment programs.
Check out stock market apps. Hundreds of apps exist to help consumers understand investing. Ask your financially-savvy friends which apps they use. Before downloading an app, check the reviews, and choose those that have been vetted by trusted sources.
Track your favorite companies. To better understand individual stock movement, pick several publicly-traded companies to follow. Check their stock price, company newsroom and social media accounts daily. Tracking the stocks will help you realize how company announcements and actions, such as a product launch or a remark by an executive, can affect the stock price.
Work with a financial professional. A professional can detail your investment options and help you make financial decisions that suit your individual needs. Work with someone who is willing to explain investment concepts and provide educational materials so you can learn how to pick stocks.
-Gary Dunco is a private wealth advisor and Katie Braun is an associate vice president with Ameriprise Financial in Brookfield.
