To the uninformed, the stock market is undoubtedly extremely confusing. Most people don't know the difference between a bull market or bear market or any of the other 8,000 terms listed in the National Association of Securities Dealers Automated Quotations' (NASDAQ) online glossary of stock market and related financial terms.
Like any industry, learning the jargon can initially pose a hurdle, but with time, effort, and study, you can learn how to play the stock market game. It's a game that could dramatically change your financial situation, and for most people, a lot of fun. Here are three ways to begin acquiring the basic information you need to know to get started.
Open A Virtual Account
Many online brokerages have the option to create a dummy account. This allows you to use play money while you get a feel for the format, the platform, and the market in general. Just like in a game of Monopoly, you use your play money to buy and sell stocks, watch their performance, and take advantage of the wealth of information most online stock markets accounts offer. It is a 100 percent risk- free way of playing the game and learning as you go.
Soak Up Knowledge
Visit your local library and look for stock market books for beginners. Start with one or two that look like they will be easy for you to understand and are informative. While you're there, you can also get some inspiration. Check out a book by one of the masters, such as Warren Buffet. Get inspired and learn their methods and perspective at the same time.
You can also read stock market articles online. There's an endless supply of information to be found on the World Wide Web, and you can surf to your heart's content for free. You can also watch videos on YouTube. Many people are visual learners, and videos can do a particularly good job of explaining complicated concepts and technical information that may not come easily. Additionally, search for Facebook groups aimed at beginning traders. You can soak up a lot of information from others just by being a passive observer initially. This can also be a great source for stock tips once you're ready to start.
Take A Class
One of the easy ways to learn the skills you need for playing the stock market game is to take a class. Formalized instruction will give you the peace of mind that you're learning from a skilled professional. You can even take a stock market investing online course, making the education process that much simpler and convenient.