What are some tips for understanding the stock market?


Quick Answer

Tips for understanding the stock market include narrowing down what is important by writing down the reason for making a purchase and the cause for selling it, and committing to growing your knowledge on creating strategies for handling your money, according to Steve Schaefer for Forbes. Investors can also use video tutorials, investor events, Web seminars or virtual classrooms from brokerage firms including TD Ameritrade or E-Trade Financial to learn about investments in the stock market.

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Full Answer

Investors need to comprehend important financial themes such as rebalancing, discipline and diversification, explains Schaefer. Investors should also have an understanding of the definition of a stock. Investors can use in-depth training with teachers or coaches and engage in tutorials to get an understanding of the stock market. TD Ameritrade offers Investools and a three-day trading competition that uses teams, while E-Trade Financial educational offerings include live investor events with investment strategists from Standard & Poor’s. Both brokerage firms also offer options-centric events that take traders onto the exchange floor and into classroom sessions that include financial history lessons.

Investors can also learn about stocks by reading CNN Money’s Money Essentials guide, Benjamin Graham’s “The Intelligent Investor” or Buffet’s annual letters, states Heather Long for CNN Money. Traders can also turn to documentary films such as “Something Ventured” and “Money for Nothing” to learn about the stock market including the history of the Great Recession and the financial crisis of 2008.

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