Most people are intimidated by the stock market because they simply do not know how it works. The stock market affects our retirement and many other areas of our lives, yet there seems to be a lot of people who do not know what some of the basics are. Basics like what are the Dow Jones, S & P 500 and the Nasdaq. If you are new to the stock market and to investing it might help to think of it as learning a new language. Once you break down into its most basic elements learning it becomes a lot easier. Financial people as one financial guru put it love to take a 2 dollar concept and make a 100 dollar word for it. What I have attempted to do in this week’s conference call is take some of these seemingly hard concepts and break it down. Recently in the news we have heard a lot about the Dow. It has been extremely volatile recently. How can you benefit from knowing what the market is doing from day to day? By knowing what the market is doing this gives you a good idea of how some of you investments are doing. There are a lot of people that make the mistake of saying things like “my spouse takes care of the investing� or they will say things like my financial advisor takes care of my investments. Not knowing how the market works and some of the basics with investing you are putting your finances in serious danger. Now, at the beginning of this I stated that investing is a lot like learning a new language. That means that there are going to be a lot of new vocabulary words to learn. You can start to learn some of the most basic elements of investing by going to www.investopedia.com. There you can type in words like the Dow Jones and come up with a solid definition. There is so much information out there. There is really no excuse now not to learn at least some of the basics and then grow from there. Learning how to invest successfully in the market takes time and persistence but it is doable. Remember to start with the basics and grow from there. It can be easy to get discouraged if you are trying to learn too much at once. Find a pace of learning that works for you and stick to it!
Resources:
OptionsXpress.com
Investopedia.com
Marketwatch.com
Finance.yahoo.com
Moneycentral.msn.com
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