For anyone with money to invest, the stock market often seems like an interesting and lucrative idea, however the stock market can be complex and confusing. For this reason, it is a wise move to build on your stock market education before outlaying your hard earned cash.
Any first time stock market trader should spend time reading a few simple stock market tutorial articles, which can make their trading much more successful.
Simple Stock Market Tutorial
The stock market is actually pretty important and you will hear information about it everywhere you turn. Newspapers are full of stock prices for various shares and the news will also tell you the price that various stock markets changed at.
What Is The Stock Market?
The stock market is actually a very simple idea and is the basis of any good stock market tutorial. A stock market is simply a place where buyers and sellers can gather to buy and sell stocks. These markets are huge and the worldwide markets are thought to be worth in excess of $22.5 trillion.
There are many stock markets, some of the biggest and best known include the London Stock Exchange (FTSE), NYSE and NASDAQ.
Types Of Traders
Anyone can use these stock markets and there are a number of different types of investors who use each of these markets. Investors will range from professional hedge fund traders, to much more casual traders who are investing for fun.
Online Stock Market Trading
The traditional method of trading on the stock market involved meeting on the trading floor of the stock market itself and then making verbal bids to other people. This does still happen however the most common type of trading is online trading.
Internet based trading is very convenient and also much easier. You will be able to buy and sell stocks at any time you want whenever the exchange is open. Online trades are also much more affordable than hiring a professional broker to manage your portfolio.
Read through a few more stock market tutorial articles so that you can get a good understanding of how the stock market works and what you need to do to invest safely and properly in stocks.
{ 42 comments… read them below or add one }
The stock market has the potential to yield very high returns for investors, especially if you buy stock in emerging companies and technologies. It is particularly appealing to smaller investors, because the required initial investment is extremely small. Stocks can often be purchased individually through stock brokers for only a few dollars each.
I’ve been interested in investing in the stock market but there have been some horror stories told to me so I haven’t risked my money.
Your stock market tutorial is able to explain it to me with words and definitions I understand.
Tania Shipman´s last blog ..For a Few Dollars More Competition Rules
HI Tania,
Hear the horror stories and learn what not to do.
It`s not the share market that is risky.. What`s risky is the uneducated trader/ investor.
This new blog from Sean will be very helpful to everyone.
John Davis´s last blog ..Expose Your Strengths
I agree John – the ‘risks’ can be managed through good education of the whole area in stock/share trading.
Peter Damien Ryan´s last blog ..Programs And Affiliates
I agree wholeheartedly with this, John.
Cath
Hi Tania,
I wouldn’t advise going into the stock market until you get some education on risk management. We lunged in with minimum education and when we look back at what we could have lost we are horrified. We are very lucky it went our way. Now we have spent a lot of time learning about it.
Jackie Stenhouse´s last blog ..Types of Child Anxiety Disorder
Hi Tania,
a few years back, we did launch in without a great deal of education….and we did lose big.
My advice is read great articles like this and learn from our mistake….Risk Management IS the key.
Cath
Same here Tania
I was burned once and have decided not to try it again until I have a proper stock market training. And these stock market tutorials might just be the right way
Renee´s last blog ..How To Enjoy Healthy Diet Food Even With A Busy Lifestyle
My husband handles all our shares but I would love to understand the stock market better. This Stock Market Tutorial looks great and is easy to understand. I am looking forward to learning more.
Melanie Braggs´s last blog ..Building Chicken Coops
I’m a real neophyte when it comes to understanding the Stock Market so I’m looking forward to following your Stock Market Education blog. Hopefully, a better understanding may help me use different approach to recouping some of the value of my RRSP following the losses that resulted from the last financial fiasco.
Don White´s last blog ..New Ireton Data
I am interested in investing in shares but don’t know as much as I would like to.
This stock market tutorial will provide me with some much needed information and I look forward to reading this blog.
There is so much interesting sections to the stock market…It can be very confusing…
However a general knowledge of how it works is needed for all of us..
John Davis´s last blog ..Expose Your Strengths
Finding a clear, easy to read and understand Stock Market Tutorial is not always easy to come by, and so landing on this page is quite a relief. I haven’t ‘dabbled’ in the stock market, and while I’m quite sure astute knowledge is valuable, I get the feeling that the art also includes a tad of intuition? I may very well be wrong, which gives me a great reason to return and learn more.
Jo Carey-Bradshaw´s last blog ..Wealth Creation – Coffee and Internet Marketing
Hi Jo,
Very well said. I found this stock market tutorial very easy to understand as well. I think that you’re right though. A stock market education is absolutely necessary.
However, I also agree that intuition plays a part in choosing the best stocks. It’s probably not a genuine stock market strategy but I bet it’s still part of the equation.
Jazz Salinger´s last blog ..Finding Your Passion
Especially if your a woman Jazz (womens intuition) Seriously though sometimes you do get a feeling that you should stay away from a particular stock.
Jackie Stenhouse´s last blog ..Types of Child Anxiety Disorder
Jo
Before I learned to trade I used to think that intuition played a part too but if you use intuition it is like gambling (you are still in tuition).
As a professional trader you are using technical and/or fundamental indicators to assess the movement of a stock.
There are many factors involved. Sometimes every indicator can be given the tick and there can be inside information about a company not revealed to the public and the stock can plunge overnight. You can insure your stocks to prevent huge losses.
Around 80% of trading is psychology. Don’t rely on your intuition, rely on the information you see in front of you, (the trend) and making sure all of your indicators are positive.
Hi Elly,
We are also regular traders but trade US options. (thats another post though) It is very hard to understand the 80% psychology part when you are just starting out but after doing this for 2 years, it really hits home that you have to be prepared to accept the loss as well as the gain.
Jackie Stenhouse´s last blog ..Types of Child Anxiety Disorder
I have been trading the financial markets for almost 30 years now: stocks, futures, options, and more recently CFD’s. I can recall just how difficult it was to get good, reliable, understandable information to help me.
Even today, most information assumes you are already know all the lingo etc..
“Stock Market Education” is filling the gap admirably here.
Even for myself, it is nice to go back and read this stuff, go through the tutorials,
just to remind oneself of the foundations….
Highly recommended
Geoff Harnden
What a great recommendation, Geoff. The stock market to me is that big void kind of place that might suck up all my money.
I have never even considered venturing there as I know nothing at all about it.
Having a look through the information here starting with the stock market tutorial sounds like a great place to start – and knowing it is in ‘English’ too!
They say that if the stock markets had kept pace with inflation then stocks would be worth about double what they are today. This means that if the worldwide stock market value is currently $22.5 trillion, then if they had kept pace with inflation they would be now worth $45 trillion. What happened to the missing $22.5 tirillion?
Wal Heinrich´s last blog ..A Great New Prefabricated SHACK In A PACK Home
The stock market can be a very scary place for those who haven’t taken on any stock market education. Its all about risk management and 80% mindset. You must feel comfortable to lose the money you are trading if the trade doesn’t go your way.
Jackie Stenhouse´s last blog ..Types of Child Anxiety Disorder
Hi Sean,
A few years ago I did have shares, I cashed them in through necessity. It won’t be long now when I will be able start again with a stock market tutorial and get back into the share market.
Having your own broker, so called for obvious reasons, can be expesive especially if you are only playing around with a few thousand dollars, but they are easy and it is good to ask them about the fundamentals of a company if you don’t want to do all the research yourself.
Hi Jodie,
When we first started trading in Australian stocks we used a broker to try and get the best price for us as we didn’t know any better. Now after being in it for a couple of years we realise he was only looking at the trading platform like we can do and wait for the right price before you hit the buy button. A lot of our profit was eaten up by broker fees (costing up to $1000/trade in commission), now doing the online trading only costs us $10 per trade. But it is probably a good idea to use a broker when starting out.
Jackie Stenhouse´s last blog ..Types of Child Anxiety Disorder
I’m really interested in the stock market and how it all works. My husband has been investing using day trading strategies, in and out quickly, for a couple of years but started studying the markets about five years ago. He has been doing pretty well at it and has his share of wins and losses but mostly profiting small amounts. We will both study this site with real interest.
Bev Langford´s last blog ..Private Yoga Lessons
Dabbled a bit in the stock market just before the 2008 crash and lost enough to put me off for a while, even though I did everything by the book. Having said that, I have had a taste of the rewards it can bring too, so I’m keen to get back into it as another means of earning income. Look forward to future posts.
I am going to be very interested in this blog as the stock market is one area of investment I will be looking into one day – in the not too distant future I hope.
The danger beginners have is unwise decisions and this is a chance to learn before leaping into unknown waters
Peter Damien Ryan´s last blog ..Programs And Affiliates
That was very generous of Sean to have the Stock Market Education taught here. I’ve always thought of investing as a dirty and dangerous game and didn’t have any profound knowledge to understand how it works and wondered how investors invested and made money out of it.
This is certainly my golden chance to grab all the information I could to enable me to understand and maybe give some valuable advise/assistance to those around me who want to invest and donot know where to start.
The stock market has it’s fascinations and I guess it grew out of the traditional (life) stock markets in a way.
What I don’t like about them today is that they are not necessarily dealing with real values or real prospects but (at least it seems like) with hot air in some cases.
It has become extremely complex, and it will be very interesting to learn more with this stock market tutorial.
I’ve been interested to learn how the stock market works for some time now but have not known where to start. This Stock Market Tutorial is an opportunity to learn and to know about all the different Types Of Traders.
I’m also passing this information on to my friend. She may find it useful to introduce her son to Stock Market Education.
Hi Sean,
I think using ’stockmarket software’ is very simple advice for anyone wanting to dabble in the stockmarket!
Willem Broekers´s last blog ..Making moolahs
An online stockmarket tutorial would be very convenient for most people.
I have to say when I first heard the mention of and took a look at the website, when it was mentioned on the webinar, I immediately thought that’s not for me.
This is more out of scared of the unknown. While you hear about people making heaps on the stock you also hear about people losing heaps. My preconceived idea is you have to know what you’re doing.
Having a stock market tutorial as a starting point to look is a great place to see if it is for me. I see some of intriguing posts that I’ll get on to too
As a Forex trader myself the number 1 rule that was taught to me was all about risk management. Understanding this is the key to a prolonged life within the trading world whether it’s currency, bonds, gold, or stocks.
The other important factor is where you get your information or data from regarding the market. Some aren’t as reliable as others. It’s important to invest in good data as you are using your own hard earned cash to place trades therefore having a reliable source will only ensure better risk management. I have used eSignal for the past year and it’s fantastic.
Searching for tutorials is best done through those that supply the software for the markets. Generally they will be free.
For myself I learnt best from watching actual trading tutorials coupled with the associated theory.
Derek Taylor´s last blog ..Caution Over Sourcing Of Info From Web Portals Blogs universalblogs
The stock market tutorial included in this article is great. I wasn’t aware that the worlds markets are worth a whopping $22.5 trillion!
I agree a lot of people think its easy to invest well in the markets, however it is only really possible with a lot of good research and dedication. I didn’t know that online trading was such a big thing these days.
David Pearse´s last blog ..Targeted Internet Marketing-Market Samurai
Risk Management is the key.
This blog on Stock Market tutorial is a great place to start to start your education.
I guess mine is starting now (much to the excitement of my husband).
Cath
Hi Sean
Cathy is correct, risk management is key at all times. I found when I was learning that you have to have an entry and and exit strategy.
When I went into the market live, it was a completely different experience than paper trading. Even people with years and years of experience can make mistakes. You can never read the market perfectly so you must have an exit strategy in place and stick to it.
If you trade with your partner, you both need to agree and adhere to the same strategy.
Thank you for such a simple explanation of the very basics of the stock market. As a total beginner it is exactly what i need.
Tegan Hadley´s last blog ..How can affirmations help change my mindset
Learning how to do things are key points for success and if you are wanting to learn properly then finding a stock market tutorial is really important. There is so much great information out there (like this blog) and all the broker firms also have loads of information.
Figuring out the stock market, exchanges and deciding how you want to trade are all important components of the process to become successful trader.
Hi Sean,
As I’ve mentioned before a sound Stock Market Education is essential before investing too much money. Then you must only invest as much as you can afford to lose.
Hi Sean,
I have printed this article and given them to 2 of my friends who have been trying for years to Invest and get something good out of it.
This information has helped them a lot.
A thank you from them with Blessings!
Cheers
Rose
Hi Sean,
Thanks for the the stock market tutorial tips, I can definitely see how trading online is a much more effective way to do business on the stock market.
jeremy´s last blog ..jlagatule- RT @gurubob- True influence is not forcing people to say yesit is systematically destroying their reasons to say no – GuruBob