Saturday, June 9, 2012

The Value of a Good Stock Market Education

Over the past ten to fifteen years, financial markets have grown in sophistication and complexity. With the ever-increasing pool of derivative instruments, mutual funds, and creative investment packaging being made available to the public, the need for stock market training has become essential. To start building an understanding of how money works, a solid stock market education is the cornerstone.
It used to be that the only ones who needed stock market training were financial professionals such as stockbrokers and mutual fund managers. With the rise of the internet and access to online trading, that need has expanded to anyone with a personal stake in his or her own money management. One can no longer leave financial decisions entirely to one's broker. If you use a fee based Investment Advisor who makes the decisions for you, having had some stock market courses is of enormous benefit. It will save you time and money to be on the same page as your financial professional, even if you don't trade your own account.
What is the difference between common and preferred stock? What does derivative mean? What is a debenture? The vast majority of people have no idea. Most amateurs with stock tips and free advice have no idea either. You need a secure understanding upon which to build your portfolio, and stock market education gives you that understanding. It will also protect you from much of the inaccurate and deceptive information which abounds. There is good reason that this is one of the most highly regulated industries.
Getting a stockbroker's license is a time consuming and arduous task. It takes a lot of time and money. Likewise, getting the education in university is no less taxing. On the other hand there is the do-it-yourself approach, involving internet searches, books, mentors, etc. This approach has its own perils, not the least of which is incorrect information gathered along the way. The reasonable alternative is to find reputable stock market courses in which to invest. A good stock market education through a course will set you up with a solid base, and will be remunerative for years to come.
 
Give a man a stock tip and he eats for a day. Give him good stock market training and he will eat for a lifetime. Pardon the butchered cliché, but it's true regardless. If you are looking to explore the delights of the world of finance, you should consider this your first investment. It will give you an edge with your own trading as well as understanding and communicating with the financial professionals that you employ.



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