Whether you are still an elementary school student or someone who has recently graduated, stock market trading can be a lucrative hobby to partake in. According to Visual Capitalist, 60 biggest stock markets in the world reach a combined total value of $69 trillion across three major continents – North America (40%), Asia (33%) and Europe (19%) among others.
No matter where you live or how familiar you might be with the stock market at the moment, chances are that you can earn some revenue for your education, daily expenses, and further investment. In order to do that, however, you should familiarize yourself with the basics of the stock exchange and its crucial terminology, as well as some of the reasons behind “why” you should do it. With that said, let’s dive in to understand more about the stock market and how elementary students might find the industry appealing.
Reasons to learn about Stock Market
If you are still an elementary student, you might be thinking about why the stock market might be related to you. After all, your education should be the most important part of your life at the moment. However, learning about the stock market activities, exchange principles and rules of trade will teach you a lot about how society functions.
You will also be able to implement your stock market knowledge in everyday school activities. Apart from that, the reasons to learn about stock market activities include but are not limited to:
- Familiarity with basic economic, trade and goods exchange principles
- Adoption of organizational, time-management and finance-management habits
- Financial preparation for future education and independence
- Higher chances at enrolling into reputable colleges and universities
- Chance to earn lucrative revenue through the stock market
Stock Market Terminologies
Now that we have a better understanding of “why” stock trading might be useful for students, let’s take a look at “how”. Stock exchange revolves around a set of rules and activities which are identical no matter what continent or market you trade in.
- Broker – A stockbroker is an individual who trades in “stocks” on behalf of clients. However, elementary students can become part-time brokers if they choose to invest time and resources into stock market activities.
- Company – A company is a public entity listed on the stock exchange. They effectively sell “stock” or “shares” to public individuals. If an individual holds enough shares in any company, they can influence their development decisions or trade in exchange for monetary compensation.
- Investment – You can invest real-world currency into a company in exchange for stock which essentially acts as your personal investment. This activity should only be done with companies you truly believe in, which can result in big payouts over time due to stock value growth.
- Exchange – Stock exchange typically happens in two ways. You can either trade money for stock in a company or trade existing share from company A for shares in company B with another broker.
First Steps in Stock Trading
In short, the objective of stock trading is to read the current market, evaluate different companies and make your investments wisely. While the process may seem tedious at first glance, it can be highly lucrative for patient elementary students or anyone willing to take up a hobby.
So, what are some of the basic steps you should take in order to start trading in the stock market? First of all, you should find a live exchange chart which suits your preferences and needs in terms of stock trade. Platforms such as CNN can provide you with up-to-date data about the stock value which can then be used to make informed investment decisions. It’s also a good idea to arm yourself with a reliable broking firm which can help you manage your investments and keep everything under one roof once you start your investments.
Once you settle into a routine of checking stock market activities in a specific territory and/or industry, it’s only a matter of time before you start your career as a trader. Elementary students who find this type of risk and reward activity attractive often seek careers in the financial fields, further deepening their knowledge and understanding of stock market activities.
While it may seem uninteresting at first, elementary students will find value in stock market activities. Make sure to familiarize yourself with top-performing companies, their stock values and how they trade shares in the public sector. Your favorite brand might offer lucrative stock available for investment and you might become an important influencer in the company’s development. Keep an eye out on the market and make informed decisions to be successful in the long term.
Author Bio: Luisa is a digital advertisement expert and an editor at Rated by Students. Her aim is to bridge the gap between theory and practice in online trade and trade-oriented content writing. She spends most of her time examining live stock exchange websites and their fluctuation patterns as personal guilty pleasure.