This year’s stock market mania over the struggling video game retailer Game Stop has provided a teachable moment about the often confusing behavior of financial markets. Before teens try to conquer investing, they need to understand what stocks are, why people invest, and how the markets work. There are plenty of good resources available to help guide the way, like A Beginner’s Guide to Investing from The Stock Dork.
Here’s a summary of what happened with Game Stop. Some hedge funds and other big investors had little faith in the company and “shorted” the stock, basically betting that its share price would fall. A group of individual investors on Reddit decided to see if they could drive up the price by buying in. When a stock is heavily shorted, a rise in its price can force short sellers to get out of their bets. To do that, they have to buy the stock, which pushes the price even higher. As Game Stop’s short sellers got squeezed, the small investors encouraged each other to keep the momentum going. As a result, Game Stop’s stock went from trading at only $6.19 a share to a high of $483.
If the Game Stop story intrigues you, take a look at A Beginner’s Guide to Investing. This guide talks you through the risks and opportunities surrounding investing. The educational introduction includes a definition of investing and a glossary of terms. It describes different types of investments such as stocks, bonds, and mutual funds. The guide lists factors to consider before investing, tells how to get started, and discusses how to analyze potential investments. It covers the topic of risk vs. return, which is an important concept to grasp. Finally, the informative guide says to keep in mind that “it is as important to diversify your learning as it is to diversify your assets.” NOTE: While the guide mentions educating yourself with books and courses, we’d also recommend one or more of the many stock market apps and games that allow users to simulate and practice various investing experiences.
Parents should make sure kids understand money basics before they try to conquer investing. But when they’re ready, A Beginner’s Guide to Investing from The Stock Dork is a great place to start. It teaches novice investors about the ins and outs of building real wealth by investing in stocks and other assets. The Stock Dork website says, “What we lack in social aptitude we make up for in our passion about all things finance. Our mission is to break down all that information into bite-sized chunks to provide what you need to make an intelligent decision without getting lost in the garble. We believe in simplified content that does not discourage beginners and offers easier ways to understand complex issues.” Best of all, The Stock Dork lets you get your trading and market education from experts all for FREE. The Stock Dork’s CEO Adam Garcia had a passion for finance and investing since the beginning of high school which led him to found TheStockDork.com. By the way, do you know how old you have to be to invest in stocks? The Stock Dork has the answer: click here.