The Math of Stock Trading for Beginners (it’s easy!)

As a beginner to the world of stock trading, I understand just how fast it can feel overwhelming and complicated. I remember when I was just getting started in the stock market, I didn’t even know how stocks worked from a math perspective. It is very easy to see “stock market stuff” in the movies or television and come away with the impression you need to have a huge understanding of math in order to make money in the stock market. First off, you are being very smart in your journey to learn about the stock market by starting with the basics. Something as basic as “the math” in regards to how stocks work and the markets overall is a required knowledge base to have. The good news is, “the math” of the stock market is not complicated at all. Sure, you can make it super complicated if you want to try and become an investment banker who works on Wall Street; however, for the vast majority of people (myself included), some basic math that we learn about as young children will take us a long way. In fact, even if you are terrible at math, with the technology available today, most of the online platforms and brokerages will do the math for you. It is still smart for you to have a basic understanding of how the math works though just for general knowledge. Let’s get to it!

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