What is Investor Training?

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  • Written By: Malcolm Tatum
  • Edited By: Bronwyn Harris
  • Last Modified Date: 23 January 2020
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Investor training is a collective name for various types of instructions into the process of making investments that ultimately generate some type of return. Training of this type may be obtained through the use of online tutorials, through a program sponsored by a broker or dealer, or by working closely with a seasoned investor who is willing to serve as a mentor. Today, there are a number of investment professionals who also offer short seminars that address various approaches to making investments, as well as providing novices with a means of learning about investing in a controlled and structured setting.

While different approaches vary, one of the key components of any investor training effort is to help beginners understand the terminology that is used in the investment process. Here, the beginner’s investment training focuses on making sure he or she understands what is meant by common terms that identify market conditions, such as a bull market or a bear market. The training also includes help with understanding how to read various types of financial reports with some efficiency, making it easier to understand what is happening with a given security within a particular market.


At the same time, this basic investor training often helps new investors set personal goals and determine what type of investments are a good fit for those goals. This includes helping the investor determine how much risk he or she is willing to assume in return for a certain level of return. Different types of investments, including stocks, bonds, and futures contracts are usually considered and explained in detail. The advantages and disadvantages of different strategies, such as buying on margin or diversifying a portfolio, are also included in this type of early instruction. Typically, once the beginner has a good grasp of the basics, the instruction will move on to more advanced investment training that broadens the knowledge base and skill set of the new investor.

The process of investor training may be casual or highly structured. In any incarnation, the purpose is to equip the investor to understand what is happening in the marketplace today, relate those events to past performances, and use the combined data to make accurate predictions about future price movements with various investment opportunities. When the investor training is successful, the investor learns how to make informed decisions that result in earning returns, minimizing losses, and generally increasing the worth of the portfolio over time.



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