The fastest way to become smart

In the world of investing there is a lot of jargon. We may we hear terms used in the news or in conversations and may have some vague idea of what the term means but not really understand it. 

Why don't we really understand it? Is it because we're not smart? No. It's because we haven't stopped to ask: "What exactly does that mean?" 

Once you realize that you don't fully understand a term, the solution is simple: look it up. A simple internet or Wikipedia search will reveal the meaning of the jargon to you in just a few minutes. Or, if you want to go old school, you can use a dictionary or other physical reference material.

The beauty of this is that learning vocabulary is easy. All you do is look it up. And once you know the term, and understand what it really means, then suddenly conversations that use that term make sense and - lo and behold - you feel so much smarter! That is why learning vocabulary is one of the fastest and easiest ways to become smarter.

Of course, it takes more than smarts to be a good investor. It also takes wisdom - which, simply put, is the ability to use your knowledge to make good decisions. Wisdom

So go learn some vocab and get smart. Then get some experience to increase your wisdom. In the process you will become a smart, wise investor.

Ready to get started? Join our free, online community here.

Original publish date: July 27, 2010