Learn the basics of investing with these two free apps
Let's say you have saved some money from your day job, even as little as $25, and wondered how investing could make a difference for your finances. You've seen CNBC playing on the TV screen at airports, noticed the NASDAQ or Dow Jones in the news, or researched about the long-term benefits of investing. You've decided the time is right to begin investing, or at least to learn more.
Yet investing is a worrying endeavor given the inherent risk of loss and the apparent complexity of how it all works.
It's particularly intimidating for us novices who may want to use some extra cash to grow their income or turn a profit without knowing where to begin or fear incurring losses right of the bat. I've been cautious about investing and purchasing stocks before I get a firm grasp on the topic.
Because of the many innovative apps and tools brought to us by recent technology and the Internet, you don't need to take a college course or read a massive textbook to get to know some basic terminology or introductory investing concepts.
Plus, you may want to learn more about stocks and investing but have little time for a more formal education involving books or classes.
If you're nervous about all the terminology and whether you can understand it (and that's to say nothing of the inherent risk involved), I've discovered two convenient and free investing apps for quick learning: Investmate and Learn by MyWallSt.
Both apps are intuitive and easy-to-use and can give you an overview of investing and the stock market for which you've been looking.
[Of course, apps aren't a substitute for expert advice, and you should consult an expert or professional before risking your money.]
Investmate
Investmate is an educational app created by Capital.com. It includes more than 30 brief lessons on finance basics, including commodities, indices, dividends, market trends, and more. You can also finish some lessons within three minutes.
Pros of Investmate
A simple to navigate user interface
Scrolling through the list of topics to learn about is easy, and you can flip back and forth between flashcards to review terms and concepts. Users won't get lost within different features or have trouble finding things.
Flashcards are helpful for learning
The flashcards break down terms and concepts into easily-comprehended bits. Swiping between them is a breeze and useful for those who need to refresh what they've just learned. The meaning of finance terminology isn't always immediately apparent, or the terms themselves may not connect clearly to their definitions for some users.
Quizzes can be retaken if you miss questions or want more
I enjoy quizzes, especially ones you can retake if there are additional questions to answer. The Investmate app gives exams for each concept, and there's no limit to taking them. From what I could gather, each concept/term you learn will have 4-5 different quiz questions for you; you'll get just three of them in one "quiz." For the quiz- and test-takers among us who like testing ourselves (or maybe just like seeing perfect scores), the quizzes for each topic are a plus.
Get to know key terms quickly and easily
The biggest selling point, in my view, is how Investmate will introduce and familiarize you with some of the most important terms and concepts related to investing. I was only somewhat acquainted with some of the terms, others of which I had just a passing understanding.
Terms like "options", "derivatives", and "futures" can be intimidating. Plus, investing and trading always involves risk, so understanding these terms is crucial. But Investmate makes things pretty clear for you as a newcomer.
However, an app can't give you the kind of in-depth knowledge you'll need when investing, so don't think of Investmate as the last thing you'll need. Rather, it's the start.
Cons of Investmate
Typos
The app isn't free from typos. As a writer, I found some of the mistakes to be distracting. On the plus side, the language is simple and easy to understand.
Learning can be repetitive
For example, you can choose the goals "Learn the ABCs of finance," "Learn how to predict trends," or "Become an expert in CFD trading." Several of the lessons/flashcards overlap with the goals, so you'll be "learning" some of the concepts twice.
The goals could be differentiated with unique or additional content to avoid repetition.
On the other hand, reiterating the ideas may be a plus for you if repetition helps you learn.
Lack of an overview or navigation screen
The app lacks a main menu or overview screen to see your progress and the list of features easily. I like having a "hub," so to speak, from which to navigate an app.
The lack of such an overview may not be an issue for others.
Fairly short
The app could have more in it. I mentioned above that the app's lessons are sometimes repetitive.
While the app has enough content to get you comfortable with some basic investing terms, Investmate doesn't really go beyond that. The app would benefit from more goals and lessons.
Additionally, Investmate is focused more on day trading than long-term investing. For something on stocks and long-term investments, you might want to check out the Learn by MyWallSt app.
Learn by MyWallSt
Created by Emmet Savage, co-founder and CEO of MyWallSt, and a team of experts who all have real-world investing experience, the Learn by WallSt app includes 40 lessons covering a variety of topics. It's focused more on investing in stocks than just learning basic investing terminology, although you'll get plenty of definitions to help you get a grasp of stock market concepts.
Pros of Learn MyWallSt
Created by experts
Savage has been a stock market investor for over 20 years. According to him, his stock portfolio has grown an average of 21 percent per year. Savage has also seen his share of failures, including losing money in the dot-com bubble of 2000-2001 as a rookie investor.
What's more, MyWallSt's team are all investors with stories about their experiences and success with investing.
Comprehensive and informative
Whatever the app lacks in interactive features, quizzes, or flashcards, Learn by MyWallSt makes up for them with a thorough overview (at least as far as an app allows) of the stock market, dividends, risk vs. rewards, companies to invest in, and more.
The app acts as an introductory textbook covering Stock Market 101 basics, from terminology and definitions to beginners' tips and financial goals.
Can be completed in a timely fashion
I read all of the content on MyWallSt's Learn in one day. Although you can't quite digest the lessons as quickly as the lessons on Investmate, Learn by MyWallSt arguably has more knowledge to impart than the Investmate app.
Cons of Learn by MyWallSt
Block text can be taxing to read
If you like fiddling with your screen while interacting with an app (like swiping flashcards), you'll be disappointed by Learn by MyWallSt. Though the knowledge you'll gain is valuable, you'll be absorbing it as if you're reading an article.
Lack of interactive features
One benefit to apps is the way a user can interact with them, like swiping through flashcards or taking a quiz; the Learn by MyWallSt app is lacking in this department, but this issue may prove a personal preference for some users.
No quizzes
Taking a quiz may also be a personal preference, but I like reinforcing what I've learned through quizzes or questions. "Learn" does not include these, but the app's other benefits make up for the absence of such a feature.
Conclusion: Investmate and MyWallSt are worthwhile for beginning investors
Both Learn by MyWallSt and Investmate are free and ad-free tools for those of us who have little knowledge of investing and would like the basics to be simplified and easy to understand. While neither app will substitute for formal training, much less the actual experience of investing that you'll need to become a successful investor, each app can give you the starting tools you'll need to begin your investing endeavors.