Sorry to disappoint, but the idea of the stock market for dummies is not a viable concept. It makes for a cute book title, but that is not the reality. The stock market is NOT for dummies. Dummies in the stock market just provide a nice income for those with more intelligence (and knowledge).

However, stock market for beginners is a quite possible undertaking for you to consider, providing that you have some intelligence and other necessary attributes, and can readily learn to grasp the stock market basics.

Those are the basic requirements, but before you participate in the stock market, you will need more information beyond the stock market basics, and you will have to do some practice stock trading.

I would say that you need a basic I.Q. of at least 110-120 or more to be a successful stock investor.  You have to be of above average general intelligence to be a success in the stock market, regardless of what all the “get rich in the stock market” book, lecture, seminar, software, etc., salesmen promise.  It is not just looking for green arrows and red arrows on a stock price chart displayed on the screen of one of the many stock trading programs you can buy.

You should have some mathematical ability and knowledge.  If you flunked high-school algebra, you are going to have a tough row to hoe.  If you flunked due to a lack of application to your study, that can possibly be corrected by study now, assuming you have the motivation.  But if you flunked due to lack of native mathematical intelligence, sorry, but trading stocks is probably not for you.

Now, I.Q. is based on several factors, so even if your general intelligence is only average, you could still have sufficient aptitude in math to do OK as a stock investor.  Get yourself evaluated, take remedial courses, as necessary, before you count yourself out from possibly understanding the stock market and mastering online stock trading.

Now, don't get me wrong.  For most purposes, the math you need for stock picking and stock trading is not “rocket science”.  Basic algebra is it.  Most successful stock market players don't need calculus, for example.  You may want to take a course in probability and statistics at some time, however, to possibly improve your performance should you have some modest success to build on.

The ability to recognize patterns is vital.  Technical analysis is the most effective method for stock picking.  Technical analysis depends greatly on stock price pattern recognition.  Of course, there is stock picking software available, but you shouldn't blindly follow software programs stock picks.  You have to use your eyes, as well.

“Stock chart reading” is a highly subjective area, so I know of no real test other than actually learning (or attempting to learn) the various stock price patterns that are commonly used in technical analysis for stock picking.  If, after diligent study of basic patterns, you are not able to recognize them in new charts, then you will probably not have much success trading stocks.  Be aware, though, since this area is subjective, two different analysts can often disagree on what they see in the charts.  The basic thing to remember is that there are no certainties in the stock market, only probabilities.  Those probabilities can become more in your favor if you have the basic abilities required and develop skill in applying the techniques you will have to learn to read a stock chart and act properly on what you read.

You should be comfortable with many different computer operations.  The simple ability to use a word processor, to receive and send e-mail, to browse YouTube or tweet is far from sufficient.

You need to know how to create and delete directories, and to how to move files from one to another.  You need to know how to copy and rename files.

You need to know quite a bit about spreadsheets.  Most of you will need to take a “continuing learning” course in Excel.  Or get an “Excel for Dummies” book.  :)  You don't have to buy Microsucks Office to get Excel.  The free Open Office suite (openoffice.org) includes a quite satisfactory spreadsheet equivalent, and your Excel knowledge will transfer quite readily to Open Office Calc, as they call it.

You will need to learn to import data files from the internet into your spreadsheets.  You will need to know how to format cells, write functions for cells, e.g, make a new column with the multiplied results of two other columns, row by row.  Copy, paste, paste special, sort, format, make charts... and much more.

While you can open a brokerage account at some brokers with perhaps as little as $500 or $1000, that isn't going to do much for you.  You need, in my opinion, a bare minimum of at least $2500 to start trading in the stock market.  And that should not be your rent money for the next month.

Of major importance is your personality. If you have a lottery mentality, if you are compulsive, if you are impulsive, if you are a gambler, don't even bother with trying to learn the stock market basics, much less actually get involved in trading. You will lose money so fast your head will spin. All the stock trading advice you may buy, all the stock market trading software -- stock trading programs -- you may buy, all the stock trading tips you may learn, whatever, will not compensate for poor or impulsive stock trading decisions and actions.

Also, you will be trading with actual real money. While you cannot be reckless, you cannot be a pussy, either. When the time comes, you will have to “pull the trigger”. If you dither, opportunities will be lost. While there are always more opportunities, if you are perpetually indecisive, you may as well forget about making money in the stock market.

A related point to keep in mind is that while dithering about getting into positions is a problem, dithering about getting out is FATAL. And that is where most people have their problem -- exiting a position, whether it is with a profit or with a loss. But delaying taking a loss is the bigger problem; the loss usually gets even bigger. You will hear about fear and greed, fear of loss, hope for a turnaround, hoping to breakeven, etc. These and more terms relate to the psychological aspects of stock market trading and their effects on decision making and acting on those decisions. Especially on exiting positions. Think about whether you feel you can usually act decisively in the many trades you will be making should you decide to take up stock trading.

This concludes Stock Market for Dummies -- Part I.  As you have seen, the stock market is NOT for dummies and many other people.  If you are a beginner, that is fine, as long as you are NOT a dummy and you have or think you can obtain the attributes and skills necessary to profit in the stock market.  You will want to see more.  Next --  Stock Market Basics.