As you say, $\psi(x)$ is a wavefunction, and that's a function.
Functions can be regarded as vectors, but not arrows, but rather "things that satisfy all requirements of a vecor space", i.e. they can be added up and scaled by complex numbers in the samee way arrow vectors do.
So wavefunctions, with the sum of functions and multiplication by complex scalars form a vector space.
There is also another operation called scalar product of two functions, defined as
$$f\cdot g = \int_{-\infty}^{+\infty} f^*(x)g(x) dx $$
And it can be proven that this integral-type operation satisfies all conditions for a scalar product.
So we could keep dealing with all this forever. But scientist discovered that they could make the most of all theorems they knew for vector spaces. So they decided to stop seeing wavefunctions as functions and start seeing them as vectors.
A scalar function like $\psi(\vec{r})$ is a function $\mathbb{R}^3 \ \rightarrow \mathbb{C}$, that assigns a complex number (or two real numbers) to each point in space.
We can regard them as "a collection of infinite complex numbers", each of them corresponds to one point in space.
So, take such collection and, instead of seeing it as a funcition, see it as a table of values. Each row corresponds to the $\psi$ at one point in space.
So we've got infinite rows with values. That's like a vector column. It has an infinite number of coordinates (infinite dimension), but that's not a problem.
So that's $\psi\rangle$, a vector whose infinite components are the values of $\psi(x)$.
Such infinite-dimensional vector space with scalar product is called "Hilbert's space", $\mathcal{H}$
Now, we define an operator of the dual space. This operator acts on vector and assigns them a complex number. $\mathcal{H}\rightarrow \mathbb{C}$.
One operator like this is the delta-function. We call it with a bra $\langle x|$. The scalar product of two vectors is the projection of one on another. In this case, $\langle x|$ projects $|\psi\rangle$ onto its "component", onto its "corresponding point". In terms of functions, it is
$\langle x_0|\psi\rangle = \int_{-\infty}^{+\infty} \delta(x-x_0)\cdot\psi(x) dx = \psi(x_0)$
So $\langle x|\psi\rangle=\psi(x)$, it gives the fnuction in x representation.
You can define other representations. Momentum representaton gives the components of the fourier-transform of $\psi$.