Investing can be a complicated exercise, however it’s the only way to create a life that isn’t completely dependent on a paycheck.
It is estimated that the number of Americans who have some money invested through the stock market has dropped to around 50% despite the market growing over 350% over the past 30 years. Sure, there has been downward turns, but overall, the stock market has a steady investment option. So why don’t more people do it. Numerous studies reveal that Americans shy away from the stock market because they feel they don’t have enough money, don’t know how or find it confusing.
Now thanks to BusyKid, you don’t need a lot of money or education to start your portfolio.
Here’s some things young investors should remember:
Know The Risks – Investing can be a risky game. However the best time to learn how to play is when you’re young. The amounts you invest are generally smaller and if you make a mistake, you have plenty of time to learn from it.
Make sure to do some homework on the companies you would like to invest in. You may love or use their product but after reading about them, you might not want to make an investment in them.
It’s About Timing
Being successful in the stock market takes a good sense of timing. You want to buy stocks at a low price and sell at a higher price. It’s important to watch your investments and to make the right decision on when the time is right to move.
Don’t Fear Mistakes
It’s bound to happen. You pick the wrong stock, pull out too soon or too late. Maybe you lose all you invested. Don’t sweat it. You’re not the first to do it and you won’t be the last. The good news is you’re young and able to rebound from whatever happened. Just don’t quit!
Let investing be fun right now. Unlike having your money in a bank account where it just sits, watch your money live in the market and enjoy doing it. Following your investments weekly could be the start of something bigger when you become an adult.
Brands shown are for illustrative purposes only and do not constitute a recommendation to engage in any particular securities transaction.