Taking over the stock market at a young age
Taking Over the Stock Market at a Young Age
For every one stock market success story published, hundreds about failure and financial loss overshadow it. It’s no secret that stock market investing or trading, whatever you wish to label it as, is a mental grind. Even the top investment bankers in New York, London, Singapore, and every other Finance mecca in the world get it wrong more times than they get it right. So what makes you special to think that you can overcome the stock market, much more overcome it at a young age? Here are five things you should always remember on your journey to stock market mastery.
Invest For the Right Reason
Being young often makes you prone to deciding a lot of things for all the wrong reasons. If you are trading the stock market to finance a car, to rent an apartment for yourself and move out of your parent’s home, or to just have money to impress your friends, stop and rethink your decisions. To conquer the stock market and consistently profit from it over time, you need to be passionate and genuinely interested about financial markets, supply and demand drivers, investing principles, theories, strategies, and everything else encompassed by the industry.
Invest a Small Amount
Young investors are oftentimes too confident about their ability to predict market direction and price action. They end up over-leveraging their positions and assuming huge financial losses. As a young, bright-minded, and promising individual looking to become a stock market master, your priority at this time should be to learn and master the fundamentals of stock market trading, rather than make money. Assuming that you are around your 20s, you have plenty of time to worry about making money through your investment portfolio.
Be Financially Disciplined
You can make a ton of money in stock market investing, but lack of financial discipline will almost always dry up your bank accounts faster than you make money. Learn to save money at a young age. This not only helps you save up enough money to open your own trading account by the time you are legally allowed to, but also possibly have enough money to start your own investment fund. Financial discipline is also required to manage the capital going in and out of your trading account. If you do not know when and how much to withdraw or deposit, you’ll end up burning whatever profits you gained from your investments and then some more from your own pocket.
Younger investors are at an advantage in the sense that they can ask questions and make mistakes without much judgment and criticism that befalls their older comrades. If you are well in your 30s or 40s, it feels embarrassing not to know something market-related. It shouldn’t be this way, but many people are aware and are suffering from this social stigma. Start networking at webinars, seminars, parties, and fundraising events. You are bound to make friends in the financial industry, and who knows, you might even get wealthy individuals to invest in your small, home-based fund.
It’s a bold decision to conquer the stock market space at a young age. Expect to make a lot of mistakes, some costly others stressful, along the way. The important thing is to try and absorb as much knowledge and skill as you can during your journey.