NEW YORK (MainStreet) No one knows what the future holds. You should be well diversified and invested in several markets, especially at a young age. No matter what the dollar amount, evolution occurs, and funding grows overtime. It's important to be invested in the markets and to start at a young age. I personally started playing the stock market at age 11, and my knowledge and experience has grown ever since then. The younger you start investing, the better.
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Investing at a young age is a big deal, as it allows your portfolio to grow overtime while you are not totally dependent on the funds. No matter what price you buy a stock at, you have time to make your money back and eventually get into the black.
Longterm investing should be in all portfolios and especially in the younger generation. It is all about planning for the future.
At first, when you don't have much experience and knowledge of the markets, a large amount of money is not needed. There are many apps. and websites that you can use to invest fake money in the stock market. Start from the bottom and slowly move up to the top, and don't rush anything. If you decide to buy a couple shares of a certain stock, and hold it for years to come, huge profit margins could be met. After, dividend payments, splits, reports and acquisitions occur.
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There are two ways that you could invest when playing the markets. Either volatile or non-volatile securities. Your decision depends on your financial condition and your view towards investing:
-Volatile- A volatile investment is a stock that moves a great amount either monthly, daily, or yearly in share price. It trades a great deal of volume and usually does not pay a dividend. These types of stocks are for the real "go big or go home" type of people. It is a high consideration for young investors because of the usual low funding they are investing and the minimal protection of the capital.
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-Non-Volatile- A non-volatile stock does not move a great deal in the stock market but usually pays a great dividend. Investors put money longterm, into non-volatile stocks because of the high dividend that they could collect. They figure that for a low amount of risk, they could annually get more money than leaving the money in the bank.
When looking at stocks to buy and hold, you want to look at a stocks past history. What happened in the past? Has the stock been going up, down, or has it not really moved? In most cases, you can analyze the future by looking at the past. Charting is a big analyzing tool. You really don't need to mathematically analyze a graph; just looking at it from a basic perspective can do you justice.
Every young adult should invest and have an awareness for the stock market and investing. We are the future of the economy and government, and the younger we start, the more education and experience we will get!
If you are currently 30 years of age and purchased a household name like Disney (DIS) when you were 10 years old in 1993 at a share price of $13 a share, you would have collected more than $50 a share. There are thousands of stocks, bonds, ETF`s, and securities of this nature on the exchanges, so get on the band wagon and start investing now.
--Written by Max Levin for MainStreet