Being young doesn’t mean you can’t invest wisely in things that even some adults don’t understand such as stocks. The great thing about investing in stocks at a young age is you can ride the ups and downs without having to worry about selling everything you have in order to keep your money, you have years if not decades to earn it all back. Something I know most people aren’t aware of is just how simple it is to invest in stocks and see a steady gain year after year.
Do you want to retire at a young age? Retiring from stocks is very simple, all you have to do is pick some decent stocks to build your portfolio around and keep adding to them. So what stocks should you buy? Well that is really up to you and depends on the market at the time but for me the best stocks to buy are in real estate, technology, health care, and alternative energy. If you want to grow your portfolio the way that I have in recent years then you will stick to these 4 basic industries and build off them.
Tips for investing at a young age
Invest often – Something even adults don’t do is invest often. When I started investing in stocks on my 18th birthday I put a lump sum of $500 in an account and added $50 every month since then. This is what I like to call a stable investment because every month I am adding to my portfolio with the plan of buying more stocks every 3-4 months. The great thing about investing often is that you won’t always buy at one price, you will average yourself in.
Diversify – The last thing I want to make sure you are doing is diversify your portfolio. If you don’t diversify your portfolio then you will run the risk of losing all your money and not cashing in on the gains of other stocks. Diversification is the key to long term gains.