“When teenagers have the opportunity to start investing online, they learn, from a young age, to take care of their financial obligations.” These are the words of a senior financial analyst at Olsson Capital. When a teenager starts investing online, he or she should have prior experience with saving money as that will make the investing process a lot easier.
Here a few ways teenagers can start investing online with as little as $100:
As you are still underage, you would need a grown-up to assist
If you are still underage (under 18 years), you need a grown-up to assist you with the correct procedures. The grown-up will need to open a custodial brokerage account. This makes it easier to start making fixed investments. You need to remember though, that if you are investing big amounts of money, it might cause tax issues. Therefore, it will be a good idea to start off with small amounts and work your way to the top.
You need to know how investing online works
As soon as you have an account with money in it, you can start familiarising yourself with the investing process. Some of the major items you need to take into consideration are the following:
Setting goals – As a young person, it can become difficult to set goals for yourself and keep them. When thinking about long-term investment, you need to remember that you are thinking of your future. Therefore, set goals, keep them and think long-term.
Taking risks – When you are young, taking risks might be quite daunting. On the other hand, you might be someone who tends to dive into the deep end without fully evaluating the situation. You need to be aware of the risks of online trading and money management.
Choose wisely – When making investments, you need to know that investing in a few different markets will increase your chances of profit. Be careful though, that you don’t invest in markets that are not legit.
Learn, learn and learn some more – In the age of digital revolution, there is nothing stopping you from going onto the web and learning as much as you can about online investing. You can attend online classes, listen to podcasts, read articles, follow the news and ask advice from some of the top online investors.
Ongoing involvement in what you started with
Many teenagers start investing online and after a while, lose interest in the game. If you want to start investing online, you need to be prepared to stay in the game for the long haul. A good example would be if you get money as a gift, take a percentage of that and invest it in the markets you are watching. The more you do, the greater your chances are of making a profit.
It does not matter whether you are male or female
You are young and free to change your future for the best. There is nothing standing in your way. In the past, it was believed that only men were able to invest. Nowadays, women are taking the investing world by storm, and in some cases, even make bigger profits than men. It does not matter whether you are male or female; investing is something that every young person should think about if you want to make your future a prosperous one.
As the saying by Robert Arnott goes – “In investing, what is comfortable is rarely profitable.” You need to be prepared to step out of your comfort zone and start investing in your own future. Online trading is a risky game and if you are not sure you’d be able to hold the fort, you need to do some introspection. When making an investment, you need to be sure you are able to see it through to the bitter end, even if you know you may not make a profit from the trading decision you have made. However, you need not lose hope. It might be a tough ride and you are young. But even if you are young, you can make your future a great one by taking baby steps to someday running the online trading marathon!