Some say they are lazy or lack the right initiative for success, however, the younger generation seems to be doing something better than most of us.While the general notion is that “the baby boomers made all of the money,” there’s still a lot to be said about millennials and their investing habits.
It is true that older investors usually have more capital to work with, but the digital age has presented a plethora of different options for younger investors and traders. Moreover, the millennial way of thinking, which utilizes available tools and leverages instruments that were previously unavailable to traders, presents a whole new approach to making money. Here are three things that you might want to learn from this young generation:
1 – They are technology-oriented
It is no secret that young people today have a harder time saving money than their parents. The combination of a higher cost of living, higher spending habits and multiple ways to get into debt, leave very little available income to invest. And yet, many millennials are using advances in tech to save and invest money – such as designated apps. When it comes to the stock market, sometimes quick decisions are the difference between profit and loss. For this reason, something as simple as a “push notification” at the right time can be the differentiating factor. True, many would rather get notified whenever there’s a new Miley Cyrus video, or an updated version of Pokemon GO, but some use the advantages of the smartphone age to make the right financial decisions in real-time.
2 – They make an effort to understand the market
It is easy to think of younger people as carefree and reckless, however, when it comes to investing, millennials often prove the opposite: Those who have money to invest, and manage their own funds, usually rely on the constant flow of information online to make the right decisions.
Additionally, they realize that banks are becoming a less-than-attractive option, since interest rates are on a steady decline. That is why many younger investors choose to use online platforms for trading, which don’t require a lot of experience, are easy to use, and allow to use virtual money at first, so they’re not taking any risks while learning to use the platform.
3 – They are cautious and rely on others’ experience
There are legitimate methods to make money in investing without having to understand the stock market, or needing to have a $100K portfolio. Online trading platforms have evolved and are now regulated, more accessible than ever, and secure. The platforms themselves have everything to gain from their users’ success.
One such method is eToro’s Copy Trading feature, which enables investors who don’t have a lot of experience to copy other, more seasoned investors’ portfolios. Basically, you get a very clear image of an expert trader’s portfolio, risk factors and yield over time, and make an educated decision whether or not to copy them.