Financial Independence
for Every Human

Loading
Side hustle

How Millennials Are Changing Stock Investing - Beginner's Guide

0:00
0:00

October 7th, 2021 06:28

Stock investing: A brief guide


Millennials have always played a great part in the stock investment game. After the start of Covid-19, many people lost their jobs and this made them look for multiple sources of income to sustain their livelihoods. This gave rise to the popularity of stock investing and people are taking notice.

Ideology and technology have changed the way we all look into our finances. Millennials are leveraging this and opting for more self-directed and thematic investments. Today, many millennials are also choosing alternative investments, including digital assets such as bitcoin, while focusing on social and environmentally charged causes. This mindset could be beneficial to all types of investors.


How are millennials changing stock investing?


Millennials are changing stock investing in the following ways.


Being cautious about where to spend


  • Being cautious about stock investing would prompt us to analyze a company's growth rate and customer needs. Like many millennials, when investing in stocks, you should consider factors such as how your company of interest is helping the economy grow. Ensure to be more cautious, do your research well, and only then consider investing.


Sticking to fewer investments


  • Some people tend to invest short-term to make a quick buck, but not everyone loses in this gamble. As mentioned before, if you stick to fewer but long-term investments, do your research well, and stay updated about the company's performances and what affects the stock prices, you would be able to secure your investment. Do not invest in something because of its popularity or peer pressure; select a company and field that you are aware of as you would be better able to analyze the companies in it.


Decentralized finances


  • One of the biggest threats to traditional banks and brokerages is that they do not pivot towards a fast-growing digital asset industry. Millennials noticed these decentralized finances and unethical practices in the mortgage sector, especially around the financial crisis of 2008. This gave rise to Bitcoin (cryptocurrency) whose valuation in current times is around $50,000.


Growth options


  • Invest in a company where you can see its past growth rate and future potential. Especially after the pandemic situation, it is essential for a company to be in the digital space. Millennials have invested in the same way. They tend to consider companies and their performances for almost 20 years in the future. However, these tips would be long-term investors and not day traders.


Zero commission trades


  • Warren Buffet advises people to avoid paying commissions as much as possible due to their expensive compounding effect. Zero commission trades are extremely valuable for the long term. This is one of the ways in which millennials are changing stock investing.


Avoid socially-irresponsible companies


  • Millennials are considering investing in the stocks of socially responsible companies that can help make a change in the world. One popular example of such a company is Amazon.


Micro investing


  • Micro investing is being promoted by millennials as, for most, profitable stock investing is equal to micro-investing. The risk, however, lies in staying updated about all factors related to the company you intend to invest in.


Fractional ownership


  • Fractional ownership is important only if you intend to invest your time and money in a company's growth.


Conclusion


Millennials often choose to invest in the stock market mainly in tech-forward companies. These changes would help improve the consumer journey across the world as well as make the overall economy more inclusive and efficient.


Looking to start a freelance career to earn a side income in Dubai, UAE? Freedom2Work is your one-stop-shop for all things freelancing. Get in touch with us to apply for a freelance license and a residence visa.

Website: https://freedom2work.com/

Address: 213, Vakson Commercial Building, Umm Al Sheif, Sheikh Zayed Road, Dubai, UAE

Phone number: 800-FREEDOM (373 3366)

Email: info@freedom2work.com


Frequently asked questions


1. Are millennials investing in the stock market?

  • Yes. Around 66% of millennial investors aged between 18 and 40 own stocks, making it the most common type of investment.

2. Are more millennials investing today?

  • The availability of social media tools is making it easier and more comfortable for this age group to learn and invest. A survey from BlackRock found that around 45% of millennials are more interested in investing in the stock market today. 

3. Where should millennials invest their money?

  • Millennials, today, can invest their money in index funds and individual stocks. However, they should do their research well before considering investing in a stock.

4. Which stocks do millennials buy?

  • Some popular stocks that millennials buy include Tesla (TSLA), Apple (AAPL), Boeing Co. (BA), Advanced Micro Devices (AMD), Microsoft Corp. (MSFT), Facebook (FB), Amazon.com (AMZN), and Nio (NIO).

 5. Do millennials trust financial advisors?

  • Yes, many still trust and hire financial advisors when investing. Those who consider themselves knowledgeable about investing are more than 2 times as likely to have a financial advisor as compared to those who are not.

Similar Content

Future Trends in E-commerce that You Must Watch Out in 2023
Freelance2Freedom Team
Ways to Beat Procrastination and Increase Productivity as an Entrepreneur
Freelance2Freedom Team
Ultimate Guide to Creating a Business Plan
Freelance2Freedom Team
What are Transferable Skills? How can it help You as a Freelancer?
Freelance2Freedom Team
Risks and Challenges of Self Employment
Freelance2Freedom Team
Basics of Investing: How to Get Started and Build Your Portfolio
Freelance2Freedom Team
Juggle is real: How to Handle Your Career and Life Balance?
Freelance2Freedom Team
Basics of Entrepreneurship- How to get started?
Freelance2Freedom Team
5 Proven Habit to be Successful in Career
Freelance2Freedom Team
DIY Entrepreneurs (Business) Ideas
Freelance2Freedom Team
Blog Ideas for Beginners: Never Run Out of Blog Topics
Freelance2Freedom Team
Business Mentors for Young Entrepreneurs: Why choose a mentor for yourself?
Freelance2Freedom Team
Tips to Overcome Creative Block
Freelance2Freedom Team
All You Need to Know About B2B Marketing
Freelance2Freedom Team
Data Science Careers that are Shaping the Future
Freelance2Freedom Team
Power of Personal Branding for Your Career
Freelance2Freedom Team
Side hustle: How to start a digital side hustle in 2023?
Freelance2Freedom Team
Tips To Help You Find a Better Work-Life Balance in 2023
Freelance2Freedom Team
Get Your Finance Right With These Hacks!
Freelance2Freedom Team
Digital Nomad Jobs for Beginners
Freelance2Freedom Team

Comments

You need to Log In to post comments..
AdBlock detected
Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker on our website