Millennials are Tapping into the Stock Market as the World goes to Shambles

The coronavirus pandemic around the world just doesn’t seem to end. It’s no surprise that stock markets have taken a hit and the global economy has turned upside down, to say the least. But every cloud has a silver lining. Millennials are tapping into the opportunity of stock trading to kick-off their investment careers.

Yes! The often defamed & entitled millennials are fearlessly cashing in on undervalued equities, and this is a fact, not our opinion. Many online stock trading platforms saw a sizable uptick in demand during recent months. 

  • Plus500 reported a surge in trading activity with revenues going up by 487%. As March came to a close, they witnessed almost double the activity from users at 194,024 with half the average acquisition cost.

  • Great news for existing shareholders of Amazon as their stock price has been growing consecutively since the beginning of the year. Its stock was valued at 2317.80 USD on May 5, 2020, as compared to 2282.3 USD back in mid-April.

Being stuck at home, people have more time than ever. Unfortunately, quite a lot of them have lost their jobs which has them hunting for newer opportunities. It has made young investors desperate to regain their money.

Getting Started

The convenience of buying stocks has been solved with digital devices and the internet, but the looming threat of making the wrong decision while picking stocks still lingers all around us.

Choosing the right stock is no easy task. Especially now when the market is extremely prone to fluctuation, you might make a lot of mistakes.

Investments are a form of gambling. You take calculated risks with the information that you can gather, but certain factors are never in your control (such as the current pandemic). Hence, if you are investing for the first time in stocks, it is wise to set aside an emergency cash fund first. You should remember that your comprehensive investment strategy should pertain just a small amount of individual stocks.

As you invest more time in learning, you will get better at understanding the market & take actions accordingly.

Picking Stocks

Buying stocks was never as easy as it is today. With the digital age and the arrival of online trading platforms, it is easier than ever to buy stocks in an individual company.

Although easy, it is quite risky. Financial advisors usually recommend building a diverse investment portfolio with low-risk, medium-risk & high-risk investments depending on what you want to achieve financially in a certain period, also known as your financial goal.

Never make investments without a understand exactly what you are doing or making sure you have comprehensive knowledge & experience in the market you’re looking to invest. 

When diversifying, investors look at balancing investments between various sectors, regions & asset classes. This will help in mitigating risk.

We recently saw some companies drop 50% of their market cap due to the economic repercussions of the coronavirus pandemic. With popular stocks fluctuating at an abnormal pace, investors are sure to try and make the most out of it.

The big question is where will YOU find value in today’s market?