While in college, we have all tried to nurture our areas of interest – outside of the usual academic curriculum.
For those of us who have taken a keen interest in finance and the stock market, learning to invest offers its own set of perks.
Granted, there are several risks involved, like – the lack of funds, lack of market experience, inability to find an appropriate broker / brokerage firm, incurring high interest debts, etc.
However, SMS will guide you through this journey by taking you step by step through the details to follow –
1. Begin with a small amount of capital.
Your first trading account should therefore be a small one.
Make sure you can find an appropriate broker who can take you on in spite of the small trading account.
In due course of time, once you’ve gotten accustomed to the ways of the market and can afford to invest in more capital (and trade on a regular basis), you can increase your overall trading capital.
2. Always calculate the amount of money you can risk.
As a college student, understand that each of your investment involves a great deal of risk.
Your risk tolerance can be determined only by your available funds and your understanding of the market.
Accept that you can learn more about the market only in due course of time – and not overnight!!
4. Before anything else, undertake a great deal of background research on investment tools.
Learn as much as you can about the ways of the market.
Take tutorials and read up.
Make sure an investment is for you – do not blindly follow the market.
Always begin by researching about a company’s past performance in the market.
Though this cannot in anyway guarantee to be reflected similarly in the future, you can learn a great deal about the company this way.
5. Learning about the stock market and beginning to invest can be a scary prospect.
These days there are several online brokerage firms that provide their clients with reliable tools in order to monitor investments.
However, find out what works out best for you.
Understand your limitations and your possible aspirations.
Begin by designing an investment portfolio that reflects both.
Before you begin with any of this, you need to learn the basics of how the stock market actually works.
What are stocks?
How are they traded?
Are stocks the only investment tools available? If not, what else is there?
As a college student, your academics should remain your first priority.
Be concerned about your capital and the amount of knowledge you require to begin investing in a particular company.
We brought you this detailed article on the things to note before you start investing as a college student as we hope by investing early, you’ll enjoy years of interest growth and get more years to gather more wealth!
In order to help you in this endeavour, SMS has brought you an exclusive page (FREE of cost!) which enables you to learn the basics of the stock market and begin investing early.
This page has been divided into sections and sub sections while being grouped for your convenience.