College years aren’t just about getting an education, but socializing and having fun costs money. It can be difficult juggling a job with studies, but there is another solution: trading.
Stock trading and investing in the markets offer an alternative to slogging in a part-time job. Trading can be done anywhere, and at any time, so it’s perfect to fit around lectures and revision.
But can stock trading really provide an income? Research and knowledge are fundamental – and these tips will help you make a start.
Choose Your Investment Wisely
Although you can invest in the market on a part-time basis, the more time you’re able to dedicate to your new activity, the more knowledgeable, you’ll become. That’s why it’s vital to pick investments which correlate to the amount of time you have; some markets are more demanding than others.
There are options like spread betting that can diversify your investments; it’s a good idea to spread the risk. ETFs are another good option for students who lack experience and don’t have the time to customize their own portfolios.
Stick to a Strategy
One of the biggest challenges you’ll face while you’re trading is your own mind; there’s a unique psychology to trading, and it’s imperative you have a good insight into what’s going on.
Fear of missing out or chasing losses are two common mistakes that both new and experienced traders can make. Before you start, put together a clear strategy that sets out how much you’ll invest and your limits. These are hard red lines which must never be breached. By staying disciplined and sticking to your plans, you’ll never accidentally spend money that you can’t afford to lose.
Be Clear About Your Goals
While you might dream about having your own private island and a yacht, understanding what your realistic goals are, is an important step in the process. Being clear about your goals will make it easier to decide how much time you want to invest.
Although it’s entirely possible to invest in the market in the time you have spare around your studies, you will need to pay attention. Investing isn’t something that you can just forget about, so if you don’t think you have the patience to see it through, you may be better with a different option.
Connect With Others
Bouncing ideas off another investor, or just having someone to talk to about the markets can be a very useful source of support. Take proactive steps to hook into a local network of investors who can provide encouragement, advice and help.
If there aren’t any clubs you can join, setting up your own website or forum is a great way to get the ball rolling. You could even be responsible for motivating other students to start investing, creating a new community of local investors on your campus!