Today, young people are being taught the principles of responsible and intelligent trading by Funding Talent. The company has made it its mission to make sure that the new generation of traders is equipped with all of the tools they need to make good decisions, profiting both themselves and the industries in which they invest.
The traditional model of trading education has been outpaced in today’s world, and the company has been engaged in creating a new model. Jessica Ghaney explains how her company teaches millennials and other young people how to invest and trade in today’s rapidly changing world.
A 2020 Wall Street Journal article focused on Ghaney and fellow young investment influencers. Ghaney gives tips to would-be investors that help them navigate the complex market in foreign exchange trading. Her investment tips come from her expertise in technical analysis.
The Principles of Trading
Young traders need to learn the basic principles of the field if they expect to experience success. These principles can help to guide good decision-making and help people determine when and where they should invest.
Goal-Setting
Setting goals is the key aspect of any investment strategy. Clearly defined, attainable goals establish a strategy to achieve your goals. Goals should shift according to your life stage. For example, if you are young, you want to experience high returns and save for your eventual retirement. If you are closer to retirement, you will want to preserve your investments more closely.
Balancing a Portfolio
Many people forget to balance their portfolios, especially if they are on the younger end of the investment spectrum and are looking for high returns. However, building the proper asset allocation strategy should be based on realistic assumptions of returns. You should balance your portfolio according to the potential risk and potential returns. Broadly diversifying your portfolio is a smart move.
Investment Costs
Investment costs may seem minor, but they can impact your portfolio significantly. Many years of compounded fees can cause losses in your portfolio. Avoiding fees as much as possible is good practice when it comes to investing.
Discipline and Long-Term Perspective
While millennials and other young investors are often looking to turn a profit over a short period of time, they should also consider their long-term stability. They should avoid making decisions rooted in impulsive thoughts or those in response to a short-term event. The best way to invest is to make regular contributions to your portfolio and increase them over time.
Socially Responsible Trading
Another aspect of investment that many younger people are interested in is socially responsible trading. These investors look for socially responsible companies to include in their portfolios.
When choosing socially responsible investments, young investors are often interested in learning how these companies make money. Many socially responsible investors will avoid companies trading in alcohol, tobacco, and other potentially hazardous substances. They will try to put their focus on companies that give back to the community in a positive fashion.
Companies focusing on socially responsible initiatives like climate change, environmental responsibility, and social justice are considered to be good buys for this type of investor.
Financial Responsibility
Financial responsibility is one of the most difficult aspects of trading. Sometimes, young investors approach trading like a game rather than an act with many real-life consequences.
The first principle of financial responsibility is being able to cover your expenses without going into debt. Acting in your own best interest is essential when investing responsibly.
Foreign Currency Trading
Foreign currency trading or forex is an exciting way for young investors to enter the market. Foreign currency trading is the process of exchanging one currency for another. A 2019 report from the Triennial Central Bank found that the forex trading market is as large as $6.6 trillion per day.
Keeping an eye on the forex market means having a working understanding of global economic trends and how current events can affect national currency value. Gauging how strong a country’s currency is against its competitors can require experience, but it could be a highly profitable investment if the proper principles are followed.
New Methods of Trading
Millennials are often more interested in trading on their own, using apps and websites that let them day trade without the added fees and red tape associated with traditional trading methods. This is the approach used by Ghaney’s company. The company helps young investors make money by providing them with funds to trade on the foreign exchange market.
Trading for Profit
Taken together, all of these principles of trading can help millennials and other young investors make their mark. Investors in any field should always be cautious and look at the short-term and long-term prospects of their investments.
Combining time-honored advice with the newest methods means that Jessica Ghaney of Funding Talent can offer her investors a unique opportunity. Learning the foreign exchange market could potentially be a profitable skill.