How old should you be to start trading? It’s a good question, but the answer may surprise you. The truth is that you are never too young or too old to begin trading. What is most important is how you trade in regards to your age as well as some other time related factors.
So, what is the “how” part in this equation and what does it have to do with your age or time? Let’s break down some of the myths and misconceptions regarding age adjusted trading and also look at some quality approaches and strategies to consider when investing.
Myths About Age and Investments
Perhaps the most misrepresented investment advice out there is that young people can afford to engage in riskier investments. This advice misses some of the most important details that younger investors should be considering.
First, the single most important investment that most people will ever make in their lives is in their home. No matter where you live in the world, the largest portion of your income will likely be on housing. Therefore, every investor’s top priority should be in reducing or eliminating that expense from their budget.
Consequently, if you don’t own your own home and are either paying rent or living in someone else’s home, your investment plan should be focused on changing that as soon as possible. Home ownership is one of the least risky investments you can make and over time it will solve two problems:
- If you aren’t paying rent, you have more money to invest and spend on other things.
- Your home will increase in value over your lifetime in 99% of the cases regardless of where you live in the world.
The problem facing most young people is a lack of income to buy their own home and this is where trading in the markets can be a valuable resource in achieving this early low-risk financial goal.
The second problem with the “young people can take more risks” advice is that young people generally lack investment experience and a solid understanding of how the world around them can affect their investments.
Additionally, this lack of experience often allows for “emotional” trading or going on “tilt” when something goes wrong with a trade or even some other life event. Young traders that put all their effort into investments like trading run the risk killing their momentum before it has even gotten started.
Another misconception is that older people should avoid riskier investments. This isn’t necessarily true either.
For one thing, older investors have a wealth of life experience to draw on that will help mitigate potential losses. Also, older investors tend to have more available capital to invest so they are in a better position to take on some additional risk.
Developing a Trading Strategy
The more evident truth in investing isn’t as much about age, but rather getting started early rather than later and developing your skills as a trader. Regardless of how old you are now, it isn’t too late to become an excellent and profitable investor.
Instead of buying into anecdotes about investing, take a look at some key factors that will affect your ability to earn additional income trading or investing in general. Here are some questions you should ask yourself:
- How much money do you have that you can risk on investing?
- How can you increase that amount? Either by decreasing your expenses or increasing your income.
- How much time can you dedicate each day or week to trading?
- What is your skill level regarding markets, trading strategies, and money management?
- What are your financial goals for the next 6 months? 1 year? 5 years? 20 years? (Don’t worry these will change over time)
After you have taken a look at yourself and answered these questions you’ll realize that age really doesn’t have much to do with this unless you’re already at an advanced age and 20 years is probably longer than you’ll be around (in which case you should be factoring in your estate and how it will be distributed after you pass on).
For everyone else, it is time to work on addressing the answers you gave to five questions.
Get Started Earning and Learning NOW!
Once you know where you stand as far as finances, skill level, and available time to focus on improving the first two. Luckily, your age and income doesn’t limit your ability to start trading right away and begin your journey to financial independence.
If you don’t have an Olymp Trade account already, you should stop reading now and go register to get your free demo account. If you have $20, $100, or $1,000 that you can spare, go ahead and deposit it while you’re at it. Don’t worry, we’ll wait here for you since it will only take you a few minutes to complete the process.
Now that you’ve taken the key step, here is how you can move further on your journey. We will use the earlier questions as a guide.
1. If you own a home already, good. If not, you need to adjust your income and expenses so that you are saving money every month until you can buy a home. This will often mean taking a loan, but repayment will still be less than rent in most cases.
Trading on Olymp Trade will provide you with a short-term investment vehicle because it will allow you to make consistent regular income. Your home will serve as your longest term investment and you may choose other investment vehicles as you grow your wealth, but for now, online trading and home ownership are the priorities.
Trading online can easily provide that extra boost to your income that will allow you to save for your first home. Set a target of increasing your trading account by 5-10% each week until you hit $2,000 USD. After that, start withdrawing funds over this threshold and use it towards your home.
$2,000 is a good threshold because you get Expert status on Olymp Trade, which will provide you additional tools and resources that will then earn you even more money from trading. Using the Trader’s Way will also help you increase your skills while providing additional rewards.
It is from this point you will exponentially grow your investment account and change your financial life.
2. Set aside 2-3 hours a day at least 3-4 times per week. You are going to use this time to grow your mind, experience, and your trading account. Take advantage of the Olymp Trade webinars, tutorials, and Insights section to become an expert in market trading.
If you are 18 or 60 years old, it doesn’t matter. You are now at investment university for 10-15 hours a week. Your teachers are expert and professional analysts that will show you everything you need to know on how to earn consistently trading online and Olymp Trade is providing them tuition free.
Be a good student, your future depends and your income depends on it. The more you study, the more you’ll earn. Remember there are dumb people making thousands of dollars a day trading online. Don’t let them out work you.
3. Identify your financial goals and don’t lose sight of the target. Stay focused, be patient, and remain humble regardless of your successes.
You have nothing to prove to anyone other than yourself and that is essential. Prove to yourself that you can hit your short term targets and your confidence will be visible to everyone.
Don’t worry about appearances because when you buy that house for yourself and your family, it will say everything necessary.
Don’t worry about your age! You’re never too young or too old, but you do need to move forward or you’ll be left in the dust of others. Take full advantage of what Olymp Trade offers and they will be your partner as you grow your wealth and achieve your dreams.