The world of investment is becoming friendlier. Technology has democratized and demystified the stock market. All you need is your smartphone; it is as easy as logging into your social media accounts. Even seasoned investors acknowledge the beauty that lies in the simplicity of digital investment.
The main difference compared to classical investing is the elimination of the middleman, the stockbroker. This also means that you are not confined anymore by working hours. You can trade at any time you want. The investment apps make everything simple for you and usually offer enough options to choose from.
Here are the steps you need to take to leap spectator to future digital Buffet.
1. Select Your Interests
Most of us decide to invest in companies that share our values or create things we enjoy. Although the return from some industries like oil and genetics could be higher, most people will put their money where their heart is.
Some apps even create bundles of companies from the same activity sector or with similar views to give investors the opportunity to build a one-click portfolio. For more details about this take a look at this review of Stash, an innovative investment app: https://aaacreditguide.com/stash-review/.
2. Decide Your Investment Style
Most apps let you decide your investment style between conservative, moderate and aggressive investments. In fact, it is a matter of balancing risks and returns.
Conservative portfolios include fixed income investments, like bonds, money market, and loans. These are almost certain things; it is a matter of patience. As an investor, you have to wait for the investment to mature and collect your part.
These make sense if you decide to invest for the long term, like having additional funds for the kids’ college fund or your retirement.
Moderate investments include buying stocks with established companies, usually large-capital, blue-chip securities.
Aggressive funds are aiming to provide stellar returns by investing in alternative growth funds, financial derivatives or investments in emerging countries. These are high-risk, professionally managed funds.
3. Decide on the Amount You Want to Invest
The great news when using an investment app is that you can start with as little as the price of a coffee. The entry barrier is so low you have no excuse not to try this opportunity and turn it into a million dollars.
The best part about apps is that they work as scheduled investments, withdrawing a certain amount at a regular interval. This way you cannot forget to invest, and it is more an out of sight out of mind approach.
Don’t worry about giving the app you choose some permissions that might sound intrusive, like banking and social security numbers. Apps handling investment are required to collect this kind of data. They also use strong encryption and protect you up to a certain amount (currently half-million dollars).
Just Click Play
Trading hours for money is not going to make you rich; you need to put your money to work even when you sleep. The annual costs for using such an app are no more than a lunch at first and grow proportionally to your revenue.
Since these are designed for newbies, they come with simple instructions and a comprehensive database of knowledge that you can use for free to learn more about investing.
The visual interface helps you understand earnings, withdrawals and overall portfolio performance. It offers you projections to determine to invest more.
Instead of keeping your money in a savings account or even worse, a checking account, you could take a bit of the extra cash and jump on the investment bandwagon.