It is possible to make a fortune off of the stock market. When I was 16, I read stories about average people making millions from investments. I was inspired, and I signed up for a ShareBuilder account thinking I could do the same. Well, I never ended up as a stock market mogul, but I eventually came to find investments as an important tool nonetheless.

stocks


Do it for the Right Reasons

Investing seemed so appealing to me at 16 because I only thought of it as a way to get rich quick. I quickly found out that the instant gratification method of investing was neither instant nor gratifying without hardcore knowledge, research, and a little bit of luck. My first problem was income. As a college student, I barely had money to invest, if any. That meant that I was buying and selling stocks with chump change, and you can imagine the meager returns I was receiving. Having to monitor the highs and lows of the stock market was just not worth it.

After adjusting my methods a little bit, I learned how to make the stock market work for me. It wasn’t about the fast money anymore. Monthly (and now weekly) investments, regardless of stock price, allowed me to put my money in what I considered a long term fund. I don’t plan on taking any money out of it for at least a decade, allowing for a much higher yield given the current trend. I will explain my strategy in another post, but I’ve been making 12% profit on the money I’ve been putting in.

Have a Plan

Seems simple enough. Originally, my plan was to gain a fabulous amount of wealth. Now that I’m almost graduating college, I’m just trying to save up for big things, like a down payment on my first home, buying a car, and other big purchases. I can even save up for retirement. Whatever the reason you are investing, make sure you keep that goal in mind as you invest.

Be Consistent

Investing on a regular schedule was a game changer. Being consistent with my investing allowed my profits to be just as consistent. This was difficult for me at first, because I didn’t have a regular job for the first three years of college. I eventually devoted a very small percent of my budget into my investments, and treated it like I didn’t have the money to spend in the first place. As my income grew, however, I was able to devote more resources into my portfolio.

So these are a few things I’ve learned as a young investor. I’ve read so many articles on how great an early start to investing can be. It’s a powerful vehicle to protect against inflation, and if you get your resources together, I strongly suggest at least giving it a try.