Millennnial Stock Market Tip #2: You’re Young, You Can Afford The Risk
Going along the lines of the diversification tip that spread throughout the web, just about everyone tells you to know your risk tollerance. Sure, if you’re 50 years old and not comfortable risking your retirement, don’t. That’s not you! You’re a millennial.
By definition, Millennials are between ages 23 and 38 years old. We have plenty of investing years ahead of us. There’s no reason to put 80% of your money into low-yield bonds!
Your best bet in your early years of investing is to take the risk. What if you would have risked buying Amazon.com in 2014. At the time, everyone said that the risks were too high. The company was hemorhaging money as it built out its infrastructure. Profits were a long way off.
If you followed the tips being spread at that time, you would have never invested in a company like this. Unfortunately, you wouldn’t have enjoyed the stock’s meteoric rise either.
While many stock market tips websites will tell you to avoid risk at all costs, risk is actually healthy. If you’ve done your research and believe that there’s real potential for a stock to change the game in one industry or another, nix the naysayers! Follow your gut and ride the wave.
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