Investment tips for young people
What are the advises to the young fresh graduates who want to start up a small investment with low capital?
1) what is the industry/platform should they invest?
2) how to enhance their investment skill?
3)what is the knowledge they need to acquire before start investing?
4) how to develop a proper investment planning?
There are a few key issues. Is this investment for the long term? What exactly is 'the long term'? Can the individual afford to lose the investment?
I might be inclined to look at investment related to pension schemes. As life expectancy increase, individuals will need more funds to live a comfortable life in older age.
For young people with limited investable capital but maximum time horizon the best advice I could give is broad exposure to high risk equities. Probably best done through mutual funds or ETFs rather than individual stocks. So high risk, high reward category would be small stocks, emerging market stocks, and growth type stocks across all industries but usually includes a lot of technology and health care companies. If this sounds simplistic it is. The main thing at this point is long time horizon in growth areas. Of course if a young person is in a growth industry and has some knowledge of a given company (perhaps their employer) they could make a small position there part of their portfolio.
As David Cottrell mentioned, one should be clear of what types of investment he/she is looking for before explore deeper. After making a decision, it is important that one seek " Mentorship" for long term guidance no the challenges that arises along the way and also seeking new opportunities that surface. It is also imperative to seek consultations for issue that are tricky or regarding parts of the investment knowledge is lacking to helps to boost their investing skills.
Financial management would be the foundation topic for a young investor. This follows by risk management to avoid potential investment pit falls. However, experience is the most important part for a young investor to apply what they have learn into action. There is no point reading and attending numerous courses without stepping into the real world.