There are a number of mistakes commonly made by investors, many of which can be avoided by applying knowledge, determinism and understanding in relation to the financial marketplace. One of the more understated mistakes that investors historically made was failing to adapt to the changing world around them, however, whether this related to macroeconomic trends or the technology available to help inform their trades.
This is the not the case with Millennials, however, who have a series of unique trading habits that have been born out of innovation and evolution. This is particularly true in technologically advanced nations like Singapore, where social, economic and tech trends have combined to alter the entire nation of the financial marketplace.
3 Millennial Investment Habits to Watch in 2017
With this in mind, let’s take a look at three seminal investment habits in 2017 and consider them in the context of the wider financial market.
Millennials Have Embraced Rise of Virtual and Mobile Trading
Make no mistake; online trading has removed many of the barriers to entry that once surrounded the financial marketplace. This has had an empowering effect on Millennials, who can now embrace full and part-time trading without compromising on the accuracy of their trades or their overall lifestyle.
Increasingly, traders are also increasingly inclined to operate from an online trading platform and affiliated mobile app. Forex brokers offer a relevant case in point, as investors can access their accounts through the main platform and the MetaTrader 4 application depending on their location and precise needs.
This means that they are able to execute key orders while on the move and regardless of their geographical location, in some instances even without a functioning Internet connection.
Millennials Are Increasingly Risk-averse Traders
The Great Recession appears to have had a marked impact on the typical investor outlook, although not in the way that you may initially think. Interestingly, it has reinforced the importance of determinism in a volatile climate, ensuring that investors become increasingly risk-averse and relatively immune to periods of depreciation or austerity.
This is part of a wider shift in the financial market, where those in search of capital have a huge diversity of options available to them. Entrepreneurs can now access alternative lending vehicles such as factoring and equity crowdfunding, for example, inspiring a more open mindset and a willingness to seek out investment even in difficult times.
This spirit has also been embraced by Millennial traders, who are no longer bound by the chains of conformity.
Millennials Manage Risk Through Technology
From an investor perspective, the increased appetite for risk has largely been brought about by necessity. It has also been empowered by innovation, however, with online and mobile trading platforms incorporating a huge range of risk management features that can be leveraged with the single click of a button.
These include stop-loss features, which allow traders to predetermine points at which positions are automatically closed if an investment begins to lose money.
Such progressive and real-time features have allowed investors to seamlessly manage risk in the modern age, meaning that they can embrace risk while simultaneously safeguarding their capital.
Marcus Turner Jones graduated in Economics from the University of Sheffield before pursuing a career as a Market Analyst in London. He has his own website, Turner Jones Finance, and writes freelance from Buenos Aires with his dog, Luna.