There was a time not too long ago where investing was limited to a chosen few. Technology made it difficult and costly to make trades. Swing trading was almost impossible without having tons of resources, and very few dared investing without working with an adviser. Today, investing is within everyone’s reach, no matter your budget, background, or experience. Let’s take a look at why investing in 2020 is accessible to everyone, and how you can start.
The Number of User-Friendly Financial Instruments
There are more financial instruments than there once was, and many of them cater to lesser experienced investors. ETFs are a perfect example. Instead of having to invest in one particular stock, you can invest in a variety of stocks in the same sector.
Forex is another market that was much more difficult to access before but has now been opened up thanks to technology. Virtually anybody can start trading on in Forex, and some platforms allow you to start with no minimum deposit required.
You still have the same options that you had before, but research is easier. It’s much easier to find well managed top-performing mutual funds than before. The bond market has also been greatly opened by technology, and now allows more variety and liquidity.
The idea of having AI pick stocks for you shouldn’t be too farfetched when considering how much data these can process compared to a human and how data-driven stock trading is. Robo advisors can theoretically be used to build portfolios for you. However, very few use them that way. Instead, they can guide you or help validate some of your choices. You can look at some of the recommendations they offer, and see which ones make sense.
Technology has also allowed traders from all over the world to build communities and exchange advice easily. You now have platforms that allow you to shadow trades from successful traders. The amount of support you’ll get from the people in the community is something that would’ve been impossible not too long ago.
Well, if your goal is to be an actual investor, you will first need to start with a goal. One great resource to start with if you need help with investing would be Why invest? by Willis Owen. On this page, you will learn exactly why you should start investing and how to set goals for yourself. They have a useful tool that will allow you to see the type of returns you could expect depending on your initial investment, how long you want to invest, and the amount of risk you’re willing to take.
As you can see, investing is much more accessible than many might imagine. Make sure that you start with what you can handle, and consider working with a professional if you’re ever in doubt.
