Opinion Post: Short Term Investing

Short term investing is the way to go. As students, young professionals, and millennial’s all tend to face financial hardship’s, investing for a shorter period of time tends to be a common feat. As bills such as students loans and car payments tend to hit our accounts each month sometimes the bi-weekly paycheck is not enough to cover our expenses. Here are three reasons why I believe if you are younger than 30 shorter term investing is the likely path you will take. Here are three scenarios I believe people in different walks of life can use short term investing to help them down the road.

  1. As a college student we tend to have student loans and we also tend to run out of our of money near the end of the semester. Therefore in my opinion if you have student loans borrow in excess and take the rest of the money and invest it! It is helpful to keep money in growth stocks to help out during the tough times when nearing the end of the semester or if any inconvenient circumstance tends to come up. For example, Apple’s stock gained nearly $17 dollars in the past month. If you had just three shares in the stock you just earned yourself a $51 dollar gain.
  2. Working right out of college is a goal nearly every student has entering senior year. Once you land the job and the reality of loans hits, saving and investing money may be the last thing on your mind. However, I would urge you to hold off on paying your loans for at least a few years until you can accumulate enough wealth to do some damage on the amount owed. For instance, taking a few hundred dollars a month out of your paycheck and placing it in a growth ETF such as the Vanguard Mega Cap Growth ETF may yield surprisingly high returns and help you pay off your debt sooner.
  3. While no one our age usually finds the idea of day trading fun or attractive, the practice can results in significant gains in the market. However, no one our age has the time to sit in front of a monitor and trade all day five days a week like professional day traders do. However, we do have time to research company’s on the weekend and make up to three trades a week with our discount brokerage platforms. Trade three days a week, that is my opinion and advice. With three different trades you may be able to make some serious money if you can get good at it. Take for instance the day trader who makes $200,000 a year based off her trades. If she can make this type of living through trading, we should be able to mirror this on a micro scale and make at least a few hundred if not thousand dollars a year.

My opinions are as follows, take money from your student loans and invest it in growth stocks, save money from work and place it in a growth index fund or growth exchange traded fund and watch it grow (hopefully), and finally try to trade up to three times a week to fully utilize your chances of earning high yields in the market. See you next post!

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