Suppose a young investor puts away only $1,000 when they are 20 years old after becoming a master of knowing how to research stocks. And this process repeats itself over and over and over again. An investment in a stock that appreciates 10 per cent each year will double in size in approximately seven years. The most important first step before any stock picking basics is to understand the math behind long-term investing. They worked hard in school to get to where they are and would prefer having fun with their income today. Young people who are new to the workforce shouldn’t be faulted for not wanting to invest in their future and retirement. It is often difficult for new investors to understand the long-term benefits of share picking strategies. Choosing good stocks does not require a lot of money, although it requires a good amount of discipline. Also, the vast amount of online media outlets makes it a lot easier for investors to conduct their own stock research without pricey membership fees or any other large expenses. Stocks are also easier to buy because of the advancement of financial technology (fintech) and brokerage firms that cater almost exclusively to young investors. The vast majority of people with minimal investment knowledge are already familiar with companies like Apple or Disney.īy contrast, other investment options are much more complex in nature, such as the dynamics of currency pairs like the Japanese Yen to US dollar or understanding the relationship between oil spot prices and forward prices. But stocks are mostly preferred by young investors because finding good stocks is not a difficult exercise. Stocks are far from the only investment tool as investors can buy bonds, commodities, currencies, real estate, physical gold and much more. But such are the risks of long-term investing as investors will always experience short periods of volatility followed by years of gains. The 2020 stock market decline from Covid-19 is certainly temporary, although it remains unclear if this will last a few months or a few years. After all, the vast majority of investors who made wise stock purchases five years ago are still sitting on an attractive profit. The Covid-19 pandemic has resulted in a global selloff in stocks but this shouldn’t deter young investors from picking good stocks.