Every college student thinking of investing should read this


Are you wondering about the different thoughts of different students and how they could learn about investing whilst studying for their college exams? Our advice is to do in-depth research on investing whether that be by reading books or online learning. As a student, you should never risk your student loans when investing as it could end in a way which you do not expect.

Different types of Mindsets

A lot of college students worry about passing exams, getting part-time jobs and being good at a certain sport. There are also those who think about getting a great stock to invest in. Such a mindset can help a student build wealth while young. If that is your interest, you should spend a lot of time reading everything you come across. They say that no knowledge is irrelevant and good investors are definitely good readers.


Online articles and investing books can broaden your knowledge about the field and give you the necessary expertise before you venture into the business. Concentrate on books that offer advice on how you can analyse bonds, stocks, and mutual funds. Through such books, you can learn how you can develop a winning strategy in investments.

Investing books are not expensive since some are readily available. Get to the library in your school and get free knowledge. Some online sites like Yahoo Finance are also free for you to learn everything you need to know regarding investing. Online sources can teach you how you should research top-rated stocks as you understand how they perform through study charts. Schools do not teach students about investing, but you can educate yourself through books.

Loans & Debts

Did you apply for a student loan for your upkeep in college? Such loans accumulate a lot of interest within a short time and can hinder you from investing. Do not risk your money in the market before settling your debts.

Settling debts guarantee your financial returns.¬† For instance, if you pay off some balances in your credit card, you would get returns and not pay future interest on your business cards. Ensure that you pay your credit card balances in full for you to get the return. If your debt has low-interest rates, you should consider investing so that you don’t end up throwing your money away and miss out on getting good earnings from the financial market.

Who to choose

When you have decided on your first investment select a brokerage and open an account. You can either choose an online discount or traditional brokers. Online discount brokers allow you to execute your trades online using a computerized trading system. Traditional brokers, on the other hand, provide personalized services. This type requires a large amount to work with as they charge high fees.

It is advisable you select discount brokerages that require a small initial deposit when investing for the first time. This kind charges small fees during the buying and selling of stocks. The brokerage you choose should also provide you with free research reports and educational tools to guide you through the process. Consider how convenient the brokerage is since some offer mobile apps that make it easy for you to place different trades using your phone.

You can also engage in a direct stock purchase plan. This involves purchasing stocks directly from a company. It is beneficial in that it requires small investment capital and does not charge commissions while investing. You should also avoid borrowing on margin since it increases your investment risks.

What you should consider

If previous student investing which has gone wrong has placed you in a difficult financial position and your current income isn’t enough at the moment, then you could consider getting a loan to help you out. If you fit the lender’s criteria for Personal loans, they could be your best option. Don’t worry if you have bad credit as there are multiple lender’s who accept bad credit applications, read more here.

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