There is no doubt that the best time to start learning how to trade stocks is during college. Not only because you start out young, but because the responsibilities and consequences are not as risky as say somebody who has to support a family.
Now embarking on my second year as a college-grad, I am constantly reminded of just how smart I was to manage my finances during school. Besides giving me a head start in how much money I have compared to my fellow peers, building a portfolio also helped me learn about business in general.
While the amount of money made from stock trading will obviously vary from person to person, there is no denying how much the experience can benefit in the long-run.
Some external benefits of trading during college include:
- Learn how to manage money.
- Learn what does and doesn’t make a successful business.
- Learn just how greedy the world really is.
- Learn your threshold and what kind of risk you can take
Since I first started trading in college, I thought I’d put together a blueprint on how anybody can start trading stocks in college.
Join an investment club
One of the perks of trading in college is the resources students have access to. An investment club is a great place to meet traders of all skill level that can bounce ideas off each other and share strategies. Some schools even allow the investment club a say on how the school’s fund is invested.
The investment club at my school held competitions using virtual trading platforms and winners won prizes… and bragging rights.
While most schools should have some form of an investment club already established, if there isn’t one grab a few classmates that are also interested in trading and start your own club.
Get a smart phone
Odds are you probably already have one, and, if setup correctly, this phone can be the basis for which most of your trades are made through. After all, it isn’t like anybody pays attention during class anyways, right? So why not trade?
Unfortunately, there weren’t too many mobile trading options until my last year of college, but nowadays, most brokers offer some sort of solution - a full list of brokers that offer mobile trading.
Save money from summer internship/job to fund first account
I’m sure by now you are probably wondering where do we get the money that we will actually be trading? From personal experience, I was paper trading, or virtual trading in my first year of college. That summer after, I saved money from a summer internship, which I used to fund my first account.
Use your school resources
Depending on your school some resources will obviously be better than others, but all schools offer something. Make sure to research into your school’s facilities and see what is all available. Some colleges offer full trading rooms that can be booked, while most schools offer discounts on the Wall Street Journal and other finance publications.
Don’t be scared to take risk
Lastly, don’t be scared to lose your money. At the same time, don’t go into stock trading thinking you will make big bucks and come out of college a millionaire. That is a surefire way to lose all your money and whatever else you put into it.
Make sure to have fun, learn about all the resources available to you, and prepare yourself for the real world. Its only just beginning.