Walter Reissman has noticed a surge in trading in a younger group of buyers recently. As more millennial traders get into the field, he is often asked if the market has become too crowded. And he almost always gives the same answer: now is the time to start trading. Understanding why this is the case will help you make better trading choices if you follow his advice.
How Walter Reissman Suggest Getting Into Trading
The current market trend finds many first-time traders getting into a field that may be a bit more complex than they’d hoped. For example, Walter Reissman is seeing many young traders picking stocks that they believe will rebound after the COVID-19 panic has subsided. However, this idea is flawed because many of these companies may not see a rebound after the pandemic.
Even worse, many first-time traders may make many mistakes that push their finances to a breaking point. For example, they could choose a company that seems strong only to find their investment disappear when its’ value diminishes. Or, quite often, they chase trends – this problem is common for millennial traders and was particularly prominent with the GameStop debacle.
In that situation, Walter Reissman saw many millennial buyers and traders chasing after a quick buck and trying to thrive in a case that rarely works well in the long run. And the quick stamp down on this trading (whether fair or not) quickly showed that trend-chasing and other short-term actions almost always fail. However, he still believes that intelligent and planned long-term trading is a wise choice right now.
Why is now a great time? The market is thriving in an unforeseen manner. While the pandemic still causes many ups and downs, the overall market strength is incredibly high at the moment and could produce a fascinating trading opportunity for many people. Day traders or even amateur traders will likely find themselves with many unique options for their stock buying needs.
For instance, many low-yield and stable stocks are available for buyers who want to pad out their portfolios. Commodities like gold and wheat are almost always a good option for those trying to balance in this way. However, you should also expand to things like higher-risk stocks with excellent potential for growth and pay attention to things like real estate to produce a surprisingly diverse array of trading options.
Before trying out trading, it is crucial to make sure that you have a legitimate buying platform, have a reason to trade, know when to pull out if a trade isn’t going well, set up a price target, and understand your risk-reward for gain and loss. Gauging these factors likely requires you to sit down with a financial expert like Walter Reissman to learn more about your options and minimize potential loss issues.