3 Things About Gen Z Investors You Should Know About

Many Gen Z investors
are usually exploring the markets for
opportunities that would allow them to turn a quick profit. According to
studies, they are a generation of investors who take more risks, trade more
often, and practice investing habits viewed as unfavorable by experts.

To get to know zoomer
investors further and their approach to investing and the markets, here are a
few things about them that you can take note of.

They are Bigger
Risk-Takers

Gen Z investors seemed
to be willing to take more risks than the earlier generations of investors who
prefer to invest their money over the long term. A study showed that about 49%
of zoomer investors suggested that they only plan to invest their money over
the short-term or two to five years.

The year 2020 has seen
young investors performing investing habits and practices that have been
traditionally considered unfavorable.

Additionally, a higher
risk appetite and more speculative investing were observed among Gen Z
investors. They also traded more frequently and checked their portfolios more
carefully and almost regularly.       

You may already hear
that buying stocks and holding them for a very long time is the best
wealth-building strategy you can do. Still, you can try finding the middle
ground between risking your money to get rich quickly and putting it into an
investment that would allow it to grow steadily.

They are More
Determined to Invest Early

Many Gen Z investors
have decided to invest early rather than wait until they have what they need to
invest. According to a survey, around 22% of them started investing during
their teenage years, higher than the 9% of Millennials.

Zoomer investors have
learned that you can start small in investing, and you can hold some stocks for
free as long as you know where to look.

Whether it’s only a
dollar, $100, or $600, you can start buying into the markets. Some financial
firms even let investors bet on individual stocks through fractional shares
and, in some cases, exchange-traded funds (ETFs) for $1 or higher. 

Finfluencers Appeal to
Them

Financial influencers
or finfluencers become popular on social media during the pandemic and the
corresponding surge in retail trading.

Some finfluencers use
social media platforms to share financial- and investment-related information,
show how they make buys with cryptocurrencies, or address sexism that is
ever-present in the financial and investing space.

On the other hand,
there are finfluencers who talk about certain stock investments or plans, which
are often get-rich-quick schemes that promise you quick and substantial returns
if you use the strategy.

Keep in mind that
finfluencers usually don’t qualify as financial experts because, just like
other investors, they are only trying to see whether an investment is worth
their money.

While a lot of them
have already made this clear on their social media pages, many people online
continue to rely on their methods and advice.

Research showed that
social media has become crucial for Gen Z investors to determine whether they
should invest in a particular stock, underlining the importance of finfluencers
in early investing.