Igor Cornelsen is a former Brazilian stock market trader and banker. Mr. Cornelsen does not work for any banks anymore, but he still invests through his company known as the Bainbridge Group. In addition to investing his own funds, Mr. Cornelsen provides financial advice to investors who are looking for advice on where to put their money in. Below are some of the tips that Cornelsen published for young investors in his online WordPress blog.
In the beginning of his blog post, Igor Cornelsen states that the best way to become financially secure is to begin setting aside and investing money at an early age. The sooner you start, the better off you will be later on when you do retire. Cornelsen points out that far too many younger Americans do not realize the importance of saving up money for emergencies and other unexpected expenses. Instead most young Americans think about how they will spend their money and not on how much they should save.
Cornelsen cites a United State Federal Reserve Bank statistic that shows more than half of Americans under the age of 30 do not have any money set aside for retirement. This means that there is a large swathe of the population in the USA that is not taking advantage of compound interest. This phenomenon is when interest that you earn later earns additional interest that accrues on a daily, monthly or yearly basis. With compound interest it is easy to see why it is imperative to start investing money early on. The earlier you set aside money, the bigger your savings will grow and with less effort. That is the beauty of compound interest.
Another thing that Igor Cornelsen has noticed is that a lot of investors want to time markets just right. This means that they are looking for just the right moment of when to buy a stock, and then just the right moment to sell the stock. While you want to buy stocks when they are low or if they are projected to increase, Cornelsen says that this obsession with perfect timing can actually be harmful. If you think a stock is a good pick, then just go ahead and buy it. If you will make a profit from a sale of a stock, now then go and sell it. Ignore the perfect timing urge and instead use the dollar-cost advertising principal to determine if the stock is a good buy or not.