5 tips for millennials starting their investment journey 

It is never too late to invest globally. If you are 30 and thinking about embarking on your investment journey, don't worry about being late to the party. With the plethora of options available and low or no fee investment platforms, accessing the markets, educating yourself or developing a smart investment plan to make up for lost time has never been easier. Before you start, consider the following points.

# 1. Determine why you want to invest

It is essential that you decide why you want to start investing before taking any further action. This "why" dictates all subsequent decisions:

• what are you investing in
• how long do you invest
• how much do you put in.

Motivations can vary and may start with you just wanting to make better use of your monthly savings, but it's usually a good idea to invest in order to obtain long-term capital in the future. Rethinking your personal goals and the time frame you want to pursue is a crucial first step.

# 2. Time is on your side

Time is a great power of every investor. When you learn to use it, and if you want to raise money for an additional pension, in the next 20-30 years, there is a great opportunity to increase your capital. You'll also have decades to take advantage of compound interest  - it refers to a process where profits are constantly reinvested to generate additional profits.

# 3. Make reasonable payments on a regular basis

Regardless of your age, it is important to start investing, even if it starts with small amounts. Regular, consistent deposits can add up over time, and being involved in this process can make you more likely to stick to your investment habits. Postponement of about 10-15 percent. A salary for investment (if you are able to do so) is a good goal. If the markets are volatile, setting aside a small sum of money instead of a one-time investment can also help protect against market misconduct. This is known as buying averaging the cost of an instrument.

# 4. Global Investing and Diversification

Choosing what to invest in takes a bit of research and patience. You should consider all of the above points, especially your time horizon and goals. If you have a long horizon, risky assets like tech stocks and faster-growing markets are the place to be. Although in times of market downturn the value of your assets will decline more sharply, your portfolio will increase more in longer periods of boom.

People approaching retirement should consider more stable investments, such as dividend stocks, that sacrifice high growth potential to generate profits, usually in the form of a dividend payment. There are also newer assets such as kryptowalutywhich - although particularly volatile - may become a small part of our portfolio in order to diversify it.

For those who do not feel confident in selecting specific stocks or assets, there are also tools such as ETFs to invest in entire markets such as the US index S & P500 or British 100 FTSE. On the platform eToro you can also copy other investors, first of all Popular Investors, i.e. the best and most popular investors on our platform. You can also choose from thematic Smart Portfolioswhich track sector-specific asset baskets.

# 5. Invest in a variety of markets 

Usually, we start investments from a market that we know well. However, the Polish stock exchange has not been doing very well in recent years. Therefore, global investing is definitely a better solution. First of all, this applies to the US market, which is the highest in the world, but also to European trading floors, where you can find many investment opportunities.

The United States is seen as a leader in the growth and dividend stocks. However, due to skyrocketing valuations in recent years, it is worth looking for places with greater potential for value growth in the future. Consequently, the key is to maintain diversity. While we are dealing with global economic phenomena such as inflation, different parts of the world experience different outcomes due to government and central bank policies.

Ultimately though, thanks eToro, the entire investment world is at your feet. And there's no better time to start than now. Make sure you look at topping-up the instruments you are investing in. And, according to the old investment principle: "Don't keep all your eggs in one basket" (diversify your portfolio). And try not to miss out on opportunities.

About the author

Pawel Majtkowski - analyst eToro on the Polish market, which shares its weekly commentary on the latest stock market information. Paweł is a recognized expert on financial markets with extensive experience as an analyst in financial institutions. He is also one of the most cited experts in the field of economy and financial markets in Poland. He graduated from law studies at the University of Warsaw. He is also the author of many publications in the field of investing, personal finance and economy.