The stock market has always been an attractive investment option for people. With the advent of online trading platforms and apps, the stock market has attracted the interest of many millennials as well. People between the ages of 20 and 40 are viewing equities as a great option to earn some extra money. For millennials looking to enter the stock market, there are some factors they need to keep in mind. This includes strategies for risk management, diversification and more.

Here are five things millennial investors should keep in mind if they want to enter the stock market.

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Keep track of the news: Government policy, company decisions, earnings reports and geopolitical factors could influence the market. The key thing is to understand what may make a particular stock’s price fluctuate and plan your investments accordingly. This will help you make correct calls and gain even in a volatile session.

Diversification: One thing that works for investment portfolios in general is diversification. The same applies to the stock market. If you have a mix of equities, exchange-traded funds (ETFs) and mutual funds in your kitty, you can minimise the risk posed by one highly volatile stock and ensure that you get returns. This strategy will aid you in wealth creation.

Risk management: Hedge your bets with risk management strategies. Ensure that there are provisions to limit losses. This includes setting up a stop loss or a threshold after which the trading will be cut automatically. Another habit must be to keep track of all investments so that you can figure out your total profit and loss.

Keep in mind the long-term horizon: If one is planning for long-term investments, they should not panic due to short-term fluctuations. Volatility is an intrinsic part of the stock market. Your long-term financial goals should guide your investments, rather than daily fluctuations.

Assess company performance: if you wish to invest in a particular company, look at its balance sheets and progress over the years to understand if it’s a safe bet. Look at the general industry outlook as well before making a decision.

These factors need to be on any investor’s checklist. With dedication and discipline, you can easily get assured returns in the market. This will help you accumulate savings. If you are confused about any particular aspect of the market, it is advisable to go in for professional advice rather than keep investing money without proper knowledge.