Born into age of tech, GenZ flex

Gen-Zers Are Investing Early as They Venture Onto Financial Exchanges Through Online Trading

When you think of Gen Z, you may be thinking of them as “just kids”. As of 2021, they are more than kids. They are also college graduates, career professionals, and savvy investors. Even with time on their side, Generation Z is not wasting a moment getting to the market. They are entering a time where the conversation on economic independence is becoming very real. Some are taking up financial exchange investments to break the paycheck to paycheck cycle. They are doing things a little differently than Millennial. (https://www.nerdwallet.com/blog/generation-z-money-survey/)


These young adults were born into an age of technology. Just as they easily took to online banking, they are embracing big tech as a means to build their portfolios. Gen Z is finding success through apps and online options that allow them access to the stock market easier than in years past. To battle the distress that COVID has had on their personal, professional, and financial lives, many of this younger generation are investing in a way we have not seen before. They are fearless and it shows.

A recent survey even indicates that 73% of Gen Z investors own stocks while still keeping risk in mind. It seems this generation is employing strategies old and new to acquire assets and invest them in ways that are different than older age groups. Staying home and losing the option for in-person classes has produced an opportunity for many to trade stocks online as a cure for boredom and those dried-up bank accounts.

Even forbes.com is taking note of the investment style of Gen Z. The purchase of momentum stocks, which focuses on fast-moving stocks is a hallmark of the group. They take decisive action and make equally decisive changes when it comes time to move on from a stock. The system has begun allowing young investors to gamify the realities of stock trading. Making it more fun and exciting is bringing them back consistently.

Generation Z is truly harnessing the power of investing and taking bold steps to change the landscape of their future. Many of them are self-taught and taking big risks. There are of course stories of those who have come up short on their gambles and the youth are listening to the hard lessons as well. It has not deterred them from growing and making their presence felt even as angel investors.

Some Gen Z angel investors do not have the same constraints as venture capitalists but dare to make very real investments. They are securing future equity in startups and making a real break from traditional employment and the paycheck to paycheck dilemma.

There are multiple examples of these Gen Z investors who are tapping into the startup landscape and turning a strong profit. In addition to great profits, they are buying access to great relationships with the leadership of these startup firms.

Armed with their understanding of the power of investing, they are starting younger and younger and it is changing the cultural landscape. Researching price to earnings rations is still a part of their strategy along with studying balance sheet but that is too slow. Taking to online forums to discuss their approaches and their prospects is very common among this group. A real community of investors has spawned online and is continuing to grow.

As Gen Z is set to make up 25% of the Asia-Pacific population, all eyes are on their spending. That spending is set to outpace millennials and has its own characteristics. The trends that Gen Z investors are showing tend to lean towards sustainability and mission driven companies.

The youth have really found themselves betting on organizations with a global purpose.

By now you have likely heard of the tidal wave that is crypto. Many Gen Z (and millennial) millionaires are heavily invested in the crypto marketplace. Investing in assets like Bitcoin (BTC), Etherum (ETH), and also taking advantage of Non-fungible tokens (NFTs) which are all traded using the secure ledger technology of the blockchain. Gen Z is having no trouble riding this massive wave is not set to slow down one bit.

When financial exchanges bet on stocks like Gamestop to go down, and then the market took notice and bought up massive amounts and bet against those short-sellers who expected the stock to trade at a loss. This has opened up the potential for this trend to reoccur and for the market to bare its teeth in support of a stock that it likes, despite what purists would suggest.

Younger people are certainly taking space in investment brokerages more than ever before. First-time investors are reshaping their relationship with finance and even the relationship their families have with it as well. Add to this the time they have found, fueled in part by COVID, and research and study have both grown with the youth. Already growing a reputation, day traders of the Gen Z group are making popular their trades and strategies all over social media.

Keep an eye on this segment of the population as a massive economic force. They make up an appreciable slice of spending all over the world. When they set their eyes on real estate soon, you can be sure to see a real splash. They are not afraid of seeking out financial advice and even when they get it from social media, they are less fearful of acting on it and taking their chance on the market.

Gen Z will be discussed for years to come. The trust that the young investors have in their exposure to the market is showing in a big way in how they spend, consume, and influence the conversation of finance globally.

Gen Z will not be waiting around as they position themselves to make their own money and truly embrace economic freedom. It may be their dynamic attitude towards the growth of crypto or their never quit approach to studying the exchanges. In either case, these young titans of finance are going to continue to flex their muscle.

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