If you are a software developer or programmer, you are in the ideal position to explore the stock market for investment opportunities. For starters, you are probably earning a very good income, which means you are most likely setting some money on the side. Also, you may be looking into additional income sources, and buying stocks is always a smart idea.
While all of that is true, it’s also true that you’re in the programming industry and not in finance, so you naturally don’t know a lot about stocks and the stock market. That’s why we’ve put together this short guide to help you get started and avoid some of the most common pitfalls of investing. Keep on reading for more information.
1. Fill Up Your Emergency Fund First
This refers to the money you’ve set aside, which can sustain you in case of an emergency, such as losing your job and not being able to find one right away. Of course, being a developer means that you don’t have to worry about job scarcity, but as the last couple of years have taught us, you never know what’s coming around the corner. So, our advice would be to set up a fund containing enough money to tie you over for 3-6 months. Only then should you start looking at investment opportunities.
2. Learn About Index Tracker Funds
A good starting point if you’re a developer interested in stocks are index tracker funds. Some of the most common ones are Nasdaq and S&P 500. They are able to track the value of stocks using a computer. This is also a cheaper way to invest because these indices won’t charge you as much as fund managers do. Another reason why you should start with index tracker funds is that your investments are spread across multiple, sometimes even hundreds of companies, which makes it very unlikely that your entire investment will tank.
3. Monitor Your Investment Portfolio Wisely
The biggest mistake investors make is to look at their investments every hour or even every day. Even if you have invested in high yield dividend stocks, make it a habit to check on them on a monthly, quarterly, or even annual basis. That way, you won’t turn your stock market investment into something more stressful or complicated than it needs to be. You can even take it a step further and set up important notifications regarding your stocks, as well as automated transfers, which brings us to our next point.
4. Use Your Coding Skills
You can make use of your programming skills in order to manage your investments better. For instance, you can write a script that tracks the prices of the stocks you’ve invested in. You can do the same in order to track price fluctuations in the housing market, in case you’re looking to cash in on your investments and purchase some real estate. There is plenty of info online, as well as books and ebooks that go really in-depth on how you can use your coding skills in the field of finance and stock market investing.
5. Keep an Eye on New Technologies and Developments
Once you’ve invested, it’s not enough to just keep an eye on your investments. You also need to stay up to date with all the latest news and technologies that are being introduced. For instance, thanks to blockchain technology, cryptocurrencies have made it easier for everyone to invest and transfer money to their accounts fairly quickly. As a developer, you are probably not lacking in curiosity, so you might do this step without even thinking about it.
Final Word
Investing in stocks in 2022 as a developer can be relatively easy. But in order to avoid some of the most common mistakes others have made, go through our guide and make sure you’ve checked everything off the list. Most importantly, don’t overlook the part about using your knowledge of coding to manage your stocks more easily. We hope that your investment efforts will pay off in no time. Good luck!
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