Stock Failures.

[PaulRobert]

When I was in 8th grade, I received quite a bit of money for my birthday. Since I was inspired to be in the world of business, I asked my parents to open up an account in a brokerage firm so I could invest in some stocks. My parents agreed and my account was set up. I bought my first shares and I felt that I had accomplished something great and on the next day my stock had gained and I made $150. Boyyyy did I think I was the creme de la creme that day. I was very happy and I thought I could make a lot of money every day now. I began to look at the "Best performing stocks" of the day and bought them. (What a BIG Mistake.) I always thought that this stock had to go up because it was doing good that day. From that moment my emotions began to take control of me and I began making stupid decisions. I bought shares of stocks that I thought would do good just because it was in a specific industry. When I started to loose money, I began to panic and I would sell. I kept on doing this till my mother asked me how I was doing with my stocks. I explained to her what I have been doing and we had a long talk together. She asked me what I had done wrong and she repeatedly said not have your emotions play with you. It took me over 2 years to begin to learn from my mistakes and actually understand how the market works. I began reading Bloomberg every morning, watching CNBC after school and reading financials of companies. Now, I still invest with stocks but with my mind clear of any thoughts or emotions. I research the stock and see if it is worth it. I am also beginning to learn the basics of options trading to expand my knowledge.
Sorry for the long write up but this little stock venture I began in 8th grade had taught me something great. I had learned that

A. Never let your emotions mess with your straight forward thinking
B. You learn greatly from mistakes and you can prevent yourself from making the same ones in the future.
C. Never be afraid to take risks, taking risks can create great wealth but also great learning opportunities.
I wish you all the best!
Lamboman

 

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[Runum]

Thanks for sharing your lessons. How are things going now? +++speed

 

[PaulRobert]

Thanks for sharing your lessons. How are things going now? +++speed

Things are going fairly well, I still invest in stocks from time to time. I am definitely making wiser choices when purchasing stocks and doing research has its rewards. I am concentrating more of my attention toward an idea that I will work over the summer on that I can hopefully launch into production. Thank You also for the speed Runum.

 

[Davidla]

It's a great thing you started your investing in the 8'th grade (nevermind the results).

Also, admitting past faliures is a very constructive step - most people tend to find excuses why they didn't succeed - also a fact that makes you faster!

I'm considering investments in the stock market myself, if you dont mind sharing it would be great to know what are your investmets strategies.

Goodluck!

 

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[PaulRobert]

Well, I use different strategies every time..

Some of my last stocks were IPOs that had only appeared on the market for a few months. I researched what these companies do, their financials ( how was their last quarter) and most importantly their news sections. Reading what the company has been doing provides a clear image of how they might perform in the future.

Also, another strategy I use is I stay away from blue chips- unless the market is volatile in a positive direction I do not waste my money with them. Their volumes are too high and they are heavily invested by 401Ks. Looking for companies that have potential in an upcoming market are more profitable.

Example- Toyota comes out with a new car that gets 50 MPG and costs $20,000. Their stock would probably go up about a couple of dollars.

What if a company that is unknown, but is publicly traded comes out with a even better car for cheaper AND the stock is only a couple of dollars a share. I'm pretty sure their stock would sky rocket.

Remember this is just an example and many factors come into play before trading. I take no responsibility in anyone's decision.

I hope this helped

-Lamboman