Besides these rules, the experience of making mistakes and the practice of failing will teach you the true lessons of investing.
I got introduced into stocks from my grandmother. I was always interested in finances and making money and with her, I was able to ask questions, receive real-world answers, and I was able to learn from her wisdom. Then, I received a book called "Stock Market Logic" by Norman G. Fosback from my grandfather. When reading it at a young age, it was very difficult to comprehend, and I only understood the basics of how nobody can consistently outperform the market and how everyone is the market.
At the age of thirteen, I started trading stock. I remember begging my father to allow me to start trading. I showed him my research and I told him what stocks I wanted to invest in, and finally he gave in. A week later, I went with him to see our family stockbroker at Charles Schwab with a check written out for $2,000.
Before we went into Nicollo's office, my father told me to sit there quietly and let him handle the business. My father handed Niccollo the check and told him that I wanted to add to my portfolio; the portfolio my parents and grandmother started for me when I was born. Then, Niccollo went on with advising us on stable, low-risk stocks that I should be investing in; turning his screen around to show us all of these graphs with an assortment of pretty colors and lines. (Back then, I did not know anything about trends and patterns so I was in a state of cluelessness).
I pulled out my numbered list of stocks that I had created and handed it to him. Long story short, I invested in three companies that day with one of the investments being a recommendation by him: Amazon, Netflix, and Ford. As of February 15, 2018, Amazon has had a 327% unrealized gain, Netflix a 439% unrealized gain, and for Ford, besides their $.60 yearly dividend, I am currently at a loss. (Ford was the recommendation.)
In high school, I gained access to my portfolio and I started to trade with permission from my parents. I was exposed to risk, gain, and loss and I was loving it. I had my apps where I was able to track stocks, make predictions, and view data, and I bought stocks from that research. When I turned eighteen, I opened up my own individual portfolio and I learned the hard lessons of day-trading. I used to wake up every weekday at 6am right before the market opened to submit my orders. I was so active in trading that once I placed multiple trades using the slow, limited-access WIFI in a bus station in Bratislava, Slovakia. I could not get enough and I was hypnotized on the idea of getting rich quick. Having this mindset caused me to make many mistakes which include:
The lessons to be learned are:
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My name is Camden Alchanati and my goal is to teach you how to create a future of financial stability and growth!