When my sons were old enough to open their trading accounts they were quite anxious to put their life savings into the market. They are twins and what I was interested to see their different interests and styles play out.
Before they started trading I gave them this “Dad Advice”:
– I’ve lost the most in the market from “Tips” and hunches
– I like Exchange Traded Funds when I want to invest in a market segment and not think much about the day to day management
– When I buy shares in a specific company, I buy companies that I would actually want to own
– I have done better in sticking to investing in companies that I understand
– I have lost a lot in trying to time the market. Mostly due to my lack of understanding of day trading. So I’m not saying it is bad, just that you need to educate yourself on how to evaluate the risk.
My sons’ investments included ETF’s and company shares. Twin-A stuck to tech stocks. After a few months his market value was 10% down from his investment. “Dad! Should I get out?” I told him to not time the market. His share in TSLA took a dive soon after he bought. He kept it and now, less than 2 years later, has seen his share triple in value. He bought TSLA simply because he likes what the company is doing to make the world better. Update: Today TSLA announced a 5:1 split. My son is elated.
Twin-B bought some tech stocks like MSFT which did well. He also bought and later sold some Ralph Lauren. After selling RL he bought LuLu. I asked him why LuLu. “I bought LuLu because they are growing a men’s line and they are doing pop up stores”. He made a lot of money on LuLu because he was right on his rational and from some thing unexpected….Covid created this new health equipment/clothing buying frenzy. Then he thought the price was too high and sold it, making a nice profit. Unfortunately for him, his timing was wrong and LuLu continued to go nuts.
Both of my sons have more than doubled their money in 18 months. I’ll continue to enjoy watching them make some good decisions, and talking about the bad ones.
Learning –
Real Life Trading – I enjoyed the course modules offered by Real Life Trading.
This site appeals to me because it is good, easy to understand advice and practical. Sometimes a little “heady” meaning I need to give my brain som exercise. Check out Real Life Trading: https://www.reallifetrading.com/
Great videos to learn about when to buy and hold, when to sell etc.
RLT Class – 1 – https://www.youtube.com/watch?v=oNRM-UX_TNw
RLT Class – 2 – https://www.youtube.com/watch?v=3sb-cY67pao
RLT Class – 3 – https://www.youtube.com/watch?v=khdkPb68dz4
RLT Class – 4 – https://www.youtube.com/watch?v=mIrpRzPr54U
Cramer Mad Money – https://www.cnbc.com/mad-money/
I go to this site because it is unique, informative, and entertaining. I’m drawn to how broad Jim Cramer’s knowledge is of the market. I get ideas and inspiration here.