BY COLLIN HARNESS
Read read read
16 is the perfect age to get started investing.
Time is your most valuable asset.
I knew nothing about the stock market when I started investing.
My mother is a teacher and father is a home builder. My father does not believe in the stock market and thinks it is a “ponzi” scheme.
All of my stock market education came from teaching myself.
- Read classic books like:
- One Up On Wall Street
- The Millionaire Next Door
- I Will Teach You To Be Rich
- Your Money or Your Life
- Read financial statements of successful companies: AAPL, MSFT, WMT
- Balance Sheet
- Income Statement
- Statement of Cash Flows
- Read the Wall Street Journal and other financial newspapers
- Read online articles from Investopedia and other financial sources
- Read Warren Buffett’s annual shareholder letters
Start investing with either an ETF VTI or VOO. Try and get to a goal of having $1000 in this investment so that you will always have a solid foundation and will receive dividends.
Use stock simulators to test out your trades
Create Stock Watchlists and check in on the stocks you are watching
Join an investment club in person or online
Watch YouTube channels
Listen to stock podcasts like
- Rule Breaker Investing
Stock investing is all about information.
Always ask questions and try and find the answers.
- What business trends are happening in the next 10years?
- What new games, apps, social media networks are popular today?
- What are some products you love?
- What makes a brand great?
It does not matter if you are young or old. Focus on one thing and become an expert in that area.
Talk about it
Connect with other like minded people about money and stocks.
Listen to contrary ideas
My dad still hates the stock market.
I love the stock market.
I listen to people that I do not agree with. Because I know every little and need to know more information.
Write as much as possible
Writing is really powerful.
It keeps your mind engaged.
It makes you smarter.
The more you write the more ideas you will have.
Try to come up with new ideas everyday.
Put your writing out there. Even if it is horrible other people may find it of value.
Find your investment style
Do you prefer value, growth, dividend, trend?
You are going to make mistakes
Warren Buffet has made many trading mistakes.
- Investing in airlines
- Paying too much money for Kraft in the Kraft Heinz merger
- Investing in Wells Fargo
- Investing in Berkshire Hathaway Textiles
I have made plenty of mistakes.
I invested in oil stocks right before the price of oil dropped.
I invested in American Airlines before they went bankrupt.
I invested in the Coinbase IPO.
Get over your mistakes quickly. You are going to have some losers. But you are going to have some winners that will massively overshadow your losers.
I want to hear your thoughts, leave a comment. I read every one.
Share this with someone who needs to hear it.