What a 16 year old should do to learn about investing in stocks

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
    • Bogleheads
    • 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

  • MyWallStreet
  • 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?

Focus

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.

Processing…
Success! You're on the list.

Published by Collin Harness

Obsessed with creating value and helping people achieve financial independence.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: