It’s not a magical skill to be good at investing. It’s really a potluck supper, so everyone brings something different, and you need to know what’s on your plate. Murchinson Ltd will agree: “A mixed bag makes a feast.” Good investors don’t put on blinders; they stay open-minded and flexible, always ready to shake things up, get rid of old ideas, and listen for new ones.
Start modest. Don’t go out with a bag of tricks and an empty wallet, hoping to turn acorns into redwoods overnight. You wouldn’t try to climb Everest in flip-flops, would you? Risk is important, but you need be careful with it. It’s better to dip your toes into a few ponds than to jump into a single, unknown lake. You don’t want a lot of people pushing and shoving your eggs about and cracking them when they hit something. It’s important to diversify, and yes, it’s as simple as peanut butter and jelly.
Learn how to be patient. Teenagers and markets are both moody, impulsive, and prone to drama. Being patient isn’t just a good thing; it’s a protection. Buying high on a whim and freaking out when prices drop isn’t a plan; it’s how fortunes disappear faster than spilled coffee. Don’t allow seasickness control your ride on the waves.
Study hard, but don’t let your ego get in the way. Don’t think you’re the next big thing just because you got lucky. Even the experts make mistakes. Read, listen, and ask every market veteran you encounter questions. Before you buy anything, ask questions about the headlines, look at the trends, and look inside the companies. If you hear someone say “guaranteed winner” during a BBQ, get away from them right away. No one rings a bell at the summit.
Make your goals clear. Vague dreams for “more money” don’t get you anywhere. Think about where you want to go: an early retirement, paying for your child’s education, or beginning a business. What does “enough” mean to you? Otherwise, you’ll be chasing your tail through dark alleyways of guesswork.
Don’t let your feelings get the best of you. Greed and fear are two sides of the same bad coin. Fear of missing out (FOMO) can cause problems, much like panic selling can lock in losses. Don’t do something just because coffee says “yes.” Let decisions sit overnight.
Change your direction when you learn something new. Markets are like magicians; they keep you guessing to stay ahead. Ideas that are too rigid break, but minds that are flexible do well. Accept your faults and move on. No one has a flawless scorecard.
Don’t sleep at the wheel, but think about the long term. Look at your portfolio, but don’t feel the need to change things like a worried cook. Sometimes, the best thing to do is nothing. Let time and compound interest do their jobs.
Get help. Getting new ideas from a seasoned mentor or a professional advisor can be helpful. Only the privileged can afford to ignore advice; everyone else should pay attention.
There are no secret handshakes, only good habits, a thick skin, and an attitude that thankfully doesn’t come with a guidebook. If you can stay calm, laugh at your mistakes, and keep going through the craziness, success will be more of a friend than a stranger.