This is not financial advice. Just because something worked for me does not mean it will work for you. Please consult a professional before making any major decisions. I’m not here to show off, but, this has been a crazy, growth-filled year, and I have some lessons to share.
My initial investment was $1200 in January 2020 (yes, right before a certain virus rocked the world). I work for minimum wage at a restaurant and saved up a few paychecks. I put all of my savings into online stock trading, despite the risks. This is a lot of money for me — I’m a student still living with my parents.
Why did I want to invest in the stock market?
First of all, I wanted to build savings, but savings themselves sound…boring. I wanted something more fun and risky. I like taking risks (sorry mom, I know this keeps you up at night). Online stock trading seemed like a great option.
The main reason I wanted to invest in the stock market — which thankfully isn’t as immature as my first reason — is because I like to predict trends. I’ve practiced predictions since I was a kid, and I have the notebooks to prove it.
I’ll predict that this so-and-so superfood is going to become trendy, or that a certain pop-psychology concept is going to blow up and a bunch of people are going to write books about it.
If I was a more motivated person, I’d start businesses based on these predictions. But I hate putting effort into anything I’m not passionate about, so I didn’t. Instead, I wanted to profit off of other people’s businesses with my predictions. Hence why I turned to online stock trading instead.
My personality is just weird enough that I notice the waves of trends without getting too swept up in them to notice. I’m young enough that I can sink my teeth into the fabric of a culture. Sometimes I’m wrong about my predictions, or I pick the wrong companies, but usually, I’ve been right, and my earnings prove it.
I don’t do what you’re ‘supposed to do’
I usually don’t Google the companies I invest in. I don’t look up which stocks other people recommend I invest in. I don’t spend hours and hours trying to calculate the probability of a stock’s return on investment. My reasoning is that this will cause me to overthink or be influenced by other people’s agendas. Instead, I let information and news organically present itself so I can analyze that information.
When I notice a rising trend, I invest accordingly. Last summer I realized that young people are more willing to purchase cameras than people realize. Photography is a popular hobby and film photography is becoming more and more popular. I then proceeded to invest about 70$ each into multiple camera companies at the start of summer. I have no idea if other people invest with a similar process because as I’ve mentioned, I’m clueless. However, this strategy works exceptionally well for me.
I invested in travel companies, cruise lines, and airlines because I assumed that after the pandemic cleared off most of them would bounce back. The pandemic isn’t over yet but most of my travel-related investments have already given me an excellent return.
The only time I do research on a company is when I see a huge jump or drop in the stock price, so I can have an idea of what’s going on.
I’d like to actually learn about the stock market eventually…
This year is not an accurate representation of most years. It’s been insane for both the world and the stock market. Everything was a lot more volatile than it’d usually. Bank stocks that normally wouldn’t have given me more than a 2% return have skyrocketed.
For this reason, I’m currently on the hunt for a good online course about stock market investing. I’ve been cluelessly lucky so far, but I don’t plan on keeping it that way. It’s important to keep leveling up. I like online stock trading, and I plan to learn more about it.
For those curious, I used Wealthsimple Trade. It’s Canada’s first stock trading app that charges $0 commission, and as someone who started with no knowledge, I found the app easy to use. It’s my favorite trading platform — especially after the way Robinhood reacted to the whole Gamestop fiasco.
If you’re interested in signing up, this affiliate link will reward us with $10 each.
Please consult a financial advisor before making any major decisions.