Ep. 1: How to get started in stocks 1) What are your beliefs about money and the stock market? - What is money? Where does it come from? - What is the point of money? - What are you hoping to achieve by participating in the stock market? Why the stock market over other forms of investing right now? - What are your assumptions about the stock market and are they right? Examples: - Can someone make money consistently in the markets or is it always a gamble? - Do you really believe you can pick a company that can 10x+ in 5-10 years? - Do professionals really have an insurmountable advantage over retail investors? If so, why? What are the advantages of being a retail investor? - How much are you willing/can you afford to lose? Are you willing to "pay tuition in the markets" by losing money while you learn? 2) Learn about the structure of the stock market. - What function does the stock market provide in our society? What is the point of the system? - What advantages does participating in the stock market provide for your own financial situation? - What does it mean to own a stock? What are you entitled to as a shareholder? Do you really believe that owning a stock means you're now a business owner? What type of business' do you want to own? - What is a bond? What is the difference between equities and bonds? - What is an index? what are the S&P500, Nasdaq, and Dow Jones? How are they different? Why are they important? - What is an ETF? What are the pros and cons of investing in ETFs? Are you going to invest in ETFs, individual stocks, or a mixture? - how do you participate in the markets? What type of account are you going to use? Start the process of setting up a self-directed account. Figure out how much you can afford to contribute. (This can take some time) - What is leverage and Margin? 3) Leverage the intelligence of the internet. Find investing mentors. Figure out what investing philosophies resonate with you. - today's access to information allows exposure to many different investing philosophies. - often, investing philosophies are very different or blatantly contradictory. Contradictory investing philosophies can both work. - find mentors and learn as much as you can from them. Mentors do not need to be in person, they can come in any form. For example, youtube, podcasts, Twitter, books, blogs, live streams, etc. - figure out how you learn best, then immerse yourself in that content. ex: youtube trading live streams each morning for 2 hours. Or, 30 minutes of reading before work. etc. Do this consistently. Osmosis is a very effective form of learning - expose yourself to as many different investing philosophies as you can in the beginning and try to understand each kind. Think about the pros and cons of each investment philosophy. Eventually, you will find a philosophy you resonate with, and later you will develop a unique philosophy that you can then impose on the markets. You will constantly be making adjustments and changes 4) Learn how to do your own due diligence. ( very important) - everyone has their own method. - your mentors will likely point you towards stocks, this is a good way to learn. Make sure you form your own opinions around these stocks - research stocks for yourself and come to your own conclusions. If you exclusively copy someone else you will not have the proper convictions and this will lead to poor decision making. - You have to figure out how to do your own research. Here is my current method to get you started 1) find myself interested in stock because of a video, mentor, Twitter, etc. 2) Consider whether it fits my portfolio/am I interested in picking up a new position 3) If I am, go to the original source first. S1 filings, quarterly reports, hypercharts for their financials, etc. 4) when I have formed an opinion from primary sources, do a bull-bear review (5 bull cases, 5 bear cases) 5) analyze bull cases and bear cases - which is smarter? Often it is quite easy to tell. 6) initiate a position, slowly add over time. Buy Stocks like I can't change my mind for 10 years
Ep. 1: How to get started in stocks
1) What are your beliefs about money and the stock market?
- What is money? Where does it come from?
- What is the point of money?
- What are you hoping to achieve by participating in the stock market? Why the stock market over other forms of investing right now?
- What are your assumptions about the stock market and are they right?
Examples:
- Can someone make money consistently in the markets or is it always a gamble?
- Do you really believe you can pick a company that can 10x+ in 5-10 years?
- Do professionals really have an insurmountable advantage over retail investors? If so, why? What are the advantages of being a retail investor?
- How much are you willing/can you afford to lose? Are you willing to "pay tuition in the markets" by losing money while you learn?
2) Learn about the structure of the stock market.
- What function does the stock market provide in our society? What is the point of the system?
- What advantages does participating in the stock market provide for your own financial situation?
- What does it mean to own a stock? What are you entitled to as a shareholder? Do you really believe that owning a stock means you're now a business owner? What type of business' do you want to own?
- What is a bond? What is the difference between equities and bonds?
- What is an index? what are the S&P500, Nasdaq, and Dow Jones? How are they different? Why are they important?
- What is an ETF? What are the pros and cons of investing in ETFs? Are you going to invest in ETFs, individual stocks, or a mixture?
- how do you participate in the markets? What type of account are you going to use? Start the process of setting up a self-directed account. Figure out how much you can afford to contribute. (This can take some time)
- What is leverage and Margin?
3) Leverage the intelligence of the internet. Find investing mentors. Figure out what investing philosophies resonate with you.
- today's access to information allows exposure to many different investing philosophies.
- often, investing philosophies are very different or blatantly contradictory. Contradictory investing philosophies can both work.
- find mentors and learn as much as you can from them. Mentors do not need to be in person, they can come in any form. For example, youtube, podcasts, Twitter, books, blogs, live streams, etc.
- figure out how you learn best, then immerse yourself in that content. ex: youtube trading live streams each morning for 2 hours. Or, 30 minutes of reading before work. etc. Do this consistently. Osmosis is a very effective form of learning
- expose yourself to as many different investing philosophies as you can in the beginning and try to understand each kind. Think about the pros and cons of each investment philosophy. Eventually, you will find a philosophy you resonate with, and later you will develop a unique philosophy that you can then impose on the markets. You will constantly be making adjustments and changes
4) Learn how to do your own due diligence. ( very important) - everyone has their own method.
- your mentors will likely point you towards stocks, this is a good way to learn. Make sure you form your own opinions around these stocks
- research stocks for yourself and come to your own conclusions. If you exclusively copy someone else you will not have the proper convictions and this will lead to poor decision making.
- You have to figure out how to do your own research.
Here is my current method to get you started
1) find myself interested in stock because of a video, mentor, Twitter, etc.
2) Consider whether it fits my portfolio/am I interested in picking up a new position
3) If I am, go to the original source first. S1 filings, quarterly reports, hypercharts for their financials, etc.
4) when I have formed an opinion from primary sources, do a bull-bear review (5 bull cases, 5 bear cases)
5) analyze bull cases and bear cases - which is smarter? Often it is quite easy to tell.
6) initiate a position, slowly add over time. Buy Stocks like I can't change my mind for 10 years