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Do you want to retire early?
Your parents might have started investing later on in their lives...
But you don't have to.
Let me show you in
"Young adult stock market success"
- A THREAD -
Your parents might have started investing later on in their lives...
But you don't have to.
Let me show you in
"Young adult stock market success"
- A THREAD -
1.
"Learn First, Act Second"
You can't play hockey before you can skate.
You wouldn't play baseball before you can throw.
There are basic fundamentals of every skill we acquire in life.
It's a progression.
Learn the basics of the market before you jump in.
"Learn First, Act Second"
You can't play hockey before you can skate.
You wouldn't play baseball before you can throw.
There are basic fundamentals of every skill we acquire in life.
It's a progression.
Learn the basics of the market before you jump in.
I would start off with this:
- The basics of reading financial statements (cash flows, margins, retained earnings, assets/liabilities)
- A few ratios (PEG ratio, quick ratio, payout ratio, D/E ratio, ROE ratio)
- Terminology (bid-ask spread, dollar-cost averaging, volatility)
- The basics of reading financial statements (cash flows, margins, retained earnings, assets/liabilities)
- A few ratios (PEG ratio, quick ratio, payout ratio, D/E ratio, ROE ratio)
- Terminology (bid-ask spread, dollar-cost averaging, volatility)
2.
"Emergency Funds Are Your Friend"
If you're living at home, your parents might be helping you out.
Great.
If not, you need to have a Plan B.
Not everything will go as planned.
So make sure you have a solid emergency fund you can fall back on.
"Emergency Funds Are Your Friend"
If you're living at home, your parents might be helping you out.
Great.
If not, you need to have a Plan B.
Not everything will go as planned.
So make sure you have a solid emergency fund you can fall back on.
A rule of thumb:
Have 4-6 months of living expenses stored away in your fund.
This will also give you peace of mind.
And you can't put a price on that.
Have 4-6 months of living expenses stored away in your fund.
This will also give you peace of mind.
And you can't put a price on that.
3.
"Save Early, Save Often"
Picking the right stocks for your portfolio can be a difficult task.
When you're young, it's not so much picking the right stocks...
As it is just having skin in the game.
Time IN the market is vital to your success.
"Save Early, Save Often"
Picking the right stocks for your portfolio can be a difficult task.
When you're young, it's not so much picking the right stocks...
As it is just having skin in the game.
Time IN the market is vital to your success.
Save whenever you can.
Set a weekly contribution to your investments.
And commit to it.
Your emergency fund will allow you to feel at ease about your contributions.
But remember...
Only invest money you're prepared to lose.
Set a weekly contribution to your investments.
And commit to it.
Your emergency fund will allow you to feel at ease about your contributions.
But remember...
Only invest money you're prepared to lose.
4.
"Start Small Then Slowly Increase"
We'll relate this to weightlifting.
You wouldn't lift 100 lbs before you can lift 50 lbs.
Everything is a progression.
When contributing, start small first.
$25/week.
Then $50/week.
Then $100/week.
"Start Small Then Slowly Increase"
We'll relate this to weightlifting.
You wouldn't lift 100 lbs before you can lift 50 lbs.
Everything is a progression.
When contributing, start small first.
$25/week.
Then $50/week.
Then $100/week.
Don't throw in thousands right away.
It's important to learn the game first before playing with larger amounts of money.
Even if that means a couple hundred dollars.
If you can manage small money, you can manage large money.
It's important to learn the game first before playing with larger amounts of money.
Even if that means a couple hundred dollars.
If you can manage small money, you can manage large money.
5.
"Time Advantage"
This brings me to my next point.
When you're young, you can afford mistakes.
But don't go out looking to make mistakes.
They will come inevitably.
But the great part is that you have the time to put yourself back on track.
"Time Advantage"
This brings me to my next point.
When you're young, you can afford mistakes.
But don't go out looking to make mistakes.
They will come inevitably.
But the great part is that you have the time to put yourself back on track.
A 20 year old can afford to make more mistakes than someone who is 50 years old.
And you can come back from most of them without it having a significant impact on your life.
And you can come back from most of them without it having a significant impact on your life.
Time advantage isn't just an advantage for compounding.
But also an advantage for:
- Trying new things
- Taking on more risk in hopes of reward
- Building good habits
But also an advantage for:
- Trying new things
- Taking on more risk in hopes of reward
- Building good habits
6.
"Choosing a Brokerage Firm"
I would recommend setting up a self-directed account.
Why?
Because you'll keep more of your money and won't have to pay astronomical fees to financial advisors over time.
It also allows you to learn along the way.
"Choosing a Brokerage Firm"
I would recommend setting up a self-directed account.
Why?
Because you'll keep more of your money and won't have to pay astronomical fees to financial advisors over time.
It also allows you to learn along the way.
Find a firm that:
1) Offers low trading fees (if at all)
2) Gives you exposure to global markets
3) Has been around for a while with a good track record of happy customers
1) Offers low trading fees (if at all)
2) Gives you exposure to global markets
3) Has been around for a while with a good track record of happy customers
7.
"Steer Clear of Cheap"
Penny stocks aren't worth your while.
There's usually a better chance of Apple going up $100 than a penny stock increasing by $1.
You wouldn't buy cheap clothes because you'd have to replace them every few washes...
"Steer Clear of Cheap"
Penny stocks aren't worth your while.
There's usually a better chance of Apple going up $100 than a penny stock increasing by $1.
You wouldn't buy cheap clothes because you'd have to replace them every few washes...
Cheap isn't sustainable.
And the turnover is high.
I think you'll find the same thing if you decide to go the penny stock route.
Don't get sucked in by the false promise of massive gains.
It just isn't worth it in the end.
And the turnover is high.
I think you'll find the same thing if you decide to go the penny stock route.
Don't get sucked in by the false promise of massive gains.
It just isn't worth it in the end.
8.
"Spread Your Risk"
A good way to spread risk is to invest in ETFs.
Here's my comparison:
When you buy a salad, you don't just get the salad.
Inside the salad there are:
- cucumbers
- carrots
- tomatoes
- olives
- whatever else you can think of
"Spread Your Risk"
A good way to spread risk is to invest in ETFs.
Here's my comparison:
When you buy a salad, you don't just get the salad.
Inside the salad there are:
- cucumbers
- carrots
- tomatoes
- olives
- whatever else you can think of
When you buy ETFs, you get the same thing.
Except instead of the vegetables, it's companies.
You have the ability to spread your money and limit your risk, just from buying the one salad.
So go eat your greens.
Except instead of the vegetables, it's companies.
You have the ability to spread your money and limit your risk, just from buying the one salad.
So go eat your greens.
9.
"Seek Cash Flow"
Getting paid to hold great companies is a wonderful thing.
Getting paid to do absolutely nothing is even better.
Start building your own paycheck through dividends.
Before you know it, that stream of income will be quite significant.
"Seek Cash Flow"
Getting paid to hold great companies is a wonderful thing.
Getting paid to do absolutely nothing is even better.
Start building your own paycheck through dividends.
Before you know it, that stream of income will be quite significant.
10.
"Emotions Can Get Lost"
Cut your emotions out of the equation.
If you're young and implement the steps above you should:
- Have an emergency fund
- Have a long time horizon
- Invest money you're prepared to lose
"Emotions Can Get Lost"
Cut your emotions out of the equation.
If you're young and implement the steps above you should:
- Have an emergency fund
- Have a long time horizon
- Invest money you're prepared to lose
When you couple these 3 things, there's no reason to get emotional.
Especially in the short term.
You have established some peace of mind.
Your emotions will only lead to bad decision making.
Become robotic in the market and you'll do just fine.
Especially in the short term.
You have established some peace of mind.
Your emotions will only lead to bad decision making.
Become robotic in the market and you'll do just fine.
If you want to learn more about how to be successful in the stock market.
The Complete Investors Accelerator Pack will put you on the right path.
Refine your analysis skills.
Learn the Cycle of Wealth.
And start building up your future paycheck. https://bit.ly/dividendmoney
The Complete Investors Accelerator Pack will put you on the right path.
Refine your analysis skills.
Learn the Cycle of Wealth.
And start building up your future paycheck. https://bit.ly/dividendmoney
