For as long as I can remember, I’ve been interested in how to build personal wealth and achieve financial retirement planning. I owe a lot of that to my mother. She never gave me money for purchases as a child. By the age of ten, I started my own first business to earn some extra money.
I started selling water and sodas at our local park during the summer. By the time I was 13, I was earning my pocket money walking other families’ dogs. By the time I got to high school, I had customers all over the neighborhood.
Until I went to college, I saved a lot of the money. By the time it was time, I had a decent amount of money saved up. At the end of my second semester, my father encouraged me to invest some of the money I had saved. But at that point, I didn’t know much about investing. I decided to create two portfolios.
One was a virtual portfolio. I called it “The Stock of The Month.” The other portfolio was my personal investment account at Ally Bank in the US. For “The Stock of The Month” portfolio, I tried to identify a number of high growth potential stocks each month. From these, I then selected one to add to my virtual portfolio. On the LinkedIn page, I subsequently provided insights and rationale behind each of these selections. At the end of the year, I then compared the performance of the portfolio to that of the S&P stock index. This stock index includes shares of 500 of the largest publicly traded companies. It is one of the most widely followed stock indices in the world.
I took a very different approach to my personal investment portfolio. I had heard so many stories about people who were able to grow their wealth very quickly through swing trading. However, swing trading is a highly speculative investment strategy. It involves trying to take advantage of price fluctuations in such a way as to make a profit. For a while, I tried to do the same thing. I got in and out of trades on a weekly basis. You can imagine how that turned out.
The investment tip that changed my life
My personal investment account had dropped significantly in value during my penultimate and final year of college. Only my virtual “The Stock of The Month” portfolio increased in value over time. After graduation, I told my father about the performance of both portfolios. I explained to him how strange it was that I was losing money year after year with the portfolio I was constantly managing and readjusting. Only the virtual portfolio, which I only checked and rebalanced once a month, was performing positively. However, this did not seem to surprise my father at all.
After I told him about it, he showed me his investment portfolio. He showed me the stocks with which he made most of his money. To my surprise, it was the stocks he invested in and paid the least attention to that gained the most value over time. He told me he too had made the same mistake when he first started trading. He said he was constantly trying to time the market, getting in and out of stocks. In the process, he lost much more money than he made, he told me. “If you really want to make money in stocks, you should look at your portfolio as infrequently as possible,” he advised me. If you want to learn more trading secrets, check out this site here.
Getting into Bitcoin
In August 2019, the share price of the cryptocurrency Bitcoin had just undergone a remarkable rise from 2,873 euros to about 8,210 euros. Here is a current price chart. Even before the price went up, I thought I would like to get into Bitcoin stock.
Then when the price made this positive development, I knew now was the time. So the following month I invested in Bitcoin and did something I had never done before. I turned off all notifications from my share account. For the rest of the year, I stopped looking at the performance of my investment. Read more about BTC in our article here.