| I've covered quite a bit of ground in the past few months, and I'm beginning to feel a little overwhelmed. I'm taking this time to quickly review where I've been, what I've learned, and where I'm headed over the next few months.
This crash course in the stock market has empowered me beyond belief. I have come miles from my first naïve answer to my son's question, "Mom, what is the stock market". I've decided to test myself, to see exactly what my answer would be to him now…this very minute.
I would still start out by telling him that it's located in New York. But boy oh boy, can I give him an earful now! I would tell him that I couldn't imagine our country, this United States, without a stock market. It is the vehicle for people who dream. It is the avenue for anyone who is willing to put in a lot of hard work, and who possesses a never-say-die entrepreneurial spirit… to realize their dream.
I would also tell him that as investors, he and I provide a much-needed service to the stock market. Without people like us, who can see someone else's vision and trust that a company can and will succeed, the stock market would surely stop. As investors, we can pick-up on someone else's dream and help them achieve that dream, to the benefit of all.
And, as I did explain to him the other day, companies thank us for our beliefs and our funds by continuing to thrive and by giving us additional money for taking a risk. I also told him that not everyone succeeds, but it's up to us to be watchful and to monitor our companies. I was amazed that at 7-years-old, he understood this concept. I am preparing him to become an investor also. In the next few weeks I will be looking into how we can get our kids started investing for their future.
My parents never taught me about saving or investing and I now realize that this is information that I want my son to have. When I see how a small amount of money, invested now, slowly grows through the years, I am aghast that I never learned this concept earlier. I might be a late-bloomer in the world of finances, but I will insure that he has the skills and knowledge to become an educated investor early on in life.
I will teach him about the various types of investing strategies including stock, bonds, and mutual funds. I will discuss the Dow, the NASDAQ, and the S & P 500 like a pro and I will tell him that I'm getting ready to invest my own money in online trading. I'll tell him that I know how to research a company online and that I even have a portfolio of stocks that I'm currently tracking.
I don't think I'll mention to him, just yet, that this morning when I checked my portfolio from the Stock Market Game I am playing…I had lost over $20,500.00 in my play money! I don't want him to think that this might happen to him, when I invest HIS hard-earned dollars from his piggy bank. He's not quite ready for the concept of "fluctuations."
And besides, I'll be his financial advisor and I don't want to cause him needless worry or concern about my stock market prowess. So…I just won't mention that I'm experiencing a minor slump in my stock portfolio right now.
A loss of $20 g's did get my attention though. I'm still in shock, but it is better to learn now rather than with my real funds. Did I pick the wrong stocks? Is this how much the market fluctuates? There are lots of questions that I need to answer. I'm using this time to move things around and make other choices and see what happens.
I feel that at this minute, with what I have learned so far, I could safely stop playing now, invest my real money and be done with it. I feel that I have enough information to successfully pick a stock company, invest my funds, and do nothing else.
But with a little bit of knowledge, comes a need to learn more.
I'll admit it. I'm hooked. I catch myself listening to news broadcasts and reading articles on the Web…all related to the stock market! I've become intrigued with the ups and downs and the question that no one can answer, "What's going to happen next in the stock market?' I'm poised and ready to guess for myself. And, I'll soon be watching out for the answer with my own money.
Whatever does happen, I'll continue to research and report. There is so much more to learn and I'm "chomping at the bit" to learn it. Now, I'm off to fiddle with my portfolio. My future career as my son's financial advisor rests on my success with this current portfolio. And I think it needs some tweaking.
Thank you for joining me
Joyce |
