10 Things I Learned Early In My Investing


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Jae Jun

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How to Invest in the Stock Market: Part 1 | Part 2 | Part 3 | Part 4 | Part 5

To conclude this series on learning to invest in stocks, I originally planned to list up some sites, blogs and other resources but figured the investing blogroll I have up already is sufficient.

Rather, I would like to close out this series with 10 points on my reflections from investing and what it has done for me over my short investment period.

Reflections on Investing

If you have followed this series from the beginning, you’ll know I started with nothing. No knowledge and close to no money. I was biased that the market was equivalent to gambling and believed that working hard and going up the corporate ladder was the only method to success since I had no interest in economics, finance and business. I had laser tunnel vision in trying to do well at work. The fact that I have an engineering background and my thought process was wired to be analytical didn’t make it easier for me to “look around”.

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1. Investing broadened my mind

I love the process of investing and I also have a thirst for knowledge. The resulting proceeds is the icing on the cake. My friend (probably reading this) tells me I should teach since I seem to be better at teaching people what to pick rather than doing it out myself.

Investing has broadened my mind by forcing me to think in different ways and to look at a situation from different angles and perspectives. It broke the mold that many engineers have of straight line and top-bottom thinking.

2. Investing proved I was wrong

I was the type of person you hate to get into arguments with because I always had to be right and I would always find some way to prove it. If I didn’t have the facts with me at that point in time, I would gather it later and let you know why I was right again. When I first started this blog, it started off with a bang by receiving negative comments from people because the methods I use were “hideous” to them. I would spend as much time on a comment as I would on an article just to point out every single detail. You get the idea.

Investing has shown me that I am wrong. People leaving comments have proven that I am wrong and then the market nails that fact in. The more important thing now is that I don’t care whether I am wrong. I like to be told constructively that I am wrong. I listen to why people believe I am wrong. I ponder their points and if what they say is true, I now admit my mistake, learn and move on to more lessons.

3. Investing has helped me to ignore noise

Investing has helped me in determining what was real useful information and what was noise. It has helped me to become efficient in processing data and to ignore the noise that fills the world today.

4. Investing taught me about businesses

I would never have dreamed on wanting my own business. Investing and looking at stocks as pieces of businesses has placed a desire to start my own business and I am in the process of doing so. The things I have learnt by reading annual and quarterly reports, financial statements and books have all been beneficial in how to approach starting and running a business.

5. Investing has made me responsible

I would probably still be spending my cash on gadgets, toys and other useless things to satisfy my hobbies rather than working towards the things that were important. I’ve dropped the hobbies that were time wasters and concentrated on helping my wife feel secure by managing our finances properly.

6. Investing reminds me of my purpose

I don’t invest to purely just accumulate wealth. That isn’t something I believe in. I have a purpose and reason for why I invest and it isn’t to get rich or retire comfortably. This helps to prevent me from getting over greedy. Do you have a purpose or is it just to get rich?

7. Investing has made me part of a social community

I was never into the whole internet friend/community thing. Just never bothered, but I realized that interacting with like minded and driven people was stimulating in so many good ways.

8. Investing makes me want to help others

You’ve heard horror stories of people losing their entire wealth in the market and going bankrupt. They bring devastation not only to themselves but to their family and other close relationships. I don’t want this happening to anyone so at any given chance I enjoy discussing financial issues to help others.

9. Investing organizes my thoughts

I’m not a very good speaker as I tend to jump between points often. When performing research and writing on this blog, I am required to lay out my thoughts in an easy to follow and understandable manner which in turn helps me to see things clearer as well. If my writings were jumbled and all over the place, I’m sure you wouldn’t be here reading anything I had to say.

10. Investing has opened up different avenues of skills

The whole process of investing and this blog has taught me many new skills. I now understand web design platforms, some coding, graphic design, sales, marketing, SEO and other little bits and pieces that truly are valuable. How do I know this is valuable? Well, I’ve been able to use every piece of information accumulated for a personal business project I am currently undertaking.

Conclusion

Investing is more than just gaining money. The 1000+% return with VNDA sure would have been nice but investing opens up a pandora’s box. Some refer to it as a journey or a game but whatever you call it, have fun with it, don’t go wild or do crazy things.

One final important point I would like to make is that, if I can do it, so can you.

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6 responses to “10 Things I Learned Early In My Investing”

  1. Björn says:

    I really enjoyed this post. I started my first real business almost a decade ago, but it wasn’t until about two years ago that I tried to invest in stocks with a bit more structure and confidence.

    One thing that investment studies have taught me is to apply a bit of the “publicly traded company point of view” to my own businesses. It’s very easy to get caught in the day-to-day operations of a small company, but to once in a while take a step back and say “how would I judge this situation as a remote stock owner?” actually helps me sometimes.

  2. jeff says:

    bravo.

    jeff’s last blog post..The New Illiterates… Part 1

  3. Jae Jun says:

    @ Bjorn

    Thanks. I’ll definitely keep that in mind when I get my business started and going. It seems like I am already consumed with trying to get everything up and running. Need to take a step back and make sure its all heading towards the bigger picture.

    @ Jeff
    Thanks

  4. Sonali says:

    hi,

    this blog was really good… i dont know much about investing… i always believed that investing in unpromised returs are waste and people most of the times end up loosing money or going bankrupt… but this blog is contradicting and has actually ..to be very true..has ignited interest within to invest…

    let me try investing with a true purpose… thanks ….

  5. Jae Jun says:

    Hi Sonali,

    Thanks for visiting and taking the time to comment. I’m glad that this blog has been able to change your perspective on investing and has ignited your interest to invest. Just do it smartly and make sure to minimize risk and you will be on your way to great returns. You don’t have to gamble in stocks to make a good return which is what I try to show on this blog.

    Thanks for visiting

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