An Elder's Perspective
Naman: Hey Mom! How are you doing? I am doing a project for my English 101 class and I wanted to interview you about your perspective about stock trading. It would be awesome if I could ask you a couple questions about a rising generation of investors.
Mom: That's great Naman beta! I'm doing fine. Yes, I would love to be part of this project!
It made me happy to think that my mom was so passionate about my assignment. Interviewing a family member is much different than interviewing someone you don't know so well.
Naman: Okay great Mom! So when did you first get exposed to trading stocks and what was the first stock you purchased?
Mom: I started buying and selling stock with you dad back in the late 1990's. I don't exactly remember the "first" stock I bought, but whatever it was, it inspired me to keep trading!
My mom is fearless. She loves to try out new thing and experience everything. She isn't scared of the consequences that follow, because she plans out all her decisions.
Naman: I take it that you made a lot of money on that stock. Do you think you got lucky or you knew what you were doing?
Mom: It was a combination of both. I didn't just blindly invest. I had followed the stock for a while and decided this was a company that had a lot of potential. The luck portion of it came with getting into the stock market, which I didn't really know much about.
I wonder how much my mom made on her investment, but she wouldn't tell me. I'll probably just have to keep guessing.
Naman: If you lost your money investing in your first stock, would have continued to invest? How did this one experience change things for you?
Mom: I think I still would because that's how volatile the stock market is. Sometimes you make money and sometimes you lose it. However, you shouldn't make an investment in which you are scared it will go down. You should have confidence in the company and management. Nevertheless, this experience changed how I began to trade more and more stocks.
Naman: How important is the management of a company in determining the future of the stock?
Mom: You have to always look for strong leadership in the company. People often think that management doesn't really matter in the value of the stock, but I think that is one of the most important things. If leadership knows what they are doing and have the future planned out, then they are likely to make profits.
Why does my mom trade if the market is so volatile. How does she get her information about the management.
Naman: That's great to know about. I have another interesting question for you. Do you regret anything you have done in the stock market?
Mom: I do, but everyone does - that's the nature of the stocks market. In 2000, your dad and I lost everything. We lost all our savings. It was an extremely tough time, but we survived. We got through it and learned from our mistakes.
Wow, that must have been a really scary time for mom and dad. They really know how to get out of sticky situations.
Naman: You guys encouraged me to start taking control of my finances at such a young age. If you had lost so much money, why did you trust me to trade and invest in shares so early?
Mom: It was't about trusting you, but trying to give you an exposure to something novel. Very few kids at your age know about stocks and I thought that it would be beneficial for you to learn from our mistakes. Also, your money was just sitting in the bank account and you were earning insignificant amounts of interest.
I don't know where they got this confidence in me from, but it's definitely more than I have in myself.
Naman: Mom, I appreciate that. That means a lot to me. Do you think more children should be exposed to buying and selling stocks at the same age as me?
Mom: Well, it all depends on the financial situation of each family. Some families can afford to spare some money, while others can't. However, I think it is a great to introduce children to the real world in terms of investing at the earliest age possible.
We are pretty fortunate. Not many families are capable of doing what my parents do and that is all because of their hard work.
Naman: Sounds good. Here is my last question for you. Mom I know you are quite aware of the rising number of young investors in America today. What is your take on that and what kind of advice could you give them?
Mom: I think it is fantastic that a younger generation is getting involved in something that has typically been for older people only. We need teenage investors and entrepreneurs for our economy to grow and thrive. Some advice I would give to this emerging generation of traders is to be patient. That is the most important thing. Lot of young investors buy stocks and want instant profits. That's not how the market works. You have to be methodical, confident, and patient in any investment you make.
Naman: Mom, thank you so much for taking the time to help me on my project. I will be able to compare and contrast your perspective, as an older trader, with that of a younger investor.
Mom: Anytime beta. Love you!
Mom: That's great Naman beta! I'm doing fine. Yes, I would love to be part of this project!
It made me happy to think that my mom was so passionate about my assignment. Interviewing a family member is much different than interviewing someone you don't know so well.
Naman: Okay great Mom! So when did you first get exposed to trading stocks and what was the first stock you purchased?
Mom: I started buying and selling stock with you dad back in the late 1990's. I don't exactly remember the "first" stock I bought, but whatever it was, it inspired me to keep trading!
My mom is fearless. She loves to try out new thing and experience everything. She isn't scared of the consequences that follow, because she plans out all her decisions.
Naman: I take it that you made a lot of money on that stock. Do you think you got lucky or you knew what you were doing?
Mom: It was a combination of both. I didn't just blindly invest. I had followed the stock for a while and decided this was a company that had a lot of potential. The luck portion of it came with getting into the stock market, which I didn't really know much about.
I wonder how much my mom made on her investment, but she wouldn't tell me. I'll probably just have to keep guessing.
Naman: If you lost your money investing in your first stock, would have continued to invest? How did this one experience change things for you?
Mom: I think I still would because that's how volatile the stock market is. Sometimes you make money and sometimes you lose it. However, you shouldn't make an investment in which you are scared it will go down. You should have confidence in the company and management. Nevertheless, this experience changed how I began to trade more and more stocks.
Naman: How important is the management of a company in determining the future of the stock?
Mom: You have to always look for strong leadership in the company. People often think that management doesn't really matter in the value of the stock, but I think that is one of the most important things. If leadership knows what they are doing and have the future planned out, then they are likely to make profits.
Why does my mom trade if the market is so volatile. How does she get her information about the management.
Naman: That's great to know about. I have another interesting question for you. Do you regret anything you have done in the stock market?
Mom: I do, but everyone does - that's the nature of the stocks market. In 2000, your dad and I lost everything. We lost all our savings. It was an extremely tough time, but we survived. We got through it and learned from our mistakes.
Wow, that must have been a really scary time for mom and dad. They really know how to get out of sticky situations.
Naman: You guys encouraged me to start taking control of my finances at such a young age. If you had lost so much money, why did you trust me to trade and invest in shares so early?
Mom: It was't about trusting you, but trying to give you an exposure to something novel. Very few kids at your age know about stocks and I thought that it would be beneficial for you to learn from our mistakes. Also, your money was just sitting in the bank account and you were earning insignificant amounts of interest.
I don't know where they got this confidence in me from, but it's definitely more than I have in myself.
Naman: Mom, I appreciate that. That means a lot to me. Do you think more children should be exposed to buying and selling stocks at the same age as me?
Mom: Well, it all depends on the financial situation of each family. Some families can afford to spare some money, while others can't. However, I think it is a great to introduce children to the real world in terms of investing at the earliest age possible.
We are pretty fortunate. Not many families are capable of doing what my parents do and that is all because of their hard work.
Naman: Sounds good. Here is my last question for you. Mom I know you are quite aware of the rising number of young investors in America today. What is your take on that and what kind of advice could you give them?
Mom: I think it is fantastic that a younger generation is getting involved in something that has typically been for older people only. We need teenage investors and entrepreneurs for our economy to grow and thrive. Some advice I would give to this emerging generation of traders is to be patient. That is the most important thing. Lot of young investors buy stocks and want instant profits. That's not how the market works. You have to be methodical, confident, and patient in any investment you make.
Naman: Mom, thank you so much for taking the time to help me on my project. I will be able to compare and contrast your perspective, as an older trader, with that of a younger investor.
Mom: Anytime beta. Love you!