Investing in stock markets
I’m totally new to this, but enjoying it. I had been introduce to this practice by my cofounder who start trading by his early 20 and I’m enjoying his experience.
Buying my first stocks made me understand a lot about investment and also shift my mindset about how I perceive investment and risk. I had in mind this belief (popular belief I guess) that stock market are for professionnals and are highly risky because you could lose everything.
This belief truly lack of one important thing I learned while starting to trade : every one (should) have it’s own investment thesis. And for a lot of beginner, the most basic strategy you learn and start with is the “buy and hold” strategy, mostly tied to a long term investment thesis.
This is how I’m seeing stock market trading right now : a long term (+10y) investment. So I prefer strong companies that showed a solid growth over time with a low volatility to high growth company with a higher volatiliy.
I also learned about Exchange Traded Funds (ETF), which are by design, more secure assets than a regular stock, making it easier to invest money on the stock markets. I’m following a dollar-cost averaging (DCA) strategy on two ETFs : PE500 that replicate the performance of the american market and PAEEM, that replicates the performance of emerging markets including Asia biggest corporations (Tencent, Alibaba, Samsung, Baidu…). For now, it perform very well and I’m happy with this strategy!
As I’m still a beginner, I’m still learning about stock picking : the art of choosing the right stock and buy it at the best time. And what I can say so far, is that’s it’s not easy at all. 😄