I can still remember that feeling of nervous anticipation as I opened my brokerage account and transferred some funds into it. Was this going to be one of my best decisions I ever made or the worst? Time would tell. It was 4/22/13 and little did I know the beginning of an over 100 point run up in the S&P 500. It was probably the worst time for a beginner to dip his toe into the market, one of those almost can do no wrong time periods. Something that will give you that instant puff of “I an invincible” right out of the gate. “Oooo and what is this earnings season everyone is talking about”.
It’s not as if I had no idea what made the market tick at its most basic level. I had of course “directed” my 401K by making such bold moves as picking a mutual fund because it had a great return last year. Earnings seemed a bit like gambling but it couldn’t be that bad this was after all investing not Las Vegas. So I pick a few. This can’t be that hard.
It was that hard. I am now in 3 stocks and ready to ride out earnings and begin massing my fortune. BIDU, BWLD, and DDD. My road is set to be paved in gold. Unfortunately the laws of probability did not see it that way. BIDU and BWLD both fail to meet expectations. DDD did manage to do very well and quickly became my success story for those around me who thought I was a fool for playing this game. Isn’t that how it goes even in Vegas? You casually forget the losses and brag of the wins and how well you did?
Inside I was a bit of a wreck but knew I was doing the right thing I was investing afterall. What to do next???