Learning to Invest

Topic for a whole other blog, but I feel it is important for our
generation to learn how to manage money, as well as invest in the stock
market.
Learning to invest is a process. While I track every gain
and loss to the penny, it is far more important to make sure I learn
how to invest so that I can make better decisions in the future.
So far I have learned how to identify when I am getting in my own way and how
to be patient when I really want to panic. Sometimes I have found the
best thing for me to do for my investments is log out and walk away
from the computer to prevent me from overreacting.

Here is an example of a recent lesson:

#1 Dave buys a stock at $.07 thinking it will go up. The stock is previously owned so this is not a day trade.

#2 After slipping a bit, the stock begins to climb late in the day.

#3 Seeing the stock jump to $.09 (22% return), Dave decides to sell and
take the gain. He places a limit order for $.11 thinking he could sell
for a bit more if the stock continues to climb.

#4 Dave quickly realizes he placed a limit order to BUY not SELL and manages to double his shares and move the stock price to $.11.

The stock quickly falls back to $.05 the next day before I have a chance to sell any.

It has taken over a month, but I have finally sold all the shares of stock.

Lesson: The confirmation screen is there to be read, not ignored.
Cost $393 (amazing considering where I was the day after).