Many kids I know come to me and say ‘I wish to open a brokerage account to buy and sell shares’. Knowing their market knowledge and patience levels my usual advice is ‘No, do not you will lose money’.
After that I do not much care what happens. Many of them do open an account, and do lose a lot of money. Fine by me, though, I do feel bad. Some of them do come back and tell me ‘I lost….’ but well that is fate.
However there are some people whom I have dissuaded very strongly – “I will break your legs'” kinda threats too!!
For the kids I really love, I push them into a SIP (eeks it hurts poor kids!!) – I hope they continue the SIPs through the carnage….
2 of the kids were doing a SIP of Rs. 2000 and Rs. 500. Then one day, they fell to the temptation of opening a ‘trading’ account and calling themselves investors.
For the kid who was doing a Rs. 500 SIP I had offered a safety net of Rs. 30,000 for a 5 year uninterrupted SIP, but the lure of trading pulled the kid to the markets. SIP was stopped and 50,000 went to trading. This was about 5 months ago.
The rest, as they say is history. Both of them are in the red to about 30% of their portfolio, and bleeding.
Luckily, I hope, they are not putting more money into ‘trading’…..
I suddenly realised that LEARNING with their own money is far, far, far valuable for them than all the TEACHING and LOVE and CARE that I was bringing to their wealth creation process.
I do feel sad, but a good learning for all 3 of us I hope.
Trading, is NOT a part time hobby – and it reminds you of that pretty cruelly.
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