Diamond Hands Bullies
My son is 10 years old and recently started asking about the stock market and how it works. I pulled up my portfolio and I showed him the basics of share price, market cap, P/E etc. We started by looking at some companies he’s heard of like Netflix and Apple, but he was most interested in seeing SpaceX. Like many boys his age, he’s got his heart set on being an astronaut one day. I’ve fostered his passion as best I can and watched many of the Falcon launches with him. I had to break it to him that SpaceX isn’t publicly traded and we’re not wealthy enough to buy private shares. He was disappointed, but quickly shifted his focus to Tesla. He and I watched in awe when SpaceX launched the Tesla roadster and Starman into solar orbit, and knows that Elon Musk owns both companies. I showed him their massive growth over the past two years, and he was desperate to own a share for himself.
In the interest of investing and getting him excited about saving money, I told him I’d start an eTrade account for him and gifted him one share of Tesla for his birthday in June. This came with a stark warning that Tesla earnings are low compared to the share price, and that the stock is very volatile at the moment. He understood that $600 was a lot of money and took it upon himself to monitor the price closely.
Over the following few weeks he watched the value of his share go from $600 to $680+ and he couldn’t have been more thrilled. He loved tracking the stock, and (luckily) was seeing an early profit. Then he started seeing some volatility he didn’t like. His share dropped to $650 and he decided on a master plan to sell for the $50 profit and buy in again once it drops back down to $600. I told him it’s impossible to time the market like that; there’s no guarantee it’ll be $600 again, and if it goes up he won’t be able to afford to buy his share back. Ultimately, I decided to leave him to it and learn the lesson himself. I have a few shares of Tesla myself, and there’s no way in hell I’m letting them go for $650.
After selling his share, he decided to divulge his master plan to some kids in the GATE program at school. Apparently, he’d been talking to some of them about the stock market, as their parents had given them similar investing opportunities, and their little clan would get together at recess to talk about their stocks. It’s all sounding a bit elitist, because as soon as they learned he had sold his share they told him he wasn’t allowed in their club anymore. He got home from school that day in absolute shambles because they all called him a paper handed bitch, and he’s not allowed in the diamond hands club. I told him to ignore that nonsense and invest how he wants to. I encouraged him to look at Apple since the share price is more affordable and it’s been a safe and steady investment for years. He said he’d think about it.
I now regret letting him install the eTrade app on his phone, because the next day the GATE kids talked him into buying 50 shares of WISH to ‘get back in the game.’ I hadn’t heard of WISH until he told me about this; I went on their website and it’s an absolute dumpster sale of cheap Chinese garbage. I don’t know how the hell this company is even solvent. I’m thinking to myself, you’d have to be some kind of retard to invest in it. Over the course of that day his WISH shares dropped about 10% so after selling that off he’s no where near being able to buy back into Tesla. He’s now been convinced that he’ll never go to the moon with Papa Elon unless he opens a margin account so he can buy AMC calls ahead of the next short squeeze.
I’d never heard of kids bullying each other over their portfolios. I’m starting to think this whole experiment was a huge mistake.
via r/wallstreetbets https://ift.tt/3qhG8Zq
July 22, 2021 at 11:55AM