STW: My First Year Investing in Stocks (Wins & Mistakes)

The Story

"When I opened my first brokerage account, I felt like a stock market genius. I bought a handful of tech stocks, and at first, they went up. Then came the losses. I sold too quickly, chased trends, and realized I didn’t actually have a plan. By the end of the year, I was roughly even — but I learned lessons that will last a lifetime."

Advisor Breakdown (STAR + Opinions)

Situation:

• First-time investor, starting with a small account.

• Focused on individual stocks, no diversification.

👉 This is so common — the “Robinhood Effect.” New investors think stock-picking is the only way to invest.

Task:

• Grow wealth with little experience.

• Learn how the market works.

👉 I like that this person started with real money. Even small losses teach more than theory.

Action:

• Chased trends, bought high, sold low.

• No diversification, no plan.

👉 From my perspective, the lack of strategy is the real mistake — not the losses.

Result:

• Ended roughly breakeven.

• Gained experience and realized the importance of diversified investing.

👉 This was actually a win. The tuition fee was small, but the lesson was huge.

Key Takeaways

• Don’t chase trends.

• Diversify early.

• Losses can be valuable teachers.

• Start small, learn, then build a real strategy.