Since I first started investing in shares I have learnt many valuable lessons about myself and one of the key things I have discovered is that in life I am very conservative. I have no problems talking to family and friends I know or those introduced to me, however I would never approach someone I don’t know at a party and just say hi. My conservative nature is also evident in other things I do and think about. I am not one for massive parties or nightclubs and I don’t think I could really throw myself off a cliff (bungie jump) or out of a plane (skydive).
Yet when it comes to the stock market and business I have been more appreciative and perhaps drawn to risk (especially when I was younger). I started investing in shares when I was twelve and bought, owned and ran my own retail business at sixteen. I was lucky that my parents were supportive of these actives as it enabled me to develop a wide range of analytical, management and communication skills. To allow your child to use all their money at the time to buy one share or to go into business does highlight the amount of trust my parents had in me. I guess they were just happy my risk taking behaviour involved business rather than drugs or alcohol.
In fact this time of my life reminds me of an article that I recently read about young entrepreneurs. When we are going through our teenage years we are natural risk takers because the front part of our brain that controls this behaviour is yet to fully develop. What the article discussed was the impact this not only had on risky behaviour like driving fast, drinking lots or trying new things but also on the drive these young individuals displayed within a corporate setting. As young risk takers they were happy to give it ago and start a business. They did not care if they did not succeed they just wanted to have a go. As a result a number of them quickly expanded their business operations and took on their more established counter parts.
Looking back on my teenage years I can certainly draw similarities between this article and my life. What I have also noticed is that after leaving my business and taking a back seat from the stock market (at about the age of 18) my conservative nature started to set in, even in my thoughts and feelings towards the stock market and business This was obviously linked to my personal development and the maturing of my brain and frontal lobe. I also took on more responsibilities and an individual. I had a long term partner, who I married in 2010 and now have things other than shares to save for.
What I have come to realise is that I need to get some of that risk taking nature back. I’m not saying I want or need to be reckless with my investments, rather I need that sense of giving it ago and backing myself. Investing in ASX 100 stocks is great, but with most of the research already done by industry “experts”, there is no opportunity to be exploited and one would have to be content with average gains. I want above average returns and I know I have found my niche in the small and mico cap sector of the market. Since making my first investment in a speculative share I have even got a bit of my old spark back. I am not doing this for kicks (gambling), but I genuinely love what I do and the research that is required before I make any purchase. I feel like the old drive I once had to succeed in life as well as business is back!
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