Actually my pockets weren't really deep. Maybe for a 22 year old at the time (currently 24), but not for the average worker making 50k+ a year. Worked from age 17 to 21 while going to a CC for a degree in computer science. Saved up to buy the car I've always wanted since it came out which was a 350z. Bought the car and had the it for a year. I then changed my mind on my career and went away to school to do my prerequisites and start my current path onto pharmacy and sold the car for about 2k more than i paid for it (paid $10k cash for it sold it for $11800).
I then bought ARNA stock with that $12k at a average price of 1.60/share and sold it when it's drug got approved at a price range between $12-$13.50 per share netting me around 97k which I kept $10000 from that to continue to invest with and saved the rest in a CD account. I am around 175k with accrued interest from the CD and investments I have continued to make and I am still working ~25hr/wk during school and 35-40/hrs in the summer.
This sounds a bit too good to be true, but Ill give you the benefit of the doubt and congratulate you on your ability to time the market just right for Arena Pharmaceuticals, although ARNA never peaked above $11.20/share. However, what baffles me is why anyone with the ability to see the market would put money in a CD thats being beaten by inflation at the going rate of at least 4%!
Im going to be honest with you, Ive only ever met one gentleman in real life who can do what you just said you did, and hes in his late 40s to early 50s. I know he was able to do it because when he picked up his medications, he dropped the elusive Black Card to pay for it. My jaw literally dropped when I saw it. I asked him how he did it, and he told me, With a ton of brutal experience. Hes able to time the market very well and he watches it every hour of the day like a full-time job He knows the opened/closed price of each stock he invests in going back several months, as well as the style of management of each company. And you know what? I believed him, as he got the American Express Black Card to prove it. Whats my point in this anecdote? Be careful out there
Its risky business!
I don't know your age but my thoughts on investing is since I am still young, if I were to have lost that 12k i still had 50+ years to make it back and not have to worry. I do understand this may seem reckless and I don't recommend this to everyone, but if you can afford a loss the risk is worth it. I will of course tighten up (move to mutal funds,bonds,401ks etc.) as I get older and get a real career. If i stay with CVS i get a 15% discount on shares and they match the first 5% up to 15,000 of your salary that you put into your 401k.
Im roughly your age, but I dont believe in making reckless investment decisions. I work 50 hours a week for a pharmaceutical company that puts in a nice contribution for my 401k, but I dont invest in 401k, as I believe I have more control when I purchase my own investments. Working while going to school and prepping for pharmacy school taught me the value of money, so I never take risks based on the assumption of potential future earnings. That doesnt mean I dont do small caps it just means I dont put a huge amount of my investments in it (a` la your 12k drop). Last before I go, mutual funds and bonds markets arent looking so hot, so Im not sure why you would want to jump in there. But then again, I dont have any special abilities to predict the market, so maybe you see something I dont. 🙂
