At 18-years-old, Louis Vesovski began trading stocks while he was in school to earn an additional income.
Today, Vesovski, 24, is both an investor and content creator, helping to advise others his age on the endless possibilities of financial freedom and literacy. His upcoming book, “Investing Secrets by Louis Vesovski,” releases this fall, helping to guide readers to become more educated and aware of how investment works by sharing his own experiences and how they helped him along the way.
According to Vesovski, there are three things millennials looking to dive into stock trading should consider before making the shift:
#1 – Educate Yourself
There is a lot of new terminology and aspects you will encounter that a lot of us are not familiar with. If you don’t understand any of it you will not know what you’re doing and it is similar to gambling.
Making sure you find a mentor or teacher you can trust and converse with on topics is essential.
“I didn’t have anyone to really teach me,” Vesovski told Disrupt Magazine. “When I started, I just jumped in and when things came up, I went to Google or watched YouTube videos on it. I remember reading ‘The Little Black Book of Billionaire Secrets,’ a free PDF you can find online; it really opened up my mind about investing holistically.”
As for meme stocks like GameStop, Vesovski pointed to the value that communities such as Reddit brings, helping to drive a stock’s price through the roof. “I don’t think it has an effect on the market, but I do think it opens up people’s minds if you work together on what you can do. I feel we’re likely to see it in the near future because people are now aware of it.”
#2 – Read As Much as You Can
Before diving straight into investment, it’s important to read and gather as much information as possible. The world of investment and trading is like walking into a casino in Las Vegas; do not invest if you are not prepared to lose something (or everything).
“Information is power and the more you know, the stronger you are and the less risk you will have, because you understand what is going on and how the stock will rise or fall,” Vesovski says.
One of the biggest mistakes Vesovski has seen from his colleagues is the consequences of making impulsive decisions. “I see individuals being misled about information and making impulsive decisions based on improper influence and booming markets,” he told Disrupt. “This comes as a result of not reading the proper sources. Everyone has access to the same information, but it’s how you analyze it.”
Today’s mainstream media is certainly under scrutiny, for (rightful) claims of manufacturing and feeding misinformation. So, where does one go to learn about trading, stocks, and investment?
Vesovski refers to Bloomberg News and stock message boards, accessible from most devices and covers how these types of technologies impact all business sectors. For the uninitiated, stock message boards are where users create profiles, starting discussions on their views/perspectives on news surrounding stock performance.
“I think financial literacy is extremely important once you get older. Once you’re educated you’re able to understand how to be financially stable, responsible and free. As you get older, you encounter more responsibility and expenses that are tough with one income and through smart financial decisions you can have a better quality of life.”
#3 – Save Some Money
Third, the idea that you just need to save money is misguided. For Vesovski, thought leaders like Warren Buffet and Rick Rule are “great sources for a long term and value-investing approach.”
Back in May, Buffet expressed his public support for the right to repair legislation, as it pertains to consumer devices and the right to repair devices like iPhones and other smart technology.
“Without investing money, you can’t purchase any stocks. I saved all of my money for six months before putting it into my stock account,” the young investor told us.
And to Vesovski’s point, there is a fine line between smart investment and reckless gambling.
“…I’d also look into what top hedge funds such as Renaissance Technologies in New York, are buying. I suggest following them, because they serve as one of New York’s top hedge funds, known for performing the Dow Jones and other index funds, managing over $150 billion dollars in assets.
We asked Vesovski about the types of misinformation he comes across in his days of trading and investing:
#1 – Trading Stocks is Hard
Often, I hear trading stocks is difficult. In my opinion, this seems difficult because we don’t learn any of this information in school, and there’s a lot of numbers and charts. With the rapid advancement of technology, there is a lot of new information, vocabulary, and technologies we need to absorb and digest.
That of course, requires time to get educated, to the point many of us are not willing to sacrifice to adapt to such a skill.
For me, taking the time to actually learn and get educated is one of the things I look back on and am most proud of today. Admittingly, it was very difficult at the beginning retaining all the information. Once I was able to wrap my head around these topics, I became more fluent.
“I didn’t know too much, but it was when marijuana was first becoming legalized in Canada, so everything I purchased at the time was rising significantly. I was shocked by the results, so I took more interest and dedicated the majority of my time to researching and learning more about stocks.”
#2 – Stocks are Risky
The second piece of misinformation is that “stocks are risky” due to a lack of comprehension and understanding of what they are purchasing. “Before buying, you need to understand what you’re investing into, so you’re able to minimize the risk. I feel that buying stocks into reputable companies are more easily calculable, because there is enough market information you can dissect. I don’t buy stocks that I know to be a gamble. Instead, I invest into companies that have great CEO’s and a long-term vision.
“Walking across the street is risky too, but as long as you understand what you are buying, and you have calculated what you’re willing to risk, you can help to eliminate most of that risk. I personally look at companies who are making a change in an emerging market.”
#3 – You Need A Lot of Money to Start
We all start somewhere, so thinking you need all this money to start, is misplaced. You just need to start, because your money will grow overtime. Just remember to set goals and make sure each investment meets your goal.
For Vesovski, day trading isn’t in his wheelhouse, so being stuck in front of a screen all day isn’t an issue.
“I balance trading by doing most of my research at night. Executing my trades in the morning and turning my notifications on my phone to keep me updated with news and the price of the stock. It allows me to spend the rest of my day, either working on school, filming, or writing.”
Currently, the content creator is exploring renewable resources and environmentally friendly projects. “I see the way the world is changing, and the move they are making to reduce emissions. Our world is only growing bigger, which means more emissions. In the year to come, we can expect to see new ways of living. It’s a great way to make an impact and a profit at the same time.”