When I was born, my birthday gifts included US savings bonds ($50 dollar face value, I believe). I’ve had a savings account since about age 7, and started reading brokerage account statements at around age 9. My brokerage college fund started with $1000 and nicely grew to about $4000 by the time I started college at the tender age of 17.
Before the age of 10, I was enthralled by the concept of compound interest. I was curious about the difference between monthly, weekly, daily, hourly, and by-the-second, even instantaneous compounding. Little did I know at the time that this concept lead to the mathematical concepts of limits, calculus, and the number e, Euler’s number.
Needless to say, I love math and finance. But I first experienced a truly heart-pounding thrill when I started online trading sometime in the late 90′s. I could see the bid and ask constantly moving, and tried limit orders. The asks kept rising, and I kept inching up my bid. Eventually my bid got hit and I was an owner of my first online stock. This was different than buying mutual funds on the phone from Vanguard, and getting quarterly paper statements. This was in real time and it was exciting.
I’ve read a lot about Peter Lynch, including his books, and I’ve learned some lessons good and bad. The bad lesson, as I read his words, was “Don’t buy bonds unless they paying at least 8 or 10 percent.” The good lessons were “Don’t buy what you don’t understand.” and “boring investments are good… boring names, unsexy, but solid investments are good.”
My next financial thrill revolved around options sales and purchases. I even recall making a 20-option spread trade that was scary, but ended up netting me about $3000 in a very short time.
I have also has some thrill involving real-estate offers, counter-offers, counter-counter offers, and purchases. Mostly, tension and anxiety are better descriptors than excitement. Mild disappointment mostly describes failed attempted real-estate purchases. Moderate to exuberant happiness describes my successful real-estate bids.
In the last year or two, my trades have not elicited an significant cardiac or endocrine event. While almost always cerebral and well-considered, my trades have occasionally made my heart go pitter-patter and my endocrine system give me a pleasant rush. But lately the trill is gone. My pulse is steady and the motions are vaguely methodical and systematic.
My love of research, introspection, and contemplation remains. Trading, for me, is just a means to an end. Increasingly dispassionate. In the end I hope and believe this makes me a better trader. As always, time will tell.