It's Father's Day, and while my daughters aren't old enough to play the market yet, here are some investment-related lessons that I plan to teach them as they grow. Many of them are things my own dad taught me.
1. Dare to take risks. If you don't risk anything, you'll likely never grow – either your portfolio or as a person.
2. Don't rush into things. Do your homework and know what you're investing in. If you have any questions, don't do anything until they are answered.
3. Know how much you are able to risk. Always know how much you can afford to lose. Don't put down anything you're not willing to part with.
4. Set goals. Always know how much you intend to make with any given investment. If you make more, awesome – ride it out, and see where it takes you.
5. Cut losses early. Don't be afraid to admit loss. Egoism is fine, but petty egotistic behavior is self-defeating.
6. Money makes things easier. With money, you can do just about anything you want.
7. Money isn't the goal. While money makes things easier, it is not an end in and of itself. Money can never be a source of happiness; but it can give you the means by which to attain happiness.
8. Always learn. My dad asked me every day what I learned that day – even on weekends and holidays, and I try to ask my girls that every day too. Continuously improving one's self through education is a fine thing indeed.
9. Don't sweat the small stuff. Don't be disappointed that small gains aren't larger, and use small losses as an opportunity to learn how not to make larger ones.
10. There are always other opportunities. The market is a constant mover. You'll always have a chance to both win and lose. Enjoy the game, and play it smart.
If some of these don't seem like advice particular to investing, you're right. But investing is part of life, so if a few of these apply to the human condition at large, so be it.
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