The following is a list of courses that I have taken from the EdX platform as an introduction to investing and critical thinking.
1, Personal Finance from Purdue University
This is an introductory course to personal finance. It is good for people who have no experience doing accounting courses. The course is simple and easy to follow.
2. Financial Analysis for Decision Making from Babson University
The financial analysis in this course is in the point of view of a business. However, it works for one person as long as the individual treats themselves like a business.
3. Corporate Finance
This course is a bit advanced. It is important to have basic accounting knowledge. I particularly liked the section that helps re-evaluate investment decisions using the Return of Investments.
I meant for this blog to show how confusing it is to start investing. I wanted to portray an upward progression. A progression of me, the beginner investor, initially receiving cents, as returns to my investments, to dollars, to hundreds of dollars. I wanted to show the other side. The real side. The chapter 1 instead of the chapter 20 we see portrayed by our idols. I am very ambitious.
I have done myself an injustice and limited my creativity to a few uninteresting topics that even I, as the author of this blog, would not read. This blog has the potential to be more than what I had initially envisioned. This upward progression could apply to anything. Learning how to write, learning photography, everything. Clueless Investor has the potential to include an array of topics.
My introduction to this blog forced me into a corner because I made a vow to only talk about money on this blog. That limitation I had put on myself made writing on this blog more of a chore than a passion.
I will talk about investing for what it means to me, constant growth and improvement. Not only financially but mentally as well. I will talk about chasing knowledge, creativity along with wealth. I will talk about periods of self-discovery. Because constraining myself will reduce this blog to repetitive talk about how the sporadic line showed a downward trend and how miserable that makes me.
I am lucky in the sense that the tittle Clueless Investor encompasses everything I am. A clueless person with eclectic interests. A person who wants to improve and grow. More importantly, a person who wants to learn from others who are trying very hard to “hustle”. I know I am not alone.
I hope no one will hold me to my previous dreams and opinions. I read from Nassim Taleb that the world would be a better place if people were not held to their old opinions. If they changed their minds without the fear of criticism. Without the fear of being seen as absurd. I would never get better if I was expected not to change. Let us aim for never-ending metamorphosis.
It is always a good idea to avoid the stores during the Black Friday sales. I have to back myself up, so please listen to what I have to say.
I know Black Friday has its merits. It has those attractive discounts that make christmas shopping more affordable. I do not deny that. Black Friday is the day where we all get those expensive shoes that we have been eyeing. That good quality belt we can’t really afford.
However, some of us do not have long shopping lists. We do not have things we have been waiting all year to buy. We have no plans. No budgets. Yet, we stroll through the mall (or shopping centre, depending on where you are from) and find ourselves buying everything because it is cheaper. We end up spending more than we planned.
For those without plans, please stay home. Avoid regrets. Avoid impulse buys. Be smart.
When the value of my investment went below the minimum amount I had set for myself, I was unable to let go. I watched for almost a week as the value plummeted until I had lost almost $50. It may not seem like a lot of money to a lot of people, but for a student who is starting out in this world, I felt the loss. I wasted a lot of time begging the screen to show me an upward trend instead of taking action.
I have always prided myself in being aloof. Almost detached and unaffected by a lot of things that bother a lot of my peers. Yet, I attached a lot of value to an abstract asset. One that I had not held for a very long time.
A contradictory, disruptive, thought I keep having is that I have to get used to losing money in order to make it in the end. That I should have waited the momentary blip out. That I should have tolerated the discomfort of seeing my balance going down. How can I train myself to be a ruthless, within reason, risk-taker?
The “test your risk tolerance” quizzes show me that I am more conservative than I am risky. There is a reason that I do not read horoscopes. They shape me even if the rational side of me knows they are worded to apply to anyone. No offence to the believers. I regret taking those tests.
As an autodidact of stoicism, I have been trying to accept the things that I cannot control in order to achieve the greatest possible control over my emotions and thoughts in order to survive this world. I had no idea a test of my impulses would come too soon.
Reading The Art of Thinking Clearly: Better Thinking, Better Decisions was eye-opening for me in a lot of ways. I realised that it is absurd to try to rid myself of all kinds of emotions and impulses when making decisions. It is impossible to do that therefore chasing this obsession is futile. Emotion will always be the dominant part of my character. The best I can do is study stoicism.
I felt reprimanded after reading the first chapter. When I started investing, I had high hopes that my success rate would be quick and easy. That I was smart enough to succeed in this world. My arrogance has been knocked down a few notches after being reminded that I have “overestimated the probability of my success”. It was hard to read about the “cemetery”. A place where failed investors who are just as hard-working and as ambitious as I am may end up regardless of how dedicated they may be.
The book is not as cynical as the previous paragraph makes it seem. It serves as a reminder to appreciate the successes that I have and to always remember that I have come far compared to how I was in the past. He calls to my attention the fact that the more successful people get, the more dissatisfied they are with what they have. As we succeed in life, we tend to compare ourselves to people who may be light years ahead of us and forget far we have come to achieve all that we have.
Additionally, I learned a lot about the human flaws and how we can live with them by just being aware that they exist. I have to have awareness that I am biased and fallible. I have to accept the fact that I am shaped by a lot of things out of my control, evolution, the way I grew up etc. It prompted me to borrow Daniel Kahneman, Paul Slovik and Amos Tvesrky’s Judgment under Uncertainty: Heuristics and Biases from the university library because it sparked a new interest on human behaviour.
What I loved about this book is that the author did not claim to have come to some conclusion on how we can better ourselves. I did not want to spoil this book so I barely scratched the surface. There is more to learn. It is perfect for people who are obsessed with cognitive science too. Like I told my friends, this is not a self-help book!