What is My Story?
My name is Preston, and I am a corporate trainer for a Fortune 100 company. My passion has always been to mentor, coach, and develop those around me while I seek counsel in my own life to better myself. As a corporate trainer, I get to live out my passion daily which is a joy.
How did I get here: I grew up in a middle class household that lived paycheck to paycheck. Throughout my high school years, I saw my parents were never going to be able to retire unless I helped them out. Growing up as an only child, I took a lot of responsibility in my household at an early age. As I saw their continued struggle, I knew I needed to do something. In that moment, I knew I needed to learn money management, so at the age of 18, my journey began.
I opened my very first Roth IRA account because google told me that was the best place to start for tax advantages. At the time, I was like yes, I will start early and pull the money out when my parents need it at 65. I quickly realized I could not touch the money until I was 65, so I had to find another avenue.
At the age of 19, I read every cnbc article to try and grow in my knowledge of finance. This year was transformational as I learned about compound interest, the Fed reserve, stocks vs bonds, growth stocks vs dividend stocks, analyst ratings, and so much more. CNBC helped me see my vision for my parents could be achieved with some discipline, patience, and consistency.
I decided to pursue a bachelors degree in finance to continue to grow in my knowledge. In my first finance class, we played a simulation game on MarketWatch and from that moment I was hooked. I can't say I won this competition, if I remember correctly, I fell around the 40-50% range within my class. In that moment, I knew I needed to learn how to invest/trade within the market instead of just terminology.
I finally decide it’s time to put some real money to the test. My first $100 went into $MSFT, $V, $CRM, and miscellaneous penny stocks. After a month or two, I sold $MSFT, $V, and $CRM to buy more penny stocks as they were growing faster than the large cap stocks. This led me to a 6-8 month span of playing pump and dump stocks which led to some huge wins and huge losses (more losses than wins). After this span, I thought to myself there has to be a better way to grow wealth, so I took a step back and made a rule that I would never touch a penny stock again. This rule still stands true today.
From there, I went to mid/large cap stocks where I said I’ll just long term invest in strong companies. This strategy required tons of patience which I did not have in my past. I quickly got bored and learned about options.
My journey with options was very similar to penny stocks as it led to massive gains and losses. I remember securing a 100% gain in a week and also losing 5k in a weekly options play. Once again, I found myself gambling instead of investing.
During my time of options, I was learning a trading style called Elliot wave theory. This is a strategy that taught me a lot about market sentiment and technical analysis which I still reference at times today. After roughly a year of learning this strategy, I wanted to simplify my trading/investing, so once again, I went back to the drawing board.
At this time, I decided let’s look only at price action and 2 indicators (RSI and 9/21 EMAs). I studied supply/demand zones, support/resistance, and candlestick patterns. This simplified system has changed my life forever. I am seeing consistent gains by swing trading, but it took me blowing up an account, two mediocre systems, and continued refining to get to my current spot.
I am a few years into the market and I’m seeing all the hard work paying off. Now that I am seeing success, I want to share my system and story to motivate you to keep going.
You might be in the struggle to find a system, blowing up accounts, or in the refunding stages but keep going! The hard work will pay off!
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Thank you for sharing your story Preston! I’m sure plenty of investors here share a similar path, too. Reflection is key, and holding yourself accountable while walking away from experiences with learnings to remember and guide future decision making is what separates the few from the pack that goes back to the well again and again and never learns from their experiences. Excited for you to continue to share your journey here on Commonstock