What a student should learn if he or she wants to be an investor.

Now that my son is in high school, he’s thinking about what courses to take. He wants to be  a professional investor/trader like me. So this is what courses I tell him to take (after reading some information on Ritholtz).

  1. History. Learning from the past is essential to being an investor, no matter if you’re a technician in fundamentalist. Many people say that “history repeats itself.” Although this might not be true, but history ALMOST repeats itself. By knowing what has happened in the past, one knows what possibilities there are in the future. For technician investors, all that they know has been gathered from data in the past. For fundamental investors, all the consequences for fundamentals that they know of come from the past. One of my favourite quotes in Reminisces of a Stock Operator is “Look too much at the past, and lose an eye. Turn a blind eye to the past, and lose both eyes.”
  2. Psychology. The market is all about the psychology of investors. By understanding human nature and psychology, one becomes prepared for the emotional ups and downs of the market. If one is unprepared for the psychology of t he market, then one can only get killed.
  3. Law. Knowing a little bit about politics and law is always good. You get to know what the country’s decision makers are doing and what they plan on doing.
  4. Math and statistics. I can’t stress how important this is. The market price (and especially technical analysis) is always based on math.

One thought on “What a student should learn if he or she wants to be an investor.”

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