The best way to learn how to invest is to . . . INVEST!

Now that I have progressed from trading on paper with Monopoly money to trading with real money, in real life, I am now starting to experience the real emotions. When trading on paper it's easy to stay objective about your decisions. In fact, I'd go as far as saying that when paper trading the only emotion you actually experience is excitement when the stock you have been watching hits your target return (or better). It's so validating when you can collect hard evidence that maybe you might just know a little about what you're doing. When you make a loss paper trading, it's just a non event. Because you didn't actually lose any real money. #girlmath.

To date I have invested $2500 worth of Monopoly money into 5 companies and so far made a return of 14%. I am currently holding 4 companies, but made the bold decision to invest REAL money into one of them. I decided to put $1000 into Liontown Resources (ASX:LTR). I am feeling very confident I will get a good return on this company but my intuition tells me it may be a long hold company. And with what I am reading in the headlines, my intuition may very well be right as lithium isn't a booming industry at the moment. So far since buying LTR it has dropped 5.9%

Another company I am paper trading is DeGrey Mining (ASX:DEG). And in this last week it is up 13%.

And so this is the game, right? Staying neutral when all the shoulda, coulda, woulda thoughts start to emerge. Seeing DEG up 13% and LTR down 5.9% makes me wish I had put my money into DEG.

This is exactly why we practice! Paper trading has certainly given me the confidence in myself to pick good companies. But one thing paper trading could never teach me is how to navigate the emotions.

I read on Threads recently a quote that says "the best way to learn how to invest is to invest". And that couldn't be more true for me right now. There is no better way to learn than to put some real skin in the game. What I am learning and observing within myself now that I am playing with real money is invaluable. I mean, I am only playing with $1000. It's a big enough amount to be serious for me, but not big enough to destroy me if I make a bad choice (which I am confident I haven't). That's the key, I think, and this is my strategy, to master the skill of staying neutral with small amounts. And as those amounts grow (because they will! We are just going to put that out into the universe.) so too will the strength of the emotions. And just like you train a muscle, I will be training my brain to remain calm, even as the amount of skin in the game gets bigger. I hope that in the future, putting down $1,000,000 will feel no different to how I felt putting down $1000.

Years ago I read a book called Untethered Soul, by Micheal A Singer. It is a bit of a woo woo self development book , but it taught me a valuable life skill that is not only critical in your pursuit for happiness but also an integral part of your investing journey. And that is to be able to observe your thoughts objectively. To be able to separate yourself from your thoughts and just witness your thoughts move through your mind just as you would watch the clouds move through the sky. I think about that book every time I find myself doubting myself. During this time where I had wished I had put my real money into DEG instead of LTR, is the perfect opportunity to put into practice what I have learned. Whilst my thoughts tell me I may be wrong, maybe I should sell before I lose too much money and put it into DEG, I can be objective about those thoughts and reassure myself that whilst I don't have real money in DEG I do have paper money, and I may not be up 13% in my real portfolio, but my paper portfolio is up 13%. And with that my belief in myself has also gone up a few basis points.

I mean I've only been holding these companies for 2 weeks. Which is f*#k all in the scheme of things. But in just that short amount of time I have already learned so much about the process. I look forward to writing the follow up blog about how these companies perform for me. Stay tuned.