Investing Truths: MyAn Shares Strategies Learned from Her Mom

For self-directed investor MyAn, it isn't investing greats like Warren Buffett or Benjamin Graham that inspire her, it's her mom.

"I was intrigued by how she invests, so I decided to try it out on my own," says the 31-year-old data coordinator from Calgary who has been investing on her own since 2012.

"My mom and I have casual conversations about investing, but she lives in Vietnam so we can't talk about specifics because we invest in different markets," she said in an interview.

On Lessons from Mom

While MyAn says her investing style has also been influenced by her dad and her best friend, it's guidelines that her mom follows that have struck a chord with her.

"An example is cut your losses. When the stock goes down a certain amount from your initial investment, sell and move on. Or think about how much you want to earn on a stock, and once you hit that, then sell. Don't keep waiting. That's one of her strategies," she says.

MyAn, an RBC Direct Investing client, says she usually sets strict guidelines for herself, although those best-laid plans were recently sidetracked.

"I set a goal to sell at a certain point, but my stock never went up and I've been in the red waiting for it to recover. I can't bring myself to sell," she says.

On Sell Decisions

As most investors know, sell decisions can be hard. Anxiety and emotions can often get in the way. MyAn has learned to largely keep her emotions in check.

"I remember my first two years of investing. I got really stressed out every time a stock would dip. I would sit and watch and wait for the stock to go back up, then it would. I would sell it and then I'd finally experience relief," she says. "Then I would do my research and start the process again. The more time I've spent investing, the more comfortable I am."

MyAn says she bases her investment decisions fully on research, although admits she likes to keep her research relatively simple.

"I'll look at the stock quote and the performance, specifically over the last five to 10 years. I'll also compare it to other stocks in the same industry," she says. "I prefer to see it on the rise, with proven performance, but I'll also look for a recent dip with the hopes that it will be working itself back up."

Finding investment ideas is often another challenge many investors face. For MyAn, the technology industry is top of her list.

"I invest in it for my love of it; I'm up to date on new technologies," she says.

On Goals

MyAn says her current goal is to pay off her mortgage, after which she says she'll start saving for retirement. How does she plan to stay on track?

"I would say the principle that I learned from my mom of don't stay in for too long really helps to keep me in check. Don't be greedy and wait too long. But I think it's fair to say that approach is not for everybody; people have different goals," she says.

MyAn believes people should choose their investment style based on what's right for them.

"The one thing I would say is keep a record, in a spreadsheet, of your gains and losses so you can really see what's happening with your money," she says. "It's important for investors to understand how much they need to be involved, especially emotionally."

On Emotions

While MyAn is keenly aware of the role emotions can play in investing, it doesn't mean they don't kick in sometimes.

"When I hear the word 'investing' it triggers an excited feeling. Having a marginal gain makes me really happy," she says. Still — just as her mom taught her — MyAn says, "I'm not really emotional when it comes to my investments; I think that helps me keep a safe distance and helps me stay level headed and clear in my investment decisions."

Thanks, mom!