My first experience in the stock market
My first stock purchase was on November 9th 2015. I was in my school cafeteria during my break. I have just gotten my Tax-Free Savings Account (TFSA) from the bank and I was able to buy and sell stock. I was sitting in the back of the cafeteria surfing the web when my friend came and sat with me. He told me that he and his brother (who has more experience than me) bought a couple of hundred shares of a company. I asked what was the company and he told me Nobilis Health Corp. (NHC.TO). He started to compliment the company by telling me that the company had potential to make money and it was a good investment. After listening about the benefits of owning NHC.TO stocks, I decided to do as they did because, compared to me, his brother had more experience in the stock market. Therefore, I decided to buy 35 shares at 5,02$ a share of NHC.TO. It was all that I could afford at the time. I did not do any research and I had no information about the company. Until now, I thought Nobilis was a pharmaceutical company. During the writing of this post, I googled and learned that it is not a pharmaceutical company, but a medical company that owns and manages ambulatory surgical centers (ASCs) and surgical hospitals in the United States. After two weeks of owning the stock, I decided to sell the shares of the company at about 48 % less than my book value because I had no idea how the company made money. Plus, the prices of the shares were constantly falling everyday. Until the April 14th, the price never came back at 5,02$.
After this experience, I decided that I will not invest in the healthcare sector because I have no knowledge about it. I told myself to do my own research about every company and to learn how they makes money. I promised myself to invest in a company that I use or that I am familiar with. Therefore, I will be investing for medium to long term results instead of short team results.
Originally published at thisisbgr.wordpress.com on April 17, 2016.