We got an insurance payment for the flooded contents of our house months ago, but we can’t refurnish until the renovation is complete. So I’ve got some extra cash on hand, and I wasn’t sure what to do with it. I put it in a savings account for safekeeping, but I figured it might be smarter to invest it in the stock market. I have no clue about stocks or anything financial, but fortunately my father is another story. In fact he’s what most people would call a Financial Wiz.
So after talking it over on his recent visit, I opened an E*Trade account. Today, Dad called me up and guided me through my first purchases: a little CHK, a little BHP, a little EP. Dad specializes in selling covered call options, but we were unable to sell options on these stocks today because my account is too new. That’s fine, because I want to take baby steps and understand what I’m doing.
I’ve already made $20 in the last hour, which is kind of fun, but I have a lot of questions about this whole process. Who are these companies I’m investing in? What am I really promoting? I’ll sort that out eventually, but for now I’m just trying to understand the basic mechanics. It’s fun to be able to do something like this with my father, and I’m grateful that he’s sharing his wisdom with me.