How Is This Teen Getting 25% Returns?

Summary

In this inspiring conversation, a mentor highlights the growth of a young individual who has mastered risk-taking and decision-making in the world of finance. Starting from a place of nervousness, they have developed the ability to act quickly and calculate risks efficiently. The mentor admires their 25% return, urging them to remember this is just the beginning. The story showcases how mastering such skills at a young age can lead to something extraordinary, inspiring others to push beyond their limits and embrace growth in finance.

Takeaways

• 😀 The mentee began trading at age 15 with guidance from a family friend, starting with a $3,000 account funded by his dad.
• 😀 His initial trades, including an iron condor on Meta, resulted in losses, highlighting the challenges of early trading.
• 😀 Despite setbacks, he demonstrated determination by taking responsibility and learning from his mistakes.
• 😀 His dad encouraged learning and discipline over profit, emphasizing the educational value of trading.
• 😀 To continue trading, he got a job at a local pizzeria, saving earnings to reinvest into his trading account.
• 😀 Over time, he improved his trading strategy, becoming more mechanical and focusing on credit spreads and well-known tech stocks.
• 😀 By steadily reinvesting his savings and profits, he grew his account to approximately $10,000, achieving a 25% return over the year.
• 😀 The mentee developed critical skills including risk assessment, quick decision-making, and mathematical analysis applicable to trading.
• 😀 His friends viewed his trading as risky or gambling, but he remained committed and independent in his approach.
• 😀 The mentor highlighted that his combination of risk-taking and decision-making ability is rare for someone his age and foundational for future success.
• 😀 The mentee aspires to study medicine, potentially combining his analytical skills with a career in anesthesiology.
• 😀 Early exposure, mentorship, and persistence in trading can significantly accelerate learning and skill development, even in high school.

Q & A

At what age did the student start trading, and what motivated him?

He started trading at age 15, motivated by a family friend who was a successful trader and encouraged him to get involved.

How did his father initially support his trading endeavors?

His father provided $3,000 to start trading, emphasizing learning and experience over making money, and monitored his progress without directly intervening.

What was the outcome of his first trade?

His first trade was an iron condor on Meta earnings, which ended as a full loss, marking an early challenge in his trading journey.

How did he replenish his trading account after initial losses?

He got a part-time job at a local pizzeria, earned around $11–12 per hour, saved his earnings, and used that money to fund his account again.

What strategies does he currently use for trading?

He primarily trades credit spreads, including vertical spreads, iron condors, and bull puts, focusing on liquid tech stocks and occasionally indexes.

How much has his account grown over the past year, and what is his return?

His trading account grew to around $10,000, including deposits, achieving an approximate 25% return over the past year.

What skills has he developed through trading that distinguish him from his peers?

He has developed quick decision-making, effective risk assessment, strategic thinking, and the ability to act on probabilities, which are rare skills for a high school student.

How did he change his approach after initially losing his account?

He became more mechanical and disciplined, applying structured strategies and focusing on logical trading rather than panicking or doubling down on losing trades.

What personal qualities contribute to his success in trading?

His competitiveness, discipline, persistence, strong quantitative skills, and willingness to learn from mistakes all contribute to his trading success.

What are his future academic and career plans?

He plans to study medicine in college, aiming to become an anesthesiologist, while continuing to trade and develop his financial skills.

How has his trading journey influenced his peers?

Initially, his peers thought trading was like gambling, but after seeing his progress, some are now asking him how to get involved, showing that he has inspired interest in trading.

What lesson did he learn from blowing up his first account?

He learned the importance of risk management, discipline, and patience, realizing that trading requires strategy and controlled decision-making rather than impulsive moves.