Mastering the Art of Investing: A Seasoned Investor's Wisdom for Financial Independence

Sherry Jiang, the founder of the personal finance platform Peek, has achieved financial independence in her 20s by making savvy investment decisions. However, her journey hasn't been without its fair share of lessons learned. In this article, Jiang shares the valuable advice she would give her younger self, highlighting the key mistakes she aims to help others avoid.

Unlocking the Pathway to Wealth: A Financially Independent Investor's Insights

Invest Early and Consistently

Jiang's financial journey began early on, as she started investing immediately after landing a job at Amazon upon graduating from college. While she had a solid understanding of finance, having taken relevant courses and even interning at Goldman Sachs, Jiang emphasizes that the key was developing the right investment habits."It's not just enough to follow the markets and know what's interesting," Jiang explains. "It's more important to think, 'Hey, I just got my paycheck this month.' Or, 'I just got my bonus this month. I need to invest that right away,' and never leave money on the table."Jiang's commitment to consistent investing, even in the early stages of her career, laid the foundation for her financial success. She underscores the importance of taking action and making investing a habit, rather than simply relying on intellectual knowledge.

Timing the Market: Lessons from Tesla

One of Jiang's most successful investments was her early purchase of Tesla shares in 2015. She describes it as a "10x in 10 years bet" that paid off handsomely, but she also acknowledges that she should have exited the position sooner."I think it was a great investment during the last 10 years, but it's facing competition from BYD; it's also facing competition from other players," Jiang says. "The profit margins are normalizing. It's not really a truly infinitely scalable software company. It's a car company at the end of the day."Jiang's experience with Tesla serves as a lesson in the importance of staying attuned to market dynamics and being willing to adjust one's investment strategy accordingly. She also cautions against the volatility associated with Tesla's CEO, Elon Musk, which she admits has been a source of anxiety.

Navigating the Crypto Landscape: Avoiding Emotional Traps

Jiang's foray into the cryptocurrency market has also been a learning experience. While she has made money in crypto, she acknowledges that she fell victim to some behavioral traps, particularly when it came to decentralized finance (DeFi) protocols."I lost in some of the more ponzi-like DeFi protocols," Jiang confesses. "In crypto, there are these crazy things you can invest in — they would tell you that you can make 70,000% yield, and some people did, but more likely than not you're going to lose all of your money."Jiang also admits to being swayed by the fear of missing out (FOMO), as her friends were actively discussing and investing in these high-yield opportunities. However, she has since learned to approach such investments with more caution and a clear strategy."Some people are like, 'I'm never going to get back into crypto. I'm burned from it.' I was like, actually, when the market is down, that's the best time to get back — with a proper strategy this time," Jiang says.Jiang's experiences in the crypto market serve as a reminder of the importance of emotional discipline and the need to approach investments with a clear, rational mindset, even in the face of tempting opportunities and peer pressure.By sharing her personal journey and the lessons she has learned, Sherry Jiang offers valuable insights to aspiring investors seeking to navigate the complex world of finance and achieve financial independence. Her story serves as a testament to the power of consistent, disciplined investing, coupled with the willingness to adapt and learn from one's mistakes.