Here’s the thing about the stock market.  Rarely can it be timed.  I may even go a step further and say that never can it be timed.  But I’m not an expert.  What I do know is that over time, the stock market seems to do pretty well.  Statistics say that it averages a gain of about 11%…over time.

There’s the key.  Over time.  And that’s exactly what we talked to Ryan about when he decided to plunk down about $250 of his own money for 5 shares of CMG back in September.  Unless you’re a professional and will spend your days scouring information about companies, trends, and P/E ratios, the best bet is to do your research, invest, and then forget about it for awhile.

So when CMG (Chipotle Mexican Grill) went up to $82 a share recently, and Ryan was visibly upset because he had missed an opportunity to put even more money in, we had to sit him down again and go over the if you’re going to invest in the stock market rules.

Ryan had been waiting for CMG to drop so that he could buy more shares.  His original investment of 5 shares cost him $47/share.  When he last looked it was around $73/share.  The market’s been so wacky lately that he figured it was bound to plummet again and then he’d go back in.

But that’s not what happened.  He was shocked and mad at himself that he had not put in the other $250 that he’d been holding on to.  Especially after I reminded him about two weeks ago that he shouldn’t try and time the market.  A lot of people think they can out-smart the market.  It does happen.  But mostly it doesn’t.  

It took a little bit to help him recover.  The stock market is such an emotional thing.  That’s why it can’t be timed.  And frankly, I’m glad he’s learning this lesson when he’s 14. 

He’s okay now.  He should be.  The value of his stock increased by 74% in a short period of time, for crying out loud!   At least, that was the case a few days ago.  He’s not interested in taking a peek.  Best let it sit for awhile.  He’s got lots of years ahead of him.  Even at $82/share, one day that’s going to be a bargain.