My First Shares – Hungarian Telekom (MATÁV)

Now I'm an investor, who is looking for long term investments, but when I started, I was trading actively. I used to learn more from my investing mistakes, than my successful trades, so I share my first trade on the stock market.

In May, 2000 I bought a few shares of the Hungarian Telekom company at a 2000 HUF per share. That time was almost the top of the tech bubble, but I didn't know it. As many other inexperienced investor, I entered into the market with terribble timing.

(Source: https://bet.hu/oldalak/ceg_adatlap/$security/MTELEKOM)

After my bought the price of the share went down, and I was waiting for a little correction to close the deal. I was really lucky, that I could sell them in a few month with 1% gain. Yes, I was lucky, because I bought it at a very high valuation.

Two investment lessons, that I learned:

• Never buy shares with high valuation.
  • The share was after a large price increase and the fundamentals didn't follow it.
• Most of the beginner investors starts investing when the market has a high valuation.
  • More and more new investor comes to the stock market, because of the low interest rates and the good yields of the past 8 years, while the markets have really high valuation.