Teenager turns £200 into £200k after learning how to trade stocks on YouTube

A teenager has turned £200 into more than £200,000 after learning how to trade stocks through YouTube.

Adam Mlamali, 19, has always had a head for economics after setting up a jewellery business online while studying for his A-levels, and since then has been working in London in a finance apprenticeship.

He used his spare time learning how to break down the stock market, understand trading tactics, and analyse the stock market by watching YouTube videos.

"What drove me towards the markets was hearing that, although I wouldn't do it if there wasn't the financial gain, it's more about being able to invest in causes that you like," he told the Mirror.

"The idea is money is power, but money is power because you can drive causes that you want to see driven.

"For me I was heavily interested in space really early on, only because I wanted to be an astronaut when I was younger. I was an early investor into Virgin Galactic, and Virgin Galactic was probably my best performing stock. I made over 100% at the end of it."

After a year Adam has turned his initial £200 investment into more than £200,000. He believes he could turn his stocks into a £1m portfolio over the next 10 years if he can repeat his current success.

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When the coronavirus pandemic hit he says he "went all in" and began investing heavily in stocks with newfound confidence, moving back in with his mum and brother to free up more money for investment.

The teenager says a few years ago his mum had gone into credit card debt just to get the family through Christmas, and he is determined to help her to show his appreciation for everything she has done.

Despite the huge return, Adam doesn't plan to withdraw his cash just yet. Instead he has his eyes set on the future and hopes to launch his own businesses and buy property.

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"Initially I surprised myself, even in the amount I was willing to invest and the time in which it's grown," he said.

"My mum at the start was like 'only risk what you can afford' so I didn't tell her about how much I was investing. She hadn't got a clue because she would have just been like 'why are you investing so much?'

"But I guess she's at the point now, after seeing me start my businesses, she has that trust. She's never really been like 'I'm going to have control over your finances and watch every single thing you're doing'.

Adam invests in companies he wants to see succeed, including clean energy companies, and tries to strike a balance in his portfolio between worthy causes and stocks that will bring financial gain.

But whichever companies he invests in, he says: "I need to have an interest in it, that's what's going to make me want to research it. If it drops then I know why, I can see if they still have longevity or not, or if the company has changed fundamentally."

His research goes as far to look at new positions a company is hiring for, and who gets those jobs, in a bid to predict their future strategy and releases.

And Adam says it's a level of detail anyone hoping to find long-term success in stock-trading will have to replicate – rather than those looking at online trends in the hope of stumbling on a get rich quick scheme.

"Investing in something because everyone else is doing it, that's just a complete gamble," he said.

"A lot of my friends message me like 'should I buy this, should I buy that?', and I say 'you're going about it completely the wrong way'.

"Know the company you're investing in and do the research before making the investment and that will make the investment 10 times worth it, because you know you can reapply the same kind of analysis, and you know you didn't rely on someone else. It was all you."

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