At the ripe age of 11, Hagai Gat developed a keen interest in trading and he has been developing his obsession ever since. While completing a BA in Political Science and East Asian Studies at Telaviv University, Gat also studied trading and investments at Psagot College. For the past ten years, he has been actively trading stocks. Specializing in foreign exchange – a market that never sleeps and trades up to 4-trillion dollars a day, Bat’s expertise lies in the "psychology of trading." He has been living in Beijing for the past two years. Gat spoke to students at Beijing City International School about the discipline required for self-employment and the logistics of making money out of money.
Ines El Mabrouk, 9, Tunisia
How many stocks have you created?
I haven’t created any stocks, because I haven’t open my own company. I’m just trading stocks – trying to buy and sell them – and making a living out of it.
Ghanima Alsanad, 11, Kuwait
When you started, were you successful?
Basically, yes, but you have to trade and learn. And it’s a year or two before you start earning money. You will be successful if you have the patience and the discipline.
Shamus Alexandre, 10, Australia/New Zealand
What is selling?
You can earn money from buying stocks that go up and selling stocks that go down. If the stock goes down, you can sell it and you earn money for that.
Finn Lawton Todd, 10, UK
How do you know which company will grow?
I look at the chart to understand if a stock is going up or down. If I fail or succeed in my analysis, I immediately see that in my account balance.
Ryan Biack, 10, Cameroon
Why and when did people start trading stocks?
In the US, some of the stock markets started in the 1720s, but they first existed in the 1600s.
Sid Gupta, 10, India
Why is China the most successful stock market?
In the last 20 years, China has opened up in foreign trading. When you have a lot of opportunities, the right people and a government to support it, you get what we have today: China’s stock market has skyrocketed in the last five years.
Tianqi Yang, 10, China
Why do the shares go up and down?
Let’s take the US dollar as an example. Right now, the US is putting lots of US dollars into the market. If you have a lot of something, it’s cheaper. So, now we have a lot of dollars in the market and the dollar is going down.
Cassius Kua, 10, Singapore
How did the stock market start?
Before there was money, people traded commodities, like rice. Now, companies need money. Shareholders, people who own the stock of a certain company, give companies money for rights in the company, like voting for a new chairperson.
Erin Jensen, 10, UK
When there are two companies that sell the same thing, how do you know which one to buy?
I try to study what these two companies do, even if they sell the same product. Apple and Acer both sell computers. I try to see which company earns more money and according to that, I try to guess which one will have more money in the future.
Shamus Alexandre, 10, Australia/New Zealand
What is the risk of a company going bankrupt?
Every company has its own risks and you have to see it for yourself. Sometimes your analysis will be right; sometimes it will be wrong. There is no 100 percent success in the stock market.
Eric Unternahrer, 10, Switzerland
What happens if you don’t have a lot of money?
If I’m a company, I might raise the price of the products that I sell. As an individual, if I don’t have money, I would get a loan from a bank. I don’t have any way to sell a stock at a higher price; I don’t set its price.
Elie De Vismes, 10, France
Are you going to do this job for your whole life?
Yes. I love it and I encourage others to trade for themselves. Don’t let others manage your money.
