When I first started, I was impatient and made some rash decisions, but I was in the black immediately during a bull market, so that gave off a false sense of security.
I once messed with a penny stock; never again. Thankfully, I only put in $1000, but I lost about $750 of it.
I did some swing trading with the likes of IQ and HUYA. Thanks to the start of the trade war and the Chinese market eating dirt, whatever I made off of IQ initially turned into a short-term capital loss from what I lost in HUYA and a double-dip in IQ. Never again.
I did make a few good moves for long-term holds though; bought AMZN at $910/share, NVDA at $134, PYPL at $44, AAPL at $140, and a couple of others.
Medical, pharmaceuticals, and biotech are my playground industries, although I'm not particularly adventurous in these fields. I've bought and sold CELG for a small long-term capital loss, DXCM for a nice long-term capital gain thanks to their last earnings report which resulted in my personal best single holding one-day gain of 24%, LGND for a small short-term gain, and recently bought AMRN post-spike because there's still a ton of room for them to run.
The market took a beating in October and while I'm still in the black, my account lost about $15K of its value last month. I'm not looking to cash out anytime soon, but this fall season has been a good reality check. I've reshuffled my portfolio to be less tech-heavy in the past couple of months and have chosen more fundamentally sound companies that still have decent growth potential. Whereas my largest position was once MU (sold for 65% gain over 1.5 years although I was up as much as 130% in May), my second-largest position behind NVDA is now MA, and I'm also looking to increase my position in V. I intend to hold both MA and V for a very long time. To add to Trunk Monkey, I also like BA and they've been on my watch list for several months now. If I had to decide today, the next new first-time purchase I'd make would be JPM. As for my most stable holding, it's UNH.
I looked at every single stock you mentioned, and depending on when you bought, I can see that you made some coin overall. Tech is my area, but that's all going downhill right now due to the ongoing market correction. I'm at a loss as to who to invest in right now without taking any immediate losses. I'm just watching and waiting really to see what is out there at a price I think is decent to buy at.
My portfolio is now more in-line with what I want to do long-term, whereas when I first started, I was trying to make a quick buck because I've been unhappy with my salary at my job. I've got plans for that in the works, so it's time to scale back some of my most aggressive tendencies.
That's more or less where I'm at right now, and for me being in tech, I live too far out of the metropolis Los Angeles County and Orange County tech heavy areas for me to have good wages relative to the tech sector. I can
go work out in those areas, but my commute time would increase exponentially compared to where I'm at now. I've been there, done that, and I don't want to do it again. The position I was at before my current employer, I was commuting an average of 6hrs/day and don't want to do that again. I value my work-family life ratio and would rather take a hit on income than slowly die in traffic every day.
Basically, at the end of the day it comes down to the fact that, I make a decent living, but it's not where I should be at I feel. Yes, there are positions out there somewhat close to me where my personal income can increase, and I've been looking but I haven't had any bites. So this whole stock thing is an area where I can gain some extra income on the side to improve my current income levels. /vent
Also, I'm not screwing around with the likes of GE and F. Those stocks are legacy trash as far as I'm concerned. I'm not interested in companies that have been on the decline for many years and have no clear forward direction out of their current malaise. They're like anti-meme stocks. If you want household names for the long-term, try companies that aren't managed by complete idiots and have actually done something since 2008, like JNJ or PG.
Yesterday I sold all my GE stock for a 15% loss. I bought GE stock shortly after they announced a new CEO on the hopes that it would turn the company around, but those hopes would be on the long view, and as I've stated, I'm looking for near or short term results.
I'm still holding onto my shares of F and considering buying more because they're so cheap now. Overall, my shares of F are at a loss currently, but this one is for sure one I'd hold for the long view.
I'm not a financial planner so take this advice for what you paid for it.
I'll take free advice!
How much of your invested net worth (IRAs, Brokerage accts, 401K, bitcoin wallets, etc NOT including your home equity or other illiquid assets like your cars and comic collection) are you guys playing with on individual stocks?
I can honestly say, not enough. Yes, I have accounts, but I don't have enough.
Q: Specifically to the OP CDsDontBurn, how much does $3K represent? If it's any more than say 3-5%, I would highly recommend that you invest it in a more broader target.
I have to ask you to clarify. How much does $3K represent in terms of....? Single one time investment into stocks, annual wages, other investment accounts, etc.
- In my 20s, I tried betting on individual stocks and while I picked some winners (NVDA back in the day), I also picked some losers (bought CISCO @ $60/share). Timing when to get out of stocks was also something that I have yet to "master" (ex: buying Iridium, watching it double, and then failing to sell it before it came back down to my purchase price).
I wish I started in my 20s. I'd be flush with cash right now! LOL
So many companies I saw out there that I just knew they would be winners. Companies like Google, Amazon, PayPal, NVIDIA, AMD (sorta), Microsoft, etc. They were either all hot IPOs or established companies ready to balloon in value.
- I'm 99% sure that you are younger than me so I would encourage you to NOT repeat my mistakes and take advantage of the magic of compounding. Basically, what you need to do is create some kind of document (like a spreadsheet), that takes into account ALL of your investment accounts and shows how much $$$ is in each broad category (small cap, medium cap, large cap, international, bonds/REIT, and cash).
We've talked age before, and we've established that I'm 4.5yrs younger than you.
I know very well about compounding interest and how it works. It's just that I've never been able to take advantage of it to have it work for me until very recently.
- How much you keep in each category can be easily determined. I use a basic online calculator that takes into account my age, appetite for risk, how much income I need from investments ($0), and my outlook on the economy (its too hot) to determine the right asset mix. It's primitive but it works and you can see that the other calculators use very same background formulas.
- Obviously, your 401K options are more limited but the idea here is to then select funds OR ETFs which have low fees. Examples I use myself:
Small Cap: VXF (super low expenses - 0.08% but I count this as both a small and med cap), IWM,
Med Cap: VXF, SPMD
Large Cap: BRLIX
Bonds/REIT: VNQ, BND, NCATX (my favorite since it's a CA bond so it's tax free in CA+Federal)
Thanks for the tool! I've added it to my favorites!
Now, if you want to gamble on certain areas, like China (there are plenty of funds that index the chinese mkt) or Oil (ex: IYE), you can always find funds that will split your risk so you aren't just buying Alibaba or ZTE. Keep in mind that keeping your eggs in one basket can be problematic when govts start getting into trade disputes and your chosen basket gets called out (ex: ZTE a big telecom giant).
Betting on China right now, because of the current administration, I feel will be a mixed bag. Unfortunately for me, I don't know enough about the Chinese market to take strategic gambles in Chinese market. The trade disputes like you said are what will keep me away from Chinese markets unless there is something out there that just stands out.
- One way to avoid the stock balancing "work" is to just buy a fund of funds. Example FFFFX (Freedom 2040). These move you from equities to bonds over time. The catch is that you are essentially paying 2 fees, one for the management fund and one for the individual funds that the fund holds. IMO, this is only worth it if a) you put ALL your investments in a managed fund so you can just ignore it all or b) you have a specific chunk of cash that you want to invest for a specific term (ex: my kids 529 plan. Fun fact: TIAA CREFF @ Scholarshare.com has a 529 plan that does a passive fund that is age targeted. They don't seem to charge a fee for the fund allocation portion because its up to you to move from one tier to another (0-4, 5-8, 9-10, 11-12, 13-14, 15, 16, 17, 18). No work means no second mgmt fee. https://www.scholarshare529.com/rese...ge-based.shtml
I'll have to read / research more on these to make an informed decision on how these will impact my finances.
- Mike's suggestion is correct. Even if your investment shoots up by 5x, 5 x $3K isn't going to change your life and the slow and steady approach is a good one. In my experience, while I'm lucky enough to have a good job that allows me to grow my investments (principle) regularly, my spreadsheet shows a pretty linear growth pattern since I started tracking the combined assets of my wife+me (using excel you can input the assets vs time and ask it to see what equation fits the curve best).
Sure, a single $15k profit earnings isn't going to be life changing, but it will definitely suit my immediate needs further. I'm looking to pay down unwanted debt as quickly as possible and $15k will take care of 100% of that debt and have money left over.
Ideally, if I can score big on a couple stocks and get $30k in earnings, it would be exactly what I need in order to satisfy my needs (pay off unwanted debts) and wants (buy a truck w/significant down payment to keep monthly bill down and payoff quickly).