Author Topic: Can't help myself, I need to boast  (Read 198 times)

Offline Queensryche

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Can't help myself, I need to boast
« on: November 24, 2017, 08:21:32 PM »
I've been paying much more attention to the markets and I've also dabbled into investing. Besides mutual funds, I'm also investing in individual stocks. I've had temporary success (Community Health, which I bought low, more than doubled, and then dropped back down), poor choices (Chesapeake Energy, which has gone down, though not precipitously), and utter disasters (Teva Pharmaceuticals, which I bought at about $34 a share, and due to an utterly horrid quarter and dividend cut, is now sitting at around $13-$14 share). But I've had one overwhelming success and I cashed in on it partially today.

Earlier this year, I purchased 20 shares of Nintendo stock at $26/share. I bought it about a month before the Switch came out. I was looking at everything and I concluded that while it might not necessarily meet all the hype it was getting, that some of that hype was legitimate and that thus it was worth picking up some shares.

Then the Switch came out and Nintendo took off. It broke through its resistance levels big time, hitting $38/share, then getting up to $45 a share. For most of the past year, it's hovered around $40-$45/share. I held on, figuring that if Nintendo kept doing the right things and exceeding the hype like they did, it would break its resistance levels again.

A strong third quarter took it above $50/share, before it dropped back down two weeks ago. At that point, I acted. I put in a limit sell order on half my stake for $52, meaning that if the price at any point met or exceeded $52/share within the next 90 days, the order would execute at the point I set if it was met or exceeded. I figured that by hitting that point, I'd cash out half my stake, getting back my initial investment, and then playing with house money with the rest of my shares.

I checked the first price that came in today for Nintendo: $52.45/share. A minute later I got an email saying my order executed, 10 shares at $52.45/share.

Nintendo closed at $52.55 a share today, and my unsold shares are now at that price. But I got my money back and now can't lose any more than my initial investment.

As for what I'm gonna do with the money.............. I've wanted a Switch and some games. Now I can get them pretty easily. So in a sense, Nintendo essentially paid for my gaming. All in all, to quote Ice Cube, it was a good day. Nintendo's been pretty much the only thing keeping my portfolio in the green this year.

And lastly, I want to REALLY emphasize that the success I've had is not common. If a stock doubles in price, it's usually over the course of several years. Investing carries a LOT of risk. Investing in individual stock is basically like playing the lottery, only in this case, thanks to data, you're making educated guesses and hoping your analysis is correct, rather than picking blindly and hoping for utter pure luck. If you want to invest, you need to do homework to decide what stock makes sense and what stock is too speculative for your tastes. Also, starting with mutual funds might be a way to get in and mitigate risk.
A man once asked "Are Harry Winks and Eric Dier better than Jack Wilshere?"
The answer is "Well, yeah."

Offline Scotty

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Re: Can't help myself, I need to boast
« Reply #1 on: November 25, 2017, 08:26:35 AM »
Nice job!

I really appreciate your entire story (especially the last paragraph). Too many times we hear story of the good times and not the bad and people figure nothing can go wrong, or there’s very low risk and that’s just not true. Even mutual funds can be risky. I’ve got a health and science fund where I lost 10% in the first month, but up 25% over last three months. It can be quite a roller coaster in the short term.

If you’re buying individual stocks, make sure it’s with money you won’t miss if you lose it.

Offline Queensryche

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Re: Can't help myself, I need to boast
« Reply #2 on: November 26, 2017, 04:47:03 AM »
Nice job!

I really appreciate your entire story (especially the last paragraph). Too many times we hear story of the good times and not the bad and people figure nothing can go wrong, or there’s very low risk and that’s just not true. Even mutual funds can be risky. I’ve got a health and science fund where I lost 10% in the first month, but up 25% over last three months. It can be quite a roller coaster in the short term.

If you’re buying individual stocks, make sure it’s with money you won’t miss if you lose it.

All investment has risks, indeed. The risk with mutual funds however are mitigated by the fact that rather than pegging your hopes on one stock, you have a whole basket of them. Sector funds, like your health and science fund, are (for mutual funds) very risky because you're putting money on one market sector, and if it has a steady string of bad news or performance, can drop quickly, especially if it's something dealing with health care, energy, or the mining sectors. If you wanna see a really volatile fund, find a mining fund. Those have been very volatile for some time.
A man once asked "Are Harry Winks and Eric Dier better than Jack Wilshere?"
The answer is "Well, yeah."

Offline The Hurricane

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Re: Can't help myself, I need to boast
« Reply #3 on: November 26, 2017, 03:20:50 PM »
I've been investing myself swinging trades back and forth for some extra cash, and it's been working out pretty well. Still trying to get the hang of it, but it's getting better.
The Hurricane
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