Well, two months have come and gone and I haven’t made a dime in my attempt at stock speculation. Cue the sad piano.
I’ve been participating in the Grow Your Dough Throwdown with some other bloggers. Read Part 1. This contest has us each investing in the assets of our choice (stocks, funds, gold, businesses, etc) and competing to see who has the best return at the end of the year.
I’ve decided to name my portfolio, the Signal Speculator (this is because I’m using market signals to pick a single stock each month). I trade my stocks using the broker Sharebuilder.
Out of the gate, I can report that my approach hasn’t lived up to the hype. Not only has my stock not performed well, but I haven’t stuck to my trading strategy. I was supposed to dump my stock, Adept Technology Inc (ADEP), after one month if it hadn’t reached a 35% gain. Allow me to explain the fullness of my failures.
How ADEP Performed (as of February 28th)
I purchased ADEP on January 1, 2014 for $16.96. Over the next two months, the stock peaked at $18.55 (2/10/2014) and steeped to a low of $15.02 (1/10/2014). It never reached my goal of $22.95, but it did reach my sell price of $15.20.
Price of the stock on February 28th: $16.84
That leaves me with a $0.12 or 0.7% loss. While I haven’t lost much money yet, the loss of opportunity pains me.
Of the returns I’ve seen so far, this puts me around the middle of the pack. Here are some of the other blogger performances (thanks to Rob, from Dough Roller, for compiling this):
- Robert Berger (Dough Roller) 7.60%
- Joe Saul-Sehy (Stacking Benjamins) 5.54%
- Miranda Marquit (Planting Money Seeds) 3.54%
- Julie Raines (Working to Live Differently) 1.36%
- LaTisha (Young Finances) 0.87%
- Robert Farrington (The College Investor) (0.05%)
- Me (0.7%)
- Larry Ludwig (Investor Junkie) (4.33%)
- Luke Landes (Consumerism Commentary) (14.13%)
What I’ve Learned So Far
If I’ve learned anything during this time, it’s that I don’t have time to care about active investing. I just have too much else going on to stop down and worry about trading a stock.
If I cared I would have sold my stock when I said I would, or at least sold it a week later when the price was up around $18.00. Further evidence that good ole, boring, passive, long-term investing is for me.
While I may not have the energy to stick to it, I still believe in the strategy (i.e. using the stock signals chart to pick rising stocks). So, as soon as ADEP hits $17.00 I’m selling (I can’t lose money – that’s the number one rule of investing, right?) and picking up a new stock from the signals chart.
I’ll also be placing notifications on my calendar at the end of each month to let me know when it’s time to dump the stock and pick another. I’ve got my eye on Hawaiian Holdings (HA).
Are you doing any active investing right now? What are your picks? What are your strategies?