ROBINHOOD APP: 7 Months Into My Trading Journey

(Have you tried stock trading?  What trading company are you using?  How is your journey going?)

I will start from the beginning.  I watch a lot of YouTube videos and how to trade stocks is one of the topics I am interested in.  I found out about the Robinhood App and it is a game changer for me.  I did not have much money to devote to trading and with the Robinhood App I do not pay a fee for trading.  Most trading companies charge $4-10 per trade.  To trade I would be required to pay when I buy a stock and again when I sell.  So, even if I found one that only has me paying $4, then I would need to make over $8 to bring home any profit.

My bankroll would have been gone long time ago if I went the regular route.  When I started Robinhood I had $100 to invest.  This may not seem like much in the market place and it isn’t.  Though there are many stocks between $5 – 15, that I have been able to buy and sell.

Here is the update of how I have been doing with my trading stock adventure.  I know several people have been waiting for this update.  I am finally ready to share my journey.

I was so proud of myself because my first few trades were awesome.  My first trade I made a 32 cent profit.  The second trade I made a $2.25 profit.  And my third trade I made 30 cents.  Then it started going downhill.  I would get into a stock too late and then when it was going down I would hold on too long.  Though as soon as I jumped out it seemed like the stock was saying, ‘Yeah, Diane just jumped out… now I will go up in value. ’   Yes, I would make some money off and on, though my portfolio kept going down.

The markets going down didn’t help either.  But even with the market going down some of the stocks I was watching would go up.  Jumping into a stock at the right moment is challenging.  My timing wasn’t great.  I would keep catching the stock near the top of the run and then lose money as it came back down.

Here is my total.  I started with $100 in Robinhood.   As of 7 months into my stock trading adventure I am down $34 dollars.  This may not seem like much but I pretend that $1 is $100.  That way when I am trading every penny is worth my attention.  If this value was true I would be down $3,400.  That sounds a lot more painful.

20181115_134629 Look at the pretty bump at the beginning.  From then on… not so pretty.

Even though my first 7 months is not profitable I am really glad I have started trading.  I  wanted to start trading stocks about 20 years ago.  Because of what I have learned from YouTube videos and the Robinhood app being invented, this was the right time for me to dip my toe on and see if I would like trading as much as I thought I would.
Practicing with this $100 is giving me a thicker skin.  It is helping me to not just buy a stock because it is going up.  It is helping me slow down to look at the pattern of the stock.  I will look into news of the stock if I see it drop suddenly.  Even though I know this how to do this I am still not good at predicting the stock movement.

For a while I thought the company’s quarterly earnings were a sure fire way to know which way a stock price was going to head.  I was wrong and I don’t understand why, yet.  I have seen and invested in companies that exceeded their earnings forecast and had the stock fall.

There are reasons I am not doing as well as I thought I would do.  Here are some of the things I have done which haven’t helped me be successful.

•  I am not able (or I chose not to) to be awake or at home to watch the markets in the morning.  A lot of movements happen in the morning.  Or some patterns are set up in the morning that I could take advantage of later in the day.  My jobs hinder my watching the market opening because one job I can work till 1 in the morning.  Another job I need to be out of the house at 7:30am on some mornings.  And when they are back to back I am super tired and getting more sleep is more important than checking the stock market.  (That is not the right thinking, but my reality.)

•  On top of that I am not watching the market very close.  I really planned on it when I first started.  My vision for my future is me not having to go to a brick and mortar for work.  Instead I would wake up early with a cup of coffee and do my stock trading for 2-3 hours in the morning, then have the rest of the day to follow my dreams.  (I may be watching too many videos that promise easy results.)   I could be watching closer though my work schedule, being tired, and I having other projects that take my time away makes it harder.  Especially since the stock market closes at 1pm my time.   (I have started long term investing though.  I will share that story in another blog. )

•  I am staying in the stocks too long.  When I am unwilling to sell the stock then my money is locked into that stock.   I seem to do this a lot because I don’t want to sell at a loss and hope to wait till the value comes back up.  A few times I have wanted to buy another stock, but didn’t have enough cash in my account to do it.  All my money was in stocks that I am holding onto.  So when I see favorable movement I can’t jump on it.

•  When I don’t want to take a loss I would hang onto a stock to long.  But then still sell it later for a lower price when I couldn’t stand to be in it anymore.  All the books I read and people I listen to say to ‘Always have a stop-loss limit!.’  I still don’t like the idea of having a stop loss, though I guess this is a lesson I really need to learn the hard way.  I do understand the concept a lot better now that I keep losing money.

•  I started listening to other people’s opinion about stocks more often.  Instead of checking out the stock myself.  I would jump on what others are doing.  I heard somewhere that this is what is called ‘being a sheep’.  Just kind of following the herd around.

•  I have about 10 stocks that I trade.  They are not the best, but they were my first.  I think I have only stopped watching one because it was really bad.  My view is very narrow.  I need to learn how to find more variety and stronger stocks to trade.  Having so few… many days I just don’t do anything because the few stocks I have are not making moves that I want to jump into.

•  Making sure I don’t accidently day trade.  If you have less than $25,000 in your account you cannot be a ‘day trader’ .  You can do 3 day trades within a 5 day period though anymore and it is illegal.  There have been times that I couldn’t sell a stock because I would go over my day trade limit.  So, I was forced to sell later at less of a profit or even a loss.  I feel like I really like day trading.  Just hop In and out of a stock and not wait days or weeks to sell the stock.  Though without enough money I need to worry about going over my day trading limit.   Luckily, Robinhood tries to watch my back.  It has stopped me from putting in a sell request if they feel it may sell the same day and put me over my day trade limit.  I really like this feature, but don’t know if it is foolproof.  So, I really try to keep my eyes on how many day trades I have done.

•  I went into the trading stocks thinking trading was going to be easy.  I underestimated how challenging it could be. I read a few books and figured that I could easily do it.  I like the fact that I thought that way.  It is kind of like a child who doesn’t have fear since they don’t know all the facts and the consequences that could happen.  Because of this I jumped in and have learned a lot.

I still have hope that I will become a better trader, though at this point I have different things on the burner that I am trying to spend my time doing.  I will give you an update and of course I want to get my portfolio up again.  I am slowly working at it.

Just recently I was watching someone on YouTube and they said you are a newbie if you have less than 3 years in the market.  I believe it takes a while to find your rhythm and emotional stability.  I also think you need to learn what kind of trader you want to be.  Is the fast day trading your style or is investing long-term more your temperament?

Good luck to you on your journey and send good thoughts my way when you get the chance.  If you do want to try the Robinhood App I left my link down below.  There are now more free trading apps out there, though this is the only one I have tried so far.

https://share.robinhood.com/dianez7

By signing up through this link you get a free stock.  They mention big company stocks, though I heard someone got a $4 stock for free.  I believe I get a free stock also.   Good luck.

Have you tried stock trading?  What company are you using?  How is your journey going?

Cryptocurrency -Bitcoin – Coinbase

(Have you dabbled in cryptocurrencies yet or thinking about it?)

Here is my story so far.
I started buying Bitcoin the end of 2017 right before the downward falling of the price.  It would go up and tease, but then fall again.  You have to be careful what YouTube channels and news articles you get your information from.  I kept hearing ‘Bitcoin is going to hit a million… keep investing.”  Luckily, I don’t like to lose money and I don’t put in more money than I can safely lose.

When Bitcoin was heading down then I started hearing, “buy it when everyone else is selling.”  So when it goes down I would buy a little, and I mean a little. One thing about cryptocurrencies is that if I want to buy $3 of Bitcoin I can. For $3 I will only get a small portion of a Bitcoin, may be about 0.0001.  Though I will own 0.0001 of a Bitcoin.
I was so excited that I started buying small amounts weekly.  I still hardly own anything and if it did get to 1 million dollars per coin and I sold all my Bitcoin , I would only have about $2,000 dollars.  Which is way more than I put in, but I would not be rich.  Like I said I only put in what I can afford to lose and I don’t have much.

Now saying that, I did get burned.  I bought a stake in Bitconnect.  Bitconnect was a lending platform with promises of great returns.  I found out later that there were people talking about Bitconnect being a Ponzie scam.  If I had heard that part of the news before I put my money in I would have never invested.  I got caught with my money in there when the program shut its doors and I lost about $100.  It hurt, though it did not destroy me.  I heard of people losing their life savings because they thought it was a sure thing.  There are other lending platforms out there now, but I have been burnt and don’t plan to go down that road again anytime soon.

I consider the money I put into crypto as a kind of savings account.  It may not make much, though anything it makes is a bonus.  There is also a chance I could lose it.  I have to know what kind of risk level I am comfortable with.

If you are interested in dabbling in Crypto and want to start small, you can use Coinbase. Coinbase only sells 4 types of Crypto at this time.  There is hundreds of cryptocurrencies out there and Coinbase’s crypto is usually in the top 10.  The interface of this site is pretty straight forward.  If you decide you want to use Coinbase they have a bonus for the both of us if you use my link.  You and I will get $10 in bitcoin once you have invested $100.  You can do this amount all at once or just a little money at a time till you reach $100.

ONLY DO THIS IF YOU INVESTIGATE CRYTOCURRIENCIES FIRST AND ONLY INVEST THE MONEY YOU DO NOT CARE IF YOU LOSE.  This idea of cryptocurrencies could take off or tank.  And if it does take off it could take another 10 years.  I am looking at this as a long term place where I am keeping my money.  We will see how this story turns out years from now.
If you want to try it out through my link, here it is……. Good luck!

https://www.coinbase.com/join/5a2da51ea4b85d0226c4f892
(you may need to copy and paste)

Have you dabbled in cryptocurrencies yet or thinking about it?

Stock Trading: My Very First Trade

(Have you been wanting to trade stocks or have already started?  Have any stories to trade with me?)

I have been wanting to learn how to trade stocks for decades.  I have not had enough money to put toward this endeavor.  Things have changed a little.  I still don’t have much money to put toward trading, but instead I have found a way where it will cost me less to trade.

On April 23, 2018 I bought my first stock.  I did this impulsively and just because someone online said it was a good stock.  I have read several books about how to trade.  Don’t just follow tips, don’t be pushed because of time to get into or out of a trade, and don’t let your emotions decide what you will do.  I know this…. every book goes over these rules.  Though when it is real money I seemed to stop thinking clearly.  I jumped into this without really checking it out.  (I plan to make a lot of newbie mistakes.)

I bought this stock and it started to go down. NOOOOO!

When I was reading about trading I decided that Swing Trading (holding it at least overnight) would be more my style verses Day Trading (buying and selling the same day).  Now that I made my first trade, it is really hard going to sleep knowing I am down money.  I trust the system (mostly).  Historically stocks eventually go up unless something bad happens to the company.

So, I was going to wait till it went up and then sell it as soon as I was able to get a profit. It went up over my buying price twice, but I was at work and not looking at the market.  If I was able to catch one of those my profit would have been higher.  About 4x higher than what I ended up with.

I know you are waiting for me to tell you the result.  On the third day I sold for a profit of 30 cents.  You may not think that is impressive, but I was thinking WOOHOO!

I jumped in and did something out of my comfort zone.  A topic I only knew a little about and had never tried.  I ended up with a profit and not a loss.  In my book, that makes me A WINNER!

Have you been wanting to trade stocks or have already started?  Have any stories to trade with me?

[When I am writing a blog I will write it then walk away for a couple of hours or a day, then come back and reread it.  I usually find several mistakes that I didn’t notice at my first sitting.  Rereading this question at the end I didn’t realize I had made a pun. ….stories to TRADE with me…. LOL ]