Welcome to the 2nd Instalment of Risky Business 🎉

If you missed #1 ‘the intro’ read it here

We are now 1 month into #RiskyBusiness & it’s been a rollercoaster 🎢

Recap: I began trading stocks on Freetrade in July. COVID-19 happened & my holding inevitably went down. 

After some smart trading in March, I was able to quickly recover any major loses. 

In April I sold out of all my stocks apart from Royal Mail (-22%) & Disney (-16%)

April 21st… Risky Business was born

Starting Balance: (£73.95)

So to kick things off, I bought a selection of stocks from my watchlist:

• 2x House Builders 🏡
• 2x Insurance 🔐
• x1 Cruise Company 🛥️
• x1 Recruitment Company 👯
• x1 Air Conditioning company 🥶
• x1 Food Company😋
• x1 Media Company📱
• x1 Oil Company🛢️

Immediately, I had spread my mulla to thin. I rectified this in week 2.

How did you research these stocks Reuben?

Well… most of it was on a hunch (don’t do this) but… for each stock I did make sure to look at the companies financials. I love Simply Wall Street for this.

Why use a watchlist?

It lets you keep an eye on how a stock is reacting to the market (volatility). Plus it gives you an idea when the stock is cheap or expensive. (aka When to buy)

I use the in-app Freetrade watchlist & Google Finance

Right, let get to the juicy part…

Performance Overview

Week 1: +£223.09

Inner thoughts: I’m a pro. This is easy. Come at me bro

Week 2: +£86.94

Inner thoughts: Ok ok. A little stressful but it’s just a bump

Week 3: -£229.00

Inner thoughts… 

POOFF💨 woke up one day & it was gone.

Week 4: +£340.19

Inner thoughts: We’re back baby! 

Yep, magically, after a very scary week 3, the markets moved in a big way putting us back in profit!🎉

Overall Review 

Ending May 22nd the account was up £266.19 🥳. We are now in the green but it wasn’t all plain sailing⛵

Week 3’s losses were stressy. I was confident it would rise again so I used cost-averaging on the way down.

This is when you buy more as a stock’s value is falling.

Example: I buy 100 shares for £1 each. The price drops to 50p. I then buy another 100 shares at 50p. I have 200 shares with an average cost of 75p per share.

This was a smart move but Week 3 shows how unpredictable stocks can be. If you are thinking about investing know that you will always lose money at some point. The best lesson I have learnt is this…

‘Anything you invest in stocks is already lost’

 

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