The $10,000 Robinhood Stock Trading Challenge

Discussion in 'Stock Market Investing' started by rob, Aug 11, 2014.

  1. rob

    rob Administrator Staff Member

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    Stats updated Feb 5th, 2015
    Current portfolio:
    • GOOG - 2 Shares
    • FB - 15 Shares
    • FOSL - 10 Shares
    • SBUX - 13 Shares
    • PNRA - 6 Shares
    • UA - 14 Shares
    • GM - 3 Shares
    • ZNGA - 300 Shares
    • Cash: $3,281.47
    Total Value: $10,384.82
    Total Investment: $10,000
    Return on Investment: 3.84%
    S&P Over Same Time: 3.09%

    About the challenge:

    I recently gained access to a stock trading service called Robinhood which allows users to make free stock trades with $0 transaction fees. To take advantage of this benefit, I'm starting this "$10k Challenge" thread with the following premise:
    • I'll invest ~$1,000 in 10 different stocks
    • Each day, I'll sell my entire starting position of at least 1 stock (I may choose to let profits ride)
    • Each day, I'll reinvest those funds into another stock pick
    • Each day, I'll report here with an update on my picks and overall portfolio progress
    I'm hoping this will spark some interesting conversation about Robinhood, about my specific stock picks, general investment strategy, hot topics such as high frequency trading, etc... I'm making this public because I think it will be fun for people to follow along. Please don't take my updates as advice or suggestions: I'm not a professional investor and this is a learning experience for me.

    The vast majority of investing professionals would tell you to invest for the long haul and that timing the market and riding the ups and downs is a coin toss at best, unless you've got millions of dollars at your disposal. I agree and it's a strategy to which I largely subscribe. The $0 transaction fees offered by Robinhood do somewhat reduce the barriers that potential low volume day traders face, but I'm not suggesting it's a strategy you use yourself. Again, I'm doing this for fun.

    I may update this first post with more information depending on the interest/response... but here goes nothing.

    Updated August 21st
    Current Watch List (with notes):
    • Apple - buy under $100, sell on pops, $125 target
    • AT&T - down on the year, undervalued, $40 target (new iPhones!)
    • Carmax (KMX) - Good value
    • Facebook - $100 target
    • FedEx - great prospects but not as undervalued as UPS
    • Ford - returning to highs, less opportunity than GM but good hedge
    • Fossil - terrible year, should rebound to $110
    • GM - Incredibly undervalued, should start gaining steam Q4 2014 and jump 20% rather quickly
    • Google (GOOG) - $635 target
    • NVIDIA - buy under $18, sell over $19
    • Panera - $175 target, should rebound... maybe $190
    • Starbucks - even 2014, $90 target
    • T-Mobile - undervalued
    • Under Armour - will have another huge burst... underperforms in women's apparel and sports like Basketball which present huge opportunities for growth
    • UPS - Missed the boat at $95... get in below $100. Undervalued, poor year, poised for huge holidays.
    How low/high/low/high can they go?
    I don't love these stocks long-term, but they've either dropped so far so quickly or fluctuate so much that they present quick buying/selling opportunities, and I wouldn't mind holding on to them for a bit if I get "stuck" in them.
    • Amazon (AMZN) - $400+ 52 week high
    • GoGo (GOGO)
    • Netflix (NFLX)
    • Pandora
    • Potbelly (PBPB)
    • Tesla (TSLA)
    • Sprint (S)
    Last edited: Feb 5, 2015
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  2. rob

    rob Administrator Staff Member

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    Today I bought GOGO:
    • 65 shares @ $15.26/share - $991.90
    Since it's my first trade ever, I thought I'd give you guys a look:


    At one point in the day, GOGO dropped all the way to $14.10, but I wasn't able to pick it up until it made up more than a full dollar from that plunge. It still ended the day down 4.5% and I see a lot of value in this stock which has a strangehold on its industry and beat estimates in its earnings report. There is some data to suggest increased competition could pose a threat, but I think these competitors will have a hard time overcoming the many challenges GOGO has already surpassed.

    GOGO has seen a bunch of major swings, both up and down, seeing both $12 and $19 over the past 3 months. Sitting right in the middle at about $15.50, I see a lot of upside in this stock and am betting it revisits the $18 mark before too long. Once it does, I'll look to get out. Hopefully it heads back towards $19 and not towards $12.

    Note to self - consider these for my first 10 buys over the next week: Coach (COH), Fossil (FOSL), NVIDIA (NVDA), Google (GOOG), Yahoo! (YHOO), Verizon (VZ), Sherwin Williams (SHW), Ford (F), General Motors (GM), Starbucks (SBUX), McDonald's (MCD), Amazon (AMZN), General Electric (GE), Facebook (FB), Under Armour (UA), SanDisk (SNDK), Berkshire Hathaway (BRK.B), Panera (PNRA), Tesla (TSLA), Potbelly (PBPB), GoPro (GPRO), Qualcomm (QCOM), and some others.
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  3. rob

    rob Administrator Staff Member

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    Yesterday's GOGO pick didn't fare too well, dropping an additional 4.5% today, but I used it as an opportunity to double down:
    • Bought 65 GOGO shares at $14.51
    Some of my other favorite stocks saw minor declines as well, and I planned to pick a handful of new positions on the downturn, but only managed to snag Google before getting preoccupied on a conference call:
    • Bought 2 shares of GOOG at $561.49
    I had also hoped to potentially pick up some AAPL, FB, and UA, all of which I can see turning over in the short term for easy profits but wouldn't mind holding long-term as well. Riskier but in the same vein: PNRA, COH, and FOSL. And riskiest of all, I've got my eye on PBPB (Potbelly), if only because it's dropped soooo far since it's IPO, has only gone down, and I feel like the floor has to be somewhere nearby (could be a very dangerous assumption).

    I'll take a look at what's happening at market open and see where these picks are headed before jumping on anything, but will most certainly making a move tomorrow (as promised)!
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  4. rob

    rob Administrator Staff Member

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    I'm lucky I didn't grab FOSL yesterday as it's down 5% and with COH down 1% as well on poor retail news, I used it as an opportunity to snag both:
    • Bought 10 shares of FOSL at $97.00
    • Bought 30 shares of COH at $35.62
    I'm going to call it a day unless some big moves happen in the next few hours. I've still got half of the $10k to invest, and as promised, will be looking for a different opportunity every day.

    UPDATE: FOSL continued to drop and I tried to catch it again further in the dip (at around 3PM):
    • Bought 30 more shares of FOSL at $95.59
    I'm hoping it rebounds over the next two days and I'll look to unload 30 of those 40 shares sooner rather than later.

    Current portfolio:
    • GOGO - 130 Shares
    • GOOG - 2 Shares
    • FOSL - 40 Shares
    • COH - 30 Shares
    • Cash: $2,035.67
    Total Value*: $10,034.17
    Total Investment: $10,000
    Return on Investment: 0.34%
    Last edited: Aug 13, 2014
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  5. rob

    rob Administrator Staff Member

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    Initially I planned to buy 10 stocks at $1k each, but jumping into GOGO for $2K and FOSL for $4K threw that ratio off. Once the full $10k is invested, I'll look to even it up by spreading those funds across 10 picks.

    That'll likely happen tomorrow since today I invested the final $2k in cash from the $10k bucket.
    • Bought 13 shares of SBUX at $76.35
    • Bought 6 shares of PNRA at $147.71
    I had enough in my account to buy a 7th share of PNRA, but for some reason Robinhood wouldn't execute the trade, claiming there weren't enough funds in my account.

    Hmmm... fishy. The price went up about 20 cents in the meantime which amounts to about $1.20 lost: I'd gladly take that over a $10 trading fee any day, but would be curious to hear from Robinhood why it glitched. Instead of having $10 in cash I've got $156.86... maybe I'll toss it at an uber cheap stock (but not a penny stock!) and see what happens.

    Current portfolio:
    • GOGO - 130 Shares
    • GOOG - 2 Shares
    • FOSL - 40 Shares
    • COH - 30 Shares
    • SBUX - 13 Shares
    • PNRA - 6 Shares
    • Cash: $156.86
    Total Value*: $10,096.55
    Total Investment: $10,000
    Return on Investment: 0.96%
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  6. rob

    rob Administrator Staff Member

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    The market started dropped sharply this AM, but GOGO happened jump up 5% so I took the profits with hopes of immediately reinvesting them in long-term picks that are likely to bounce back along with the market come Monday.
    • Sold 130 shares of GOGO at $15.48
    Unfortunately, upon selling the stock, Robinhood alerted me that the funds wouldn't be available for 3 business days. With only $156.86 in cash in my Robinhood account, I'm unable to make any meaningful purchases on this down day for the market.

    This is worth noting for the remainder of the challenge as I'll have to limit myself to buying/selling a maximum of 2 or 3 positions per day to ensure I've always got the capital to make daily trades.

    But in the spirit of the challenge, I've used some of my $156.86 to invest in a super cheap stock:
    • Bought 50 shares of VRNG at $0.88
    Vringo lost 70% of its value on news of a lawsuit with AOL and Google being reversed. A huge blow that saw the stock drop from well above $2 to well below $1. I don't have any grandiose speculation about Vringo - it's a huge risk - but I only plopped down $50 and there is some potential. If initial reactions are overblown the stock could easily lift back up to $1 and if the case somehow gets reversed again it could just as easily regain that 70%... that being said I won't likely be an owner of the stock at that time.

    Current portfolio:
    • GOOG - 2 Shares
    • FOSL - 40 Shares
    • COH - 30 Shares
    • SBUX - 13 Shares
    • PNRA - 6 Shares
    • VRNG - 50 Shares
    • Cash: $2,125.19
    Total Value: $10,152.81
    Total Investment: $10,000
    Return on Investment: 1.53%
    Last edited: Aug 15, 2014
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  7. rob

    rob Administrator Staff Member

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    I only made one trade today:
    • Sold 50 shares of VRNG at $1.23
    On Friday, Vringo's stock plunged 70% as a pivotal court case was overturned against their favor. I snagged the stock at $0.88 and picked up a quick 40%+ return. However, I only invested $50 so walked away with less than $20 profit.

    A few quick takeaways from my VRNG trade:
    • Without Robinhood, this trade would have put me in the red
    • Had I access to more funds, I may have invested a lot more... a $10,000 investment would have yielded me $4,000 profit in the snap of a finger
    • To be fair, VRNG could have just as easily gone down and the huge increase was also a product of a huge up day for the entire market
    But it's an interesting situation that I see repeated often: huge news leads to a disproportionate shift in stock price as investors overreact. At some point, the overreaction is corrected and the stock price settles at a more reasonable place. It's hard to know where these peaks and valleys will be, but if you can find them, you can make a ton of money just by betting on the psychology of consumer oriented traders.

    One stock for which I constantly see the pendulum swinging: Pandora. If the stock drops under $24 again, which I think it's likely to do, I'm a buyer. Not because it's a great company that I think will have long-term success, but because I think it's likely to jump back up above $27 regardless of its long-term prospects. That $3 difference is a 12.5% increase that some traders are earning over, and over, and over with each cycle of Pandora's ups and downs.

    GOGO is another one of those companies and in my personal portfolio, I've got the pendulum completely wrong. I got in at $19 and then on news of AT&T launching a competing service it dropped to $12. Since then it's mainly stayed between $14 and $20 with huge fluctuation. I'd feel very safe buying again at sub-$15 levels with the assumption that it'd float back above $17.

    Of course, these micro-decisions are hugely effected by the macro economy, so we're all at the mercy of the bigger picture market movements.

    The funds from my previous sales still haven't cleared in Robinhood so I'm left with only $100 of buying power. On such a huge up day for the market I wasn't a motivated buyer in the first place, but I decided not to "reach" for the sake of the challenge rules and blow the measly $20 profit from VRNG. And that $20 might seem small, but if you're able to find those wins daily, the percentages compound.

    I'm really eager to see what the market does on Tuesday, but it looks like I may have to sit on the sidelines for another day if the funds don't clear. I'll make sure to manage the cash flow better in the future so I can fulfill my goal of buying and selling at least one stock per day.

    Current portfolio:
    • GOOG - 2 Shares
    • FOSL - 40 Shares
    • COH - 30 Shares
    • SBUX - 13 Shares
    • PNRA - 6 Shares
    • Cash: $2,186.67
    Total Value: $10,251.56
    Total Investment: $10,000
    Return on Investment: 2.51%
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  8. rob

    rob Administrator Staff Member

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    The $2k in funds still haven't cleared, so I only made one trade today:
    • Bought 19 shares of Sprint at $5.40
    I fully intended to sell 10 of my 40 FOSL shares to start regulating cash flow, but unfortunately, missed the market close by 1 minute:
    photo.PNG

    I'm not too disappointed since FOSL hit $99.26 earlier in the day and I would have been selling at $98.80. Not to mention, I think FOSL will pretty quickly return to $102. Nevertheless, I'll be selling at least $1k of my position tomorrow to stick with my self-imposed rules of the challenge (which I may break now and then).

    I bought Sprint mainly because it's dropped so much so quickly, I think the bottom has to be nearby. It's dropped 30% in the past month including 8% in the past week and 4% today. Definitely a risky pick, but with only $100 in cash, it was my most confident gamble.

    I would have liked to by T-Mobile USA instead (TMUS)... Sprint recently tried to purchase them but recently announced that attempt ended unsuccessfully, prompting a sharp decline in both stocks. Whereas I see Sprint as the Blackberry of Carriers (mostly bad news), I think T-Mobile could have a much brighter future. And to be honest, Sprint not acquiring them is GOOD news... they would have dragged TMO down in my opinion.

    The stock has dropped 15% in the past two weeks, which I think is unwarranted. Not to mention, I think the company is doing some really competitive things with pricing and is headed in the right direction.

    I've got a bunch of companies on my radar, but right now, TMUS, UPS, and AAPL are three I'm really wanting to snag. But only at the right price!

    Current portfolio:
    • GOOG - 2 Shares
    • FOSL - 40 Shares
    • COH - 30 Shares
    • SBUX - 13 Shares
    • PNRA - 6 Shares
    • S - 19 Shares
    • Cash: $2,084.07
    Total Value: $10,329.61
    Total Investment: $10,000
    Return on Investment: 3.29%
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  9. rob

    rob Administrator Staff Member

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    Unfortunately, Robinhood doesn't allow premarket or aftermarket trading. The $2k in unsettled funds cleared last night and I'm eyeing Lowe's (LOW) this morning. The stock surged 5% this week after Home Depot reported great earnings, but LOW is down 3%+ this morning as we anticipate new economic data at 2PM.

    I'll be buying a bunch of LOW shares in my TD Ameritrade account and will have to monitor the price for Robinhood once the market officially opens at 9:30AM. This would be a great pick for Robinhood because it's a buy I'd want to turnover quickly.

    I'm hoping to make a buy in the AM, see a pop from "status quo" news from the Fed, and then sell off $1k of FOSL to keep the cash flow consistent.

    Will keep this thread updated as today progresses (rather than making new posts).

    --------------------------------------------------------------------------------------------

    Well that sucked. I was on a call when the market opened and by the time I entered my order, LOW had already increased to $50.50 so I decided to sit it out. Now it's up to $51.18. Thankfully, I bought it at $49.95 in my TD Ameritrade account and will hold it until after the Fed reports at 2PM, making a quick decision to either sell immediately or hold until market close based on results.

    I should have placed a Limit order for LOW at $50 in Robinhood prior to the market opening... but I didn't want to risk it further dropping and paying a premium. I guess I learned my lesson. Hopefully, though, Robinhood will add extra hours trading in the future.

    Now I'm looking for some bargains before the fed reports at 2PM, but I can't seem to find anything I like. Instead, I think I'll wait it out, see how the market reacts, and act accordingly. If the market REALLY surges on news, I might look to sell more within the first hour with the idea that it'll settle back a little bit at market close, where I'll pick up the same stocks (or other picks) at slightly cheaper prices.

    --------------------------------------------------------------------------------------------

    When it was all said and done, I:
    • Sold 10 shares of FOSL at $99.29
    • Bought 33 shares of HTZ at $30.10
    Current portfolio:
    • GOOG - 2 Shares
    • FOSL - 30 Shares
    • COH - 30 Shares
    • SBUX - 13 Shares
    • PNRA - 6 Shares
    • S - 19 Shares
    • HTZ - 33 Shares
    • Cash: $2,083.63
    Total Value: $10,383.81
    Total Investment: $10,000
    Return on Investment: 3.83%
    Last edited: Aug 20, 2014
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  10. Jamie Y

    Jamie Y New Member

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    Keep an eye on (SCOK) I got in at 2.65 this morning and it closed at 3.02. My 100 shares netted me good returns. I wish I had jumped on it Monday when it was sub 2.00
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  11. Jamie Y

    Jamie Y New Member

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    Scratch my last statement. SCOK has dropped like a rock today. Guess I made a wise choice jumping out yesterday.
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  12. rob

    rob Administrator Staff Member

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    Today's moves:
    • Sold 10 shares of FOSL at $100.32
    • Sold 19 shares of S at $5.54
    • Bought 14 shares of UA at $69.22
    Pretty easy choice for me today. I took out another $1k of FOSL as it advanced and placed it into Under Armour on a day it was down 2%. I sold Sprint because I don't like the company and don't want it in my portfolio, earning a few bucks that will pay for a coffee.

    UA is up a huge percent this year, which may make some people nervous, but I see that number continuing to grow rapidly. They've shown an interest in challenging Nike for the basketball market, which currently makes up only 1% of their revenue, by trying to sign Kevin Durant to a $285Million endorsement deal. They've got huge growth potential in the women's segment and international market. Their going to absolutely CRUSH holiday retail figures.

    I'm anticipating UA is over $100 by the time it reports Q4 2014 earnings.

    Current portfolio:
    • GOOG - 2 Shares
    • FOSL - 30 Shares
    • COH - 30 Shares
    • SBUX - 13 Shares
    • PNRA - 6 Shares
    • HTZ - 33 Shares
    • UA - 14 Shares
    • Cash: $2,222.95
    Total Value: $10,380.83
    Total Investment: $10,000
    Return on Investment: 3.8%

    Not a good day for me... down .04% while the market was up a smidgin. I think tomorrow will be a big day, one way or another! If it's a big down day, I sincerely hope some of that $2k in unsettled funds clears as right now my buying power is only $121.69.
    Last edited: Aug 21, 2014
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  13. rob

    rob Administrator Staff Member

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    My trades today:
    • Sold 10 shares of FOSL at $101.83
    • Sold 30 shares of COH at $37.47
    • Bought 3 shares of GM at $34.27
    I got stuck without cash again, so my ability to make trades was limited. I now have $4k+ in total cash, all but $20 of which is in "unsettled funds". I'll continue to try and balance more evenly, but sometimes you've got to jump at opportunities when you see them.

    I took more profit from my Fossil bet which paid off and have finally decreased it to 10% of my portfolio. I got out of Coach completely but could have just as easily held on. I didn't want to get greedy, am unsure of the longer-term outlook, and will be happy to have that cash available to make future trades. But remember: if it weren't for Robinhood... cashing out would have killed the majority of my profit on that transaction.

    The market was down slightly as a whole today, but my Robinhood portfolio was up almost 1% thanks largely to Under Armour (up 2%). I picked it up on a dip because I love it's outlook for the remainder of the year, and together with Fossil and Coach, they pushed me forward. Now I'll look to replace my wins with FOSL and COH with other opportunities as they arise- it will be interesting to see if I would have fared better holding on to them.

    Since I've got $4k in cash ready to clear, I'm not pressed to sell any of my current holdings quickly, but the next to go will likely be Hertz, which will hopefully top $31 before I let it go.

    The market has a full weekend to think about Yellen's remarks at Jackson Hole today, so it'll be interesting to see market sentiments when it opens on Monday.

    Current portfolio:
    • GOOG - 2 Shares
    • FOSL - 10 Shares
    • SBUX - 13 Shares
    • PNRA - 6 Shares
    • HTZ - 33 Shares
    • UA - 14 Shares
    • GM - 3 Shares
    • Cash: $4,262.46
    Total Value: $10,472.40
    Total Investment: $10,000
    Return on Investment: 4.72%
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  14. Jamie Y

    Jamie Y New Member

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    I jumped on UA myself. I got in at 70.00. Like yourself I see it having alot of upside during the holiday season so I'm planning to ride my shares out till the new year.
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  15. rob

    rob Administrator Staff Member

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    Something I haven't really heard many people talk about: last year the weather was downright TERRIBLE the entire holiday season. It shouldn't be hard for retailers and brands who bank on the holiday season to beat the year over year figures if they've had any growth at all. As long as no major blizzards crush the US, I think we'll see stocks push pretty hard forward during earnings announcements, at which point I might pull some chips off the table and put them in safer places.

    I think online sales will surge yet again, so will be looking for opportunities to make money on this dynamic... buying Amazon is the cliche move but I'm scared of Amazon unless it takes a momentum dip/hit... I like plays on UPS and Fedex which seem logical.

    But yeah... I think Under Armour CRUSHES it this holiday season and I think Facebook makes absolute bank. Let's not forget their money comes in advertising and Q4 is where all that magic happens. Guess how many mobile ad dollars FB is going to gobble up?

    Both stocks hit triple digits by the end of January IMO
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  16. rob

    rob Administrator Staff Member

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    I made no purchases today... although I tried.

    $1k of my unsettled funds came in and on a busy personal day, didn't see any particular opportunities I liked. I tried to buy 333 shares of Zynga (ZNGA) near market close for a quick flip - the stock was down 2% and it fluctuates a lot - but my Market Order kept getting errors in Robinhood. It said I didn't have enough funds although the Cash in my account covered it.

    I'm assuming this is because for Market Orders, Robinhood requires you have a certain percentage MORE than the current market price in your account, so that if any fluctuations in price take place while the market order is going through you'll undoubtedly have enough cash to cover the order.

    Another lesson learned but I'm not really worried about it: will be good to get a steady cash flow back on my side which is the same reason I decided not to sell any positions today.

    I won't repaste the whole portfolio since it hasn't changed, but for those interested I was down .03% and closed at $10,469.57 balance. So basically, Robin Hood stole my coffee today. I wonder what poor caffeine needy person he gave it to?!
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  17. rob

    rob Administrator Staff Member

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    Missed yesterday so this is a two day update...

    I got LUCKY when I wasn't able to buy ZNGA on Monday. However, I got UNLUCKY when my market order - the one that didn't go through because the market was already closed - executed instead on Tuesday morning. Zynga has been down almost 5% since then, which to be honest, doesn't surprise me. I broke one of my principle rules: don't buy a stock that you wouldn't mind owning for the long-term. I don't really like or believe in Zynga in the long run.

    Meanwhile, Best Buy suddenly plummeted and I used it as an opportunity to get in while selling my position in Hertz after a small gain:
    • Bought 300 shares of ZNGA at $3.02
    • Bought 34 shares of BBY at $29.93
    • Sold 33 shares of HTZ at $30.39
    Today rolled around and I had a cool $2k in cash with which to work, but am trying to maintain healthy cash flow stuck with buying $1k and selling $1k:
    • Sold 17 shares of BBY at $31
    • Sold 17 shares of BBY at $31.33
    • Bought 15 shares of FB at $74.65
    I took BestBuy off the table with close to 5% but didn't want to miss out if it kept climbing, so sold half - waited a bit - and then sold the rest. I think Best Buy does indeed have some upside in Q4 but I'm not sure it will be realized until November/December. Just a hunch.

    Facebook was down 1.75%, probably a bunch to do with SnapChat's funding of $10B which could pose a threat to them, but I don't see this stock going anywhere but up over the next 4 months once earnings come in.

    Facebook and Under Armour are currently my two favorite stocks and each seem to be stuck at $75 and $70 respectively. They'll float above, then sink below, then float above, then sink below. For that reason, I'm going to look to cash in on those peaks and valleys. I'll buy when Facebook is below $75 and when Under Armour is below $70. I'll sell when Facebook is above $75 and when Under Armour is above $70. But I'll try to not be hasty, playing into the momentum if several days of gains seem to be in order.

    Even if these stocks suddenly lose 10% in a single day, I wouldn't be worried. I have faith in them for a long time to come. Sure, I'd be disappointed, but worried? Never. I can't say the same for my Zynga position.

    Current portfolio:
    • GOOG - 2 Shares
    • FB - 15 Shares
    • FOSL - 10 Shares
    • SBUX - 13 Shares
    • PNRA - 6 Shares
    • UA - 14 Shares
    • GM - 3 Shares
    • ZNGA - 300 Shares
    • Cash: $3,281.47
    Total Value: $10,429.14
    Total Investment: $10,000
    Return on Investment: 4.29%

    Just a few days ago I was doubling the S&P returns and now I'm only up a point. I'm hoping to get some pops before the week ends so I can go into labor day with a smile on my face!
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  18. rob

    rob Administrator Staff Member

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    Down day for the market and my positions got TAGGED.
    • Down .3% on Google
    • Down 1% on Facebook
    • Down 1.63% on Fossil
    • Down .13% on Starbucks
    • Down .23% on Panera
    • Down .59% on Under Armour
    • Down .07% on GM
    • Down .17% on ZNGA
    Normally I'd view that as a buying opportunity to jump on some stocks I like, which in this case would have meant throwing an additional $500 at UA and $500 at FB, but it was not in the cards. By the time I had a chance to check Robinhood today, it was past 4PM.

    I'm hoping the market starts down tomorrow- I'd love to pick up a bunch of positions in this short-run loss. I've got $1k in available cash with $2k still waiting to clear.

    It's a bit odd saying I hope UA and FB decline tomorrow, considering I own them, but I hope they do because I think those losses are extremely short term. They're going back above $70 and $75 respectively, and I'll pick up that margin, rinse, and repeat. Until they continue to rise beyond $100.. hopefully I'll be on that train too.

    But I'll be looking for other opportunities as well, for example my one day Best Buy flip, which it turns out has continued to rise. I'd love some more big wins like that.

    Current portfolio:
    • GOOG - 2 Shares
    • FB - 15 Shares
    • FOSL - 10 Shares
    • SBUX - 13 Shares
    • PNRA - 6 Shares
    • UA - 14 Shares
    • GM - 3 Shares
    • ZNGA - 300 Shares
    • Cash: $3,281.47
    Total Value: $10,384.82
    Total Investment: $10,000
    Return on Investment: 3.84%
    WILLIE likes this.
  19. rob

    rob Administrator Staff Member

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    I've been incredibly busy guys... missed a few huge opportunities that I timed PERFECTLY... especially some flipflops between positions in UA and AAPL which I had anticipated. Never got around to making those trades because life. With Robinhood sitting right there I really shouldn't have this problem!

    I'm going to get back on this starting Monday morning. Prepare thyself.
    WILLIE likes this.
  20. rob

    rob Administrator Staff Member

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    I'm back! After 3+ months of sitting idle, my account went from $10,382.82 to $10,674.02. That means:
    • I earned a 3.84% ROI during my first month of trading (see this post)
    • I earned 2.8% ROI while holding my portfolio idle (profit of $291 on $10,382 investment)
    The S&P performance over those two periods of times was:
    • 3.43% for the S&P (August 12th to August 29th)
    • 2% for the S&P (August 29th to February 4th)
    The results are unclear for several reasons. If you gave me credit for ROI per day, my trading period far outperformed my holding period. However, if you disregard time (which isn't really fair to me) then I made a greater return from letting my money sit. But I'm not letting my money sit idle any longer... at least not with Robin Hood.

    I'm continuing this challenge for 3 main reasons:
    • In my primary investment account (TD Ameritrade) I got stuck in a crappy position that I didn't want to sell, and was was unable to execute on some huge trades that would have paid off BEAUTIFULLY in the short-term. Most recent example: buying Walt Disney (DIS) at $92 and selling at $100 after earnings.
    • I see some value to separating myself into 2 mindsets of investing (via TD) and trading (via Robinhood) and I really enjoy the day-to-day trading and following all the developments.
    • Some people who enjoyed it request I continue (thanks guys!)
    Sold Today:
    • 10 shares of AAPL at $120.11
    • 3 shares of GM at $35.89
    Apple has enjoyed HUGE growth since 4th quarter after great performance stemming from their iPhone 6 and iPhone 6+. I still love Apple for the next year, especially considering their low P/E and the upcoming release of the Apple Watch, but I think in the immediate short-term these funds could be better spent elsewhere. Apple just hit a record high and I'm happy to walk with the profit to reinvest in the next opportunity (until further notice).

    GM had a 1-day pop of almost 6% coming from great earnings. With only 3 shares, I only walked away with about $5, but that'll pay for a couple coffees while I do some more research on what to buy next.

    Bought Today:
    • 10 shares of Keurig (GMCR) at $122.28
    • 13 shares of Under Armour (UA) at $73.73
    Today's big earnings announcements are Under Armour and Keurig. I'm thinking both of those will pop on great earnings announcements. They make amazing holiday gifts and I think they'll blow earnings out of the water. It might make sense to try and sell these after hours for a quick turn around, but I'd rather hold them to get a bit of a routine going- these are solid companies I don't mind owning.

    UA is a bit dangerous at these levels because the P/E of 85+ means investors are looking for a lot more than earnings and growth is already factored into the price. They're looking for rapid growth and key indicators that show strong expansion in new markets, beyond just "beating estimates". UA was up .5% on the day when I wanted to buy but raised to up 1.25% while writing this post.

    I really wanted to buy some Ralph Lauren which is down 17% on the day and 23% on the year. Sure, the stock deserved to get dinged, but a 20%+ decline in one month seems outrageous to me considering its history. It lost all its growth (and more) over the past year with a high of $187.50 in late December. I think there is a few percent begging to be skimmed from the top of this... but with only $1250 of buying power left, I want to make sure I can make at least 1 pick tomorrow and 1 pick Friday.

    Keurig (GMCR) is down more than 3% on the day and almost 8% on the year and I can see this stock gaining the 8% back rapidly. I got a Keurig for Christmas myself and with the Keurig 2.0 machine now available, I'm sure they helped bolster sales with people upgrading from Keurig 1.0 to Keurig 2.0.

    I'm tempted to buy oil related properties after a 6% drop today, but everything is too volatile for me right now, especially oil. The rally on oil has been 4 days straight and I don't feel like today is a good day to dip my feet back in. But I've got my eye on it.

    I would likely buy USO which is just an ETF that tracks the price of oil as a whole, but I've also got an eye on CBI which has gotten absolutely pummeled in the past month, year, and even past 5 years. So why buy it? For one, it's one of Berkshire Hathaway's key positions and if the oil industry rebounds, I could see this property outperforming the rebound in oil. It's a risky proposition, though.

    I love earnings season because of the huge potential gains when great news is announced. But it can also work AGAINST your favor, even when earnings are astoundingly positive (ex: Facebook). I earmarked Disney as a personal buy in my other account, but couldn't free up the capital because I was stuck in another position. I missed out on an 8% move up.

    Current portfolio:
    • GOOG - 2 Shares
    • FB - 15 Shares
    • FOSL - 10 Shares
    • SBUX - 13 Shares
    • PNRA - 6 Shares
    • SNDK - 10 Shares
    • ZNGA - 300 Shares
    • UA - 13 Shares
    • GMCR - 10 Shares
    • Cash: $2,559.92
    Total Value: $10,690.47
    Total Investment: $10,000
    Return on Investment: 6.9%

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