The $10,000 Robinhood Stock Trading Challenge

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

  1. lumpking69

    lumpking69 New Member

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    Has Robinhood been updated since your hiatus? Is anything missing from the app that you wish was available?
  2. rob

    rob Administrator Staff Member

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    That's a good question. Yes... the app was definitely updated but I'm not 100% sure exactly everything that has changed.

    My main complaint is that the app seems optimized for the iPhone and I'm using an iPad so everything is a bit big and spaced out- I feel like the space could perhaps be better utilized. There also isn't a landscape view - only a portrait view - so I'd like to see improvements there. However, I can understand that they want to focus on the fundamental features of the app first.

    The app organizes your home screen like this:
    • Chart of your whole portfolio
    • Rows of ticker information for stocks you own
    • Rows of ticker information for stocks you recently looked up
    I'd like a more formal and structured way of separating these areas. This feels a bit too freeformed for me. There should at least be a way to star/pin certain stocks and sort/filter.

    They have added date range filters to show the growth of your portfolio over the course of the day, month, 3 months, 6 months, year, and all... that's great visual candy. When you tap on an individual stock, you get this same type of view with the same date sorting options. However some of the important details/information on your individual positions displays in a horizontal scroll when there is PLENTY of space to show that info vertically. Again... poor use of space in my opinion. They have, however, added a bunch of stats for each stock such as open, high, low, volume, P/E and the like.

    They've also added some important reporting documentation for taxes and account history which are helpful.

    The app is currently EXTREMELY lightweight and some of the best features I wish they had - more advanced reporting, breaking news, stock opportunity/discovery features - would also jeopardize this enjoyable lightweight nature. There are other sites and apps you can use for the heavy lifting and just use Robinhood to quickly and freely make the trades. When used that way... it's hard to ask for more features because RH operates just as its supposed to.

    If you're wondering if RH has specific features I'm happy to check.
  3. lumpking69

    lumpking69 New Member

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    I just wish they supported Android. I was finally able to get an invite from them, started to give them all my info and then my heart sank when I learned it was iOS only atm. So now I get to wait some more! haha

    Thanks for the info, love the updates and I look forward to more of them!
  4. rob

    rob Administrator Staff Member

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    I actually bought the iPad Mini just so I could use Robinhood LOL... I told myself I would pay for it with my profit!
  5. lumpking69

    lumpking69 New Member

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    Its so funny you mention that. Ive been trying sooo hard to convince myself that buying an iPad or iPhone to use an app is NOT a good idea! lol But I keep thinking about it. I might just break. sigh
  6. rob

    rob Administrator Staff Member

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    Well that sucked... Under Armour reported amazing earnings and two incredible tech acquisitions yet stumbled after earnings were announced. Keurig posted a bad quarter all around, largely due to the Keurig 2 recall, and the stock was crushed after hours.

    I believe in Under Armour long term so will hold onto that for a bit and I don't think Keurig will stay down for long. I'm likely to hold these positions longer than some others that I might get in and out of... for example, today's purchase. But first things first.

    Sold today:
    • Sold 12 shares of SBUX at $89.46
    • Sold 300 shares of ZNGA at $2.67
    I took a big loss on ZNGA but that purchase was a mistake. It was an in-and-out buy that got left in when I went MIA for 3 months. The stock was up several percent on the day which I saw as a good opportunity to minimize my losses.

    Starbucks has been on a great run lately and I made $150+ on the position. I was happy to cash out while I was ahead and reinvest in some other opportunities. I also decided to institute a new feature of the $10,000 Robinhood Stock Trading Challenge called "Stocks Left Behind".

    Rather than selling my entire position in a stock, if I've made a substantial profit from a specific stock, I may decide to leave some of the profits behind and let them continue accumulating revenue on their own. Once I leave a stock behind it gets tucked away in my vault and I wont trade it again. It stays in long-term savings.

    Important note: this is only possible because of Robinhood's $0 transactions and with the very small dollar amount in my Robinhood account it will likely have very little impact. However... I think it's a fun idea and practice.

    Bought today:

    During earnings seasons, and actually throughout the year, one particular focus is on companies that experience HUGE drops in stock volume that immediately become buying opportunities. Often times investors overreact and the stock price can quickly rebound. Other times it's a bad report from a great company and you can expect the value to recover over time. Either way... big drops in stock price often present great buying opportunities.

    That's why I jumped on Ralph Lauren (RL) today. The stock was at $170, fell of an absolute cliff after disappointing earnings, and I was able to pick it up at a 20% discount:
    • 5 shares of RL at $138.09
    It's already rebounded to $142 and I expect it to cover more of its losses over time. I'd like to leave a share behind here, but since I had very little buying power, I only bought 5 shares. That means even if the stock returns to its $170 valuation, I won't be able to afford one share (5 shares at $30 profit would be $150 in profits).

    Let's calculate where the stock would need to reach just for fun:
    Profit per stock, multiplied by 5 shares, = price I can exit with one left behind
    5(X - $140) = X
    5X - $700 = X
    4X - $700 = 0
    4X = 700
    X = 700/4
    X= 175​

    So if the stock reaches $175, I'll have a profit of $35 per share under my belt, and since $35 x 5 = $175 exactly, I'd be able to leave a share behind.

    That'd be wonderful... but chances are I'll sell RL well before that.

    I have a feeling tomorrow is going to be a big day one way or the other... perhaps strong early on and then a huge sell off in the afternoon. That is a 100% guess, I just have a feeling.

    Current portfolio:
    • GOOG - 2 Shares
    • FB - 15 Shares
    • SBUX - 1 Shares
    • PNRA - 6 Shares
    • SNDK - 10 Shares
    • UA - 13 Shares
    • GMCR - 10 Shares
    • RL - 5 Shares
    • Cash: $3,743.98
    Total Value: $10,657.26
    Total Investment: $10,000
    Return on Investment: 6.57%

    Note: I only have $560.76 in buying power due to funds that haven't cleared... so let's hope for a big UP day tomorrow instead of a down day!
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  7. lumpking69

    lumpking69 New Member

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    Another great read. Sorry to hear about UA under performing, I really thought that was an easy win. I didn't see that coming.

    I'm curious, have you ever looked at Sirius XM (SIRI)? Its such a solid company but they cant seem to get out of the penny stocks.
  8. rob

    rob Administrator Staff Member

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    Today was a slow day for me...

    Sold today:
    • Nothing
    Bought today:
    • 11 Shares of YELP at $45.05
    With not much buying power I only made this one move and it's a short-term buy and sell and nothing more. I like Yelp as a website and service and think a 20%+ drop likely won't be sustained. However there is a lot of competition in this space and I don't want to hold this long. Hoping for a quick rebound and sell.

    I didn't make a lot of moves today, but I've got my eye on a few big stories:

    FB drops as TWTR surges. I have no clue why investors treat these stocks inversely. One of them performing well does NOT mean the other is more likely to fail. Twitter had a great earnings call and surged 16% while Facebook dropped 1.5%.

    Facebook should not be dropping and every decline is another buying opportunity. I'm long Facebook. Meanwhile, Twitter has proven it has some staying power. I still think they need reinvent themselves a bit around their strengths, but this was a promising day for stock holders. On my main portfolio, I hold a little TWTR which helped offset my dramatic loss due to an overweight position on FB.

    LNKD also jumped 10% today but I'm not a buyer. I don't personally use LinkedIn, I don't know enough about it, and I like to invest in companies I personally enjoy or believe in. I can appreciate the need for LinkedIn but I just don't see them as a $32 Billion dollar company... I much prefer buying Facebook.

    Pandora and GoPro are duds. If you're looking for momentum stocks you can get in and out on to make some quick money, I think there is some money to be made on P and GPRO, each dropping double digits. But even in these scenarios, I want to enter positions on stocks I mostly believe in for the long-haul, so if I get stuck in them, I don't feel like I'm inevitably losing all my money. P and GPRO aren't terrible companies, they're just:
    1. Incredibly overvalued and
    2. Don't have enough competitive advantage to rule out being completely overtaken
    Even after today's drop, GoPro has a P/E of $175 and is valued at over $6 Billion. At the end of the day, they sell cameras, and a company like Apple could quickly come and eat their lunch. Recent Apple patents show they may be planning to do exactly that. That being said, GoPro has built a ton of brand equity and I can see a company buying them out for similar reasons as to why Apple bought Beats. But until they reach $35 or $30... the valuation is just ridiculous. So even on a 20% decrease this stock still looks way too expensive for me.

    Pandora is no different, but in many ways, the outlook is even more bleek. Their product is in a transitional market where a few key content partnerships and technology improvements could render their service much less valuable/useful. They're valued at $3B but I don't see the company existing longer than 5 years. Even worse... they don't seem like a very good buyout candidates at these levels unless simply for the user base (Google could convert Pandora customers directly into Google Play Music customers).

    I'm still waiting on oil. The past two days of growth show signs of stability yet again, but last time USO hit $20 it couldn't hold and dropped to $18. I'll be watching that $20 level to see if it can hold this time around. If it can't... I may buy into the next drop, but my money is still tied up in FB and I don't want to give up that position at the moment...

    Got my eye on: Qualcomm, SanDisk, NVIDIA, AutoZone. The first two are solid performers that recently dropped significantly but should regain their positions. The second two are just solid and I think NVIDIA in particular could be poised for a huge year. I already own SanDisk at a much higher price in this portfolio, so won't be buying any more, but would certainly consider it in my TD account.

    AMZN & TSLA are like siamese twins. Compare their charts over the past year. I've seen Amazon and Tesla fluctuate in unison for so long but TSLA hasn't been so fortunate to get the same 20% boost in 2015 that AMZN got on earnings reports. I think that's largely because the lower oil prices negate some of the value of owning an electric car... but come on folks... isn't everyone expecting oil to go back up? And if so... can't we expect TSLA's fluctuations to follow Amazon's a little more closely once they do?

    I understand they are incredibly different businesses. I understand AMZN is actually profitable. But AMZN causes a lot of reason for concern, too. Tesla was up to $280 only a handful of months ago and I don't see any reason why that can't happen again. If I had a some more capital freed up, I'd be getting into Tesla at these levels for a longer term hold. And for this challenge, we'll see how things look on monday.

    Regarding SIRI. I used to really like both SIRI and GOGO as picks but have since laid off each after gaining some very small amounts. I think each have problems and challenges.

    Look at the "ALL" chart of SIRI. It's come a long way down since 2000 and done virtually nothing since. Regardless of what I think about the stock, I don't want to be in it for that reason. It doesn't really matter what I personally think if my opinion isn't justified over time with an increased stock price. Could you make a lot of money with SIRI? Maybe... but I'd rather put my capital to work elsewhere.

    SIRI's main challenge is that internet radio and mobile networks have greatly reduced their value. They have some great content partnerships but these could expire and talent/networks could sign elsewhere. I have a lifetime subscription to Sirius XM and love it... but the market clearly doesn't see a bright future so I'm staying far away from it.

    GOGO isn't much different. I love GOGO and use it on almost every flight. It's an absolute no brainer. But look at how AT&T announcing a competing service affected the stock: it plummeted. They've since pulled out of the market but the point is that GOGO isn't yet profitable and sis till vulnerable to competitive pressures.

    I think at $14 and below, GOGO might be worth the risk... it seems to test those low levels with other momentum stocks and continually fight back to $17 or more... but this is one of those risky investments that could have a dramatic swing one way or another based on news. Whether that means a lost contract, a new competitor, or a buyout/acquisition that propels it upwards. I toyed with the stock in 2014 but it was not an experience that was easy on the stomach.

    Current portfolio:
    • GOOG - 2 Shares
    • FB - 15 Shares
    • PNRA - 6 Shares
    • SNDK - 10 Shares
    • UA - 13 Shares
    • GMCR - 10 Shares
    • RL - 5 Shares
    • YELP - 11 Shares
    • Cash: $3,248.43
    Stocks left behind:
    • SBUX - 1 Shares
    Total Value: $10,671.50
    Total Investment: $10,000
    Return on Investment: 6.71%
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  9. lumpking69

    lumpking69 New Member

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    I think avoiding LinkedIn is smart. They really boggle my mind. I don't understand how they stay afloat and relevant. Its an "old internet" website that refuses to die/go away.

    I really like TSLA. But for the long game. I think when the Model 3 comes out in 2017 Tesla will go to the moon! I think we will see a much larger bumb than we did with the Model S.

    I like your insight on Amazon as well. Amazon has had a couple of clunkers recently and they seem to have weathered it just fine. AMZN is teflon coated!

    Love the updates, pal! Keep them coming!
  10. rob

    rob Administrator Staff Member

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    I was out of town on Monday and have been playing catchup since, with limited time to make any moves. However, I did make one buy (Tuesday), one sale (Wednesday), and will hopefully be back on track today.

    Bought (Tuesday):
    • 53 shares of USO at $18.91
    Oil dropped again and with some up and down at these levels and the market otherwise doing very well, I don't think it will stay beat down for much longer. This move makes a lot more sense if I was holding for at least 1 or 2 years, but I think there could be some short-term opportunity here as well.

    Sold (Wednesday):
    • 5 shares of PNRA at $178.72
    I like the general outlook on both Starbucks and Panera so I was really happy to see it jump over my minimum "stock left behind" limit. I had 6 shares and sold 5. Seemed like the right time.

    Stocks left behind = Stocks kept behind

    The original term sounds a bit negative... like "no child left behind" except the stock version. It sounds like you're just letting your money waste away. So I'm changing it to "Stocks kept behind" since it's a purposeful and strategic decision. It still seems a bit off... but I'm sticking with it.

    The market hasn't opened today (I'll make another post for these picks), but pre market stats are looking up. I'm likely to exit my position in YELP and take the quick cash and maybe get out of FB while I can... this pick has caused me a lot of heartache with it's ups and downs over the past 6 months when - in my opinion - it should have been going up the entire time.

    Current portfolio:
    • GOOG - 2 Shares
    • FB - 15 Shares
    • PNRA - 1 Shares
    • SNDK - 10 Shares
    • UA - 13 Shares
    • GMCR - 10 Shares
    • RL - 5 Shares
    • YELP - 11 Shares
    • USO - 53 Shares
    • Cash: $3,139.77
    Stocks left behind:
    • SBUX - 1 Share
    • PNRA - 1 Share
    Total Value: $10,748.93
    Total Investment: $10,000
    Return on Investment: 7.49%
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  11. lumpking69

    lumpking69 New Member

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    Keep them coming! I'm loving it!
  12. Andyrew

    Andyrew New Member

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    Very cool. Yeah I jumped on that app as soon as it came out.
    Thanks for all the info.
  13. rob

    rob Administrator Staff Member

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    Alright... honestly I can't stand to make trades daily. I've had more fun playing long ball and picking my spots. The day trading stuff is exhausting, time consuming, and it's too easy to get stuck for no good reason. Just jotting down some notes for my own reference in terms of my "watch" list.

    Here are some tickers I'm tracking:

    Plummeting Companies to catch at discounts (timing!)
    • FINL (Finish Line) - down 10% on the year while Foot Locker has crushed it. Starting to climb back up and should ride the athletic apparel wave with Under Armour
    • GMCR (Keurig) - selling at 50% discount from Nov 2014, bottom near?
    • SNDK (San Disk) - down 40% on the year and still falling
    • MU (Micron) - plummeting and P/E of only 7.37, down 40% YTD
    • WFM (Whole Foods) - lost all of year's gain, down 25% from 52-week highs
    • HSY (Hershey) - down 15% on the year, on a downward spiral from which it should recover
    • VIAB (Viacom) - down 23% on the year, P/E only 16, looks like it could bounce back
    • BBY (Best Buy) - up 20% on the year but down 13% YTD, will go up for holidays
    • PG - down 13% YTD
    • QCOM - down 18% on year, 12% YTD, solid and will grow over next 3 years
    • BABA (Alibaba) - Down 9% from IPO and 25% from highs
    Likeable Takeover Targets:
    • TRIP - down 15% on the year, but still a bit too pricey at 58 P/E
    • YELP - down 40% on the year, but still 140 P/E
    • GRPN - down 80% since Stock's inception in 2011, down 36% YTD
    • P (Pandora) - down 40% on year, valued at $4B
    • YHOO (Yahoo!) - Down 20% YTD, P/E only 5.7
    Solid Investments
    • AAPL (Apple) - hasn't revisited $133+ highs from February
    • NVDA (NVIDIA) - Love it long-term, looking for buying opportunity on a big dip
    • WMT (Walmart) - down 20% from last holiday's highs, back to 2012 levels
    • UPS - down 10% on the year, 3% YTD, not going anywhere but up in the long-haul $28 P/E
    • FDX (FedEx) - up 16% on year but even YTD, $48 P/E
    • KO (Coca-Cola) - down on the year, even over 3 years, not huge growth but could acquire growth brands
    • Pepsi in similar situation but I think I'd rather own KO
    • BRK.B - down 7% YTD but up 10% on the year, consistently solid growth
    • BRK.A - same as above, just less affordable
    • AZO (Auto Zone) - solid all around
    • SHW (Sherwin Williams) - solid all around
    Other
    • WATT (Energous) - add at $7 or below
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  14. lumpking69

    lumpking69 New Member

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    No pressure on the daily updates! Selfishly, I would love daily updates but I totally understand that it can turn into a grind. Maybe just play with it like you normally do and give us a condensed monthly/bi-monthly update?

    Hows Robinhood doing? Is it any better? Big updates?
  15. rob

    rob Administrator Staff Member

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    The revival!

    My Robin Hood account has been sitting idle for 2 years with 2 problems:
    1. I've been Unknowingly paying for Robinhood Gold which has leached all my profits
    2. Since February 2015 (last tracked trade), my account is LOWER.
    That's really, really terrible and can be blamed on the following tickers that got murdered in that time:
    • UA/UAA
    • RL
    • YELP
    • USO
    • TWTR
    • GPRO
    At some point a couple months ago, I liquidated a bunch of the losers and doubled down on some names that got crushed. I want to revisit my "STOCKS LEFT BEHIND" policy and see if I can build an army of untouchables that just sit in my account. Here is my account status right now:

    Current portfolio:
    • FB - 15 Shares
    • FIT - 15 Shares
    • GOOG - 2 Shares
    • GPRO - 200 Shares
    • KR - 30 Shares
    • RL - 5 Shares
    • TGT - 15 Shares
    • TWTR - 50 Shares
    • UAA - 13 Shares
    • UA - 13 Shares (from split)
    • USO - 53 Shares
    • WDC - 2 Shares
    • YELP - 11 Shares
    • Cash: $283.27
    Stocks left behind:
    • SBUX - 2 Shares (it split?)
    • PNRA - 1 Share (acquired)
    Total Value: $10,692.73
    Total Investment: $10,000
    Return on Investment: 6.92%

    My immediate strategy is to free up cash and "reset" my positions. I want to exit many of these positions, although it's tough, because I've ridden them down so far and an acquisition rumor tomorrow could send them flying high (GPRO, FIT, TWTR). But whatever... need to tighten the ship!

    Moves I made today:
    • FB - Up 90% with 15 shares so decided to bank 7 of them in my "Stocks left behind" list and free up the rest of the cash. I will get back into FB again, but I can find more value elsewhere I think right now.
    • RL - Just happy to get rid of this turd. Sold it all after dropping 50%+ of value.
    • USO - Also happy to dump after dropping 43% of value since I bought it. Never should have rid it so far down.
    • WDC - Got these from SanDisk shares and exiting
    • FIT - Only down 2% so taking my ball to a different court
    Moves I didn't make:
    • UAA/UA - I got killed on this but I think the bottom is in
    • FIT/TWTR/GPRO - All terrible stocks to own but very volatile, will hope for a bump to get out
    • GOOG - I'm up 50% but only have 2 shares so can't "bank" anything. I will sit on this until/unless I really need to the capital or the tides change.
    • TGT/KR - Retailers/Grocers getting killed but sitting tight for good news right now
    Now sitting on $2,553.96 in Cash so can afford to make a few moves tomorrow....
  16. rob

    rob Administrator Staff Member

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    Today, I'm dumping while I have the chance to bank some shares in my "Stocks left behind". I net about $110 so will get to leave 6 shares in the bank and cash in the rest.

    Current portfolio:
    • FIT - 15 Shares
    • GOOG - 2 Shares
    • GPRO - 200 Shares
    • KR - 30 Shares
    • TGT - 15 Shares
    • UAA - 13 Shares
    • UA - 13 Shares (from split)
    • YELP - 11 Shares
    • Cash: $2,698.75
    Stocks left behind:
    • TWTR - 6 Shares
    • FB - 7 Shares
    • SBUX - 2 Shares (it split?)
    • PNRA - 1 Share (acquired)
    Total Value: $11,255
    Total Investment: $10,000
    Return on Investment: 11.25%

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