November 2020: Investment Update

November 2020: Investment Update

My Investment Tracker – Overview

From time to time I will be posting updates on my trading accounts. My P&L, current holds, and what I am thinking about moving forward. I am still in the learning process and trying out different strategies hoping to really hone in on 2 to 3 strategies that I can master. I started my IRA with $2800 in December 2018, and my brokerage account with $3500 in early 2020. Not included in the numbers below are my BTC holdings and general savings.

Current Account Values

My IRA (US Dollars)

Brokerage Account

MONTHLY REVIEW

Below are the overall results from my past 60 days of trading. I did take a bit of a percentage hit, but still above 50%. Theme of the month seems to be slow down, as I have been doing more swing trades than day trades and trying to learn new strategies. In a few weeks my schedule will change and it will allow me to get back to the day trading strategy I had started with. Looking forward to that, but also enjoying the slower pace of the trades of late. 

 

60 Day Results - All Accounts

Regrets this month included a day trade I knew better than to try and enter, and selling ACB one day to early to rotate into GRWG. Which on it’s face doesn’t look bad, but ACB popped the follow morning, and had I held it, I could have potentially sold for up to a 300% gain. DOH! Anyway, moving on. You can’t have FOMO in this business.

Positives this month are that I was able to cut my losses quicker and starting to hold my winners longer. Although there are still one or two lingering holds in my portfolio from a few months back when I still hadn’t learned my lesson, but I am riding them out for now.

My speculative $RLFTF play is still in my portfolio – it is strictly a covid play. I am awaiting news on it’s stage III trials, and for it to get emergency use authorization (EUA) from the FDA. I did my own research and looked over the FDA website, and the drug sounds very promising. I may not mess around with penny stocks after this, but I think this has potential, even a pop up to the 3-5 dollar range and I would be extremely happy. I’ll keep you posted. Concerns…it’s a drug, and could fail, despite success thus far. Also, it has a huge float. That’s a bit concerning. However, the company in recent weeks has added to it’s management team, setup a distribution pipeline, been approved for stage III trials, and gotten a new fancy website. They seem to be setting up for something big in the coming weeks/months. I’ll keep everyone posted.

Biggest Gaining Trades (%)
$TPR: +9.13%
$TPR (bought in a 2nd time): +14.49%
$GE: +7.5%

Biggest Losing Trades (%)
$MIK: -7%
$UUU: -8%

BTC:

I haven’t calculated my gains, but needless to say I am up. I do own some BTC and I will be buying into it weekly as a very long term hold. 

Long terms holds: $TSLA, $NOBL
Short term holds: $PLUG
Speculative play: $RLFTF – my first venture into penny stocks. We’ll see how this goes.

Always do your own investment research. My website is not meant to be investment advice. It’s just a way for me to track and keep accountable as well as to share my knowledge and experience.

Investing Q&A of the Day: Float

Investing Q&A of the Day: Float

The Beginner Trader

What is a stock’s “float”?

A stock’s float refers to the amount of outstanding shares that are available for trade (buy/sell). To determine the amount of outstanding shares a company has, you can do a quick search on Yahoo Finance. THIS LINK will take you the Yahoo Finance “Statistics” page for the Coca Cola Company, stock symbol $KO. If you scroll down to the “Share Statistics” you will find the float. I have highlighted for you in the image below. 

 

Highlighting where to find a stock's float.

The “floating” stock is calculated by subtracting closely-held shares (insiders, major shareholders, employees) and restricted stock that may arise from an IPO.

Why does float matter?

Depending on your trading strategy, you will want to narrow your searching by float. In my day trading strategy I look for companies with less than 30-50 million shares. While that sounds like a lot of shares, that would be considered a low float stock. You can see in the example above that $KO has almost 4 billion shares of float, which is very high.

In my day trading strategy I am looking for stocks that are moving quickly in one direction or another. A stock with less shares will be more volatile than a stock with lots of shares. This is simply due to the dynamic of supply and demand. If a low share, low cost stock has good news in the morning, lots of traders will pour into that stock, and since there isn’t as many outstanding shares, the price of the stock will fluctuate wildy in the first hour of the morning. Riding that volatility is where you can make (or lose) money in a short amount of time. 

If you’re looking at a stock as more of a long term investment, float may not matter as much in your calculations. You would be looking at other fundamentals like ROIC, PE Ratios, ROA, etc. 

To learn more about stocks and investing be sure to follow me on twitter @cchapeton.