Recording summary · September 2021
How much Money i made Investing in the Stock Market after 1 Year
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Overview
Daniel evaluated the performance of his investment portfolios after completing a volatile first year in the stock market.
Daniel invested approximately £3,000 into a copy trading portfolio on eToro that matched a popular diversified investor, producing an 18.58% return over the year.
In a second portfolio centered initially on NIO shares, Daniel experienced a sharp drop from nearly £11,000 to around £5,000 before panic selling and shifting £5,500 into stable value stocks, achieving an 18.82% gain.
Daniel's primary portfolio, funded with £21,000 inherited after his father's death, peaked near £32,000 before suffering steep losses from speculative investments in stocks like Microvision and BNGO during the February Nasdaq correction.
Following panic sales of Microvision and BNGO, Daniel rotated capital into Bitcoin-related stocks after Elon Musk's announcement about Tesla accepting Bitcoin, subsequently suffering further losses when Tesla reversed policy and China cracked down on mining.
Daniel liquidated most Bitcoin mining holdings and remaining BNGO shares at a loss, restructuring into Corsair Gaming, Ford, and Amazon using technical analysis support levels and Fibonacci retracements.
Daniel depleted nearly half of the inherited capital through buying at resistance and panic selling low, leaving the main portfolio down 48% against the All-World ETF benchmark.
Themes
Daniel's perspective on investing and learning curves in trading.
Performance and management of Daniel's eToro copy trading portfolio and cryptocurrency holdings.
Trajectory of Daniel's second portfolio, including NIO swings, value stock repositioning, and comparisons to the All-World ETF.
Severe losses in Daniel's primary £21,000 portfolio driven by speculative stocks such as BNGO and Microvision.
Microvision background and speculative market rumors surrounding potential Tesla LiDAR integration.
The February Nasdaq correction and steep drawdowns across speculative hype stocks.
Crypto market swings prompted by Elon Musk's announcements and China's mining crackdowns.
BNGO price trajectory from purchase between $12 and $14 to lingering around $5.
The investment strategy of cutting losses instead of holding failing stocks indefinitely.
Applying technical indicators, including trendlines and Fibonacci retracement levels, to enter Corsair Gaming, Ford, and Amazon.
Performance of Daniel's portfolio against the All-World ETF and the loss of inheritance capital.
Developments
Daniel began investing in the stock market approximately one year prior.
Daniel invested around £3,000 into an eToro copy trading portfolio.
Daniel initiated a second portfolio around October of the previous year by purchasing NIO shares at roughly $40.
NIO declined from approximately $60 to $35 around February, leading Daniel to panic sell and allocate £5,500 to value stocks.
Daniel deposited £21,000 inherited after his father's death into his primary investment account.
Daniel invested approximately £10,000 to £12,000 into Microvision and about £15,000 into BNGO.
The Nasdaq underwent a correction in February, dropping speculative hype stocks like Microvision and BNGO by 40% to 50%.
Elon Musk tweeted that Tesla would accept Bitcoin, pushing Bitcoin above $60,000, before Tesla reversed the decision.
China introduced a crackdown on Bitcoin mining.
Daniel panic sold Microvision and BNGO and put half of the remaining capital into Bitcoin stocks.
Daniel sold most Bitcoin mining positions after cryptocurrency recovered above $40,000.
Daniel sold remaining BNGO shares at a loss near $5.
Daniel allocated roughly £4,000 to Corsair Gaming, about £4,000 to Ford, and a couple thousand to Amazon.
Uncertainties & gaps
Daniel stated only approximate figures rather than exact amounts for the funds initially deposited and added to his accounts.
Daniel could not recall the full list of speculative hype stocks he previously traded alongside Tesla, BNGO, and Microvision.
Microvision's operational lifespan is only estimated as decades, nearly decades, or at least 10 years.
It is uncertain whether the Microvision CEO was the former head of the Google Glass project.
The exact timing and chart position for the full sale of BNGO holdings are uncertain.
Whether BNGO will recover to $12, fall to $2, or trade between $5 and $7 over the next decade is unknown.
The time required to break even or whether breaking even will ever occur remains unknown.
Whether the newly purchased stocks will crash further is uncertain.