First and foremost, let me start by saying that I don't claim to be some market wizard who logs wins week after week. Anybody who says that trading is easy or claims to have it all figured out - IS A LIER! The markets are constantly changing, a good investor does their best to continue to learn and evolve with that change. It will never be easy or constant! With that said, here is why I'm putting together this $100K challenge.
1. I think it will be fun:
I have always found writing to be a bit therapeutic, especially when it comes to stocks. Over the last year, I had begun writing all of my thoughts and trades into a notebook. In doing that, I became a much better trader in the process. Blogging just made sense.
2. I have a passion for the stock market:
My favorite day of the week is a Monday (the start of the trading week), with Saturday and Sundays being my least favorite (because the markets are closed). I could talk stocks 24-7. A blog certainly seems like a good way to achieve that.
3. A group of minds is greater than a single mind:
Most people would tell you to never listen to anyone when it comes to stock tips and that it’s a losing strategy. Well, I would have to disagree. I believe you should gather as much information as possible before making an investment. For me, this includes potential ideas from others. Some of my greatest plays over the last year (Yext, hubs, etsy, roku) have been because I listened to what people were saying about a particular company, did more research, then decided to make a play.
I will always be opened minded to stock advise. There are thousands of companies to choose from. If somebody has a great thought or idea about an investment, I’m all ears. Hopefully, In starting this blog, I'm able to build a group of likeminded individuals who have a passion for stocks. In doing so, I believe everyone can benefit from the sharing of knowledge and information.
4. I believe I have something to share:
I’ve traded stocks for the last 18 years, making some of the dumbest mistakes that one can imagine and learning throughout the process. I remember a time (2008 or so) where I was staying up until 4am playing poker - going to bed around 5 - waking at 8:30am – buying and selling garbage stocks from my iPhone – trying to time the market - losing hundreds of thousands of dollars – being stressed out of my mind – losing sleep and feeling like shit the next day. Yeah, I know, great strategy, right?
One morning, I can remember losing $5k in Fannie May (FNMA) within a few minutes time. For me, this was a ton of cash (A solid month worth of poker grind). Why was I invested in FNMA? Who the fuck knows, but I was! It, and a handful of other shit stocks.
In that moment, I decided to completely change my style. I would only invest in great companies that I knew and understood (the best of the best), putting together a portfolio that allowed me to rest easy at night. I also vowed to be much more detailed and thorough in all areas of investing.
That brings me to today. I feel as though I have taken my trading to an even higher level (there is always room for improvement) as I begin to see it as a potential job or profession. This thinking has motivated and lead to a more detailed and focused style of investing. If I’m going to do this, I am going to do it the right way! Over the last few years, I have begun to see positive results, handily outperformed the S&P 500.
I wouldn’t put this out there if I weren’t confident in what I was doing and saying. I have dedicated my life to following the markets. I believe that I can provide valuable knowledge though what I have learned.
I guess that’s about it. I set the goal at $100K over the next 3 years. This certainly isn’t buy a yacht/lambo money ($33k per year), but it’s a nice chunk of change and would continue to give me the confidence in knowing that I’m on the right track. Like with my poker career, I’m looking for a slow and steady tick higher, with low stress along the way. I would be thrilled if I am able to achieve this number and continue to provide an income though trading.
If you decide to follow or invest any of the trades that I make, its important that you only invest what you are willing to lose. Trading should be fun, not stressful. The last thing I want (though my blog) is to cause somebody to lose next months rent. If your investing with that on the line, you doomed for failure. ONLY INVEST WHAT YOU ARE WILLING TO LOSE!
On my website, RoryMonahan.com, I will put together a list of my holdings and position sizes. As of today, I own:
1. Activision Blizzard
4. Electronic Arts
15. Stitch Fix
16. Shake Shack
17. Constellation Brands
20. Take Two Interactive
21. Under Armor
22. VXX (hedge against longs)
This list is constantly changing, as I make approximately 150-200 trades per year. Every day, after the market close (through my blog and website), I will share my thoughts on the overall market, my daily trades, profit/loss, and a countdown toward the overall progress of making $100k.
Today, I made a couple trades. I bought Constellation Brands (STZ). The beer and wine conglomerate. These guys are a cash cow. Recently, they made a big play into the multi-billion-dollar Marijuana industry. So, they are in the business of Beer, Wine and Weed. That certainly sounds like a winning combination to me. This is a long-term hold, until the story or fundamentals change…
I bought ETSY. This is a company that I owned and sold just before earnings a few days ago. The stock had been on an insane run and I felt as though it could be due for a pullback. That wasn’t the case, as it posted solid numbers and continued to tick higher. I really like the price action in ETSY and feel that it’s a hot Wall Street stock that investors want to be in.
The markets feel pretty good at these levels. It sure seems as though it wants to continue to tick upward, as the S&P 500 pushes toward all-time highs. The volatility index (indication of fear in the market) is at extremely low levels. I have been bleeding money in my VXX position, but will be looking to add while it sits near the lower end of its range. It’s just a matter of time before a new story or headline creates fear and shakes things up a bit. Having a cheap hedge in place allows me to get that ohh so important 8 hours of sleep that I was telling you about.
Anyway, I guess that’s it. In putting this out, I really hope to get off to a good start. For if I don’t, I will feel pretty stupid, but whatever. I will post the good days along with the bad. In the long run, I’m confident that it will pay off. (Keep in mind, I am not a writer, but will do my best to learn and improve at it as well.)
Today was good! I finished up $1279. Let the countdown begin! GL to all and hope to hear from you soon…
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