I’m really excited to share with you how my portfolio has been doing since my February Portfolio Check In. Why? Because I made a mistake that cost me all of my gains so far this year…
I got greedy, and made a trade in the account – and it went the wrong direction. It happens, but it was because I didn’t follow my own rules and guidelines, and didn’t do enough research. But I’m glad I can share with you the consequences of this.
Trading in February
I made one trade in February. I bought a company called Aventura Equities (Pink: AVNE). If you want to know, it’s a marijuana stock. Anyway, I was excited by everything happening in Colorado and Washington, and was hoping to see it pop up in price due to the news.
I bought 100 shares at $0.48. It ended up topping up at $0.55 – but remember, this is a penny stock – so I was only able to exit at $0.44. Yes, a loss.
In the end, this trade cost me $19.36. But on a $1,000 portfolio, that’s almost 2% for being stupid.
So, what went wrong:
- I didn’t do enough research
- I wasn’t prepared for the volatility of a penny stock
Current Portfolio Value
As a result, the value of my portfolio actually decreased last month.
On 2/28/14, my portfolio was worth $994.84. That was down from $1,013.00 on 1/31/14.
My current holding is 10 shares of Lindsay Corp (NYSE: LNN).
Game Plan for March 2014
The game plan for this month is to stay the course. I actually invested in several other companies outside the Grow Your Dough challenge that I should have used for the competition, but that’s okay. Plus, LNN will also be paying me a dividend this month, which will boost my account value back up.
How did you do last month?
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page, or on his personal site RobertFarrington.com.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.