I am now 10 days into my investing career and yesterday I hit my first red patch.
The red days I know have to come - that is part of the game. Hopefully though as I build up and diversify my portfolio that won't happen too often.
I'm now all in and look forward to the journey ahead.
Growing the Portfolio
I've been busy, busy, busy reading and researching these past few days to find the right stocks to buy.
My portfolio has now grown to 16 different stocks. All little positions but as I get more confident and earn more I will add to the ones that are working out well.
I'm working from the ground up with my green investment strategy and started with a few lithium and nickel mining companies like BHP, Glencore, Lithium Americas, Livent, MP Materials and Vale.
Which ones will fly high I'm not sure but with the massive forward demand for nickel and lithium for EV batteries the whole sector feels like a fairly sure bet.
So far Vale has been my best performer.
Renewable energy is one of my other target sectors and I am now starting to track down suitable stocks to go for.
This is not such a fast moving area as EVs but with a growing government level momentum building towards renewables to help combat climate change this should be a good long term bet if I can find the right companies.
My first two renewable buys have been SolarEdge Technologies and The Renewables Infrastructure Group (TRIG).
SolarEdge has been doing well and stayed in the green.
I just sneaked in with TRIG in the nick of time buying a few minutes before the close today which I think will qualify me for this quarter's dividend. Dividends are new territory for me so I've got to wait and see on this.
A few other stocks that were a bit more off my green track sneaked in as well. I will cover those more later.
Green v Green - the Ethical Dilemmas
As I posted about last month I am trying to follow a 'Planet Positive' investment strategy particularly focusing on Electric Vehicles (EVs), Renewables, Plant Based & Organic Food, and Social & Peer-to-Peer...
I am still with this but it is definitely throwing up some interesting investing dilemmas.
Mining is a good touch point for this. All mining companies have environmental impacts and problems - whether it be pollution, or energy usage, or dam collapses.
But without mining we won't have lithium and nickel, and without lithium and nickel we won't have batteries, and without batteries we won't have EVs.
And on the subject of EVs investing in the new EV companies like Tesla and Nio is one thing, but what about the legacy car giants like GM, Ford, Volkswagen, Toyota and Hyundai?
They account for the massive majority of car manufacturing capacity.
Are they going to throw in the towel as the all electric future looms ever nearer? Of course not - they are going to adapt and change tack.
Most have already declared their intent. Just recently for example both GM and Ford have announced massive $20+ billion R & D spends on electric vehicles.
As I am investing for a green tech future should I support and invest in these car companies or should I shun them as they will continue to make petrol and diesel vehicles for a good few years yet?
What about oil companies? They are making moves towards renewables buying up solar and wind companies as fast as they can.
Just today oil giant Shell announced that it is planning to install 500,000 electric car charging stations by 2025. That is a pretty major green move for an oil company.
But would I, should I, could I ever invest in an oil company !
This is definitely a topic I will be returning too again and again.
Five Things I've Learnt So Far
Despite the red days I am absolutely loving investing.
I am learning so much my brain is bubbling.
Finding out about so many new companies and new industries, as well as bit by bit chipping away at all the terminology and techniques of the investment game.
A few 'investment tips' I've picked up in my first ten days...
- Don't buy stocks on impulse - do the research.
- Don't place buy orders out of market hours without Limits - who knows what will happen when the bell rings.
- Don't buy SPACs unless you can get in early - if they are all over the YouTube stock pumper channels you have missed the boat.
- Know when each market you are buying in opens and closes in your local time.
- Play the long game when you get started - only when you know what you are doing allow yourself a bit of short term trading.
I am definitely enjoying investing.
It is my new second favourite hobby - growing money is almost as much fun as growing food !
Now I have had my first red days I guess I have levelled up a bit in the investing game.
Diversity is key - even only having 16 stocks in my little portfolio helped me keep my downturn to only around 2%.
I am planning to get to about 30 stocks by next month to reach the first target for my portfolio.
Alongside the stocks I will shortly be launching into the other half of my 'Grand Investment Plan' - crypto.
I must admit I find that more daunting than stocks.
With the much bigger potential gains (and losses) and the supercharged technology and terminology I am entering the world of crypto investing with great trepidation.
I will definitely be asking for advice and assistance from the community here to help guide me with this.
To kick off I need to get a good exchange account set up. My first attempt with KuCoin didn't go well. More on that soon.
In the meantime tomorrow I am going to be checking out some more renewable energy stocks like Canadian Solar, Enphase Energy and Greencoat UK Wind.
Happy investing...
Pennsif
Please note, I am not a financial expert and this is not financial advice. Do your own research and seek professional advice if needed.
[ image from pixabay.com ]
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I've just started investing, myself, with similar motivations! It's nice reading about your choices, I'm looking forward to reading more!!
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I hope you prosper.
Looking forward to reading about your successes...
Wow, best of luck with that! It sounds like you are putting a ton of time and thought into what you are buying. I feel like you can't really go wrong if you are doing that much analytics. Two of my recent investments that have done really well for me are FSM and PDT. PDT pays out some good dividends on a regular basis, so it is a great one to just buy and hold.
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I will look out for FSM and PDT - not encountered them so far.
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I'm impressed how much amount of learning and experiences you already got for the past 10 days. I'm really loving reading this article because I can also relate. I'm still building my portfolio and I'm super beginner when it comes to trading. I'm just relying on tweets and yt videos for the information I need. I'm also glad some of my friends are giving me ideas which alts are doing great by far.
I'm also absorbing a lot of YouTube videos - but I think they should be watched with care. Some may be less upfront with their motivations than others...
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You are right. But most videos are really helpful specially those that teach the basics of trading. Let's just not consider them as professional financial advices. :D
Keep going, the hardest part about investing is the beginning, later it gets a bit easier but you start to understand how much there's still to learn. :D
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Yes I'm just scratching the surface at the moment. Much, much, much more to learn yet !
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Good luck with this. Sounds like you have the right approach. Mining companies can be dodgy politically and environmentally, so research is definitely needed there. I let my bank deal with the specifics of my stocks and shares ISA. There is someone else managing where my pension money gets invested. Got to play the long game with that. I heard about some funds that invested in Tesla early on and have done very well from it.