What I’m Trading: Andrew

Occupation: Andrew
Industry: Financial Services
Age: 29
Location: Australia
Stake Portfolio Size: ~$20k USD

Define your trading style.

Basically if a business has good fundamentals, a proven business model that I understand and big potential growth, that’s generally a good buy to me. I also tend to look at P/E and debt/equity ratios and check their performance over the past 3-6 months, and then I make a call based on all of those things.

I prefer trading individual stocks as opposed to ETFs as there’s bigger upside (and downside, but that’s part of the challenge!), and I’d say for the most part I have a medium to long term investment strategy and aim to hold stocks for at least 3 months.

Why are you in the market?

I like the idea of investing in companies whose products I use and believe in … and I also like the idea that doing research and simply making good decisions can translate into making money. The ups and downs are a bit of a thrill too and that’s always fun!

What do you love about being in the US market?

The ability to invest in companies whose products I use, and also the opportunity to trade in such an enormous market. With all the banter in the office, I recently found out that twice as many dollars are traded in Apple than the entire ASX combined (plus they have about the same market cap). It’s insane!

What’s in your portfolio right now?

Being a techie person, I tend to stick to the technology sector as that’s one that I tend to understand a little more. I currently hold:

How are your returns so far?

Like a lot of people who invested in Tesla early on, I’m up relatively big on TSLA, and I’ve done reasonably well with UBER and FB. I’m down on IRBT and SWKS as they’re both now getting hammered by the coronavirus outbreak and the manufacturing/supply chain slowdowns in China. I’m hanging on for the ride though.

Like most people, I’m weary of a potentially large downturn so at the moment I’m not fully invested and am keeping cash around to try to take advantage of this when and as it happens. All of the big dogs like Microsoft, Apple and Google are sitting on huge wads of cash, and it’s most likely to take advantage of the inevitable drop. As long as they’ve got that much cash, it’s probably smart to somewhat follow suit.

Any other investments that are not on Stake?

I do have a Commsec account and have previously traded Aussie stocks, but for the past year or so I’ve been more focused on the US market because I’m more interested in tracking and investing in companies that I use on a daily basis. I have been more tempted recently to jump back into the Aussie market, so I’ll start to pay a bit more attention to it from now on.

What are you watching and why?

Right now with the coronavirus outbreak, travel stocks are what I’m watching. From cruiseline companies (eg, Carnival: CCL), to airlines (eg, Delta: DAL), to hotel chains (eg, Wynn Resorts: WYNN), they’re all taking a beating and in my opinion show potential buying opportunities in the future.

Do you have a trading or investing role model?

Honestly, not one that I personally know, but I’m a big fan of reading about the investment strategies used by big time players like Warren Buffet and Ray Dalio, as well as keeping track of what successful business people like Bill Gates, Elon Musk, etc. are putting their money into.

What’s a piece of advice you’d give a newbie?

Start small and try to build and stick to a strategy that works on a small scale. Then over time, as you get more comfortable and your strategy is bringing in a percentage return that you’re happy with, add more funds and just stick to your gameplan!

How did you first get in to trading?

My first introduction was from my parents who worked for Telstra and Commonwealth bank in the 90s and were given stocks as employees, so I’d track those to see how they did over time. When I got older I started to pay a bit more attention to the general economy and the companies whose products I used – in Australia it was banks, travel companies, airlines, etc. – and then in the US it was technology companies, music streaming companies, and all that fun stuff.

If you were to buy a US stock or ETF right now, what would you buy and why?

Although in the next 3-6 months I see those travel companies I mentioned earlier rebounding quite well, if I had to pick one stock to buy, it’d probably be (more!) Uber. Right now they’re one of the biggest ride-sharing companies in the world, their food delivery service is growing and they’ve got the Uber freight business which they’re investing heavily into which could potentially be massive business in the future … I definitely see them becoming a huge company in the next 3-5 years.

What do you do in your spare time?

I’m a big sports and music fan – I spend a lot of my time working out, practicing martial arts, playing guitar and being outdoors. All of that is a nice way to balance out sitting around and programming all day haha..

How’d you hear about Stake?

I heard about Stake on Reddit’s /r/AusFinance subreddit almost 2 years ago and jumped on board to give it a shot. At the time I was using my Commsec account to buy and sell Aussie stocks casually but was more keen to trade US stocks … I just couldn’t be bothered setting up an international share trading account with them. But yeah finding Stake who set up all the necessary accounts and filled out all the forms for me, and all of which was done in an app, it was awesome … those hassles were taken care of..

Funnily enough, I recently landed a job at Stake as a product developer – and it’s been really interesting going from an avid user to now building product features that I’ve wanted as a user. It’s also been funny to meet the guys who were replying to my customer support questions – Hi Shaq!

I actually also got an email a few days ago about being grandfathered into Stake Unlimited for having over $5k in my account, so that’s pretty cool.

ICYMI: make your own decisions

This is not investment advice, just my opinion. It doesn’t reflect any opinions of Stake. I’m as fresh to this as the next person off the street. Do your own research and make your own decisions.

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