In the past 2 weeks, I have become a little more active in my trading, Bitcoin is on the rebound and Facebook recorded the biggest single-day loss in the history of the stock market. Bitcoin it’s your move. This may be the last chance to get in cheap(ish). Facebook and FAANG decline, what you should make of it.
Bitcoin’s $6,000 Bounce
Bitcoin, as you can see on the graph to the left, has been a bit of a roller coaster in the past 6 months. With its all-time high of over $19,000 from December seeming like a distant memory no one was quite sure how far the price would fall. In June the price dropped just below $6,000 and quickly jumped back up above it. After getting back over $6,000 it seemed to stall for several weeks, which led to much speculation about the end of Cryptocurrencies.
Nothing could be further from the truth, Bitcoin is not dead and likely has a long future ahead. Many institutional investors have been flocking in since the beginning of the year. Some governments around the world are holding large quantities and even Goldman Sachs, the bank with the closest ties to the US government, has invested heavily in setting up their own Bitcoin exchange. Goldman is one of the few large, well recognized, well-established banks that is welcoming the world of cryptocurrencies. In my opinion, they see the writing on the wall and don’t want to get left behind. If you can’t beat them, join them!
At this writing, the price has rebounded above $8,000, essentially bouncing off of the $6,000 support level. The coming weeks may see a strong continuation, $10,000 will provide a challenge; if it can break through that, the sky is the limit.
Bitcoin It’s Your Move
This is quite possibly the last time that Bitcoin will trade this low. A year ago today Bitcoin traded at $2,800 and the early investors celebrated with lobster and champagne. While Bitcoin is a long way from its all-time high above $19,000, it is currently trading at an attractive level for those wanting to get started.
I invest in Bitcoin with Coinbase, follow this link to start your own account. We will both receive $10 worth of Bitcoin if you purchase at least $100. While I believe the price of Bitcoin will grow exponentially in the next few years, there are no guarantees. Invest only what you can afford to lose.
FAANG and the Fall of Facebook
FAANG is an acronym for the big tech stocks that seem to have limitless growth potential. Facebook (FB), Apple (AAPL), Amazon (AMZN), Nexflix (NFLX), and Google’s parent company Alphabet (GOOG, GOOGL). These stocks have been exploding, gaining between 50% and 150% each year since the great recession ended in 2010. The bigger the gains the bigger the falls.
NFLX was trading near its all-time high of $420 per share when it’s earnings report came out, the share price has dropped to $340, a 20% decline in about 1 week. This was a result of slowing subscriber growth.
FB was trading at $217 per share but when it reported a loss of users, it dropped to $175 in a single day. This loss equated to more than $100 billion, the largest single-day loss in value of any stock in the history of the stock market.
AMZN reported strong earnings but with the constant attacks coming from President Trump’s Twitter account the stock has declined since the earnings report’s rally.
GOOG, GOOGL, and AAPL all showed strong earnings but have been declining over the past week, too, most likely being brought down by the rest of the FAANG stocks.
Your take away from this earnings season is to understand that all stocks can be dangerous. Stocks are capable of falling faster than they gain. The market has no sympathy for anyone who decides to play in its dangerous waters. If you are an investor you can ignore this headline. If you are trading, take note and know that no matter the indications, it is dangerous to hold a stock during an earnings report. Past results have no guarantee of future earnings and growth.
Here are the trades I have made over the past 2 weeks. These moves have brought me $792.61 in total realized gains, not bad for part-time work! Follow me on Twitter for all my trades live!
7/16 Sold 13 shares of GOOG for $1,180.00 each, total sale $15,334.85. Profit $509.90, about 3.4%.
I had bought those shares on 6/13.
I sold these before earning because I did not want to take the risk of losing the gains I had already made.
7/16 Bought 56 shares of TSLA for $309.32 each, total cost $17,327.39
7/17 Sold the same shares for $312.00 each, total sale $18,429.15. A profit of $139.42, about 0.8%.
When the share price declined, I took the small profit that was available.
7/17 Bought 48 shares NFLX as it rebounded from the poor earnings report. The share price was $383.84, total cost $18,429.15.
Sold them a few minutes last as the price reversed direction. Shares sold at $380 each, total sale $18,234.80. A loss of $194.35, about 1%.
7/18 as oil prices have jumped around I saw that MRO was at an attractive level to buy in.
Bought 920 shares of MRO for $20.17 each, total cost $18,557.49.
7/24 sold all 920 shares of MRO for $20.74 each, total sale $19,075.49. A Profit of $518.00, about 2.7%.
7/24 Bought back into TSLA, 66 shares for $301.56 each, total cost $19,907.57
I missed several great cash-out opportunities because I was working and not able to watch it.
7/27 Finally sold for $302.95 per share as the price began to plummet. Made a profit of $81.91, about 0.4%.
7/27 Bought 548 shares of TWTR, for $36.44 each, total cost $19,974.07.
I was thinking the share price might rebound after a bad earnings report sent the shares on a premarket slide.
I was wrong, the price continued to decline, I sold when the price reached $35.98. Total sale $19,711.80, a loss of $262.27, about 1.3%.
New CRYPTO Investment
As the week drew to a close and Bitcoin continued to look strong I bought into RIOT, a company whose primary business is the mining of cryptocurrencies. I bought 1,300 shares for $7.69 each, total cost $10,001.56. As the price of Bitcoin rises this stock will likely follow. If the price of Bitcoin declines this stock is likely to follow. I will hold this stock until I can cash out a good profit or Bitcoin collapses.
Every Friday I contribute $50 into my Brokerage account and $105 to my IRA. I did so on both 7/20 and 7/27.
On 7/27 I bought 25 shares of MJ an ETF that follows the legal weed industry. I paid $26.50 per share, $667.45 total.
This is part of my retirement, my goal is about 25% in this ETF and the other 75% in PRGFX, a fund that follows the S&P500.
You can always view all my current investments here.
I had a side hustle come through for a nice profit of $1,270.00. I deposited this into my brokerage account on 7/17.
R2B coin, a new cryptocurrency, that I put $543 into back in February, is scheduled to begin trading on 8/23. The current listed value is over $32,000. Follow this blog to see if I can actually sell the coins for anything close to that.
I have made several high-risk, high-reward bets in the past few months. Follow this blog to see what makes a profit and what goes bust. Real Profits, Real Losses, FREE LESSONS!
Thanks for reading and Happy Trading!