My $10000 Dollars

Current YTD Performance: -$1088

This is going to be more of a personal post, but I definitely want to share this experience. I’ve been doing really well the last few days in the market amid the crazy week Dow went through. As I track my performance at Covestor, I realized that I have been outperforming the S&P 500 this past 30 days. Man I am the MAN at investing…then Friday 9:30AM EST came, when my portfolio lost its value by $4000 within the first second after the opening bell. I think I almost broke my jaw while getting a heart attack.

The day before Friday, I decided to buy 1000 Freddie Mac (FRE) shares at $8 per share with the faith that the price is way undervalued amid the insolvency panic that started last Monday on Freddie Mac and Fannie Mae (FNM).

You can read more about the current situation with the two of the largest Mortgage companies here.

Then when the market opened, it decided to tank by 47% within the first minutes.

OH. MY. GOD.

I swear I had a heart attack, and it was so crazy that it was surreal. FRE single-handedly took down my portfolio value by $4000! I made a few phone calls to my friends telling them how stupid I am, and how much of a “gambler” I was. Then shortly thereafter I made a commitment to eat ramen noodles for a while and called it quits for the day. I moved onto my real job working for Dreyer’s Grand Ice Cream.

Then the stock rallied in the afternoon when the feds announced that their assessment indicated a sound financial position for these two companies. The stock rallied all the way beyond the even line to a positive 40 cents gain! My value went from -$4000 for the day to a positive $500 at one point in the day. Now THAT is one crazy volatility.

The point of this whole story is the fundamental concept we all need to understand before getting into the investing world. “Don’t let fear govern your decisions”. Had I not learned this concept through my past experience, I would have quickly jumped on the wagon and sold my shares also in fears of losing even more value.

In the stock market, I’ve learned that you have to be very deciplined and fight against your “fear” and “greed” emotions. It’s something I’m still training on myself, and if you’re new to the investing market, I strongly suggest you work on that skillset first. It will definitely come in handy.
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In addition to the FRE stocks I now own, I also bought Quest Mining and Minerals (QMNM) with the hopes that this penny stock will go up in value in the long run. This is a coal company based out of Kentucky that once filed a Chapter 11 bankruptcy to restructure its organization. It recently re-initiated its operation at one of the coal mines with another one on its way very soon.

Read about QMNM here.

I could easily lose all of my initial investment ($780), but if this kicks off a successful and profitable operation in the future, I could be looking at a hefty profit. We shall see.

By the way, my IPO stock that I purchased ERII is on FIRE! You should look into it.

July 9th

July 11th