My first time as a trader: week two
Moneybags writer, Ashleigh Brown, tries her hand at trading on the new EasyEquities platform. She, however, soon finds out that trading is not as easy as it might seem. Follow this weekly story to see what valuable lessons, tips, and tricks she learns and whether or not she finds her feet in the trading game.
Ladies and gentlemen we are in week two of my EasyEquities Investor Challenge, and this week is looking promising.
Just to recap, online trading platform EasyEquities has an ‘Investor Challenge’ which allows traders to buy and sell shares using R100, 000 of ‘Monopoly’ money. With no risk to my own savings and an easy menu to pick shares from I thought to myself, ‘How difficult can it be?’ Last week I found out just how difficult it can be, and with the African Bank story reverberating through the news, my stocks plummeted.
My stocks this week
This week I am back and stronger than ever before. I ended last week with a profit of R61.32. My shares did drop quite a bit this week, leaving me with a profit of R23.45 at one stage, but after some reshuffling of my board again, I am now looking at a profit of R144.
I am quite pleased at my small profit (which is growing). This is mainly from looking at company summaries and watching the trends in the news.
I am still however trading rather small, having only spent R1304.78 of my R100 000 monopoly money. My current holding costs are sitting at R7095.50. I need to start spending big if I want to earn big.
My best; my worst
So far my top three shares are:
- MTN Group Limited
- City Lodge Hotels Limited
- Coronation Fund Managers Limited
My worst as of this morning were:
- Shoprite Holdings Limited
- Standard Bank Limited
- Nedbank Limited
MTN is still my ‘golden boy’, earning me a profit of R114.01. Coronation Fund Managers Limited, which is new to my stock portfolio, seems to be trading very strongly. This could be due to the high demand for Coronation Park services, as reported by The Observer.
The reason for Shoprite going from my number two spot of my top shares to my number one spot on my worst could have to do with their full-year report which was released. The Business Report reported today that: “Shoprite Holdings full-year profit missed analysts’ estimates as South Africa’s largest food retailer invested in new stores and electricity costs increased.”
As for the banks, I personally do not think the banks are sitting too comfortably at the moment, regardless of whom they are, but that is just an outsider’s view. I am not sure if this is because of the African Bank saga, and now the news that Capitec was taken down two notches by Moody’s Investors Service. But from my short time in investing I have learnt that anything (and sometimes everything) can have an effect on the stock market.
As I mentioned last week, you have to keep a keen eye on what the stocks are doing. Find out if your stocks are in the red or green and why. There are a lot of factors which can influence stocks – as seen with the Shoprite forecast.
The company summaries tool on EasyEquities is very handy and has helped me a lot. It also shows the news for that particular stock, and similar stocks, and how they are doing.
I am still trying to teach myself to be more patient with my stocks. I am more vigilant with checking the company summaries nd how the stocks have been doing in the past. This has helped me quite a bit, and kept me away from some buys due to bad performance, leading me to invest more in other stocks due to good performance.
I still need to invest more of my monopoly money, I am just not sure how much and where exactly? I have two weeks left of trading and a lot of money to try and make.
Forecast for the week ahead: try not to lose any of my profits.