My 365 days trading challenge

This blog is about dividend investing and will be mainly about dividend investing in the future. Nevertheless I decided to jump in the world of trading. As I am quite of beginner I decided to choose etoro as a broker. I am still a risk avers person when it comes to invest in stocks so I opened an account with an investment of only 350 EUR, which equals 383 USD.

Strategy

My strategy is quite basic, I will only invest in current significant under performer, and which stocks have experienced a massive sell off in the last couple of weeks and months. Furthermore depending on some special market events like a FED decision, I will also invest a bit in Forex or crypto.

The maximum size of a position will be 1/4 of the total available equity and the maximum leverage is x5. The stop loss will be 20% and the maximum gain will be 30%. My average daily target is to have a daily profit of 1.5%, so if I have reached that goal already before the end of the day positions will be closed earlier with a lower gain. Also important to mention that I will not leave any US position open throughout the weekend, so all US positions will be closed latest on Friday 9:30 pm austrian time.

Goals

My first goal to get to know more companies, and also potential dividend investing opportunities. In the last couple of weeks I found out, that in the end I always stay with the same companies and hardly find any new ones. So by jumping in a new world of investing, I really hope to find new investment opportunities and to broaden my investment horizon. A maximum loss of 350 EUR is for me a fair price to do that. Apart from that I have a goal to make a daily profit of 1.5%, after 365 days this would mean a sensational amount of 87 761.53 USD, well let’s see if this is really possible to turn 383 USD into around 87 000 USD.

Review Week 1

The first week was actually quite successful, but with the market movements also not too difficult. My return this week was in total 17.1% and my current total equity is at 448.67 USD. In the first week I did the following trades:

Gains

  • Drillisch 27.55%
  • Infineon 2.85%
  • EUR/USD 8.05%
  • Aixtron 13.98%
  • Qualcomm 8.50%
  • Exxon-Mobil 3.12%
  • BTC 0.90%

Losses

  • Activision Blizzard -10.98%

Open position

  • Lufthansa -12.87%

Conclusion

Let’s see where this trading experiment will take me in the end, but as I mentioned my main goal is to broaden my investment horizon and the experiment ends when I lost my initial investment, I will definitely not invest any additional capital. For the future I will give a weekly update about my progress and which companies are potential candidates for my dividend portfolio. At the moment I see Lufthansa as a potential candidate :)…

What do you think about my trading challenge? Do you guys also trade a bit?

As always feedback is more than welcome!

Disclosure: I do not recommend any decision to the reader or any user, please consult your own research. Thank you for your understanding!

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