The 60%+ return challenge [May 2017]
What is the 60%+ return challenge?
Didn’t we already hear this story a million times? Earning a ton of returns in the shortest amount of time? Let me tell you one thing straight away: I have already been learning trading for years now using virtual currency or demo accounts. Just by the end of last year I decided to go for it and invest real money. So go on and read this article before you start assumptions – or check the graphs / strategy right away.
If you are interested in copying my trades and join my profits you can just jump to the last chapter of the article, otherwise read on.
In my experience you can safely earn 10% a year in return whilst maintaining a low risk. How? Just spread your investment far enough and only choose the big, long established companies. If you are asking me 10% of return a year can be achieved by a real beginner, just invest in all the big banks like @JPM @WFC @BAC @C @HSBA.L and you will be fine (for example).
The thing where investing gets challenging is when you are aiming to gain at least 60% of return a year. And this is where the 60%+ return challenge comes in play. I decided to set myself a goal to proof my concept of investment and additionally “gamify” the approach. Why “gamifying” it? Because most trades are cancelled too early following a panik of the investor. He/She gets scared and cancels all trades just to find out the short drop in price was just the start of a bullish (upwards) trend. That is why I thought of the investment I did in the beginning as money that is “gone” anyways, such that I can purely apply my rules and strategies I defined before.
This is where I invite you to join the 60%+ return challenge to keep it more interesting and gamify the investment game, such that we can purely act based on our experiences.
My portfolio to gain at least 60% return a year
I am working and loving technology, which is the reason why I heavily invest in it. I love to choose a mix of well known tech-stocks and commodities/currencies for long term investing and cryptocurrencies for short term investment. Of course I keep the balance in favor of the safe long term investments and use the cryptocurrencies for quick gains.
To be detailed my current exposure for May is ~40% stocks, ~38% currencies, ~17% commodities, ~2% indices and 0,06% in ETFs (safest option).
Like mentioned above my stocks are meant to be a long term investment, focused on tech. If you have any question why I chose which stock just ask me, a full analysis would be an overkill for this article.
My big five stocks make up for 77% of my stock investments, divided as follows:
- @GOOG – Google, who else than Google at the top with 5.71%.
- @AAPL – Apple, with Google being number one no one should be surprised to see Apple at 4,79% of my investment.
- @FB – Facebook, personally not thinking Facebook will be big forever, but surely in the next years. 3,14%
- @TSLA – Tesla, you just got to love Elon’s frontrunner, and it is also predicted to stay big in the investment game. That is why I trust it with 3,12% of my investment.
- @NTDOY – Nintendo, I still believe in them for sure, especially in their new product with 3,07%
This section is mixed, standard currencies for long term / medium term investments, cryptocurrencies clearly for short term gains.
The big five investments make up 94% of my currency investments, so pretty sure in these, which is okay in my opinion with them being medium/short term investments.
- @GBPUSD – Selling – 11,32%. In my opinion it is clear that the course will fall following the recent news of both brexit and trump.
- @ETHEREUM – Buying – 8,62%. My hidden love, ethereum. Responsible for the biggest gain in my portfolio. Never underestimate cryptocurrencies.
- @BTC – Buying – 5,56%. Can not be missing from the list if you choose Ethereum
- @EURUSD – Selling – 4,71%. See GBPUSD.
- @USDCHF – Buying – 2,18%.
Now coming to my safe harbour – commodities. With almost a fifth of my portfolio the safe haven in my portfolio. I am already sad to disappoint you, but these positions are pretty much standard:
- @GOLD – Buying – 15,27%, old but gold [pun not intended]
- @OIL – Buying – 0,9%, well … we need it right?
- @SILVER – Buying – 0.5%
- @PLATINUM – Buying – 0,1%
- @NATGAS – Buying – 0,1%
Safe harbour nr 2, but relatively small because we want to gain 60%+. Surely a right choice if you want to be on the safe side. Decisions should be clear, but short summary: brexit, trump, europe crisis.
- @DJ30, Selling, 0,95%
- @GER30, Selling, 0,8%
- @SPX500, Selling 0,25%
- @JPN225, Buying, 0,17%
Well, almost non existent in a portfolio where you plan to gain 60%+ a year, but definitely a safe choice for those who want to add more into safe positions instead of cryptocurrency.
- @VXX, Buying, 0,06%
How to simply copy my trades
So the above part is too technical for you? Well, lucky for you there are several copy trading platforms on the market. What do they do? You simply copy the trades of another person.
One platform I use and trust is etoro:
If you sign up using my special link you will get an additional 200$ in etoro money. This article is not about getting you to sign up for etoro, but I mean why not use it if you sign up anyways:
After you signed up you can see my profile, trade history and everything, if you search for the user “guestros” or follow this link: https://www.etoro.com/people/guestros
After that you could follow me using “test/virtual money” or go at it straight away. Always set up a copy/stop limit, such that everything gets canceled should something go wrong. With my portfolio nothing can go too wrong, but better be on the safe side and type in an amount at what percentage you should stop following me. Of course I can not guarantee you that nothing will go wrong, but no one can promise you that in the area of trading or investments.
What do you think of the 60%+ a year challenge?
What do you think of my little experiment? Am I insane? Do you want to take part? Let’s discuss and share our thoughts. If you are unsure why I chose a position I am more than willing to discuss it with you.
And did it work so far for me? Right now I am at 26,22% for the past three months (the first two were experimental, getting my feet wet etc..) – so yes, it is looking really good!
And now some stats for the critics: