What I’m Trading: Derrick
Occupation: Financial Accountant
Industry: Cryptocurrency
Age: 23
Location: Melbourne, Australia
Portfolio size: Mid 5 figures
What do you invest for?
Initially, it was pure curiosity. I really wanted to get in into the market to see what it’s all about. I’m also a never-never guy. I’ll never say never to trying out new things.
I then started to read more articles relating to investments and genuinely enjoyed it. I’ve learnt so much in terms of analysing financials of a company, and I’m fully aware there’s still so much to improve!
How much of your income do you put into the market?
Rental expense probably takes up a sizeable portion. The rest goes to savings, general costs and investments. I aim to invest 20–25% of my income.
I’ve also been setting aside some of my income for that holiday trip my girlfriend and I have been planning for months.
How much time do you spend on your investments / portfolio each week?
Probably an hour or two every day. On weekdays, it’s mainly when I’m on the train commuting to or from work. That’s just scrolling through Twitter and having a brief look at my portfolio.
I do research on weekends, looking into a particular company or new industry.
What’s in your portfolio right now?
Non-Stake: Crypto (Bitcoin, Stellar Lumens, 0x, Basic Attention Token), Term Deposits
How are your returns?
I started investing in 2017, my total return including unrealised gains on my portfolio (including non-Stake investments) would be at about 43% right now.
What are you watching?
They’ve recently outsold Mercedes-Benz during the July-September period in the US and on course to surpass BMW. Production numbers have been impressive as well. Despite the frustrating bottleneck issues in regards to Model 3 outputs, they seem to be hitting the stride. They recently reached a new milestone of producing over more than 100,000 Model 3s.
It’ll also be interesting to see if Tesla can sustain all this once the usual suspects (Mercedes, Audi, Ford etc.) release their own electric options in the coming months.
Staying on the EV (electric vehicle) theme, I’m also very keen on increasing my exposure in Lithium mining companies.
What’s the best trade you’ve ever made?
That would be Square.
I was up 100.3% up at one point. Initially, I didn’t really know who Jack Dorsey was until I came across his name while researching about Twitter. That’s when I read more about him, Square and the Cash App in the US. From there, I started looking more into their financials and tried comparing them with similar companies in the space. That pretty much fuelled my decision to invest in their stock.
In terms of non-financial products: Bose QC35 Headphones. It’s a life-changing moment for your ears.
And the dumbest?
Buying and selling Nike shares based on some post on Reddit which I came across late at night (this was in the first few months when I started trading).
Do you have a trading strategy you follow when making decisions?
Do. Your. Research.
Prepare yourself to make informed decisions. I’ve always thought of it this way — going into investments without proper decision making is like playing poker blindfolded.
Making decisions without looking at what you have in your hand is probably the worst thing you could do!
Is there anything you’re trying to improve about your strategy?
Nitpicking the articles I read online.
Managing my content consumption to more relevant and credible sources is what I’m trying to do at the moment.
How did you first get in to trading?
Co-workers.
Those conversations over lunchtime really got me interested in the stock market. That’s when I started to look for platforms (with a nice UI and considerate amount of fees), and I found Stake.
Do you remember the first stock you bought?
Oh yeah NVIDIA shares, had a decent realised gain from it too. Now to think of it, it’s fascinating that my first stock wasn’t one of the FAANG stocks.
Any lessons you’d give to someone who’s never invested or traded before?
There is always more to learn about investing! Continue reading the latest news, discover more, learn more, there’s still something out there to know and don’t rue on your mistakes.
There’s an awesome quote from John Kavanagh, the head coach of Conor McGregor that really stuck with me:
“You never really lose, you either ‘win or learn’ going forward in life.”
Who do you lean on for advice with trading?
In regards to trading particularly, I haven’t gone for advice from anyone. It’s been a solo journey so far, but I do take inspiration from the awesome people I work with at CoinJar.
As for generally, Dad’s advice has definitely attributed to what I have achieved so far in my early career. That is to remain patient. Maintain your composure, be calm at all times. Avoid making decisions emotionally because it is the least rational thing you could do.
If you were to buy a US stock or ETF right now, what would you buy?
Tesla. Well… according to Peter Thiel, you never bet against Elon Musk.
ICYMI: make your own decisions
This is not investment advice, just my opinion. It doesn’t reflect any opinions of Stake. I’m as fresh to this as the next person off the street. Do your own research and make your own decisions.
