I Just Made the Riskiest Trade Of My Life
No going back now…
After a lot of talking, I’ve actually done it.
The money I set aside for my risky stock trade arrived in my account over the weekend and I ordered the shares before the market opened at 5am Monday morning.
If you don’t know what I’m referring to, I’ve written two previous articles in this series where I’m buying up shares that are bottoming out because of the spread of coronavirus.
If you’d like more context behind why I’m making these trades before you keep reading, please have a read of my previous entry in the series. Once you’re all caught up, come on back and keep reading this one.
Ok we’re back and everyone’s fully updated on what’s going on.
I made the trades at the market value price they landed on after the markets closed on Friday evening. I have no reason to suspect that I’ll have any trouble closing the deals at these prices. If there are any discrepancies with the price, I’ll be sure to include it in the next update.
Have a look at the below screenshot to see what the trade looks like.
As previously discussed, I committed to investing $2,000 into this experiment. For this experiment I have chosen Air New Zealand, ANZ Bank, Freightways, Port of Tauranga, South Port New Zealand, Synlait Milk, and Westpac Bank.
Here are the prices I paid and exactly the amount of shares I bought.
Air New Zealand; 169.05 shares; $2.06 per share
ANZ Bank; 12.07 shares; $23.50 per share
Freightways; 38.27 shares; $7.41 per share
South Port New Zealand; 42.9 shares; $6.610 per share
Port of Tauranga; 42.32 shares; $6.70 per share
Synlait Milk; 49.84 shares, $5.690 per share
Westpac Bank; 12.6 shares, $22.5 per share
With the exception of Air New Zealand, I gave each company an identical amount of money ($285 each). I realised that if all 7 were to receive identical amounts, the total wouldn’t reach $2,000.
I chose Air New Zealand to receive a bonus because I like the brand, and it feels very unlikely that the company will tank; plus they pay the highest dividends of the companies listed.
I originally committed to spending $2,000, and after purchasing the shares I’ve spent a little bit higher at $2,060 (including $10.30 in brokerage). This is now the benchmark for the experiment. So now it’s time to wait.
I’ll come back in a week and will write the first update that’ll show whether I’ve gained (unlikely) or have lost money. I’ll rank the companies and we’ll see together who leads the pack in profits, and who lags at the back with losses. I probably shouldn’t be, but I’m very excited to see how this pans out.
Wish me luck! And meet me back at Money Clip in one week for an update.
Important Disclaimer: Please do not make any financial decisions without first consulting a professional financial planner. (Fiduciary). Nothing in this article constitutes financial advice. This is my account of what I plan to do with my money, nothing more. Once again, this is not financial advice, and I do not recommend that you repeat my experiment.
