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I haven’t done very well with my investment. My third share deal was Baltika, with which I managed to lose 64%. The damage was about 135 euros. This turned my entire portfolio red, and I only reached the plus side by the end of 2020. The story began when a movie called “Chasing Unicorns” appeared on TV, it made me think that Start-up is actually a world in itself and I want to be a part of it. Immediately after the end of the movie, I logged into Funderbeam and looked for something I liked
Before talking about the purchase, I will point out some reasons why Estonia is a good place to start investing
I have often heard novice investors say that they want to invest in the American market because in Estonian market does not earn such a good return. I was like that myself, but looking at the end of 2020, this statement is not true.
An IPO that I was thinking of attending but didn’t bother to investigate and I did not believe in that very much (maybe I would if I would have done the research). However, the IPO price was 2.84 euros and today the price has risen to 6.88 euros, which makes the return 142%. In retrospect, IPOs are rare in Estonia, and if they come, it is still worth researching.
A company that raised money through Funderbeam, and where I wanted to invest money but saw the ad exactly when that raising ended. By now, I’ve turned on notifications for new money-raising to Gmail so I can still see them in a timely manner. However, the starting price was € 1.62 on the first day, the highest price was € 4.39, which makes the return 171%. Because I had an exam on the day I started trading, I couldn’t do it at the beginning. I thought I’d let the girl place a € 1.8 purchase order, but it seemed a little high for me, so I thought I’d come from the exam and then I’ll do it myself. However, the first transaction was for 2.7 euros, I would not have reached such a price even with the most optimistic result. And so I missed that train as well.
The company with which I lost a large amount of money. By now, I regret that I sold at all (the buy and hold strategy also works with a company under reorganization). Even if I had wanted to keep it, I am afraid that the coronavirus crisis and the reorganization news would have forced me to sell it at an even greater loss. Speaking of numbers, if someone had thought of buying and keeping Baltika from the bottom of March at a price of 0.094€, he would have had a nice return. Specifically, from the bottom of March, the price of Baltika’s share has risen by 327%, ie to 0.402€.
I remember in October when I wanted to buy LHV so badly, but didn’t want to pay 5 or 10 cents more per share and then it went up € 14 and I gave up buying it at all. Today, LHV has risen from this place to over 60% – again I lost. But fortunately, this was not the last stock that rose sharply in 2020.
In Funderbeam, there are even more companies that have made a larger-than-average jump. Let’s bring out some example Amper Bikes, FARA Cycling, CostPocket, HUUM, Promoty and so on. All of the above has risen by at least 70%.
There are opportunities everywhere you just need to be more active. Even LHV Green II’s pension pillar was able to rise by more than 60%.
But there was another company that stock price jumped pretty well
Change Invest – a start-up that helps trade in cryptocurrency: with low service fees, offers 2x leverage on Bitcoin, Tesla and Apple CFDs and much more is coming. I made my first transaction in the crypto world through them. I still have this app on my phone and from time to time I have checked this app thus I made that decision in favour of Change Invest because I had personal contact with it. There was also Ampler Bikes in the selection, because Äripäev wrote about it often, but since he had already made a big rise at the time, I left him out. In addition, there was much more, but the idea of Change Invest suited me better, especially at a time when Bitcoin was doing a new price rally.
But now it’s time to talk about an investment. On my first trade, I bought 110 shares at a price of 1,54€ and as soon as it started to rise, I made another transaction, buying 68 shares at a price of € 2.22 – so my average share price is € 1.8, which I am very happy with. The share price has increased by 100%, but I must mention that since I did not agree to pay more for € 1 to LHV, I bought Change Invest instead.
What we can learn from this?
From the end of last year, I learned that if things don’t look good at first, it’s still worth researching, because maybe we’ll find something that’s good. Secondly, if a company only shares good news, then add 10 cents per share is not much to pay if the quantities we are talking about are up to 10 pcs. Yes, I refused to pay € 1 to earn € 60, this is one of my biggest mistakes. But luckily, the money just didn’t stay at my bank account I bought the shares of Change Invest, which I have made 320€ unrealized profit.
Last year proved once again the fact that stock markets have never failed to recover. 1929, 1987, end of 1990, 2008 and now another 2020, each time the market reaches a new peak. That’s why we say “buy and hold”. I’m a trader type investor, for somebody a speculator (for me it sounds like a dilettante), that’s why I’ve sold some positions I don’t believe in anymore, but later they have started to rise (sounds like a regular investor who buys at the top and sells in the bottom)