I put some money in INRG ETF, clean energy. I bought at Ā£13 a share, itās down to Ā£10 now.
Nah, I put a small amount into it, but I donāt see the point selling at a loss. I think it will recover, one day. Iāll just keep an eye on if I like its near term performance before deciding to re-invest. Itās just that I have other, safer ETFs to drop my money into at the moment, so those will take priority right now.
I wouldnāt advise selling something you have long term faith in because itās down but if itās an investment you no longer think is a good investment or you realise you made a mistake then often it is better to sell at a loss. A good way to look at it is to think if you had the money in cash would you invest at that price, if itās a strong no then you should probably sell, if itās a yes then itās probably counter productive to sell and buy back later.
I also bought into the INRG ETF at its peak (almost) but I didnāt know it was risky, I shouldāve done more research. The fund will get rebalanced in April so I think itās a good idea to hold on to it for a bit longer rather than panic selling at a loss.
Iām curious on those ETFs you consider safer, would you mind sharing them?
I know you werenāt asking me but if youāre looking for safe ETFs youāre probably best off with broad index trackers. Iād also recommend SAINTs (the bailie Gifford investment trust) for a safe steady investment, but of course DYOR
As @Rob208 just said, broader trackers. Stuff like Vanguard All World (VWRL/VWRP, pick your poison).
I think most developed region ETFs (Japan, Europe, UK) are relatively safe. Whereas stuff like Emerging Markets, or Small Cap ETFs are more riskier.
I donāt mind the risk, I think INRGās just riskier because itās on a huge spike (122% at one point), so there was always going to be correction, but like you, I invested before I really looked in-depth.
Iām still learning even now, but we all start somewhere.
If you want to get an understanding of why the equity markets are a bit wobbly at the moment. Have a look at the recent rises in the yields for the mid to longer term US Treasuries. Ignore the short duration bills at the US Fed is currently buying most of them in order to hold down the yield and support the wider government & corporate bond markets.
Iām not going to go into all of the details regarding all of this, but for those interested there are resources available online that you can look up in order to better understand whatās going on.
I agree longterm. But no one wants to be sitting on high losses that only get higher like I am with MGC Pharmaceuticals. Iām down 45% on that and could have cashed out at -30% a couple of days ago. So it canāt always be bad to sell a loss. I believe in the stock, but at the right price. Even now it still looks like it has further to drop before it settles.
Iāve got a 5 year e-sports play that for the first 3 months on Guild and Gfinity was loss making, now theyāre fine⦠and in future theyāll be better.
A Cannabis play is not going to āyieldā (hehe) anything initially, especially on a brand new listing.
Youād be the guy that cashed out of LMND a week in with losses, whereas I averaged down and Iām still 55% up even with the crappy tech week weāve had.
Patience Daniel-san. If you believe in the stock, hold it.
Fair points. I have thought about averaging down but every time I look at the stock itās on a steep downward trend. I own 251 at 8.6p so going to take a lot to average down to something reasonable.
Not to sound too harsh, but thatās like Ā£20. Another Ā£20 in at Ā£0.0481 (now) would drop that average to 0.067. Itās finding its feet, relax. You might find that 8.6p is decent in a year or so. Iāve allocated Ā£500 or so to cannabis stocks. Iāve spent Ā£100. Iāll average down as necessary, but the cash I had earmarked yesterday went on the US tech sale
This is true. I think I need to sell some of my stocks so I can buy more. Iāve gone in too much on certain stocks. I mean I have 1/3 of my portfolio in one stock which is never great. I think they recommend 4-5% per stock.
Iāve not even looked at the US tech stocks in any detail since I started as all I see is red and my initial thoughts are that as the Covid recovery happens people will spend less time indoors using tech gadgets/subscriptions and the tech stocks that surged last year because of Covid might pull back.
If youāre spending days in the stock, rather than months⦠youāll get burned far more often than not.
Incredibly long story short, its US treasury yields and the worry of inflation on tech. Michael Burry (of āThe Big Shortā fame) is also piping up and people are worried. But its also a great opportunity, especially if you only started this week!
Thereās 555 tech stocks on the app. Where does one even begin to find the best ones to invest in? I donāt have the time to look at all of them in detail.
Iād recommend sitting down and working out āwhat you think will do well in the next 5,10,20 yearsā.
I like the EV market. I think most people are aware that weāre moving at breakneck speed towards an electric vehicle revolution. So what makes them work? You can buy a stock like Tesla with its PE of a gazillion, sure, but why not look at companies that work in and around the industry and up and down the supply chain?
Lithium miners (BCN, etc), battery producers (IKA) and chemicals (ALB), Fibreoptics (APH), sensors (TEL), auto parts (APTV), lidar (LAZR).
Iāve got Cannabis, EV (focus on batteries), E-Sports, Microprocessors and semiconductors, data transfer and storage and biohacking plays all in some level of development. Some are doing shite, some are already doing well. But I think ALL will work if I look back in 5-10 years.
I then balance this out with the ultra-boring ULVR, GSK (both shite at the minute, decent entry?) LGEN, HSBC, AV, WPP, BP and a few more (I like long-term divs, they fund my stupidities).
Or just go the ETF route haha.
Itās up to you how you invest, Iām just telling you what Iāve been putting together. Not advice.