Made $1,272 on FB Stocks Today. Here's the plan.
I promised everyone that I'd keep you updated on my facebook stock journey so here's the update. I first bought 145 shares of FB at $69.67 back in February after realizing that I suddenly had more money in my bank than I knew what to do with.
It was a better idea to spending it on coconuts and crack but when it dropped down to $57 a share I worried a bit. So I bought 100 more shares.
Then it dropped down to $55 a share, so what I did do? I bought 100 more.
Sounds retarded right?
Well it kind of was, but luckily it was money I was happy to gamble with anyways. My original idea was to go to Vegas and put it all on black. Or red. Actually, that was the main reason why I didn't do it, I couldn't figure out which color I wanted to bet it all on.
If you're wondering why, why and why, it was because I was so used to being broke that the money was burning a hole in my pocket and I felt like I needed to get rid of it. I also thought that investing in stocks was a good idea. Exactly a year before that, I had $200 in my bank account, so suddenly having $30,000 sitting in my checking account made me freak out.
Without really understanding anything about stocks, I figured out a way to hedge my bets. I simply bought more FB stocks whenever it went down which ultimately lowered my buy in rate from $69.64 per share to $62.
It's tempting to keep riding the wave to see how high it will go but I promised myself that the only reason why I bought more in the first place is so I could sell off my first lot once it reached $69 again. So even though it's fun to gamble, I've put in a sell order for the original 145 shares at $69.64.
That way if it does go back up I'll recoup all of the money I spend buying the original lot, and I'll get to keep 200 shares at $56 a share which would be awesome.
So "technically" I'd be up $1,272 if I sold all of my shares today. Not a bad way to make a grand right? But was it worth it? Not really. Even though it's 100% passive as I don't really look at how my stocks are doing often, I've realized there are much easier ways to make a thousand dollars that aren't as risky.
The best news is that instead of blowing $20k on something else such as buying a new car, I put it in something that is actually making money. But since I felt poor seeing all of that money leave my checking account it forced me to go out and continue building my drop shipping stores to recoup that money again.
It's crazy that just by "spending" the money I had sitting my account on fb stocks, it subconsciously made me work harder, save, and build my business so I could replenish my bank account again. Even after paying off all of my suppliers and credit cards, I still have $26k in my checking account again which is pretty close to what I had before I bought all those shares of facebook.
Best of all, I've been able to save and rebuild the funds without sacrificing my standard of living since daily life, rent, and traveling is so damn cheap here in Chiang Mai.
- Buying stocks is gambling, no one knows shit.
- Make sure you have another source of income.
- Rig the game by buying low and rebuying lower.
- Don't get emotional, set a number and get out.
- Don't forget to treat your girlfriend to dinner.
Keep in touch and good luck on your own financial journeys. Don't take stock advice from me as like the rest of the world, I don't know what the heck I'm doing. If you're curious how I've been able to travel for so long even before I started my online businesses check out this post entitled "How I've been able to afford my life of travel."
Keep in touch on Twitter @JohnnyFDK
Or on facebook at fb.com/JohnnyFDK
Like this Post? #SharingisAwesome