Gain of $100,000 in 2 months
I have huge faith in the up and coming mj industry, enough to now have a quarter of a million dollars invested in the sector. Was I expecting to see a gain of 100k in 3 months, nope. Even with the recent run up I was expecting a huge pull back which hasn’t come yet. Just goes to show the market can act in ways you can never predict. We inherently look at past market moves to predict the future but you just never know.
What it takes to get to 100k gains in 2 months
First of all, I’m not day trading or even swing trading. Early on I did sell and lock in some profits. I have been consistently adding to my positions.
Getting to the point where my account has gone up 100k hasn’t been easy. Back in April we saw a huge peak in mj stock prices, I was on top of the world. My investment decisions were really paying off. Now look at the huge decline after April, I saw almost all my profits starting to disappear. My overall portfolio gain was over 100% at the peak, as the decline kept going it went down to 27%. It seem like every day I was loosing 1%. I told my self, ok I can withstand this decline for another 30 days and then I might end up selling off.
Here is my account during the April decline time frame. Wait it’s not going down, it even goes up a bit. The last peak is probably the rebound in July. My account wasn’t going down because I was adding more shares. Everything was going on sale I continued to buy as prices went down. I went from 71k invested up to 108k that I currently sit at. So I added 37k in capital during a huge draw down.
Basically I was buying while others were selling during this time. Below was my account at about the lowest it got. This screen shot was down 5% in one day. 5 more days and I would start being in the negative at that rate. This is when the panic can set in. I held strong.
So how did this end up turning into 100k gains in 2 months. As I mentioned above I added 37k of capital into my positions between April and September. September came with multiple catalysts. Aphrias earnings seemed to kick start the rally and then Canopy Growth deal with a major US alc distributor catapulted the industry.
The first peak in September was when I bought 5000 shares of Cronos Group and 3000 of WMD. After that the rally has begun. Due to the extra capital invested the gains were increased even more. The last time the MJ index was at the 300 mark, my account would have been worth about 100k. Now with it back at 300 I’m sitting around 240k.
The 100k gain I’ve seen didn’t come easy. It’s awesome to see this, but it also took watching my investments dwindle for a while, and me contemplating if I’m a complete fool!
Buying while the market was tanking has now paid off for me. I seem to be good at buying on the down trend, now I just need to work on selling when stocks are high. Surprisingly there hasn’t been much of a pull back after the recent run up. We are getting very close to legalization and these companies are starting to mature showing some increasing revenue streams.
Exciting times are coming up, the world is starting to open up to legalizing medical mj. The Canadian market is small, but the world could be huge!