History of my weedstock account- Part 2
This is a continuation of Part 1, if you haven’t checked that post out you should start there.
July 2017 I’m now pretty much fully loaded up on potstocks. Now sitting at 86k invested. At this time most of the stocks are at their recent lows, lots of red in my overall return column.
This trend is on my portfolio page , lots of peaks and valleys along the way. Some of increase in value is purely from me adding more capital to the account.
Weedstocks start to rebound end of July, made it through the dip and now on the way back up! Happy I didn’t panic sell, reaffirming my positions.
Bought into EMH finally, with a planned 1 mill sq foot expansion I should have done it earlier. Also only about $1,000 into it, but can’t own a ton of shares in every stock.
Well here is one trade I made that wasn’t so great. I bought into THC Biomed at the peak, I eventually got out after being worried the stock wouldn’t be a good buy. Managed to sell when the stock rebounded short term. I mainly sold this as the company was focused on clones only, didn’t really believe in that strategy. I think they recently have change paths and the stock has come back around. Lost of bit of money on this one.
Bought the dip on FIRE, adding $5,000 to my holdings. Bought in at 1.05 stock is now back up to around 1.75.
Adding more capital, now with 95k invested. Pretty sure I sold of some dividend stocks to add this money. Start to lose track after a while.
Another buy the dip moment. Doja hadn’t been on the market very long and was tanking. Just like I posted in my What I’ve learned investing in weedstocks- a little while after the IPO we see dips. Doja is now sitting around 1.00 for a good 100% gain.
The money I added mid September helps with some really good gains overall. Cronos Group (MJN) starts to move while WMD continues to be flat for a while. Also bought the dip on WMD when it went down to .70
It seemed like for a month, every Monday my stocks would go up $5k.
Now sitting with $108k invested. Pretty much what I’m sitting at now. I do have $5,000 invested in The green organic dutchman, but that was a private placement and won’t be going public until Q1 2018. Don’t know what the value will be once they go public. Was crazy to hit 200k.
Big gains are followed by a sell off, people take profit and the stocks pull back. You have to expect and be ready for these. Don’t feel bad for not selling as there is now way to know when the pull back will start.
About 2 weeks later we have rebounded off the dip and now reaching new highs.
About 6 days later the sector is starting to rally. WEED.T has the news about a major beer company buying in, provinces are announcing their plans for legalization (the risk of provinces trying to delay starting to go away) and finally the government announces their plan to have a $1 excise tax and the market reacts favourably.
The rally is going, the weedstock index has climbed from the 200s to 300. About a 50% gain.
The rally continues, not adding much capital at this point. Don’t like to buy on the swing up, as I have learned in the past. If you haven’t noticed, I did a lot of buying the dip, now it starts to pay off.
A huge run up for me, 200k to 300k basically. Now reality sets in and value drops 30k in one day. 30k is a lot of money but have to look at the %. Recently up about 100% or more so a 10% drop if just fine.
Amazingly there wasn’t a bigger pull back and the stocks start to rebound.
The Canadian government releases their regulations and the market is happy. Back up to all time high of 306k.
This brings us up to day. Portfolio sitting at 327k. Now that I’ve gone through the history of this I realize that this is a huge gain in about 1 years time. With the dividend stocks I have, my account value has gone from the 80k in July 2016 to 400k today. Some of that is money I added via buying stock options or adding cash to TSFA, but still it’s up 4 times.
This amount of growth, is it sustainable? I kicked myself for not selling in Nov 2016 when it was pretty obvious that the stocks had gone up to much to fast, is that where we are now? Don’t know. It still comes down to timing the market, I never expected this amount of growth this quick.
The weedstock index is at an all time high, but when will the correction come? You could have sold when the index hit 300 and missed out on the run to 400.
Dollar cost averaging has worked on buy stocks maybe I should start doing it for selling. Sell of 10% and hope for a correction, if not still have lots invested. Or the easy route is to sit back and do nothing, go through the peaks and valleys as we slowly climb higher.
That’s it, how my account went from $6,000 up to $326,000. Hope it gives some insights into investing and what can happen. My account basically follows the index as I own a variety of companies. You could easily see bigger gains if you went all in on certain stocks but you could also see smaller gains. This is why I hold many different companies.