Stock Market Experiment – Udpate Nov20

Back in September I wrote about intend to jump into experimenting a little with the stock market with the aim of reaching profits of INR 100k in two months!

What was I even thinking!

For one, I just didn’t get the time to research on companies and make investments. Secondly, I pulled out some money from the base amount to invest in BTC. Ugh, I know! I’ll update on my crypto portfolio later this week. I started off with INR 200k, went down to 160k and managed to get it back to 200k. Since then, I’ve pulled out at least 70k to invest in Bitcoin. Since end of September I’m only working with 130k. The idea was to profit of about 100k and invest that in NASDAQ100.

So what’s the update?

I only took one position since then and sold it off last week making just about 3k. So instead of making 100k, I’ve made only 4.3k which I’ve invested in NASDAQ100. This is only 3.33% increase in my base amount. It’s kinda ridiculous but I don’t have anyone but myself to blame. It’s just been too hectic at work and I couldn’t spend time on this mini project.

I’ll be honest. I’ve thought of whether it’s better to just dump the money in index fund and stay out of individual stocks. However, I’m torn. I’m already putting up 18% of my salary into index funds every month. I’ve always wanted to experiment with the stock market myself since I was 16. Now that I have the funds, I should at least stick to it. I don’t want to get to a stage where I regret not trying. I went in thinking I’ll be okay losing 200k but I’ll at least get to learn something new. Since 2016, I’ve always had something new to learn every single year. And learning all the technical analysis and fundamental analysis is my this year’s learning project.

What I’ve decided is — to not have a deadline for the target. Just relax a bit so I can enjoy the journey too. Recently Jeremy uploaded a video that his portfolio reached $1 million. But he’s an experienced guy and has been dabbling in the stock market since 12 years now. I also am beginning to think that the Indian stock market is relatively new and there aren’t many good companies in India. The Indian market is extremely inefficient too. It’s difficult for companies to make a really good profit. This also prohibits Indian companies to launch innovative products and thus restricting any chances of aggressive growth.

Should I instead trade in the US market instead? I’m contemplating but haven’t made a decision. The only reason being taxes. My current US stock portfolio is with Vested and I am not sure how I can do my taxes if I trade with that account. With Zerodha, it’s as easy as connecting Quicko account. Additionally, my current US stock portfolio is long term portfolio which means I’m investing innovative companies only. I do not invest in SP500 or NASDAQ100 companies since I already do via funds of funds.

How are you managing your portfolio?