ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

A Tale of Two Portfolios

Updated on June 24, 2019
Source

Before I started investing, I thought it smart to practice investing. I found a website that let you practice with virtual money and used real market data to see how you were doing. Now, this was 2017 going into 2018 and so it was a great year to be invested. I didn't know much about investing but I tried to think of companies that were strong blue-chip stocks and so invested in Walmart, Pepsi, Adobe, and Union Pacific. It took me a couple weeks to gather these four and get as many shares of each with my virtual 10,000 dollars.


Fast forward one year and my account had grown about 30% to 13,000 dollars. I was ecstatic with the growth of my fake portfolio. I still had it in my mind that every year wasn't going to be as good as this year, but I had so much excitement and anticipation to start my real stock portfolio.


Keeping the paper trading account, I deposited 50 dollars into my account and started trading. Over the next couple of months, I would put in a few hundred dollars and tried to recreate my success with the paper trading account. I tried to diversify but with such a small amount it became difficult. This led me to invest in much cheaper stocks. I invested in stocks like Ford, AT&T, and General Electric.

The rest of 2018 and into 2019 were much more difficult on stocks and I found myself in the negative until recently. I finally broke even and now have even gained 5% on my portfolio. It had been a while since I checked the paper trading account and so I decided to see how it had done and to my surprise, it was up 20% during the last year when I had struggled to make anything.


I was shocked and a little bit upset at the difference between the two portfolios. The last month or so I've considered what was different between the two and this is what I've come up with.


In the first portfolio, I thought about companies that I heard were doing pretty well and that seemed like they were going in the right direction. The stock price of each of these companies was close to 100 dollars or more. I didn't worry much about the dividend or how much growth the company would have, I was just focusing on good solid companies. The second portfolio, however, had companies that were in the 5 dollars to 35 dollar range. These were still very recognizable companies but they didn't have very much good news surrounding them.


Most companies don't aim for their stock price to be that low. In many cases, they had seen a few years of difficulty and the stock price had been dropping. I don't know if I would say they were bad investments. Some turned out better than others, but I wish that I had put my money with better companies. I've learned a difficult lesson from this. Evaluate the company and don't be afraid to invest in ones with a higher stock price. 100 dollars seems like a lot to use on one stock when your whole portfolio is only 300 dollars but if the companies are good then the investment is worth. I'm now revamping my portfolio to show the lessons I've learned and I'm even more excited to see what the next year has to bring.

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://maven.io/company/pages/privacy

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
    ClickscoThis is a data management platform studying reader behavior (Privacy Policy)