Position: Bought DOGE in March for .056 cents. Sold April at .13 cents.
If you’re new to investing, here is a helpful primer on the basics of trading a stock.
Thursday, April 15, 2021
After I downloaded my first brokerage app, Robinhood, the kids and I bought Dogecoin (DOGE) coin as a joke. DOGE is something they were already familiar with, and I wanted to get them excited about investing. It worked!
Almost every day, the kids would ask how DOGE was doing. When it moved from .05 to .06, the kids and I celebrated. Then when it moved from .06 to .08, I realized the power of investing. A movement of two pennies may seem minuscule, but magnified by just 100 stocks gave us a $2 bump. That adds up!
I woke up on the 13th and saw the price was moving swiftly to .11 cents, so I placed a limit order to sell if it hit .13 within the next 24 hours.
Sure enough, it printed (sale went through) and has been hovering around that range since. For various reasons which I’m not able to articulate yet, I suspect the penny markets are in a pump-and-dump scenario right now and will tank as soon as GameStop begins to take off within the next month or so.
While I do take risks, I do not like risky investments. I’ll wait until after the market explosion around GME before looking at DOGE again.
I haven’t told the kids I sold our DOGE coins. I wonder how they’ll feel when they hear I sold right after it spiked. I hope they can begin to see that investments can be fun and profitable when managed with healthy detachment. They may not yet understand how money is made from “thin air” — I’m still learning the basics, too — but I’m excited to continue learning with you all!
Disclaimer: I can’t and won’t give you my opinion on how you should act when investing. I am simply sharing my perspective and thought process through storytelling. I’ll also include links from Investopedia or Merriam-Webster when applicable to help broaden our collective knowledge.
Request: This is a new way of sharing and analyzing collective knowledge to make investing more accessible. Please help the community by adding any corrections/clarifications/questions in the comments. Remember there are no stupid questions. Asking them will help others (including me!) along the way.
((big, physically distanced hug))