Consistency: The Name Of The Game

It has been a valuable past couple of months for The Freemium Fellow!

Today, I exited $GME after a fun ride. And don’t get me wrong, it was FUN to watch, but it’s not the direction I want to take my life in. The YOLO vibe is still the main catalyst driving the stock, and I am going to have to decline that sentiment and instead seize the day by doing the hard thing: maintain the consistent investing strategy that I need moving forward.

And that means dropping the 2% $GME slice from my M1 Finance pie.

Here is the take away from all this:

1. Had fun learning about how wacky the $GME thing was
2. Was able to trade $GME and see the dangers of emotion in investing while also realizing that I have absolutely no interest in trading because of that emotion
3. Saw benefits of robo-advising through automation that enables consistency that transcends emotion.

The end financials from the event are hilariously quite favorable (timeline below)

• 29 Jan BUY: 0.18879 shares of $GME @ $338.73 (sheesh)
• — Total invested: $63.95
• 8 Feb BUY: 0.4022 shares of $GME @ $65.39
• — Total invested: $90.25
• 22 Feb BUY: 0.51965 shares of $GME @ $46.95
• — Total invested: $114.65

• 8 Mar SELL: 1.11064 shares of $GME @ $154.09
• — Total profit: (exit price – invested) => $171.11 – $114.65 = $56.46

56.56/114.65 = 0.49 => 49% gain

+$56.46 (+49%)

That’s what the monetary result was of this game. I got really lucky. But its time that the GameStop for Mr. Fellow 🙂

I would not have bought the stock on my own when it dipped, but because of the auto-deposit I have setup with M1, it automatically bought the dips in February. Because my portfolio was quite diversified and because M1’s auto-invest features enabled consistent investing, I came out on top. The human emotion was missing from this process, and I ended up somehow covering any losses that I probably would have taken if I was calling all the shots. In the end, there is a lot to like about financial advising, even if it is a robo-advisor like M1 Finance.

A lot of what’s been said can be summarized in the pleasing email M1 Finance sent all its investors at the end of January:

At this point, this was mostly a PoC evaluation of investing money. The growth is unreal, but achieving the same results with a larger chunk of cash is a bit different and plays with your emotions a lot more.

-TFF

P.S. haha I realized that the total profits from this thing just about make up for the Great Textbook Debacle 😀