My first trade of the new year, with a new portfolio, using a new strategy was to do something entirely unsound: Invest $4.47 into the very lucrative, very stable, very sound Dogecoin. I bought 2235 “shares” of DOGE at a staggering 0.002 per share price tag. I say “shares” because trading Cryptocurrencies through Robinhood does not mean that you actually own the currency. Instead, I’m essentially placing a bet that the value will increase without actually purchasing anything. (When you break it down, this is only slightly more risky than the way the normal stock market functions. We buy actual shares in companies speculating that they will increase in value over time.)
My reasoning for making this trade was pretty straightforward. I have an interest in cryptocurrencies and this was an extremely inexpensive way to play around in that space. Also, I had been watching Dogecoin move over the past few months, and the 0.002 price looked to be close to the low, so it seemed like a good point to enter a position.
My second trade was to open an Iron Condor expiring 2/21 on iShare’s Emerging Markets ETF (EEM). My plan is to close the trade if it reaches $10 profit before expiration. I learned an important lesson about trading multi-leg options strategies on Robinhood in opening this trade: Factor in the bid/ask spread. I entered the position for a credit of .21 with a $1 spread on both ends of the Iron Condor. It’s a smaller credit then I would like, but I know I can do better in the future when I don’t get frustrated by wondering why my order won’t fill.