Stock Squawk

By Parrot 🦜

Stock Squawk 🦜 - Issue #1: An Introduction



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Stock Squawk 🦜 - Issue #1: An Introduction
By Parrot 🦜 • Issue #1 • View online
Welcome to the Stock Squawk Newsletter! If you’re reading this and haven’t subscribed, please join to learn more about my investment journey, stocks I’m interested in, and investment strategies I use.

Managing multiple media accounts, my portfolio, a 9-5 job, and trying to consistently produce quality content people appreciate is a full time job(s).
But 280 characters doesn’t always cut it.
Twitter has finally started adding features to accommodate the creator. One of which, was the purchase of Revue. Bringing Revue into the Twitter ecosystem will hopefully allow for a seamless transition between platforms. So I’m starting this newsletter to learn the process, and grow with them as they integrate.
Speaking of new Twitter features; I’m really enjoying Twitter Spaces, and what I think it can become. Shoutout to @WOLF_Financial & @MaxTheComrade for inviting me to join them on their Space. I’ve just recently been granted Host privileges, so I hope to be hosting my own “Stock Squawk” Space soon!
I’ve also seen there is a new “audio” tweet feature! At least it’s new to me, as I’ve never noticed it before. Something I will try and incorporate now and then into my tweets, but I’ll probably use it sparingly for now.
Okay, enough about Twitter optionality. What is this newsletter about?
My goal is to give an overview of at least one stock per week. Most likely one in my portfolio or one I’m considering to buy.
I’ll also be discussing different strategies, trade ideas, tips, pretty much what I tweet about in long form.
If you are looking for deep technical, financial, & charting analysis, you’re probably reading the wrong newsletter. But if you want to learn about companies, what they do, where they might be going, and why I invest in them, I’d be happy to have you read along.
And despite this long winded introduction, I’m going to try and keep this newsletter relatively short and easy to read.
For this first newsletter, I though I would expand on my pinned tweet a bit, and talk about what brought me here and my general strategy & philosophy.
Parrot 🦜
15 years in a 401k

4 years trading on RH

2 years watching my managed IRA underperform

Time to self-direct, and manage my own finances

$550k funded in my new TD account on 2/21/2020 ... and the market crashed the next week.
My Story
I didn’t start out the great investor I am today 😂. Like a lot of people, I didn’t get much of a financial education at home. Talking about finances was a taboo subject.
So when I got my first meaningful job that offered a 401k, with a MATCH!, I jumped on board … Free Money!. The company matched 50% of every dollar up to 4% (I deposited 4% of every check, the company deposited 2%; 6% total). A few years in, I learned I could take a loan out against my 401k balance and pay myself back the interest. It sounded like a really good idea when my AC went out and it needed to be replaced.
Unfortunately, no one told me it had to be paid back in full if you left the company. So when I changed jobs and I couldn’t afford to repay the loan, I had to cash out and take the tax hit. My first investment lesson learned the hard way.
The next job had a better 401k, both in options & in match. So the 4%/2% above became 6%/6% = 12% total. In addition, the company deposited an additional 6% annually in lieu of a retirement plan. So for the next 15 years, 18% of my annual income was invested in a company 401k. And giving credit to my younger self, I stayed weighted heavily to stocks and growth funds.
After setting, and forgetting, my 401k for the first 10 years; I finally started getting interested in actively trading around 2015. Robinhood really opened up new opportunities for the average bird, and I finally opened an account in 2016 with a small unexpected bonus.
I had some early success swing trading (I didn’t know what it was called back then), and finished my first year at about +40%.
It was free to trade, so I did things like buy 2 shares of $F at $12.63 & sell at $13.25. Yeah baby! Easiest $1.24 I ever made. 😊
Easy Money
Easy Money
A little later I made trades like buying $CMG at $286 in Nov, 2017 and selling at $318 in Jan 2018; Brilliant! It’s only trading at $1500 today, so pretty smart move on my part. 🤓
I'm a Genius!
I'm a Genius!
In the early days, I sold almost all my positions on 10-25% gains. But just watching the market every day, buying and selling a few shares, I started seeing the ebbs and flows, the patterns, I was slowly becoming a trader.
In 2018 I changed jobs, and having learned my early career lesson, I rolled my 401k into a managed IRA. Same broker, who also managed many of the other large accounts from the company I was leaving. After completing the paperwork, and making the transfer, I didn’t hear from the account manager for 2 years.
I definitely have some responsibility in this, but for the next 2 years the market was on fire, and my IRA was almost flat. As the market continued to climb, and my frustration continued to grow, I finally decided to move my account to a self direct IRA in 2020. My wife took quite a bit of convincing for her to agree to let me manage our finances. She couldn’t understand how I could possibly do a better job than a professional money manager.
One of the things I didn’t realize at the time, money managers goals are not to make their clients money. Talk about a shocker! For most, their primary goal, is to have as much money under management as possible.
There are a number of other advantages to managing your own account, but I’ll save it for another newsletter.
I finally got all the paperwork done and the account open on Feb 7th 2020, and then set and watched my account for day after day waiting on it to fund. Everyday, I researched investments, and watched them go higher and higher. I stayed up nights with anticipation, and logged on twice a day to check if my account funded.
Finally, on Friday Feb 21st 2020, funds hit the account. It was a red day in the market, most of the index funds and few individual stocks I had been watching were on sale, so a great day to buy. I was traveling that day, so at market open I bought starter positions in all the companies & funds I had been researching, then I added throughout the day every time I stopped and saw the price had dipped a little.
Monday, the 24th, was a little red too, so I kept buying the dip. I didn’t keep track like I do now, but I was probably 80%-90% invested by the end of the day.
On Tuesday the 25th, the bottom fell out. Then Thursday the 27th, the bottom fell out of the bottom. And then it just kept going down. I added my last few dollars on the way down, but there wasn’t much to do but ride it out. I may not be the most experienced investor, but I knew selling at the bottom was a pretty bad idea. So I did the only thing I could to stay sane, I stopped watching every tick of price changes, turned off the brokerage app, and waited for the market to find a bottom.
The Crash
The Crash
I finally hit that bottom on March 23rd, down 35%. Basically 5 years of savings gone in a month. I knew the market would rebound, I just had no idea how explosive that rebound could be. I had a +10% day on March 24th, and the next 12 months have changed my life.
To be continued …
I’ll cover my transition to growth investor and Twitter aficionado in the next issue. 😊
And I’ll talk about the first stock I bought in this account, proving I was a growth investor before I even knew it myself. 🤓
I appreciate you reading! You can find my content at:
Wolf Financial:
If you’re looking for investment opportunities without the up-sale and hyperbole; I recommend the only service I personally use, 7Investing! Just $17 dollars a month, 7 new deep dives every month, all past research and performance data, podcasts, and direct access to the advisors. There isn’t a better value on the market. You can try them out for the first month for just $7 using the link below or code “Parrot” at checkout.
7Investing affiliate link:
Until next time! 🦜
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Parrot 🦜

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