Freetrade diary #10 – October

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White Freetrade lettering overlapping plain pink background

Quite a few additions this month: AMD, Cloudflare, L&G Cyber Security ETF and JD Weatherspoon.

There have been a few significant updates from Freetrade as well. 

They’ve added their premium ‘Freetrade Plus‘ service. For £9.99 a month (eesh), you get access to more stocks and ETFs that basic accounts don’t offer, as well as a few extra features like stop losses and limit orders.

What are stop losses and limit order?

I find the difference between the two really confusing and both seem pretty much the same thing to me, but here’s a good article if you want to look into it yourself.

From what I can gather – An order is placed with your broker (Freetrade for example) to sell or buy a stock at a certain price point. For example, if you buy Apple at $100 and set the stop loss at 10% either way, your broker will automatically sell that stock if Apple reaches $110 or $90. You can also instruct your broker to automatically buy a stock if it reaches or falls to a certain price point.

Advantages? This can limit losses if a stock takes a sudden drop and can also lock in profits if the price rises and then drops.

Seems like a good feature if you have an active interest in investing, but for £9.99…hmm not sure on that one.

New portfolio performance tab

Under the ‘Insights’ tab you can now see your portfolio’s performance over a certain timeframe.

At last they’ve built something a little better than the little graph on your portfolio page that screws the data if you add or withdraw money. Took long enough.

Monthly lowdown

AMD

If you can’t beat them, join them. I wrote about buying Nvidia a few months back and decided to not try and predict the winner by buying their major competitor, Advanced Micro Devices (AMD).

Their processing chips are widely considered to be slightly less powerful and use more energy than Nvidia’s but at just $10 a share back in April 2018, AMD have come on leaps and bounds.

AMD have also overtaken Intel in their CPU production, producing chips at the 7-nanometer scale and even beginning to develop chips at the 5-nanometer scale. Intel on the other hand continue to lag, struggling at 10-nanometers.

Despite their rapid rise they have just as promising a future and if they can carry that momentum, I’ll be in it for the ride.

Cloudflare

I wrote about my reasons for seriously considering Cloudflare last month, so head to my previous Freetrade diary entry for that one.

L&G Cyber Security ETF

My only ETF in the portfolio, but one that continues the more risky investment objective I want to be following with this Freetrade portfolio.

You can see the ETF breakdown below:

Its biggest holding is Cloudflare which I’ve just invested in separately but this ETF also comes with a number of other interesting equities.

It tracks the ISE Cyber Security Index, investing in companies with a vested interest in the cyber security sector.

This ETF has performed consistently well since its inception at the end of 2015. This obviously doesn’t prove its going to do just as well, or better, over the coming year, but with the increasing movement towards the world going online, and everything becoming digital from payments and banking, to tickets and receipts, this sector cannot be ignored.

Who knows who the winners are going to be, so I’ve chosen the index on this occasion.

JD Wetherspoon

JD Wetherspoon took a tumble earlier this month after news of its considerable losses over the lockdown period.

But my reaction was “well yeah, obviously”. Every pub closed for months….but just like many, many other businesses.

JD Wetherspoon is well placed to bounce back as soon as restrictions are lifted further and I’ll be holding until (hopefully) this happens sometime next year.

Where did everyone go after lockdown was first lifted? The pub.

What’s the cheapest pub chain in the U.K? Spoons.

People will be flocking here after this second wave has resided and they have plenty of firepower to withstand this period.

This is another Boohoo esque trade rather than an investment. Whereas I only held Boohoo for less than 24 hours, I’ll be holding Wetherspoons for considerably longer. But I don’t consider this long term and will sell once I receive a return I’m happy with.

*

That’s it for this month. Happy Halloween and I’ll report back just before the Christmas calendars come into action.

4 thoughts on “Freetrade diary #10 – October

  1. Hey AMM

    I’ve just come across your blog on google, nice work. I work as part of the marketing team at Joslin Rhodes (we’re a retirement planning company in the UK) . We focus on lifestyle financial planning, our main goal is helping people to retire earlier than they thought was possible.

    We’re in the process of producing a roundup blogpost on “The Top 10 Expert Tips to Early Retirement”.

    We think you’d be a great addition to our blog post.

    If there’s one top tip that you could give to someone to help them retire early what would it be?

    If you can give us a nice short answer to this question, we’d love to feature your answer on our post and link back to your site!

    Hope we can make this possible!

    Kind regards,

    Tom

    Liked by 2 people

    1. Hi Tom, thanks for reaching out.

      There’s a lot of great things someone can do to set themselves up for a more prosperous future. But I’d say, start investing in a well-diversified portfolio as young as you can. Even if it’s small amounts, just get a regular and consistent amount into the market each month and leave it. Let the money work for you.

      Good luck with your post, and thanks for dropping by 🙂

      Liked by 1 person

      1. Hey avarage money man

        Just want to say a big thank you for your expert tip towards early retirement. We’ve just published our expert round-up post, in which we’ve linked back to your site and published your tip alongside some of the other industry experts!

        We’re looking to do these types of posts more often and build relationships with bloggers like yourself.

        We would love it if you’d share this article with your followers and let them know you’ve been mentioned in the post.

        https://www.joslinrhodes.co.uk/blog/we-asked-10-expert-retirement-bloggers-their-top-tips-for-retirement/

        Again, big thank you.

        Have a good xmas and new year!

        Joslin Rhodes

        ________________________________

        Liked by 2 people

  2. Although I only have 6 shares with AMD, up 14.1% so cannot complain. I also have shares in Intel and Nvidia, AMD is beating both!

    I think going forward, I will probably move towards purchasing more shares in iShares US Tech Sector over individual tech stocks. Diversifying with ETF’s seems a ‘safer’ option with the ups and down’s at the moment.

    Liked by 2 people

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