My financial tops&flops of this year

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Hi,

as we close in the year, people tend to make reviews of what happened, what they did and what can be improved and what shall be avoided for the future.

I'm no exception to this and will have today my financial review in terms of tops&flops. I will present the two choices that made me the most money and brought the greatest loses.

I will start with the top, as this is the one decision that brought the most profit this year. Usually, I avoid buying shares from communist countries, as China for example. I despite communism and tried to avoid investing into it. Also, at work, I try to persuade the customer to manufacture in Europe or Mexico, where our locations outside of China are.

This time, I've went over my rule an have bought 150 shares of Nio stock on the 1st of June at 4,26 USD as I expected the Chinese government to save the company with a cash injection as it has some financial issues. As seen Tesla of China, this would have been a face loss towards the Western powers, if the company would go bankrupt and Tesla would grow. So, like a miracle, the company saved itself and the stock skyrocket in a few months.

I've made an exit at the start of December at somewhere close to 47 USD/share. This deal brought me almost 6,5k USD in profit. It outperformed Tesla by far.

Working in the automotive sector, I know that the electric car technology needs to evolve a lot more than today, to be able to satisfy the masses. Now, with a few cars sold compared to the other ones, it is fine, but to cover the planet, it is still far away, in terms of materials used and their mining, charge time, electricity production and toxic waste. They are not so clean as preached, that is for sure.

Now coming to my flop of the year. It is the biggest German disappointment of the year. As Germany is not known for fintech companies, having a company as wirecard on the market, it was supposed to be a save buy.

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I bought in March 30 shares at 85 EUR. In May the first signs that there is something wrong appeared. I was not thorough enough and left it slip. When the bubble burst, I managed to sell on the 18th of March at 45 EUR. I was lucky that someone bought them. Either very ignorant people or some trade bots. It took me an hour to sell them, as price was getting hammered each second and have low-balled it when the price was 60 EUR. A day prior it was trading for 107 EUR. Imagine the whole panic on the market.

I've lost here half of my investment, around 1200 EUR. This was a tough lesson again, to do my homework deep enough if I play with money.

I wished it was a top story about crypto, but it wasn't this year. Where I think 2021 will be the one where crypto will be the top in my story.

So, what was your top and flop this year?

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4 comments
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Overall you've invested well I'd say. Unfortunately I don't have any tops or flops to share. I'm only invested in crypto and mostly hodling till extreme FOMO. Maybe next year...

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Well, you have the nice story in here, which for me would be definitely the top of the year. :)

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Although it must be captivating, I didn't access the stock market and I didn't buy shares ... because I don't have money for that, I don't have money that I can afford to lose.

Anyway, I don't know how to do that and I would be a loser.

From the examples you presented, you are profitable if you compare the two extremes.

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Interesting experiences and I must say that NIO also brought me some nice profits. I was inspired enough to sell and switch to TESLA which now brought me a good profit if I was to sell. Nevertheless I think it was a good year for stocks considering the economic state and if in 2021 the vaccine will roll out and we will not have hiccups, it should be a better one.

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