Looking for someone great to follow on SprinkleBit? Check out Umang Detroja! Apart from being a great guy, his portfolio is +140%, and he’s also a SprinkleBit ambassador. We caught up with him to ask him a few questions on how he takes profit, why he started investing and what his main tips would be for someone looking to get started with their investments!
How long have you been investing in stocks?
UD: 1 year and a few months now
What made you start?
UD: Few months after starting my first job, I realized that just saving money wasn’t going to be enough for my future and my security. I read somewhere that unlike cancer cells, money doesn’t grow and multiply by sitting idle. So, I started looking into different ways to put my money to work. The fact that you don’t need a lot of money to invest in the stock market, and you can start with an amount you are comfortable with to invest, really motivated me.
Your portfolio is telling a clear language – you’re good at this! Do you have a certain strategy when you take profits or do you trust your gut feeling?
UD: The one strategy I follow is limit the companies and industries to follow. This helps in gathering and maintaining information about those companies and industries easier. I set a realistic price targets, that I would expect it to achieve, and once it is there, I use the constant news, information and industry trends to determine if I should reset my price targets , or if should I book some profits. Initially, I used to sell [my position] once I reached my price targets, while I figured out what next. After that I would enter the market again. Now, it is an ongoing process and decisions are getting faster. Also, balancing the portfolio is something that I am learning more about. If my set points are achieved, I try to get into a little more volatile stocks since I accommodate that volatility with other more stable stocks.
Are there any stocks you’re monitoring a little extra right now?
UD: There are a couple of them that was on my radar since quite a while I am monitoring a little extra these days:
LLL – L3
SFIX – Stitch Fix
AMD – Advanced Micro Devices
CRON – Cronos Group Inc.
LULU – Lululemon Athletica Inc.
MU – Micron Technology Inc.
NFLX – Netflix
ETSY – Etsy Inc.
SQ – Square
When you analyze a company or a stock, what do you usually look at?
UD: This is an on-going learning that I am doing. However, primarily, I look at how big the company is, what their market cap is, what the average volume of stocks traded daily is, how does that company’s product or service look, how is the outlook of the company’s product and service, how that industry’s trends are looking like, how their competitors are doing in the market and where they stand in terms of competition etc. Having said this, there’s also changes from company to company, like when new company gets listed on the stock market, they are not going to check all the boxes and might not even have all the information, but then you must count on information, opinions and analysis through reliable channels. Also, look for a counter-opinions and analysis to gather more information in order to make a decision.
What made you join SprinkleBit?
UD: I didn’t know anything about the stock market and investing at all, so I started reading about it. Then I started looking for various platforms to learn with virtual money, and I came across SprinkleBit while looking for that. Some mentioned all the different platforms where I can learn investing in stock and in their list they had SprinkleBit and a brief explanation about it, something in lines of social network for investing. That intrigued me. Initially, I did sign up for multiple platforms and started managing a portfolio, however, Sprinklebit was different because of the community. Over the next few weeks, I slowly stopped logging into any other platforms and kept going back to SprinkleBit because of the active community. I could follow more people, ask questions, access to resources. It’s the SprinkleBit community that enabled me to understand better, learn and even follow others, all this without risking my money while I learn. I started learning from my mistakes and improving. SprinkleBit as a platform and community played an important role in getting me started with investing and then getting better at it.
What’s your best trade on SprinkleBit so far?
UD: Honestly, I never thought about the best trade or remember any of them. There are good trades and they are bad trades as well, however, as long as the overall portfolio is steady and performing well, it’s all good.
If you could give one advice to someone that’s thinking about starting investing in stocks, what would it be?
UD: Stop thinking and start doing. You will learn more by doing it then by just thinking about it. Set your limits and your expectations and stick to them.