playing the ponies

by | Apr 30, 2013 | General, Make money online, work from home

Hey guys –

I won I won I won!

*doing my victory dance*

I played the ponies and I WON!

 

A few years ago my wife and I used to play Cashflow 101 on a regular basis.

Its a board game by Robert Kiyosaki, author of Rich Dad Poor Dad and many others.

The point of the game is to learn how to escape the Rat Race by buying assets that produce cashflow.  Kind of like what we have done with our Second Life land business (it is an asset that produces monthly cashflow).

Anyway, part of the game involves stock picking.  You draw cards that give you the opportunity to buy or sell various stocks at different prices.  The only real information it gives you about the stock is the trading range over the past year.

For example, you might draw a card that says MYT4U stock is selling at $10, and over the last year the trading range was $5 to $25.  At that point if you own MYT4U you could choose to sell it, or if you wanted to buy more you could do so whether you owned it or not.

Its kind of like playing the ponies – you pick a horse, watch the race, and hope you end up ahead.

So we played the game and played the game and one day I said you know what, I’m going to pick a stock, follow it, and put some money down and see what happens.

I didn’t spend a lot, but I bought a few shares of Tesla (TSLA) @ $24.50 per share.

Last night I noticed it was on a bit of a tear, so I put in a Limit Sell order which filled this morning.

To get to the punchline, I sold my shares this morning @ $56.00 per share!

I won I won I won!

lol

That’s a return of 228%, over a period of 27 months, for a 101% ROI.

Not too shabby for my first stock pick.

I vaguely regret not buying more on my initial purchase, but I’ve been able to sleep well at night so I don’t regret it too much.  I didn’t buy the stock in an attempt to get rich, I just used some of my “mad money” on it, as a way to get into the game and test my temperament (as well as my stock picking ability).

So, there you have it.

I picked a winner.  Bought it low and sold it high.

Now I just have to pick my next pony and repeat the process!

Have fun, and good luck.

Lizard