Canopy Growth Corp (CGC): Added to Position

Canopy Growth Corporation (CGC) and the rest of the recreational cannabis sector continued to come under pressure this week CGC breaking down to new lows not seen in the time it’s been trading on American markets. It triggered my next buy target on Friday which filled at $4.40.

You’ll notice that despite CGC being beneath my cost basis, each buy I make doesn’t substantially increase the allocation of my position. This is because I never buy a full allocation in any position. Instead, I choose to add to my positions as they sell off and then let them grow into a full allocation size. This way, I’m never putting more money on than I’m willing to lose. That’s right, either my thesis in CGC is correct or I will lose all of the money I have in the position because the company will go bankrupt before my thesis that cannabis will legalized on the Federal level comes true.

Risk management is the absolute top priority when it comes to long-term investing.

The buy lowered my per-share cost -5.30% from $6.60 to $6.25, a total price reduction of -79.00% from my first buy at $29.53 on May 24, 2018. From here, my next buy target is $2.90, a price calculated using a combination past price action from CGC’s time trading on the Canadian markets and the Fibonacci Method. My next sell target is $13.00, a price below a key point of past resistance.

CGC closed the week at $4.32, down -1.82% from where I added on Friday.

Schwab (SCHW): Dividend Reinvesting

Dividends may not be the most glamorous part of investing (and they might show exactly how slow the action has been in the markets lately) but reinvesting dividends and compounded interest can be key parts of building wealth over the long term, no doubt.

Schwab (SCHW) paid out its quarterly dividend on Tuesday, which, after reinvestment, brought my per-share cost down -0.29% from $73.25. Sure, it’s not exciting, but given I’ve held the position for only a little over a month, that’s definitely better than nothing.

From here, my next buy price target for SCHW is $56.30, a past point of support that coincides with Fibonacci Methodology, and my next sell target is $92.70, just under its the high of its most recent bull rally.

Visa (V): Dividend Reinvesting

This week must have been Dividend Season for the financials as Visa (V) paid out its quarterly dividend on Thursday. The reinvested dividend lowered my per-share cost -0.18% from $194.00 to $193.65.

Accordingly, I adjusted my buy price target to $179.55, above a past point of support, and I have no sell targets for the position currently as I haven’t been able to build it as much as I would like.