Coinbase (COIN): Added to Position

With no end to Crypto Collapse in Bitcoin and its brethren, Coinbase (COIN) resumed its selloff this week, testing its 2022 lows on Monday where my next buy order filled at $40.88, lowering my per-share cost -7.34% from $212.34 to $196.75.

I feel like I need to iterate this point every time I do something with Coinbase – I am risking a tiny amount of money in this position, and I am prepared to lose everything I put into this investment as I believe it is that risky.

However, even though it feels like I’m throwing good money after bad to a certain extent, there is the possibility that Coinbase recovers to become the leading crypto brokerage. That slim possibility is why I’m willing to keep adding to my position in incredibly small quantities.

From here, my next buy target is $31.75, a key point of support both psychologically and using Fibonacci Retracement methodology, and my next sell target is around $205.00, COIN’s high from 2022 (which is miles and miles away from here).

COIN closed the week at $44.28, up +8.32% from where I added Monday.

SoFi Technologies (SOFI): *New Position*

I know it may seem strange for me to add a new position in the middle of a holiday week, but SoFi Technologies (SOFI) has become too interesting for me to ignore. SoFi originally started its life as an education loan provider by consolidating student loans before expanding into banking services, investments, and even crypto.

Did you catch that last one? Crypto? Yeah. That’s giving them some trouble right now.

Despite coming out and explaining that the company has no exposure to the FTX cataclysmic collapse, investors are in a very “shoot first, ask questions later,” kind of mode right now, so combine crypto with SoFi’s focus on being financial technology (called “fintech”) and you’ve got another new IPO of the pandemic which has got decimated this year (down nearly -70% YTD as I write this).

The catch here is that SoFi actually has excellent leadership. CEO Anthony Noto has a long history of creating amazing companies that perform well, so my thinking is that if SoFi survives (note that key word “if”), it could perform well over the long term.

Due to the absolute volatility of this position and positions like it, SoFi takes its place… as a speculative investment… in the portfolio and has been rolled into the New Specs Basket along with some of the other big losers this year (think: Coinbase (COIN), Meta Platforms (META), Roblox (RBLX), Rivian (RIVN), and Twilio (TWLO)).

My first buy went through on Tuesday at $4.80, very close to SoFi’s all-time low at $4.77. However, I’m starting small with a 25% allocation, and my next buy target is $4.10, a price calculated using the Fibonacci Retracement method. My next sell target (yes, I already have a sell target in case SOFI bounces) is $6.00, below its recent high from just last week where I’ll take a small amount of profit.

SOFI closed the week at $4.60, down -4.17% from where I opened it Tuesday.