JuniorDepot21 – Annual Goal for 2019 is Slightly Missed due to Operational Risk

Elle, a 9-year old girl, intended to make at least €220 profit to the end of 2019. She made "only" €215.31 due to an operational mistake, caused by the interface re-design by her broker DeGiro.

As we have previously reported, Elle's 2nd year goal was to make the total profit of at least €220, which corresponds to 6% of the annual anticipative interest yield (by the way a more accurate CAGR calculation gives 8.43%).

Unfortunately, Elle's broker DeGiro has redesigned the trading interface, which caused an annoying operational mistake: by setting a Sell order we clicked on Brief (i.e. Ask) Price. We just wanted to set this price level but we did not notice that clicking on Brief automatically changes the order from Sell to Buy.

As a result, we bought 21 units of SPDR BL.BA.10+Y.US.TR.BD U.ETF (IE00BYSZ5V04) instead of selling them :(.

We could have corrected this mistake but it would cost us €2 trading fees (first trade in this ETF within a month is free but further trades are generally not).


Anyway, Elle's portfolio to the end of year looks as follows.

As you can see, we keep holding the position in SPDR BL.BA.10+Y.US.TR.BD U.ETF and bought (with long term in mind) two (in our opinion) undervalued stocks: K+S and 1und1 Drillisch. Since we pay ca. €2 pro trade with stocks, we buy them only when we expect significant profits.

Additionally, there is a ZugZwang to invest since DeGiro compensates the negative rate (currently -0.5% p.a.) only on cash upto €2500. This is fair. What is, however, irritating is that DeGiro has disabled trading in Silver and Platinum ETCs without any announcement (this refers only to Custody Depots). Also Fusion with Flatex makes us cautious.

I mean, we would like to avoid any additional operational overheads and stay by DeGiro till the end of our experiment, but if it continues to "improve" in such a way, we will consider the no-fee-brokers like Trade Republic, Gratisbroker oder Justtrade as an alternative.

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