She took over her father’s role within two years and began mentoring three investment clubs. Today, they are ranked first, second and 17th in TICN’s league table.
“When I was 15, I enrolled in a number of investment courses organised by TICN and attended both regular and advanced strategy seminars. I learnt how to assess stocks and the market. I know how to choose rock-solid, fundamentally sound companies,” she said.
“I can study charts and see when the markets are at a low and it’s the right time to buy. I have also gained experience in riskier strategies, such as covered calls.”
A call option is a contract between a buyer and a seller that gives the buyer the right to buy 100 shares of a specified stock from the seller at a designated price during a specified period. Covered call writing is the selling of one call option against each 100 shares of common stock in your portfolio.
McBride remains a member and mentor of the Muckish Marvels investment club in Creeslough, putting €75 a month into the club. She also acts as a trader, account manager and mentor for the Beachcombers club in Downings and LYIT club in Letterkenny.
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“The clubs invest only in the American market, because we find it easier to make money there. Cover call strategies run on a monthly basis compared with Europe, where they mostly run on a quarterly basis.”
Muckish Marvels was set up in September 2001. Since then, it has made a return of 76.38%, a profit of €42,797. The club sells covered calls and looks for a 7% return on each one. Its most successful trade to date was to buy and sell Novell on the Nasdaq, making a 125% return in 2003.
Beachcombers was launched in March 2002 and has made a return of 76.76% (€35,000). This club has enjoyed a dramatic turnaround. At one point it announced losses of €16,000, but today it is on target to make a profit of $50,000 (€40,800) by this spring. Its best trade was when it made a gain of nearly €9,000 on Jack Henry, a business software firm.
LYIT was launched in July 2002 and is up 45.46%, netting €29,556. It combines a long-term buy-and-hold strategy with covered call and rolling stock strategies. It models itself on the other two clubs and aims to replicate their success. “Having spent so much time with TICN learning about the stock market, I now feel confident enough to trade on my own,” said McBride. “I invest independently through a brokerage in America. I study charts and stock market information online and use software called Value Line, which is provided by TICN. It assesses 30,000 companies trading on the market.”
It’s no surprise that McBride is studying for a degree in business, finance and investment at university in Coleraine. If you were to place a bet on the outcome, the odds would be in favour of her achieving a first-class honours.
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Fiona McGoran