How do I handle losses as a new investor?

First, don't panic. Markets are volatile, especially for growth stocks. KR1 is down 27%, but I'm not selling. My reasoning hasn't changed. If I sold now, I'd lock in the loss. Instead, I'm monitoring quarterly reports to see if the underlying business is still sound. Losses are normal. What matters is whether you believe in the long-term case.

Should I diversify if some stocks are losing?

Yes, but I did that upfront. My portfolio is 60% index funds (which own thousands of companies), 25% individual picks, and 15% cash. The index funds are up, offsetting the losses from individual stocks. This is why diversification matters. You can take big risks on individual stocks *because* you have a foundation of boring, solid index funds.

What would make me sell a losing position?

I'd sell if the thesis breaks. If KR1 suddenly had no path to profitability, or if new regulations killed their business model, I'd sell. But if the company is still on track and I just bought at the wrong time? I hold. Most amateur investors sell winners too early and hold losers too long. I'm trying to do the opposite.

Are you going to keep picking individual stocks?

Yes. Even though I'm down 6.7%, I'm learning more in 3 months than I would in 3 years of just buying index funds. The losses are tuition. And I genuinely believe Kraken and Nebius will deliver outsized returns over 3-5 years. That's worth the volatility now.

My Portfolio After 3 Months — Honest Truth

Three months ago, I started my investing journey with some Christmas money and birthday gifts. I put £5,474 into a Junior ISA. Fast forward to February 2026, and my portfolio is down £367. Not exactly "10x in 2 years" energy. Here's the real story—wins, losses, and everything I've learned.

The Setup: December 2025

I opened a Junior ISA in early December 2025. The account is tax-free (any gains I make aren't taxable until I'm 18). That's a huge advantage for long-term investing.

My first move was boring: I put 60% into a global tracker fund. Intentionally boring. Not flashy. Just compounding.

Then I got risky.

The remaining 40% went into individual stock picks:

My Allocation (December 2025)

60%: Global index funds (Vanguard FTSE All-World ETF)
20%: Kraken Robotics (PNG) — £1,998 invested
12%: Nebius (NBIS) — £2,476 invested (added in January)
5%: KR1 plc (inherited from account history)
3%: Cash reserves

The Three Months: December → February 2026

A lot happened. Let me walk through each position:

Kraken Robotics (PNG) — The Winner 🟢

This is the one that's working.

Bought: December 2025 and January 2026
Total invested: £1,998 (549 units)
Current value: ~£2,140
Return: +7% (gain of ~£142)

PNG is up because the megafactory is ramping, Ghost Shark production is accelerating, and defence spending is climbing. My reasoning is playing out. The stock even beat analyst expectations in Q4, which surprised a lot of people.

But here's the thing—this feels lucky, not smart. If the stock had fallen 10%, would my thesis be wrong? No. The fundamentals are the same. So right now I'm riding a wave of good luck and actual belief. I'm holding.

Nebius (NBIS) — The Contrarian Loss 🔴

This one hurts because I really believe in it.

Bought: 22 January 2026
Total invested: £2,476 (34 units at £72.83)
Current value: ~£2,222
Return: -10% (loss of ~£254)

Nebius is down because the broader market has gotten spooked about AI profitability. Everyone's asking: "Wait, are companies actually making money from AI, or is it just hype?"

That's a fair question. And Nebius's valuation got crushed because of it.

But my thesis hasn't changed. The GPU shortage is real. Data centre demand is real. I'm actually considering buying more if it falls further.

This is where patience matters. If I sell Nebius now, I lock in a £254 loss. If I hold for 3 years and AI infrastructure booms like I think it will, this looks like the bargain of a lifetime.

KR1 — The Disaster 🔴🔴

⚠️ High-Risk Investment: This article discusses a speculative, high-risk stock. The value of individual shares can fall significantly — you could lose some or all of the money you invest. This is not a recommendation to buy or sell. Do your own research and consider your risk tolerance before investing.

This position I didn't even choose. It came with the account when I inherited it.

Original: 4,141 units inherited
Current value: ~£955
Return: -27% (loss of ~£352)

KR1 is a crypto company. Crypto is volatile. When I inherited this position, it was worth ~£1,300. Now it's £955. That's rough.

But here's the thing—I didn't buy this, so it doesn't feel like "my" loss. It's more like a lesson: crypto is speculative. If this goes to zero, I'm not devastated. But if crypto rallies again, it could bounce back to £1,500+.

I'm watching it, but I haven't added more money to this position.

The Real Portfolio Picture

So when you add it up:

Total Invested: £5,474

Current Value: £5,107

Overall Return: -6.7% (-£367)

Not great. But here's the nuance: my index fund portion is probably up 2-3%, and my picks are dragging down the overall return.

This is exactly why diversification exists.

What's Changed About My Thesis?

Honest answer: not much.

I still believe:

Kraken Robotics has real catalysts coming (Ghost Shark, NASDAQ uplisting, defence spending)
Nebius is positioned for the AI infrastructure boom
KR1 is a lottery ticket, and I'm holding it
Index funds will quietly compound at 7-8% per year no matter what

The only thing that's changed is I'm more confident in my process. I did the research. I understand why I bought these stocks. And when the market got spooked, I didn't panic.

That's the skill right there: having a thesis and sticking to it.

The Lessons (Without Sounding Preachy)

📉 Lesson 1: Volatility is Normal

Being down 6.7% after 3 months feels bad, but it's nothing. I'm 15. My time horizon is decades. Three-month moves are noise.

⚡ Lesson 2: Timing Matters

I bought Nebius at £72.83 when the stock was euphoric. If I'd waited a month, I could've bought at £65. This isn't a failure—it's data. Buy in tranches, not all at once.

🔄 Lesson 3: Diversification Saves You

If my entire portfolio was Nebius, I'd be down 10%. Instead, I'm down 6.7% because index funds are steadier. This is deliberate.

🧠 Lesson 4: Emotion is the Enemy

When Nebius dropped, I felt the sting. But I didn't sell. I reviewed my thesis, confirmed it was sound, and held. Emotion makes you sell winners too early and hold losers too long.

💡 Lesson 5: Information Asymmetry Matters

I read Kraken's earnings report. Most retail investors didn't. I understood the Ghost Shark narrative. They didn't. That's why I had conviction to hold when the stock dipped.

🎯 Lesson 6: Conviction Requires Sizing

I could afford to be down 6.7% because my high-conviction bets (Kraken, Nebius) were only 32% of my portfolio. The other 60% is working quietly in the background.

Would I Do Anything Different?

Actually, no. Here's why:

On Kraken: I'd buy more if I had cash. The thesis is even stronger now.
On Nebius: I'd hold. I might add if it fell another 10%, but selling now is the wrong move.
On KR1: I'd hold this too. It's speculative, but I didn't use "my" money to buy it, so I can be patient.
On index funds: I'd stick with this forever. Zero regrets.

The only thing I might've done differently is buy Nebius in two tranches instead of one lump sum. But that's microoptimisation.

What's Next? (The Next 3 Months)

I'm watching for a few things:

📅 Key Catalysts

Kraken Q4 earnings (should be strong based on orders)
Nebius revenue growth (is GPU demand still accelerating?)
NASDAQ uplisting decision (Kraken might announce timing)
Defence spending announcements (US, NATO, Australia all increasing budgets)
Market-wide AI sentiment (are people still excited or are we in an AI winter?)

I'm also planning to add £200-500 per month to my index fund position. Boring, but that's where the real wealth will come from.

The Bottom Line

I'm down £367 after three months. It's not ideal, but it's not catastrophic either. More importantly, I now understand:

How to research stocks
How to size positions appropriately
How to manage emotions during volatility
Why diversification matters
That I can be wrong, and it's okay

If I invested £1,000 in index funds every month for the next 10 years, I'd have ~£150,000 by the time I'm 25. That's the foundation.

But if I pick stocks intelligently, take calculated risks, and hold for the long term? Maybe I hit £200,000 instead.

This portfolio is my real-time education. Every loss teaches me something. Every win builds confidence. And at 15, with a 50+ year runway, I can afford to experiment.

Follow my journey?

I'll update this quarterly. Real numbers, real mistakes, real wins. Join the newsletter for monthly deep dives into investing, thesis updates, and what I'm learning.

Capital at risk. Investments can go down as well as up. This is not financial advice. Past performance is not a guide to future results. Please do your own research before investing.

📚 Further Reading

Books that shaped how we think about investing — available on Amazon UK:

The Psychology of Money — The book that keeps you rational when your portfolio looks scary
Invested — A real-time investing education that mirrors exactly this kind of honest update

Disclaimer: I am 15 and learning in public. This is NOT financial advice. Past performance doesn't guarantee future results. All investing involves risk. Do your own research.