Monthly Investing Challenge – August 2026 Update
Welcome back to the August update from my monthly investing challenge.
The challenge started with $200 in April and I have continued adding another $200 each month, split equally between a dividend stock, an S&P 500 ETF, Microsoft and USD/JPY trading.
That means I have now contributed a total of $1,000.
The portfolio is currently worth $1,265.78.
August summary:
- Total contributed: $1,000.00
- Current portfolio value: $1,265.78
- Overall gain: $265.78
- Overall return on contributions: +26.58%
- August investment gain: $135.61
- August return after new contribution: +12.00%
- Best overall performer: USD/JPY
Financial disclaimer:
This challenge documents my own experience using real money. It is not financial advice or a recommendation to buy, sell or trade any investment.
Investments can fall in value and trading carries additional risk. Always carry out your own research and consider regulated financial advice where appropriate.
Challenge Progress
The table below shows how the challenge has grown since starting with $200 in April.
| Month | Money Invested | Portfolio Value | Gain or Loss | Return on Contributions |
|---|---|---|---|---|
| April 2026 | $200.00 | $223.77 | +$23.77 | +11.89% |
| May 2026 | $400.00 | $434.22 | +$34.22 | +8.55% |
| June 2026 | $600.00 | $648.64 | +$48.64 | +8.11% |
| July 2026 | $800.00 | $930.17 | +$130.17 | +16.27% |
| August 2026 | $1,000.00 | $1,265.78 | +$265.78 | +26.58% |
Because I add another $200 each month, the overall percentage is based on the total amount I have contributed rather than treating this as one lump-sum investment made at the beginning.
August Portfolio Results
Each category has now received a total contribution of $250.
For the monthly figures, I have treated each investment as starting August with its July closing value plus the new $50 contribution.
| Category | Name | Total Invested | Current Value | August Change | August % | Overall Change | Overall % |
|---|---|---|---|---|---|---|---|
| Dividend Stocks | Johnson & Johnson | $250.00 | $279.00 | +$13.10 | +4.93% | +$29.00 | +11.60% |
| S&P 500 ETF | State Street SPDR S&P 500 ETF | $250.00 | $279.64 | +$19.66 | +7.56% | +$29.64 | +11.86% |
| Popular Stocks | Microsoft | $250.00 | $311.98 | +$65.75 | +26.70% | +$61.98 | +24.79% |
| Forex Trades | USD/JPY | $250.00 | $395.16 | +$37.10 | +10.36% | +$145.16 | +58.06% |
| Portfolio Total | $1,000.00 | $1,265.78 | +$135.61 | +12.00% | +$265.78 | +26.58% | |
Johnson & Johnson
Johnson & Johnson is now worth $279.00 from total contributions of $250.
That leaves an overall gain of $29.00, or 11.60%.
It had a decent August as well, gaining around 4.93% after allowing for the additional contribution.
It continues to be one of the quieter positions in the challenge, which is exactly what I expected when I included a dividend stock.
My view:
Boring isn’t necessarily bad. Having something that quietly makes progress while other parts of the portfolio move around can be useful.
State Street SPDR S&P 500 ETF
The S&P 500 ETF is now worth $279.64.
That represents an overall gain of $29.64, or 11.86%.
August was another positive month, with an estimated contribution-adjusted return of 7.56%.
The ETF continues to make a good case for simply owning a broad range of large companies rather than trying to identify the perfect individual stock.
It isn’t completely passive from a risk point of view, but from a decision-making point of view it is certainly the least stressful part of this challenge for me.
Microsoft
Microsoft was the standout investment position in August.
The position is now worth $311.98 against total contributions of $250.
That puts Microsoft at an overall gain of $61.98, or 24.79%.
Its contribution-adjusted gain during August was around $65.75, or 26.70%.
This is quite a turnaround considering Microsoft was sitting at an overall loss earlier in the challenge.
Personal lesson:
A few months ago Microsoft was the position sitting in red and testing my patience.
Now it is comfortably profitable.
That doesn’t mean every falling stock will eventually recover, but it is a good reminder of why I don’t want to make emotional decisions based on one bad month.
USD/JPY Trading
USD/JPY remains the strongest performer overall.
The trading account now stands at $395.16 from total contributions of $250.
That is an overall gain of $145.16, or 58.06%.
August added another $37.10 after allowing for the new contribution.
But this month also included something equally important:
Two of my ten USD/JPY trades hit their stop losses.
And that is completely fine.
A stop loss being hit doesn’t automatically mean the trade was bad.
The point of the stop loss is to define how much I am prepared to lose if the market moves against me.
Trading without accepting losing trades is a pretty quick route to revenge trading, moving stops and making emotional decisions.
Two trades went against me enough to trigger the stop.
The important thing was that those losses were controlled and the overall month still finished positively.
That is much more important to me than trying to manufacture a perfect record.
I’m Actually Happy That Some Trades Lost
That probably sounds slightly strange.
Obviously I’d rather every trade made money.
But a trading strategy that only looks good because the losing trades haven’t happened yet doesn’t tell you very much.
Seeing stop losses triggered is part of testing whether I can actually stick to the process when a trade doesn’t work.
For me, the important questions are:
- Did I enter for the reason I planned?
- Was the stop loss set before emotion got involved?
- Did I leave the stop where it was supposed to be?
- Was the loss within the amount I was prepared to risk?
- Did I avoid immediately trying to win the money back?
If the answer to those questions is yes, I can live with the trade losing.
The Portfolio Is Becoming Less Dependent on Forex
This is one of the more interesting changes this month.
USD/JPY is still responsible for the largest individual profit at $145.16.
But Microsoft has now contributed $61.98, while Johnson & Johnson and the S&P 500 ETF are both around $29 in profit.
The other three positions combined are therefore up by $120.62.
That is getting much closer to the USD/JPY gain than it was previously.
What I like about this month:
The overall result is no longer being driven quite as heavily by one strategy.
Trading is still leading, but the investing side is contributing much more meaningfully now.
Biggest Lesson From August
August reinforced two things for me.
First, patience matters.
Microsoft went from being the weakest investment in the challenge to one of the strongest.
Second, losses are part of trading.
Two USD/JPY trades hit their stop losses, yet the trading account still finished the month higher.
Trying to avoid every single losing trade is unrealistic.
Managing those losses is much more important.
What I Am Watching Next Month
- Whether Microsoft can hold onto its strong recovery.
- Whether the S&P 500 ETF continues making steady progress.
- Whether Johnson & Johnson remains the calmer part of the portfolio.
- Whether I can continue following the USD/JPY trading process without increasing risk because the account is performing well.
- Whether the portfolio becomes even less dependent on one strategy.
Plan for next month:
Keep adding the same amount, keep the four categories unchanged and don’t start taking more risk simply because the challenge is currently going well.
Final Thoughts
The challenge has now reached an interesting milestone.
I have contributed $1,000 and the portfolio is worth $1,265.78.
That means the portfolio is currently $265.78 above the amount contributed, representing an overall return of approximately 26.58%.
That is considerably better than I expected at this stage.
But I’m also very aware that markets can move the other way just as quickly.
USD/JPY has produced unusually strong returns. Microsoft has had a sharp recovery. Neither is something I can assume will continue every month.
The point of this challenge is still the same as when I started with $200:
- Invest consistently.
- Track the results honestly.
- Show the losses as well as the wins.
- Try not to interfere because of emotion.
- See what happens over the long term.
August takeaway:
The portfolio had another strong month, but the bit I’m probably happiest with is that two trades hit their stop losses and I didn’t need a perfect trading record to keep making progress.
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