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Robbie has been trading full-time since 2001. His book The Naked Trader has become one of the biggest-selling finance books, reaching the top 150 books on Amazon. Trades made and published by Robbie’s have amassed profits over £600,000. You can read about his buys and sells daily on Proactive Investors.


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It's always a bit tricky when something political knocks share prices

March 05 2014, 3:53pm

MARKETS

It's always a bit tricky when something political knocks share prices. 

The Ukraine/Russia spat led to big markdowns on Monday.

When this kind of thing happens I really hate the idea of selling and prefer the idea of buying.

It's because there is always a knee-jerk reaction and suddenly if you sell, you're often getting 5 or ten pc less. But if you buy you're able to buy at a knockdown price.

For example a company that makes movies was marked down 20p. No reason except fear of investors selling everything.

The fear, of course, is all your hard-earned profits will vanish just like that and losses will widen or indeed the fear of losing everything.

This is often enough to make people sell up their shares, scared witless.

But think about it: someone out there is buying the shares you are selling. You're selling out of fear.. but the market maker or other participant simply sniffs a bargain and is happy to buy your panic sell.

Of course the spat could develop into something bigger. Is this going to be a minor thing that will go away or a major thing that will develop?

The market hates not knowing so everything gets marked down on any uncertainty.

Then is it like a sale where you should be buying or is there a bigger fall to come?

If only I knew the answer I would be delighted to tell you. 

I think if I'd been my younger hungrier self I'd have gone on a buying spree on Monday but as a lazier, older and richer trader who doesn't have any need to make any more money I didn't really bother but neither was I going to sell anything. 

However I couldn't resist getting some more Avintrans (AVG) on Monday picking up 2,500 at 143.9. Looked like one worth getting as scared punters piled out and indeed it is rising today, back up over the 150 area.

I already covered this one in the past but it looks like a nice little company with a great future and I don't see why it shouldn't head up to the 200 level at least. 

You should never fall in love with a share but I do like IP Group (IPO).

I've been sitting on these long term, buying them at 74p and they are now around 210-220 so I've pretty much trebled my money on them and now I have bought some more IPO shares very happily buying at 209.

You're basically buying a selection of start up businesses - some will fail but some do so spectaculary well they make up for the losers in some style. Once an idea is a success, the company gets floated on the market and IP Group makes a fortune.

It has so much in the pipeline, and such a brilliant portfolio I think it could double again from here in time. 

And so I am happy to buy more IPO despite the fact it has done so well. Really nice and well done to all concerned with such a brilliant company.

I managed to get hold of two lots of the Seeing Machines (LON:SEE) rights issue shares so I got a total of 46,972 shares at 5p. Nice!

I'm going to go for the float of Pets Supermarket. It's always tricky putting in for shares of big floats like this especially when you're going in not even knowing what price it will float at.

But... Pets are big business. Us Brits will do anything for our pets and despite being a competitive business, pets stuff has a decent margin and this company does very well. So my thoughts are get some, tuck away in the ISA and forget about them and eventually enjoy a capital rise and some nice dividends. 

By the way most brokers will allow you to get some in the pre market, you should find your broker probably is advertising it. You just agree to buy a given amount but you must make sure you have enough cash in your isa or other account to cover it. 

I sold Xchanging at 186.1 for a small profit of  £132. I sold it because it just didn't want to climb any higher and the order book was always awash with sellers around that area. So I exited. 

HIGHLIGHTS

So despite all the craziness of Monday which I ignored the portfolio has continues to do very nicely.    

Waiting for an announcement from Hangar 8 (LON:HGR8) which is still suspended and pretty certain the price will be nicely higher when it returns.  

Nice moves from Monitise (LON:MONI) which continues to find favour in the market with positiveness for the future. Nearly doubled now and six timed in my pension.

80p seems to be the level it just can't break through for now. 

Recent buys Servelec (LON:SERV) and Styles and Wood (LON:STY) stay nice higher and didn't get effected much by the market turmoil that bodes well.

Arrow Global (LON:ARW) produced a decent report so continue to hold. Mowpowered seems to be having a little run higher and 32 Red looks good.

I always forget I have a few Costain knocking about so will probably buy up shares in the rights issue in that one.

Telit (LON:TCM) has motored up though very volatile and wants to get through 200. What to say about the lovely Kentz (LON:KENZ) continues to be an amazing one and very ice to see it happy in the 700s. 

Fusionex (LON:FXI) seems to have stopped for now and one hopes for a rerating soon though a bit disappointed it slipped under 700 again.  

OPG Power (LON:OPG) has been a nice one for me and seems to have conquered 80. Indeed 90 looks next stop.

Long-termer Porvair (LON:PRV) is flirting with 300p and looks good. Perhaps it has even conquered that now.

Entertainment One (LON:ETO) is really going well now and 350 is great has been a wonderful long-termer.

Quindell (LON:QPP) got knocked down in the market melee but is heading back up - plenty of news due on an upgrade to the main market and so I would think it should in time head back over 40p. It is crazily traded by day traders so personally I don't bother watching it much.   I have doubled though so can afford to relax a bit.  

Renew (LON:WIND) put out a very confident super statement been a lovely hold and a potential doubler soon.

Communisis (LON:CMS) can't seem to manage to beat 70p.  

Telecom Plus (LON:TEP) has continues to look happy at around 1800 for now.   Given I bought loads at 100 it makes me very happy! It now means I have a massive stake in there worth nearly £700,000. The open positions on the website now total profits of £270,000. Distributors have a get together next month and have been told there will be some exciting announcements! 

GB Group  has doubled with giant profits building.  BTG    still looks like a long-term winner.

Regeneris has regenerated and whizzed back over 300 and now looking at potentially 350. 

RWS (LON:RWS), Avon (LON:AVON), CML (LON:CML) and Loq, (now called accesso (LON:ASCO)) are the long-term stars and all are shining so far this year.  Six times on Accesso, trebled on CML, doubled on Avon and doubled on RWS.

And a big cheer for Vimto maker Nichols, what a share!! It has bubbled up 2 and a half times from my original buy. It reported this year and all looks good. Also three cheers for Cohort which has gone over 200.   

Nakedtrader  was created after I left my full-time job as a finance editor for BskyB to trade full-time. I had been writing an diary page for its teletext service since 1998 and decided as I was leaving to transfer that to the internet.

These articles are simply a "diary" of my life, or what you would now call a "blog". I detail what I've bought, sold or shorted and briefly why. I use various spreadbetting companies and stockbrokers to carry out the trades. I ignore commission but also dividends and I reckon the two balance each other up.

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That is quite a big difference. I am not allowed to give what is called "Individual investment advice". And quite right too - I am not trained to do so. What that also means is if you e-mail me and ask me anything along the lines of "Should I buy or sell this share?" I cannot answer you except to say it is your choice! Of course I am more than happy to answer anything to do with general market/educational questions.

You should understand I always have an interest, and sometimes a big interest, in any stock I talk about. For website purposes my buys will often be to smaller stakes than in reality. So although my buys are real enough, as are the prices, I can and often do buy much bigger stakes in the shares. I may also "top up" in shares without declaring it and I will  sometimes deal more often than I mention on the site - mainly because of time pressure, if markets are busy. So though the buys on the site are around the £5,000 mark I may well deal in reality is sizes of £10,000 - £30,000.

My reasoning for this is I simply do not want to encourage people to blindly follow me into something when they do not understand the potential risk. It's ok for me because I can afford to lose money I put into the market. It may not be the case for you.  I am generally a medium term investor holding my shares usually between 1 week and on occasions up to 3 years. Average holding time is probably about 3 months.

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