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The Naked Trader

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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January is a tricky month....

January 22 2015, 4:37pm

In my books I do bang on about being careful with "leverage."

"Leverage" is just a spreadbetting firm giving out credit so you trade more and so they make more money.

The amount of leverage they give out is way too much  and with the news of the Swiss Franc sudden massive change loads of trades got totally wiped out.

Not only were traders  wiped out but some spreadbet outfits that allowed too much leverage meaning their traders can't pay their debts and so they have to take the hit.

 Alpari was badly hit, pretty much wiped out, IG lost £30 million and London Capital a modest £1.7 max.

The lesson here for those of you who use spreadbetting is, do NOT over borrow.

Imagine what would happen if some of your positions went wrong/bust. Your losses might be massive, could you afford to pay them?

Spreadbetting debts are liable to law, so they could send the bailiffs round. Beware!

Always only use a bit of leverage if offered. Please! I have heard enough stories of people being wiped out. As they always say, only play with money you can afford to lose and can cover with real money.

It's time for a bit of caution at the mo - what with money printing and the Greek troubles and the Greek election this weekend

Expect probably a lot of volatility in the next few days. It was pretty volatile after the QE announcement this lunchtime as traders tried to make sense of things.

Of course the fact they are having to do the QE is because things aren't exactly great so we ought to bear that in mind as well as the market has had a good run for the last week.

January is a tricky month anyway which I'm wary of and I don't take on unnecessary risks. 

However I have made one or two trades in some favourites.

I'm very grateful to an "analyst downgrade" for the drop in price of Entertainment One (LON:ETO)  as it meant I've been able to buy some more at a lovely price (280.2)

I've more than four timed my money on this company making me more than £30,000 and more than happy to top up with more.

If you go to the cinema these days chances are Entertainment One will be the first thing you see on the opening titles. It also makes popular TV shows like Peppa Pig.

And not only are profits on the up but so is the valuation of its catalogue which is worth a fortune.

I think eventually the shares will go to a fiver but the first target which should be obtained this year is 350.

I had a very nice run with Spire (LON:SPI) and so lobbed a few out at 341.96. The shares went down due to a placing at 315 - shares often go down to a placing price and then go back up again so I gratefully bought them back at 314.4 and 314.7.

It's a big dodgy touching anything oil related right now but Pressure (LON:PRES) was probably hit way overhard and I have bought some . 

Shares have more than halved so I've bought some on a little bottom feeding (Sounds horrible) - it's bought its Sheffield base to cut costs which was announced this week.

I've added some more Pets at Home (LON:PETS) after its decent statement yesterday. Already in a great profit from the ones I bought in the 170s.

New stores are opening but I especially liked the revenue increase of 26% from its joint vet practices.

Most traders shun this kind of share as they perceive it as boring but I don't see why this one shouldn't have a good year with current increases it looks worth more, and no reason why it shouldn't head back up to its float price of 250ish. It's also a nice sleep at night one.

I sold and then re-bought London Capital Group. (LON:LCG). It started to tumble as it got hit by the Franc debacle and I closed for close to break even. However the shares tumbled this morning so I bought some this morning with the view the markdown has been totally overdone. It said up to £1.7m of losses at most could occur and given the masses of cash and that it is going into profit means to me it's a buying opportunity today with very limited potential downside unless I am crazy.

Finally I picked up some 32 Red (LON:TTR) - this one has been well oversold on new gambling licensing regimes and in my opinion and today's very bullish statement shows why it has become very cheap now.

 It announced record gaming revenues and a very good performance in Italy. A strong start to the year already, it has to be worth more. It looks a good gamble for recovery!

 Let's have a look at some shares in the porfolio that have had statements..

Servelec's post year-end statement was confident and bullish and all seems on track so see no reason why not to hold it for as long as possible for gains. It also has to be on a potential bid list.

Sprue Aegis (LON:SPRP) put out a fantastic report, expecting to beat market expectations - a really strong update. Plenty of profit here now but there is more to come. If it were not for weak currency it would have galloped much higher. 

A good trading statement from KBC (LON:KBC)  this morning. Results are in line and when you look at those the shares look mighty cheap and directors are piling in. It won a good contract extension and has a record order book.

Quartix issued a steady update, nothing remarkable but nothing bad either. 

Energy Assets (LON:EAS) has won a decent metering deal with Westminster Council, one of many to come I suspect and directors are buying after it said revenue was up but its meter deal with BG was moving slower than expected. I am staying put for the long term here. 

Regenesis put out a decent trading statement and with directors buying straight after the shares have gone up nicely.

GVC (LON:GVC) reported well last week, very strong sales indeed and a wonderful dividend, it went ex today which is why it is down a bit but a nice dividend has arrived in spreadbetting accounts and soon to be in the ISA.

Xeros Tech (LON:XSG) has boomed higher last 2 weeks... As those of you who get my SIPP  email know and those of you who have been to seminars also know I have been buying these for the pension since 70p and have now trebled on them making massive profits. Hard one to call as it's a jam tomorrow story but the jam could end up being thick.

 Cranswick isn't doing much but a statement is due soon

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.

So you should be aware this is not a "tipping" site and I do not consider myself, nor do I want to be, a "tipster". In other words tipsters will urge you to "buy" something - and they generally are regulated to do so by the FSA. I simply state I have already bought or sold something personally. Because of that I am not "regulated" - so I am not an authorised "tipster". I am simply a trader who states his positions.

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.

So one of my main messages is: don't be tempted to follow me blindly into my choices. Quite often, as I play momentum, a share I have bought may already be much higher than when I bought it, especially as I do not update every day. If you follow me blindly you may be buying at a much higher price and you may end up selling at a much lower one.

You should ALWAYS do your own research and come to your own decisions on share purchases. If you follow me into something and lose money, you only have yourself to blame and not me. You should learn about markets and understand what you are doing before entering them.

The most risky way of trading of all is spreadbetting, which I do quite a bit. You should carefully read all the warnings that the spread betting firms issue together with all the warnings in my books. And never, ever, play with money you cannot afford to lose.

The aim of this site is to entertain, and perhaps stimulate debate, and that is the condition of entry !I really hope you enjoy reading about my triumphs and mistakes, but please, just watch and enjoy my triumphs and learn from my mistakes. Consider this site as entertainment. If this is your first visit to the Nakedtrader website site, I thank you for visiting me, and hope you will find this site useful. 

After reading and agreeing to the disclaimer, click the "I accept" button below. Please remember, I cannot give any specific advice, as to whether you should buy, hold or sell any individual share.

"The investments and other products referred to on the Naked Trader website should in no way be considered "advice" to buy or sell anything.  Naked Trader information is given in general terms only and does not constitute personal advice to any individual.  Investors are responsible for formulating and applying their own strategies based on their own personal circumstances. Naked Trader recommends that you obtain independent financial advice from an FSA-authorised intermediary before investing money.  Information given in previous editions of Naked Trader daily updates may become outdated and should not be relied upon unless confirmed by recent comment