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Naked Trader - “a warning about summer trading: tread carefully”

The year so far has been superb. Some very lovely winners and plenty of profits banked too, most recently more than £10,000 after the AGA bid. More a bit lower.

A bit of a warning about summer trading: tread carefully. With so many away the markets are a lot less liquid so it is harder to buy or sell shares at fair prices.

It means the difference between the sell and buy prices can get very wide especially from 8am-9am - this period should be avoided if possible and stops re-considered in case of an 8am stopout. I would suggest if in doubt don't press that button.

There's a whole load of get rich quick stuff around at the moment and my mail box is full of firms wanting me to plug their get rich quick system/ forex trading system, amazing system that does all the work for you just "follow the signals".

And "Binary betting" companies. And trade forex etc. All desperate for me to plug them telling me how much lovely money I will make from them. I write back and tell them what kind of person would I be when I write nearly everyone loses at all these things and then try and coax my readers into them!

I tell them I know full well 99% lose over time at forex, signal, binary and day trading. They don't disagree! All they want is the next mug punter. I urge you not to touch any of these products. You will never ever make quick easy money. A fact!

The only way to make good money is by being sensible, cutting losers quickly but letting profits run for as long as possible. And think longer-term. I know. But I also know it's harder to say than do. The lure of quick easy money and greed is very seductive.

Some of you have asked me when the next follow up/ technical seminar is, so I just fixed the dates, October 9th for follow up and October 10th for Technical.

If you have been to a seminar before and want details on those please mail me at with follow up interested in the subject line and will send you details.

If you haven't been before then the next seminar date is September 28th for beginners and improvers, there is a special offer right now of £240 off which is the biggest discount I've ever done but for the first ten to book only. Mail me with "special offer interested" for details.

Onto my trading.

I bought some of a recent issue Kainos (LON:KNOS). This one is the kind I like.

It's been launched onto the main market so it should be promoted to the small cap index in September which should attract some fund buying. And directors have already been buying. It's in a good market providing digital technology solutions that lets companies operate faster and more efficiently.

Profits have been rising very nicely here indeed and the future looks very bright.

I am thinking of a tuckaway in the ISA for a couple of years with an initial target of 250p. I think this could end up a lovely winner. Epwin (LON:EPWN) looks an interesting one.

I bought this at the "sell price" at the last seminar using Direct Market Access. (come to the sept 28th seminar to see me demo this live on the day).

That was great because it is in a tight range of 127 to 137 so getting a price under 130 was excellent. It would be bullish if the price heads above 137 but I'd be out probably if it dipped much below 120.

It makes low maintenance building products which appear much in demand at the moment. Profits more than doubled over the last two years so prospects seem very good here. I am hoping for an eventual re-rating up to the 200 mark. Directors have been snapping up shares.

Alliance Pharma (LON:APH) looks an interesting pharma with a good pipeline. It didn't have a very good 2014 but statements but recent statements show a much more bullish tone for 2015 and 2016 and the price is rising nicely in response.

Obviously pharmas do carry some risk but I like the risk-reward ratio here and happy to pick some up. It's one of those that could be a massive winner given time. It seems to have a winner in Hydromol performing well.

I just had to top up in OPAY (LON:OPAY). The price dip seemed crazy - it is waiting to get the all clear for a takeover and I am sure the price will head higher again once that hurdle is clear. A trading statement this week was bullish too.

And ETO (LON:ETO) was simply begging to be topped up on - the price sank because a fund sold out. But that wasn't surprising - the fund has held for years and wanted to bank some profit, I would have done too probably if I was the fund! The shares on offer were snapped up anyway. The price will rise again and in the meantime I have still five timed my money and more.

The AGA (LON:AGA) saga is over with a bid at a lovely 185. Shame I sold some of them a bit lower but you can never tell with a bid and always worth banking some profit.

That makes a profit of £4,760 for the website and a total profit of £10,539 for the website from AGA as a whole.... If you happen to hold AGA by the way you can either take 182-183ish now or wait a little for hte full 185p which will arrive in your account in cash.

Either way, a nice result.. Nothing better than getting a bid and I am hopeful for at least three more by the end of the year. I am happy with 5 a year! I took profits on the Abcam short of £310.

My reason for quitting was it didn't want to go below a fiver.

Ald started tanking on Budget day because the chancellor's new tax on banks didn't look good for newer challenger banks - I didn't see that one coming but markets can do that to you! So I sold well off highs unfortunately but about to buy back as it now looks very oversold. Smaller challenger banks are writing to the chancellor asking for breaks against the bigger banks, and just maybe they might get some as the tax seems unfair for them, a re-think could cause the share to uprate again.

A half-term look around the portfolio before I leave you for the summer!

I think Dignity probably gets my vote for my fave share of the year up from 1700 to near 2300 giving me in reality profits of over £30,000 as I built up a substantial stake. I now just keep a trailing stop on it 250 points away from the action

Aga obviously has done well, already covered that!

Pets at Home (LON:PETS) has made me purr this year up from 171 to near 300.. took a bit of profit but personally up more than £20,000 as those of you who came to the seminar saw on the spreadbets!

Poundland (LON:PLND) has motored up. Renew has done well now over 300. Quartix is trying to get over 200 level. Energy Assets up a quid and a half and OPG is a longer-term winner, potential double coming up there.

Long-termer Vectura (LON:VEC) has had a good run this year and now doubled and a half on my first buy. With patience, I think personally I'm going to make more than £100,000 on it.

The lovely GB Group (LON:GB.) just keeps on going and been in since 20p. To see it with another nought on the end is sensational. I still think it will end up being bid for. 250p? Quantum Pharma continues to do well and has had a nice run up from 114 to 160p.

Telecom Plus (LON:TEP) has recovered nicely - it goes ex-dividend next week for a massive 21p so a big fat cheque will arrive shortly after. Lovely long-termer Porvair carries on going up. Been in it since 60p and now 320p

Spire (LON:SPI) is on the way back up after an early backer sold the last of its shares. The recent spreadbet in Easyjet (LON:EZJ) has taken off too.

So I am very happy and intend to go off on hols with no intention of trading much more till September as happy with what I have. I will be taking my laptop though as you never know!

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. 
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"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

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