Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Markets rarely fail to surprise!

Naked-Trader-757-x-468.png
no_picture_pai.jpg

Markets rarely fail to surprise! It was deemed a cert we'd get an interest rate cut today but we didn't. I think that's right. It's too early.

A few days after Brexit it was almost as if it had never happened. Indeed every time we looked at a chart at the seminar on Monday you could see a Brexit "Blip" - a thin line going down.

A few days later, share back to where it was. Except for property shares, some engineers, leisure stocks.

Two days after Brexit then a week after looked the times to be a buyer. The FTSE has stormed higher, and the FTSE 250 is starting to come back.

With the summer months often being tricky and the fact I'm away a lot and want to enjoy myself I did some bargain buying but I've still got a ton of cash on the sidelines.

Bargain buys will be ruthlessly chopped. Liquidity can be a problem over the summer so bigger position should always be checked.

When I do a seminar it always amazing me that nearly everyone who has already traded still sit on losers 20-50% plus.

Instead of getting rid, they cling on in the hope they "come back". At a table of around 6 people over lunch each had more than one big loser sitting there.

And I know one - Kelly - has already cut all her losers after the seminar, well done! Thanks for all the kind comments on the event, so glad many of you have taken level 2 and are now using it and also those of you now trying out direct market access trying to buy shares at "sell" prices which I can manage a lot, so cutting out the spread. Easier than you thought, right?

I discuss what a bad idea to hold losers in my new book "Trade Like A Shark".

That's my new book on trading psychology (totally different to Naked Trader).

You'll hear stories from all sorts who have screwed up and why but how to put things right and how bad psychology in your brain is responsible for your losses.

Also learn how to tackle the 8 deadly emotions and how to wean yourself off twitter and bulletin boards both of which are deadly dangerous and addictive leading you to follow others mindlessly.

To get "Trade Like A Shark" with next day delivery and ten weeks before official release on amazon click https://harriman-house.com/tradelikeashark       and tap in NTSHARK at checkout.

Meanwhile if you'd like to spend a day with me, I have booked the next date so the next seminar is September 19th with a big discount for first ten bookers.

Also new is a follow up seminar which will be on October 10th for those who've been to a seminar before and want more in depth and a day of live trading. Mail me at [email protected] for details on either.

Post brexit it was time for a change for me. Usually I look for companies on the the up but this binary event meant for a change it was time to look at stuff that suddenly got bombed out or oversold.

As I chat about in Trade Like A Shark you have to keep on top of things and be prepared to change strategy if need be.

So I looked at property, leisure and motor dealers, all sectors marked down too heavily. One or two of these trades were bought live at Monday's seminar where also a number of interesting trades came up.

   The property market is firing back up - I bought some more McCarthy And Stone (MCS) again on the basis that the price had gone so far down I'd almost bid for the whole thing myself. Retirement homes aren't going to go out of fashion! To add to property I also picked up some Inland (INL). That one also looked very oversold after Brexit.

The airline sector has taken a bashing most of all Easyjet (EZJ) I hardly ever buy airlines but the massive fall has tempted me in - I reckon at this kind of price it now has bid potential. I reckon Easyjet will fly a lot higher and I don;t even need to come back to pre brexit levels to make a nice profit.

The motor trade has been well and truly sold off and so I wanted to take advantage of that - I picked up some Lookers (LON:LOOK) last week and live at the seminar. Went in for quite a few as the rating on it is so low. Debt is low and it has some property assets too. Looking for the share price to accelerate up to the 125p area.

Dignity (LON:DTY) has been such a great company - across all accounts I must be up nearly £100,000. Up £33,000 on it on one spreadbet alone as those of you who came to the seminar saw. After all, as a chain of funeral parlours they will never be short of custom, and I bought on a strange post brexit dip. At this rate expect will hold onto them till I am in need of their services. Looks like a dead cert.

Also looking a dead cert on a massive markdown (Why?) was Pets at Home (LON:PETS). Trust me, no-one will stop spending on their pets because of Brexit and I happily bought heavily as it went down - it should easily regain its ground and go higher. If it doesn't then I will really have paws for thought.

Also on leisure Character Group (LON:CCT)  looked oversold and the maker of Peppa Pig toys looks at its bottom and I have picked some more up. Could be a nice 25% gain there to come.

I added to Entertainment One (LON:ETO) which makes Peppa Pig! That one again went down for no real reason.  An addition also to NCC (LON:NCC), AVON (LON:AVON) and SCT - Avon deals mainly in dollars so should be a winner from Brexit with the weak pound adding more than 8% to earnings, another 100p rise I think to come from AVON.

Finally GB Group got a fantastic fund raising away at 275p to buy up another company - with the outgoing head cheese now selling his shares the shares should start to motor up. Should easily get back up to 325p highs at least from here once the share overhang has  gone. You're getting the same price as the institutions. 

Next 15 with its dollar earnings is being re-rated, could see that heading up over 300.

Recent buys BBOX (LON:BBOX), Osirium Tech (LON:OSI) and Photo Me (LON:PHTM) have all climbed nicely after the buys.

Your guess is as good as mine as to what happens over the summer. Bound to be some hairy times and volatile movements but that is all part of the cut and thrust of it.

Just make sure you have a plan with each trade and don't hang onto anything that starts to lose big. Maybe over the summer we will gradually learn a bit more about what Brexit means for the economy.

Good luck, see you back here in September.



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
 
 

© Proactive Investors 2016

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.