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NAKED TRADER - Buy when there’s panic in the air

NAKED TRADER - Buy when there’s panic in the air


It is easier said than done but the best time to buy shares is nearly always when there is panic in the air, markets are tumbling and traders gloomy.

I find it reasonably easy not to be scared because when I go bargain hunting I go in with the view that I am out of any bargains fast should they start to drop further. However if they start to go up again I can stick with them for a bit.

So I have traded quite a bit despite being away in Spain. But my trusty laptop is there between cocktails by the pool! Just got to make sure it doesn't get wet...

I can't cover everything I did but I'll have a go with one or two. First just to quickly say closed out a few more of the FTSE shorts banking another few thousand and got a wall street upbet opened at 15946 - up a couple of grand on that now, and using a trailing stop on it now. It's pointless mailing me about indicies betting, this is not my forte and I have no wisdom to impart except best place if you do do it is ...with a  spread of just 0.8

So I bargain hunted two: I got some more Iomart (LON:IOM) getting some at 171.97 and topped up on Sprue Aegis (LON:SPRP) at 249.

With both you could argue "Boo, Robbie you useless hypocrite you say try not to average down". And that would be fair comment but in my defence neither share in my opinion are high risk and had come down via panicked selling of everything, hence I considered them both a bargain. So there. And I could end up with egg on my face. (Make it fried, please)

But I think Iomart (LON:IOM) will get bid for again around the 300 mark so plenty of upside and Sprue (LON:SPRP) looks cheap.

I love doing seminars, new stuff always comes up I would never have found at home so (thanks Janice!) I bought some Energy Assets, (LON:EAG) 1,000 at 395.25 live at the seminar as they looked an excellent idea. I also topped up with some more around the 400 mark.

Yesterday it announced a deal with N Power. Its smart meters look set to become a standard and long-term these shares look magnificent. Only problem is the spread sometimes but managed to get round that at the seminar getting them at the sell price. 

Room still left at my seminar this Monday if you'd like me to show you live how to do this kind of stuff!! 

Another that came at the seminar, thanks to whoever it was, I forgot to take a note...  was Flowgroup (LON:FLOW).

It's a "jam tomorrow" share, ie loss making but with a good story and lots of cash. So hard to value, but if its flow boilers take off, it could end up a big company indeed. However only a small amount to start with taking the risk into account.

A bit on the high risk side but  I bought Flow live at the seminar. It's very volatile so hard to get the right price.

One where I have built up a nice position in with good profits is OPG (LON:OPG) and topped up there at 84. That seemed a sell off too far. Once it can conquer the 105 area I am hopeful of a move up to 120 for this one.

I bought Regenersis (LON:RGS) after it announced £15 million in new contracts, it's been looking well oversold recently.

The contract for RGS strengthens its position and it looks an interesting play to hit 250 and then 300 again.

Audioboom (LON:BOOM) fell back to its placing price of 12.5 - this looks a fantastic area to buy back the ones I sold off last time for a nice profit so I have bought some back!!

More details on why I like BOOM in the archive when I last bought it. I would have thought they could gradually climb back up from the current 12-13 to about the 17p area.

As I talked about at the seminar I was looking at ways of making money from travel stocks hit by the ebola scare.

So I bought some BA or rather International Consolidated Airlines (LON:IAG) (check out the groovy name) at 349 on a spreadbet at the seminar. A Spread as I can't imagine hanging onto it for ever though I still have it. I also bought IG's Travel sector and that bet is currently up £300.

I've also picked up some Pets at Home (LON:PETS) - this one has been a right dog since it was floated on the market, but it looks like it is turning around with some big support coming in.

Its statement this week was pretty good and it is beginning to look undervalued. No reason why it shouldn't crack on over 200 and up to the 230 area in time. The share price just needs a bit of heavy petting.

The high risk APR trade ended in a loss. It really shouldn't have - I forgot to put on a trailing stop which would have got me out at a nice profit. A silly oversight on my part I ended up taking a £250 loss instead, lesson learned.  Someone somewhere knew there was going to be a warning with sellers crowding the order book for a few days before the announcement. Hmmm....

Well. After being short of Carpetshite (LON:CPR) for a long, long, time I decided to bank the profits, which for me personally was about £25,000 worth.

My reason is despite the fact I think it's probably worth 200p or less, I've made more than 400 points out of it on the downside, and so given the downside is a lot less now and might take some time, it seemed sensible to bank the short at last.

It feels a bit weird to be out - I was surprised to be able to get out of the shorts quite easily as I had a massive stack to exit but it was easy.

So for the website that's a profit banked of £4,585 from betting on the shares to go down. Nice one!

I might be tempted to go back in with a short again if say they headed up towards 400.

I sold half of Pres (LON:PRES) to take a profit of £238 and kept the other half as the share price wasn't moving much.

I also took half profits in the Rightmove (LON:RMV) short to bank  a profit of £744 keeping the other short open now using a trailing stop on it.

I've finally exited the Chime (LON:CHW) spreadbet to bank a profit of £3,120. Though I have kept hold of a few still in the isa. 

New Brit (LON:NBPO) has been bid for at 715p - held on to a small bit of that in the isa which I'd forgotten about and I think I will just take the cash at 715p giving the website a profit of £4,454.

So some very nice profits indeed banked in this update for a total profit of £12,891.

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

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