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Wow the Dow hits a high

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Markets

Wow the Dow hits a high! Who'd have thought it?

Yet again, there are wobbles here and there but the wobbles keep being bought up. As those of you who came to the seminar could see I didn't mention it here but bought the last wobble as a ftse bet in the early 6200s which is going nicely.

Those trying to short against the market are being badly singed. IG shows more than 80% of its spreadbetters have been short the FTSE since it was 6000. 

This is what happens if you go with what you think rather than what is in fact happening. You have to go with the trend. Shorting against it can lead to disaster.

I can't remember ever making so much money so quickly, I'm guessing but looking at the accounts it must be over £150,000. 

It is almost impossible to lose at the moment, so if you have been taking any sizeable losses recently consider: should you be a trader?

And talking of this topic a reader has offered to share his terrible experience. Read it for yourself and be pleased it is not you.

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"Hi Robbie just bought your book at the weekend and if i had seen it earlier I would have the 12.99 and not standing a loss of £150k (this is one hundred and fifty thousand pounds)

I am at a point were my whole day is literally spent sweating and stressed out as 100k was from my pension and 95k from my lifetime savings and every mistake in your book i have made. I feel wrecked. I lost most of my money on ..wait for it Desire and range resources.

Lifetime savings - I have 19k left which is all in Range and if I sell I have no chance of getting anything back so i guess I sit tight and pray- though if it gets to 10p etc over the next 6 months will I be tempted to hold in case it goes up more?...oh dear I bet you have heard stories from t"$ts like me before lol

I bought lots of range and rmp high and panicked and sold low and Xcite and gkp blah blah..oh f*** spd crashed yesterday just noticed..recovered a bit today.

Just thought I would share this with you so you can pass it on..it's not a game..I feel suicidal I've lost all this money for my future (pension) and present ( 19k left-not sure to cash in or wait) and I've now lost my job because I couldn't focus with these losses and lost my long term girlfriend because I was a depressive s*** to be with. it just sickens me to the core and my confidence to get another job is at an all time low.

I don't mind you passing my story on if it helps others. I would hate to see someone else in my position.

just wish I would have seen your book sooner...I bought more of a lot of the stocks on the way down catching a falling knife, thinking averaging down would work and not doing research..and the worst vice of listening to BB boards and 'so called experts' who mysteriously disappear when the stock falls rapidly. 

i guess now I have your book I might sell the lot and plan a new strategy with proper stop losses, although I haven't a great track record in picking stocks or just cut the lot..wipe my mouth of the £150k jointly lost and put it down to stupidity, but hopefully i can get my life back on track. I know this sounds hard to believe but I have never bet on anything before nor been to a casino..it was pure greed listening to someone who said they made a 20 bagger on GKP a couple of years ago.. what an idiot." 

So there we are. Thanks for the chilling story. I think it is easy to spot where he went wrong.

But to spell it out: what all new punters do, buy up all the crazy oil stocks hoping to make a killing. Believing tipsters and bulletin boards and the bloke down the pub.

Putting nearly everything in just a tiny handful of risky stuff and not having a balanced portfolio. Holding onto losers as they crash and hoping they will come back.

As you can see from the email this reader can't bring himself to sell even now. It's a terrible psychological problem. As he says he "might" plan a new strategy with proper stops. Will he though?

Never ever allow yourself to get into this sort of mess. Greed was part of it - "this oil share will make my millions".

Losing punters always think they will get the money back, find excuses for holding onto duffers, never use stops, etc. They never buy companies making real things with real profits, always hoping against hope their company will find oil or gold. They get influenced by idiots. 

I won't ramble on about it any more, but this kind of stories are in my book.

Turning now to my trades (real companies making real profits using stops!) 

I bought some Fiberweb (LON:FWEB) at 78.75. This one came up at a screening late on at the seminar and I liked the look of this one for a potential run up to a quid.

Profits are nicely on the rise here together with a nice cash pile developing too and unless the market tanks I would think a decent chance of 100p or so in time.

I also picked up some Xchanging (LON:XCH) again this came up at the seminar at 144.5. Again the figures here look really promising. I didn't really like this sector before but I like these figures.

And another that came up at the seminar was Communisis (LON:CMS) which has easily raised a good amount of money from institutions. Possibly one of those shares that could end up with a surprising game changer. Anyhow I didn't get the best of prices on this one at 52 - currently as I write it has gone down to 50, however I'm keeping a stop well below the current price and think it will head higher again. 

Next seminar by the way if you missed this one is April 26th. Mail me [email protected] for details. Come and spend a day with me and live markets and beginners especially welcome.

I bought a few Avon Rubber (LON:AVON) at the sell price using direct access at the seminar at 398.25. The idea being to get in ahead of a bounce (!) - I already have some bought much lower down.

(If you are interested in a system which you can try and buy shares at the sell price this is what I use: www.igmarkets.com/nakedtrader - I do suggest strongly you educate yourself and understand what you are doing before trying it for real)

I topped up in Chime (LON:CHW) early this morning after its report. They have had an amazing year and though management says growth won't be so good this year as they had things like the Olympics, the outlook is very strong and I am targetting 300 for the shares. Already in profit by over £6,000 on the site.

It is really dangerous to short stocks in a strong market however ...

I made a short in PZ Cussons (LON:PZC) at the seminar at just under 408. As I explained on the day, it's a pretty good company making stuff we all use like soap. However it trades on a high multiple and a look at the chart shows it peters out at around 410. I think it will struggle to get higher.

However if it goes above 415 then that could be a powerful breakout so a stop is placed at 415 so if the trade does not work out I can just take a small loss.

I've sold out of Vitec (LON:VTC) averaging around 625. The statement was okay but nothing fantastic and it looks fairly priced. Disappointed as I thought initially they would go to eight quid. That banks profits for the site of £3,506.

And Anite (LON:AIE) has gone at 157 for a profit of £690. It reached well past target and with buyers drying up, seemed a good time to quit for now.

That's a total profit banked for the site of £4,196.

PORTFOLIO HIGHLIGHTS

Recent buys mainly go well, though quite honestly a monkey with a pin could pick something right now and it would probably go up..

The recent spreadbets are up - Filtrona (LON:FLTR) spreadbet especially keeps on going higher as does the CSR one, and Senior - they are all heading towards their target areas. 

NMC Health (LON:NMC) top up worked a treat, now 100 points up on the first buy and 30 points on the topup. 

Dialight (LON:DIA)has really kicked higher and directors have been piling in with share buys so happy with the recent top up.

I remember so well buying these at 150 ish at a seminar in 2009 ! I never thought I'd still have them three years later at 12 quid - website profits are up and over £70,000 and personally profits over £100,000.

I think Dialight's 20 year light is going to be a massive winner and it could end up being a mega company unless it gets bought.

Great stuff from Costain (LON:COST)which reported a fine set of results today. Be interesting to see if it can get through 300 but in the meantime up a fair bit here.

The recent Brammer (LON:BRAM) trade has been a big success so far. Looking for it to hit around 400.

Pendragon (LON:PDG) has motored up, looking for 25p on that one. The brilliant Low and Bonar has conquered 70p, dare I hold out for 80?

Filtronic (LON:FLTR) continues to rocket and today goes over 70p and targets highs of a year or two ago. Profit are huge now, over £15,000 but it might be one of those shares that carries on going up so sticking in there.

Recent trade Huntsworth (LON:HNT) goes fine though nothing tremendous, it needs a break through 50 for a bit more. 

RWS (LON:RWS) continues to do well, up nearly 200 points on this one, nice. The spread is a bit of an irritant though.

LOQ (LON:LOQ) continues to do the business and has pushed through a fiver giving me a lovely five timer!! 

The lovely Porvair (LON:PRV) now flirts with 200 what a star trade... brilliant profits here and wondering if it can now tackle 200? 

Coastal (LON:CEO) has been in a slight downturn but even so than trebled on this brilliant oil play. I suspect a bid will come in here this year at hopefully around the 1800-2000 mark. 

Telecom Plus(LON:TEP) tries hard to get above the tricky tenner. All looks on track and I would expect a nice steady rise this year. It seems to have cracked the 900 area for now - cracking a tenner is going to take a few attempts, Website profits of well over £100,000 and personal profits of more £300,000. I just continue a long-term holder. 

It is holding a big meeting with distributors with some big news for them in a couple of weeks. 

Vislink (LON:VLK) is shooting up nicely and looking for it to go to 37p ish. Management already forecasts some nice profit rises over the next 3 years and it looks cheap and at some point should get a rerating. Very low risk too and it is in a hot sector.

Nichols (LON:NICL) where I now sit on a fabulous profit is up again after telling the market it is ahead of expectations - it has tons of cash so I'd expect them to announce some kind of big dividend with results in March. 

Trifast (LON:TRI) is having a remarkable run, it is tempting to look at taking some profit soon, I just wonder though whether it can get into the 60s first. 

Alternative Networks (LON:AN.)has been rising very fast and cracked 300. Excellent profits there and worth being patient with them. I wonder if a bid is coming (they already turned one bidder down) . 

Sepura's (LON:SEPU) report wasn't enough to get it through the 100p area ..100 surely must be cracked sooner or later. Not quite yet. Mid 90s for now.

Iomart (LON:IOM) has really motored up recently - getting above 240 looks the next test.


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