If you have not read the first 2 Parts of this Blog Series or you fancy a refresher, there are links at the bottom where you can find these. I recommend reading those first.
Healthy and Constructive ‘Free Time’
I know I have written many times about this before but it is of utmost importance - especially if you are a Full Time Investor/Trader and you have the opportunity (due to lack of anything better to do and through pure habit and custom) - and I ain’t gonna make no apologies for writing it again. Sorry, that’s how it is (shucks, I just apologised……).
For me this is just so important - I cannot see how anyone can be fully productive and efficient with their time if all day is spent ‘Trading’ or on Investment activities. It is vital to take time out and go and do something entirely different - for me it will be digging around in the garden or suchlike in the Summer and just the usual chores of life like going to Tesco (other Supermarkets are available, although they are not 5 minutes from my door), washing the cars or going to the PUB or something (the latter is particularly unpleasant especially during a hot summer’s day when everyone one else is at work - it’s a dirty job but someone has to do it.)
Last week was another good one for many holders of Stocks and Indexes all around the Globe are making new All Time Highs again which clearly shows how the Bulls are in control. This is clearly a difficult time for The Bears and our thoughts should be with them and perhaps we should start an Appeal Fund because they will be struggling to feed their families…….
On a serious note, with Markets in such a Bullish mood it is very dangerous to Short Stocks and I find it hard to see why it is worth the bother - the pressure is clearly to the upside and it is just so much easier to run with the Bulls. Having said that, we are now into the Summer Period (the weather might not support that fact !!) and Markets are likely to be less Bull friendly than they have been so far in 2017 - although it would probably be a big mistake to think they are going to fall a lot now.
My mate @AIMInvestTweets kindly offered up the following text regarding the ‘Art of Execution’ to give Readers a view of what is in the Book and to help with some ideas to consider. You may not agree with all the ideas laid out here, but it is extremely valuable to think about what is being said and how you tend to do things yourself and what if anything you could tweak in your own Approach to improve matters. No Approach should ever by set in stone and it is a case of slow adjustments and evolution over the years.
Huge thanks to him for sharing this with us and putting the effort in to make a nicely readable and thought-provoking Blog, and of course you can find a copy of the Book in Wheelie’s Bookshop somewhere.
What a beautiful afternoon - and I hear on the Forecast that tomorrow is going to be the warmest day of the year - what a wonderful change. I spent most of the afternoon digging in the garden and finally got the Horse Poo dug in - I love the way that Garden Centres call it “Soil Improver” when we all know it is the smelly brown stuff that comes out of a Nag’s backside !!
I talked about this on Twitter and I think it is something worth noting about the Markets last week (not the Horse Poo !!). As things stood with plenty of Economic and Political travails and of course the usual Seasonal Effect of weak Markets at the end of May, Bears had every excuse to take the Markets down last week and they managed to an extent but were totally unable to ‘follow through’ - I think this could be taken as a positive.
To set the scene I just need to do a quick refresher on the way I use Spreadbets in order to gain Leverage and boost my Returns. In essence, the Theory is that I ‘mirror’ my Normal Trading ISA Portfolio in the form of Spreadbets and this should give more “Bang for my Buck“.
Probably the easiest way to illustrate it is by using a simple example. Let’s say I have £100k in my ISA which is composed of various Share Positions. I then ‘mirror’ this ISA using Spreadbets to get pretty much the same Exposure to each of the Shares so that the total Spreadbet Exposure is also £100k.
Now let’s say the Normal Shares Portfolio in my ISA goes up 10% in a year - so there is a £10k gain. Everything being equal, the Spreadbet Portfolio should also rise by 10% and £10k but we need to appreciate that there is an Interest Charge on the Money used so we can for theoretical needs in our example say that the Return on the Spreadbet Portfolio EXPOSURE would be probably 7% rather than 10% (the Finance Charge is something like LIBOR plus 2% or so), so the monetary Return is £7k.
A Free Unicorn with every Vote for the President - A look at Indexes, Oil, Gold and the Quid, and some Stocks
The thought that we still have about 3 Weeks to go on this General Election run-in is beyond depressing. We all know what the result will be and thankfully the Markets should take this in their stride and any negative forces on Stocks are likely to come from completely different factors if they do occur.
The Campaigns are just so dire - T May seems to have totally absorbed her Conference Speech from many years back where she talked about “The Nasty Party” and consequently you wouldn’t even know she was the Leader of the Tories if you just had a quick look at the Campaign Marketing fodder. It is very much a Campaign to elect T May as the President.
I tripped over this upcoming Float on the Main List recently and wanted to have a look in more detail. Global Ports Holdings is a business which operates Ports for Cruise Liners, Ferries and Yachts across 14 Ports in 8 Countries and you can find their website here:
This chunk of text from their ‘About Us’ dropdown menu gives a good summary of what they do:
The French Election is a ‘done deal’ and I suspect the Market has forgotten it already - we might get a small ‘Relief Rally‘ but I suspect a Macron Win has already been priced-in and all Major Indexes look pretty Bullish as you will see on the Charts further down. We now seem to be moving on to the next big ‘Event’ which for the UK is probably the General Election - although after the results of the Local Elections it looks like a question of just how big the Tory Landslide will be.
The most interesting aspect of this is its impact on the Pound - I note that the £/$ made a new Relative High at the back end of last week and the momentum certainly seems to be with the Pound recovering. The other interesting event is around Oil Prices (and Resources in general) which have been pretty weak lately.
This is the 2nd Part of a Series of Blogs - if you haven’t read Part 1 or need a refresher, then you can find it here:
Looking for ‘Excuses’ to Sell
This is very much a danger that is linked to what I have been talking about in Part 1 with regard to being unfocused in the Information Sources you use, and it is also a key Psychological failing that I know I suffer from although I hope I am slowly healing from this terrible and expensive disease. We all know the infamous and sadly banal Market adage “Run your Winners and cut your Losers” and I wouldn’t be surprised if the latter bit about “cutting Losers” gets 98% of attention from Market Players where as the bit about “Running Winners” barely gets a look in.
I am always reading/hearing about how we must “Cut our Losers” but very rarely hear anything about how to practically “Run your Winners”.
I am personally useless at “cutting Losers” after many years of trying to cure this ‘Bad’ habit, and I have pretty much given up on even bothering now - I have a partially written Blog all about my current thinking on Stoplosses but it probably won’t appear on the Website for some time - however, I now take the stance that “Running Winners” is by far the more important part of the adage and is where more focus should be put.
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