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educational blogs |
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OK, I get that they are important, how do I set them?
If you click on the ‘Category’ ‘Stock Buy Rationale’ on my Blog Page, you should find loads of examples of where I have set Targets that you can look at to see how I do it in the Real World (WheelieDealer - Keepin’ it Reel, innit?)…… In essence there are a few ways of setting Targets - and I tend to use several of them together and come up with a Target that fits the various factors. The methods are pretty much as follows:
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THIS IS NOT A TIP. I AM NOT A TIPSTER. PLEASE DO YOUR OWN RESEARCH. PLEASE READ THE DISCLAIMER ON THE HOME PAGE OF MY WEBSITES. IF YOU COPY MY TRADES, YOU WILL PROBABLY LOSE MONEY.
You may have noticed that after my initial ‘Foot in the Door’ Buy on ARM Holdings (Epic Code: ARM) about 2 months ago, I massively boosted my Position in ARM on Friday 23rd Sept 2015, taking it up to 5% of my Total Portfolio Exposure so it is now a significant Stake. I bought a Chunk of Shares at 1049p and some more Spreadbets at 1051p - please see the ‘Trades’ page of my Website for full details.
I have a suspicion that many Investors and Traders take Targets for granted and do not give them the attention and importance that maybe they deserve. This Blog lays out my thoughts on the issues to consider around Targets and hopefully will help tighten up discipline for everybody - me included !!
What exactly is a Target? When you buy (or sell if going Short) a Stock or Index or whatever, the Target is the REALISTIC Price Level you think (or hope more like !!) the Price can get to in an acceptable timeframe to yourself and suited to your style of Investing / Trading. Daytraders will want the Target to be hit in a few hours whereas Long Term Investors like myself might be thinking 1 or 2 years or even much longer for Stocks that have a proven Track Record and a dominance in their Industry, like igIndex IGG for example.
It’s Sunday Night again and I need to getting thinking about what is going on with these Markets - particularly the FTSE100 because I have about 45% of my Long Portfolio Exposure offset by Short Hedges (please see my ‘Trades’ Page for more details).
I got a bit spooked this afternoon whilst flicking through Last Week’s Investors Chronicle because Nicole Elliott ‘The Trader’ was being right Bearish again and talking about ‘Rolling Tops’ and stuff and I think she might have a point. My concern is that if we are going into a proper Bear Market where stuff just falls and falls over maybe 6 months, then the Strategy to address making money will need to be dramatically different. In essence, Buying Stocks will be off the table and Shorting Indexes will be the name of the game and probably shorting individual Stocks as well. I might even sell a lot of Stocks and move into Cash to a large degree.
THIS IS NOT A TIP. I AM NOT A TIPSTER. PLEASE DO YOUR OWN RESEARCH. PLEASE READ THE DISCLAIMER ON THE HOME PAGE OF MY WEBSITES. IF YOU COPY MY TRADES, YOU WILL PROBABLY LOSE MONEY.
If you are keeping up, you may have noticed that I bought a chunk of Empiric Student Property (Epic code: ESP) on Wednesday 7th October 2015 at 109p for my Income Portfolio and I added to this position today with a Spreadbet at 109p. This Company listed back in June 2014 and has had a nice steady Uptrend since - that is something I always like. Buy Momentum. For many years I have been a big fan of Unite Group UTG but in reality I have rarely been in the Stock and have missed out on huge gains - both these companies acquire Properties and refurbish them to rent out to Students. Despite all the rhetoric from the usual suspects, Student Numbers are growing extremely fast despite the introduction of Fees and Loans. This growth is also being boosted by the Government removing the cap on the total number of EU and UK students - this has meant more EU Students and the number grew by 11% last year. This trend is expected to continue particularly because Universities are now actively advertising their wares abroad. All those Students have got to live somewhere and they tend to pay up front for 51 Week Leases in ESP Buildings - so it is a very stable and lucrative Cash generator.
THIS IS NOT A TIP. I AM NOT A TIPSTER. PLEASE DO YOUR OWN RESEARCH. PLEASE READ THE DISCLAIMER ON THE HOME PAGE OF MY WEBSITES. IF YOU COPY MY TRADES, YOU WILL PROBABLY LOSE MONEY.
Earlier today I sold my holding of Booker PLC (Epic Code BOK) in my Income Portfolio at 182p, banking a Profit of 45% (with probably another 5% on top from Dividends) from a holding period of about 1 year. There is a lot to like about BOK - it has a habit of paying out Special Dividends and the Uptrend is just nothing short of superb. It was a nice fit in my Income Portfolio (full details of this Portfolio can be seen on my ‘Trades / Portfolios’ webpage) as the nature of small Corner Shops means a pretty defensive sector. I could easily have made a decision to continue to hold BOK and the chances are that it can go higher as the Momentum of the Uptrend continues to do its magic.
THIS IS NOT A TIP. I AM NOT A TIPSTER. PLEASE DO YOUR OWN RESEARCH. PLEASE READ THE DISCLAIMER ON THE HOME PAGE OF MY WEBSITES. IF YOU COPY MY TRADES, YOU WILL PROBABLY LOSE MONEY.
This should be a quick WheelieBlog - there’s some Superbike Racing on the TV soon so time is limited !! You may have seen via the usual comms methods (Tweets, ‘Changes List’ on Homepage, ‘Trades and Portfolios’ page etc.) that I closed (sold) my Long Spreadbet on National Grid NG. and banked a reasonable 10% Profit on the Exposure and near 200% on the Capital used as Margin Deposit for the Bet, in a swift 2 months.
THIS IS NOT A TIP. I AM NOT A TIPSTER. PLEASE DO YOUR OWN RESEARCH. PLEASE READ THE DISCLAIMER ON THE HOME PAGE OF MY WEBSITES. IF YOU COPY MY TRADES, YOU WILL PROBABLY LOSE MONEY.
Observant Readers may have noticed I topped up on BAE Systems BA. via a Spreadbet at 453p earlier this morning (Thursday 1st October) to add to the other Spreadbet Position I already have and the normal Shares I have in both my Income Portfolio and in my Trading ISA (as per usual, check out my ‘Trades / Portfolios’ Page and you can see what stuff I am holding). |
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