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educational blogs |
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PLEASE NOTE: I THINK THE LESSONS CONTAINED IN THIS BLOG ARE VERY PERTINENT TO BEGINNERS AND INEXPERIENCED INVESTORS - AVOIDING BAD INVESTMENTS IS A KEY PART OF CONSISTENTLY MAKING MONEY IN A SAFE MANNER.
The razor sharp eyed among you will notice that despite my protestations about not buying Small Resources (Mining and Oil mainly) stocks, I have a few in my Portfolio - APF, EMED, POL, AUE. What’s going on? OK, I screwed up. It’s that simple really. I have no one to blame but my retarded, idiot, self. I am taking responsibility - you won’t see much of this ‘mea culpa’ stuff on the QPP Bulletin Boards !!
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THIS IS NOT A TIP. I AM NOT A TIPSTER. PLEASE READ THE DISCLAIMER ON MY HOME PAGE. IF YOU BUY THIS STOCK YOU MAY LOSE MONEY.
If you Follow me on Twitter or look at the Feed on my Home Page (there is also one on WheelieDealer2), then you may have seen that after an initial hiccup I managed to buy a load more Cambria Automobiles (CAMB) at 48.45p this morning. I already had about 2% of my overall Portfolio Value in it and I added another 0.5% roughly. The trigger for my buy was a totally storming set of Preliminary Full Year Results - as I pointed out on Twitter, it is almost faultless, and it is very unusual to see a Statement this good. So, imagine my surprise when the shares had hardly budged after about 45 minutes of trading - I decided this was crazy and it would be very rude not to take advantage and top-up. Oh no, it’s that time again, when I grab a Coffee and stare at my screen in utter bewilderment trying to figure out what a chart from a couple of weeks ago is trying to tell me…..and that time when you grab a Coffee and think “oh no, Wheelie is gonna make my brain hurt again.”
Today I am going to subject you to the next Indicator I looked at the other week prior to buying into OPAY (remember these charts are from a couple of weeks back and the current chart is radically different - it is probably a good idea to read Parts 1 and 2 of the Series before bothering with this.) Momentum The Chart below should be fairly quick and easy to explain. What I am trying to show you hear is the Bottom Window marked “12 momentum (Daily)” - I have no idea how this Indicator is created (they are all mathematical derivations - ShareScope Help has a glossary of how these things are created but I never look - irrelevant to me; what matters to me is their predictive power). I wasn’t going to produce this Blog as I have lots of other stuff I want to do to the Website and I really should be cracking on with that. However, I felt that by bashing out this text it might help me think clearly about the FTSE100 Short I have in place - one of the superb side-effects of all this Blogging is that it forces me to think very carefully about any trades I undertake or hold.
Thought for all readers - how about making your own blogs? So what if no one reads it, just the process of writing things out clearly will make you a better investor I suspect. With stunning FREE website offerings like weebly.com, the ability to Blog has never been easier. If people read my cr*p then I am sure they will read yours !! THIS IS NOT A TIP, THIS IS NOT A RECOMMENDATION, I AM NOT A TIPSTER. PLEASE SEE THE DISCLAIMER BY CLICKING THE RED BUTTON ON MY HOME PAGE
If you watch my Twitter Feed (remember, if you are not on Twitter, you can see it on the Home Page of either of my Websites) you may have noticed that I bought a small Spreadbet in Sprue Aegis (SPRP) at 322p this morning around 9am ish. I kept the position small, it’s about 0.75% of my overall Portfolio because I already have a mountain of SPRP in normal shares but I just thought the Trading Update was so good today, it would be rude not to celebrate with another buy !! Let’s be honest, it was the least I could do to support the company and show my appreciation…..clap, clap, clap… This Blog has grown out of some thoughts I have been having about how different investors approach things in different ways - and I was thinking about how I do things. I cannot stress too much how important it is to always analyse how and why you do things. This game is about constant learning and evolving.
I guess my key observation of other people with regard to Company Fundamental Analysis is that many are extremely focussed on one aspect of a business. Most typically, I find that people from an accounting background tend to get very stuck into the Accounts of the business - of course this is no bad thing - and if you have that skill, then it is extremely valuable. I guess, like many of you reading this, I have nearly had enough of OPAY - seems to be all I ever think or Tweet or Email or BB Post about these days.
The irony of this Blog is not lost on me - trying to write a Blog about how I use my wonderful timing Indicators to get me in at a good price just as it turns upwards, merely a day after the Share Price has tanked 22%, seems rather paradoxical. Clearly my Timing could not have been much worse…. Hey, you gotta look at the positives - in this Share Investing game if you do not have a positive (optimistic) outlook then I really wonder why you bother. This is all about the future and if all you see is Doom and Gloom, then I guess you should have a Portfolio of Short Positions !! Well, there I was settling down to a nice snooze after looking through the Company Announcements this morning and the markets all seemed pretty flat and uninteresting……..Next minute a TXT pops in from a mate - “Have you seen Tom W on OPAY?”
“Oh Sh*t," I thought…. So I quickly got my head around the story that OPAY CEO Joel Leonoff has been involved in a similar convoluted Share Buy / Sell / Loan or whatever it is with Equity First Holdings (EFH) like Rob Terry had done at QPP, which caused the enormous collapse in QPP share price this week. I wasn’t intending to write this Blog but as I was doing the OPAY Buying Rationale one lately, I realised it was getting a bit lengthy and I decided that I could write a separate Blog on the timing of my Buy.
It then occurred to me that I could flatten several flocks of feathery creatures at the same time with one almighty chuck - as well as the OPAY Buy it gives me the chance to show how I use Technical Analysis to time Buys and Sells, and also how ShareScope software helps me with this. NOTE: THIS IS NOT A TIP. I AM NOT A TIPSTER. I AM NOT FCA REGULATED. DO YOUR OWN RESEARCH (DYOR)
I am sure I have mentioned before that one of my favourite ways of picking great stocks is to look at ‘Big Themes’ that are changing the way we live and growing at very high rates. 2 such themes are Online / Mobile Banking and Payments, and the rise of Online / Mobile Commerce. The growth rates are extremely high - providing a superb Tailwind for good businesses in this space. |
'Educational' WheelieBlogsWelcome to my Educational Blog Page - I have another 'Stocks & Markets' Blog Page which you can access via a Button on the top of the Homepage. Archives
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