[SHARES SO FAR]
Background info: I have read a lot of books over the years on the stockmarket, studied accounting at school then 2 years of economics at uni (I dropped out oh well). Others would say “don’t try this” but you can do whatever you want. Actually do it, and good on you if you do. In my opinion it is the absolute best way to make money and it’s really interesting. You also learn a lot as you go and you don’t have to be good at money, just analysis and chart reading. Anyway, if you aren’t into this and you’re British – read ‘One up on Wall Street – Peter Lynch’ and ‘Rich Dad, Poor Dad – Robert Kwhatshisfaceitsgood’. These books will change how you look at money no doubt. Fo sho’
Anyway, I won’t explain really what I’m doing as I go – It’s just a diary of what I’m trading.
Starting balance
£2000 premium bonds
£964 for stock/equities
Transaction one (24 Feb):
Severfield Rowen (SFR)
This was my first stock for the loan so well excited about this. Absolute rock solid fundamentals, and just had a huge crash for no real reason except profits are a slight below expectations. Decent dividends too but haven’t decided on whether to keep going on that. I bought 315 shares at 2.932. I was going to buy at 2.652 but my broker account wasn’t open :( boo hoo etc
That red dot is where I got in. My target price for a £100 profit is 330p, but with it’s current momentum and rises despite small volumes, I expect this stock to see little to no resistance until the 400p mark, when it hits 400 I will make £321 (34%) profit. However the timeline for this could be long and I have some exciting prospects on my watchlist such as Coal of Africa, Desire Petroluem and Rift Oil. This share was a great value buy and it could go back up to 500 longer term for £636 profit, but holding too long isn’t what I want with the bulk of my loan.
The Monday following SFR I received the first instalment of my loan (as in month by month from now). With that, I purchased 115 shares in The Royal Bank of Scotland at 400p. Reasons being that this is one hell of a company. They’re about to announce record profits, Qatari investment rumours and a decent dividend date in the not too distant future. The banking sector took a huge kick in the nuts, well, the whole FTSE took a huge kick in the nuts in Jan so this was a great opporchancity to snap up a solid company with good ratios on the cheap.
It was on my watch list with SFR and BARC for my first pick but opted for SFR looking for money gain over percentage which sounds crazy but hey. I intend to hold this long long term so don’t expect much news on this. Dividends will only net me around £22 quid, but that’s better than spending £22 on a bad CD and some drugs right? Anyway my target for this is 550p for £164 profit within the year, but I may hold until I’m an old man. My SFR money etc is for the real gains.
Update Feb 29:
SFR broke through the £3 resistance and is thrashing it’s way up towards 340. Hit 327p yesterday which is tantalizingly close to me profit taking point but has slowed down a bit and closed at 313p today. RBS on the other hand announced £10 billion profits up 10% on last year and a sizeable dividend increase – but it closed down -1.26%. Funny old world. However it’s a minor fall after hitting 426p yesterday so it’s an easy lover tonight and should bounce back next week. At it’s peak, this week I had earned £102 profit, we shall see what tomorrow brings though –Close the week at over £100. I doubt it!
Side note: Desire Petroleum (DES) is up more than double from when I added it to my watch list. May have missed the gravy train there but my japs eye is locked on that with interest. Also watching HBOS after a big slip despite a 3% profit increase.
After counting the beans this week I am up £24
Poker:
Poker sucks. Basically I’m a strong sit and go player but decided cash tables might be more economical – they’re not. Rule 1: You really have to up your price range if you want to make money. Putting in £5 and playing 3/6p blinds does not work. These guys are so bloody bad at poker it’s unreal, BUT, they will call anything and in the long term, they always luck out and hit something – usually the hand one up from yours. Playing at 25/50p blinds makes more sense; the higher quality of player will take their time, won’t tilt as much, and is a bit more worried about losing a few quid on a garbage call. Either way I’m not playing cash games. I’ll get back into sit and go’s after I raise enough capital to absorb a few losses on that (worst case scenario). If SFR pays out over £200 I will put £30 or so into a poker room. It won’t be William hill though I don’t like it anymore. I know poker is a game of skill but it’s just a gamble when you play shitty players, it really is.
March the 1st baby:
Well our one free day for the next 4 years has passed. I was hoping to attack the day and do something exciting but alas it was a Friday and therefore I was shackled up in the workshop at college, learned some more thermofluids then paid for my MOT.. oh shit.. damn it I just realised my road tax is out of date.. Anyway, that ain’t the point of my blog so here goes.
US markets down again on Friedegg so some pessimism surrounding the opening bell on Monday, particularly for RBS. That’s the general consensus, but in my opinion RBS will bounce back up over 4. I hope. Either that or it will find support at 360. But hey, ex-div on Wednesday so that’ll be £25 into the profits for the year.
I’m expecting SFR to really rally this next week. I am extremely tempted to sell out at my original target of 330p, but targets are for losers. My new target is in the 360-400 band, if it finds its historical resistance at around 400 again I will be out. 360 nets me just shy of £200 which for the first trade with this cash is acceptable. 400 on the other hand pushes that figure up to £320. Greed is a funny old thing so that will have to be curtailed in line with my long term objectives. 400p looks attainable as it closes the gap on the big fall, so the time frame has decreased in this holding which I’m pleased at.
Side not: my friend works for a company called Expro. I very nearly bought these stocks in December but decided against it as it was a real sideways mover and I was rusty on charts. I clocked onto it at 860p, yesterday a take over rumour shot it up to £12. Wonder if he’ll keep his jobe.
After some chart hopping I am watching these very closely on Monday:
HBOS, GPOR and WNER
I have also added the following to my general watch list depending on charts and speculation:
ROK, CLI, IRET, MCKS, ATC, CLN, WTI, SAFE, BDEV
Adding this for new logo
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