[YEAR IN THE LIFE - PART I]
This is part 1 of a year in the life of a beginner trader. Look for updates every week until TSLR celebrates a year at the helm of this blog. This is just too funny, I can't believe how stupid I was when I started doing this..
I can do nothing here but cut and paste a section of my first post. Anything highlighted, in bold or in large text represents a ridiculous statement that makes me cringe. This period lasted about 4-5 weeks and I lost a significant amount on just 2 trades. My first trade was a winner though!
"Have you read the report man!?" TSLRs Fundamental Analysis Era.
“Trade 1
Severfield-rowen UK
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 Petroleum 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.
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. 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.”
“RBS on the other hand announced £10 billion profits up 10% on last year and a sizable dividend increase – but it closed down -1.26%. Funny old world. “ The earliest sign the banking sector was in serious trouble.
“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.”
If the market was bearish and RBS looked bad, then why did I keep holding it? Also I was exposing myself to 40p downside for 10p upside. That dividend was worth SFA!
“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. “
This remains possibly the dumbest thing I have ever said in my life.
http://thestudentloanranger.blogspot.com/2008/03/media-and-market.html
Why did I not see the global financial crisis while writing this post!?
“SFR is a bee-in-bonnet scenario. It just climbs all day, hits 315 then closes at just over 304.”
Somehow I did not realise that this concept was support and resistance.
http://thestudentloanranger.blogspot.com/2008/03/road-to-recovery.html
Beginning to question the trades i’ve made, but remain in love with first big loser SEO
“SEOs results were out on Friday - no positive movement on the share price though - it's gone down quite a bit. However, looking at the final years results and the interims from last year, their position has significantly changed for the better and it looks like a solid long term investment “
This is the classic beginner mistake, initially a short term trade, SEO is now part of my “long term strategy”. OMG I was bad.
“Excellent surges on Wednesday and Thursday (18%/22%). At it's peak it kissed .9 which represented a decent opportunity to get out for a loss of around £300 - half of what is was on Tuesday.”
This is about the SEO trade, gaining 50% on a position that is already a monster loss is an absolute god send. Why did I not take this!?
Chart evidence
There are too many lessons in this portion of text to digest in one paragraph. I don't even know where to start so I won't even bother. But anyone who has ever traded will know exactly what I mean!
Next week: L2 TA III era.
I can do nothing here but cut and paste a section of my first post. Anything highlighted, in bold or in large text represents a ridiculous statement that makes me cringe. This period lasted about 4-5 weeks and I lost a significant amount on just 2 trades. My first trade was a winner though!
"Have you read the report man!?" TSLRs Fundamental Analysis Era.
“Trade 1
Severfield-rowen UK
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 Petroleum 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.
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. 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.”
“RBS on the other hand announced £10 billion profits up 10% on last year and a sizable dividend increase – but it closed down -1.26%. Funny old world. “ The earliest sign the banking sector was in serious trouble.
“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.”
If the market was bearish and RBS looked bad, then why did I keep holding it? Also I was exposing myself to 40p downside for 10p upside. That dividend was worth SFA!
“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. “
This remains possibly the dumbest thing I have ever said in my life.
http://thestudentloanranger.blogspot.com/2008/03/media-and-market.html
Why did I not see the global financial crisis while writing this post!?
“SFR is a bee-in-bonnet scenario. It just climbs all day, hits 315 then closes at just over 304.”
Somehow I did not realise that this concept was support and resistance.
http://thestudentloanranger.blogspot.com/2008/03/road-to-recovery.html
Beginning to question the trades i’ve made, but remain in love with first big loser SEO
“SEOs results were out on Friday - no positive movement on the share price though - it's gone down quite a bit. However, looking at the final years results and the interims from last year, their position has significantly changed for the better and it looks like a solid long term investment “
This is the classic beginner mistake, initially a short term trade, SEO is now part of my “long term strategy”. OMG I was bad.
“Excellent surges on Wednesday and Thursday (18%/22%). At it's peak it kissed .9 which represented a decent opportunity to get out for a loss of around £300 - half of what is was on Tuesday.”
This is about the SEO trade, gaining 50% on a position that is already a monster loss is an absolute god send. Why did I not take this!?
Chart evidence
RBS chart from March to now (£4 to £0.10)
There are too many lessons in this portion of text to digest in one paragraph. I don't even know where to start so I won't even bother. But anyone who has ever traded will know exactly what I mean!
Next week: L2 TA III era.
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