As seen in the lastest issue of Master Investor Magazine “Sell in May and go away, do not return until St. Leger’s Day.” There’s generally a perception that there was lots of wisdom in times gone by, but the reality is there wasn’t. Mostly it was statistically unsound superstition with the very occasional gem thrown…
For the last several posts I’ve been talking about entering and managing trades. I looked back at what we could have traded on a fairly random stock from the LSE, Daejan Holdings plc (DJAN). I looked at how we could have traded it aggressively but with a tight control on risk over the last few…
Over the last few posts I’ve talked about entering and exiting trades and started on a worked example in the last post. It’s an aggressive trading stance but with tight risk management, which may sound a contradiction in terms, but it’s not. So continuing directly from there… Assuming we closed the position, and I’ve marked…
Over the last two posts I’ve focussed on how entering and exiting/managing trades is the part of the trade that’s most fraught with danger. I compared it to take-off and landing in an aeroplane, which is when most aircraft accidents happen. In the first part I looked at entering trades and in the second about…
In the last blog post, I wrote about how the most precarious part of trading is similar to flying: take-off and landing. In that post I looked at entering a trade; in this post I shall examine exiting, or managing a trade. First off, quite obviously if your trade is losing money and has hit…
Trade management is a bit like flying. Things mostly go wrong on take-off or landing. To some extent opening a trade is less problematic. After all, you don’t actually have to make a decision at all. If you don’t then nothing happens: you simply miss the trade. Exiting a trade is the more critical because…
You know when something happens and then later you think of something you wish you’d said at the time? Well, sometimes it happens that you do think of the right thing at the right moment. I was talking with some friends and one of them had seen an article about some contraption that men can…
Given markets spend more time going up than down, once a bull market is established nay-sayers start to creep out of the woodwork and there’s continually more and more talk of market failure, and statistically, sooner or later, it’ll be right. Of course, if that’s simply based on the same sort of ‘finger in the…
In the wake of the BHS and Austin Reed collapse, who else could be in line for failure? BHS should probably have gone bust in 2008/9, but low interest rates have allowed zombie companies to thrive, or at least give the impression of thriving, and this in turn has cost us a lot of start-ups…
I went past a florist yesterday. They had some sort of qualification in floristry which was bragged about in the window. It didn’t seem to include how to tidy up a florist shop. Being a florist though, it’s just flowers unplugged isn’t it? I was never a big fan of unplugged music. It seemed to…
