DIY Investor Magazine
/
March 2014
24
DIARY OF A DIY INVESTOR
When I first started in radio a huge man with an ugly
face and the unlikely surname of Belcher taught me
how to kiss. His advice was ‘Keep It Simple Son’ or KISS
for short. After all why make something complicated
unless you have to.
KISS also works a treat in trading and investing – a
favourable report or positive trading update usually
does wonders for the share price and is one of the
things I look for each morning on the news feed.
May 1st 2014
Avon (AVON), a share I’ve previously done well
with reported yesterday. When I read that debt was
down and profit before tax was up 45% I thought it
would be rude not to buy in again wouldn’t it. So I
did, I always take a small opening position and add
to it later if the trade is working out. 314 shares at
629.4p with a stop of 598p and a target of 720p. I also
bought some for my granddaughter’s junior ISA at the
same price.
May 2nd 2014
Avon up nicely, in fact rather too nicely, finishing
the day at 659p. So how can a profit not be anything
but good? Well, when a trade starts to move in my
direction as I’ve said, I like to add to it. I’d set in my
mind that I’d take out a spread bet at 650p to double
my position but the share just raced past that I missed
my chance.
Chasing after just about anything in life usually ends
in tears, so best not to do it. One of the really great
things about the stock market is that there is always
another share and another day.
May 7th 2014
Avon marking time after its initial spurt. That’s fine
I’m £72 up after costs and making money slowly
which is better than losing money quickly.
May 9th 2014
Winston Churchill described doing nothing while waiting
for the right moment to strike as ‘Masterly Inactivity’.
I’ve spent the last week engaged in masterly inactivity.
Thought about buying Cohort at 174p on Tuesday the
6th but the spread at 4.6% was too wide for my taste,
shame, the timing was good as the price is up to 199.5p
today.
I’ve also spent the week doing a bit of stalking. I’ve
watched as Pace has come down from a high of
483p in mid March to a low of 337p at the beginning
of this month. It seems to have bottomed out and
started going back up this past week, I’m getting very
interested.
May 12th 2014
Liked the way they started the day so I bought 532
shares in Pace (PIC) at 372.04p, with a stop at 334p
(just below where they recently bottomed out) and a
target of 480p.
Time will tell. Also was doing some research last night
and am interested in buying Communisis (CMS) but not
happy about the way the price looks so far today, so
I’m acting like a cat sitting outside a mouse hole and
waiting and watching patiently.
May 13th 2014
Just back from the dentist...................yuk. I was once
told always go to a lady dentist, I said why, they said
because they have smaller hands - its logic I suppose.
Decided to have another affair with an old flame,
Consort Medical (CSRT). They have been in a down
trend of late that seems to have turned. The MACD
indicator has turned positive so I bought 218 shares at
906.3p, stop 875p, target 1050p.
IN THE FIRST OF A SERIES OF BLOGS HUMBUG DESCRIBES
THE HIGHS AND THE LOWS OF DIY INVESTING AND
EXTOLS THE VIRTUES OF NAKED TRADING
