DIY Investor Magazine
/
2015 Issue
32
December proved a decent month with
crystalised net losses of £239 set against
un-banked profits of £1840. But overall, the
situation remained dire at the turn of the year
with a net loss (taking those running profits into
account) of almost exactly £3000. That is down
6%. Early January brought little cheer causing
Humbug to revisit his trading philosophy and
strategy.
However, Humbug believes that over time his
determination to take losses quickly will serve
him well stoically stating that ‘a loss of 6% can
easily be made up; a loss of 60% would be
another matter’. His frequent trading may not
appeal to those looking to build a long-term
diversified investment portfolio but Humbug’s
diary is real, rarely dull and frequently brutally
honest.
MONDAY 1ST DECEMBER
A doctor friend of mine always says the first you
know about a stroke is when you’ve had one.
I’ve found the same to be true about shares that
suddenly tank – you first you know that your
money’s gone when it’s gone. I started to worry
about Northbridge Industrial Services (NBI) after
it rose after I bought it but is now suddenly on
the way back down for no reason I can identify.
I sold out just above break even for a profit of
£16.70. Motive: capital preservation.
WEDNESDAY 3RD DECEMBER
Staying with my daughter and little
granddaughter and as a result watching a lot
of CBeebies TV. Notice that Entertainment
One (ETO) (the people behind the world wide
hit Peppa Pig) are moving up nicely. Buy a
thousand pounds worth at 305.5p and a little
later another thousand at 308.2p. Stop 284p
targets 340p and then 360p.
THURSDAY 4TH DECEMBER
ETO continues upward; bought two thousand
pounds worth at 311.61p to complete my line.
TUESDAY 9TH DECEMBER
ETO had risen to 329p but fell very sharply with
the general market; my rules dictate that I sell as
well. All gone at 303.43p for a loss of £110, but if it
look like turning round I’ll buy in again.
WEDNESDAY 10TH DECEMBER
Oh for crying out loud! ETO has turned upward
again. Purchased one thousand pounds worth at
305.3p.
THURSDAY 11TH DECEMBER
Back into another old friend Tristel (TSTL),
manufacturer of specialist wound control stuff.
One thousand pounds worth at 81.99p with a Stop
further away than I really like at 68p - the nearest
sensible support point - Target 110p.
MONDAY 15TH DECEMBER
Scapa Group (SCPA) rose after I bought in
November, but hit a brick wall at around 135p.
Today my stop loss kicked in, selling at 126.05p
for a loss of £122.
TUESDAY 16TH DECEMBER
Cello Group (CLL) looks set to rise nicely; bought
one thousand pounds worth to test the market at
88p. Stop nice and tight at 83p, targets 98p and
110p.
THURSDAY 18TH DECEMBER
Most of the time I suppress the ‘gambler’ in me,
but hey it’s Christmas! Going for a quick in and
out on Game Digital (GAME) - got to be out before
they report Christmas trading in January (just in
case). One thousand pounds down on the table at
347.75p, looking for a quick run up to 380p, stop
338p. I’ll watch this one like a hawk.
DIARY OF A
DIY INVESTOR
In April 2014 Humbug set out with £50,000 to invest in predominantly small
cap stocks and the target to make a 20% return without taking undue risk.
