Fagin’s Report For The First Quarter 2018

 

Reflect upon your present blessings- of which every man has many- not on your past misfortunes, of which all men have some. Charles Dickens

Getting a high value financial independence is no easy trick. I’ve had a mixed opening quarter in the second year of the Great British Trade Off competition.

I resonate with Humbug, in that I too have experienced a lot of whipsaw.

In April I was able to make 5% gross in my account before going flat at the end of that month. May and June were trickier, but I did manage to eke out some gains by using good money management.

Currently I’m up 5.96% over last years finishing position which is not very good for three months work especially for a man who’s trying to double his account in a year.

I could and should have done a lot better. If I had held on to Games Workshop (GAW), Plus and Rolls Royce (RR.) as I should have done, I would be very happy right now.

As Humbug has rightly pointed out, I have my system and should exit……………….as it states. However in the above cases I snatched the profits, as I was with hindsight, still smarting from my previous quarters mistakes.

Seeking financial independence by rapidly creating wealth from trading the markets is a mind game pure and simple.

As I’ve discussed here before, my mistakes affect me and make me reticent to take the action that deep down inside I know I should.

My fiance deserves a medal for listening to my incessant whining about it.

In the case of Rolls Royce, the two green arrows mark my opening and closing positions. I made a gross profit of £667 on the trade.

But just look at what could have happened, had I not been in such a hurry.

As you see I was subject to Murphy’s law. No sooner had I taken my small profit and the share price shot off like a rocket.

Failing to pull the trigger and as a result undertrading, was my biggest obstacle in May and June. I missed out on four 5% day trades in Advanced Medical Solutions (AMS) and don’t even get me started on the 15% trade in Premier Oil (PMO) that I sat and watched and didn’t take.

Another expensive mistake was not shorting the FTSE 100 when my system told me to do so.

Rules is Rules and I need to heed the adage ‘trade what you see, not what you think’

So, I have taken on the idea that to the degree I think I know what will happen next is directly proportional to my failure! This is not the truth of course, but a maxim to remind me that I trade a system and that as Mark Douglas (I think) said in his excellent book Trading In The Zone.

‘I don’t know what will happen on a trade by trade basis, but over a block of 30 trades my edge will be enough’

In addition to psychology, my main trouble is that I’m trading part time, fitting it in around the day job and looking after Fagin’s Gang.

There is clearly money to be made from the markets as I demonstrated last year. A financial independence with noughts on (as Humbug would say) won’t be easy to achieve, but it can be done if I regularly produce¬† market beating returns and bang them in year after year.

The question I’m asking myself is, would I get consistently better results if I did this full time? My fiance is supportive……………………………watch this space.

In summary my longer term trades in Advanced Medical Solutions (AMS) and Halma (HLMA) have done very well and I’m pleased to say that July has started well for me.

My Great British Trade Off portfolio currently holds Kaz Minerals (KAZ), Legal and General (LGEN), Advanced Medical Solutions (AMS), Halma (HLMA), JD Sports Fashion (JD.), Cairn Energy (CNE), Evraz (EVR) and Highland Gold Mining (HGM).

The total account balance currently stands at £142,226.10. Up 42% since April 2017.

Yours Fagin

 

FINANCIAL INDEPENDENCE

HUMBUG’S GREAT BRITISH TRADE OFF FIRST QUARTER REPORT

THE INVESTOR’S DIARY

I’m plotting and planning to achieve a financial independence with plenty of noughts on the end of it. The Great British Trade Off competition is one part of that endeavour.

I must say I’m thoroughly enjoying the GBTO even though I’m being soundly beaten by Fagin. This first quarter of the second year has gone well for me, in spite of the sharp correction that happened at the end of June.

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