Trading the stock market (2)

TRADING FOR FINANCIAL FREEDOM

FAGIN’S TRADING DIARY AUGUST 6th 2018

FEATURE POINTS

Trade in Highland Gold Mining (HGM) has gone badly wrong.

Looking for an exit point to minimize the loss. Believe I’ve spotted it.

Realize I’ve been what our US friends call ‘A DICK FOR A TICK’.

Need to do my homework not just tonight, but every night.

My GBTO portfolio is down £2602 on the week.

Portfolio up 6.5% since the start of the 2nd year of the GBTO

Dignity, and even holiness too, sometimes, are more questions of coat and waistcoat than some people imagine. CHARLES DICKENS

It’s going to take more than a coat or a waistcoat to spare my dignity in the way I’ve handled the saga of this botched trade in Highland Gold Mining (HGM).

If you’ve been following this trade in Humbug and Fagin’s Great British Trade Off, you’ll know that while Humbug has looked on with morbid curiosity I’ve simply not followed my system.

I publicly committed a week ago to exit the gold miner having, held far too long after my stop was broken……………………………………..and then failed to do so.

At one point I’d been a couple of grand down, held on as it pulled back  and could have got out for a loss of just -£372, but didn’t.

In the US trading community this kind of stupidity is called being ‘A DICK FOR A TICK’ In other words missing a good opportunity by being too greedy.

The price has fallen back once again and as I write I’m running a loss of -£2439, or minus two times the maximum loss I intended to risk. DUH.

It’s a strange thing, but the only large loss’s I’ve so far suffered in the Great British Trade Off have come when I break my own rules.

WHY DO I DO THIS? THE RULES ARE THERE FOR A GOOD REASON.

Obviously not all my trades are profitable and small controlled loss’s of say £300/400/500/600 are costed in as a business expense. It’s these self inflicted larger loss’s I must avoid going forward.

THEY REALLY ARE AN OWN GOAL AND YOU DON’T WIN THE MATCH BY KICKING THE BALL INTO YOUR OWN NET.

Moving along, there was a small trigger in HGM on Friday, I’ve now set in stone my exit target of 134.

Other than this shambles I’ve been quite lucky this last week.despite the dangerous volatility.

My trades in CNE and EVR  pretty much held their ground through Thursday’s pullback. Also I’ve opened two new trades in IQE and GAW.

In addition to HGM, I also lost a third of my tiny position in KAZ., thus making my net position down -£2601.98 including costs for the week.

I need to really get a grip and focus on exactly what I’m doing. Every night from now on I intend to work through my checklist to avoid stupid mistakes.

DAILY CHECKLIST

Review all my existing positions and determine my plan of action.

Determine my Trading Mode (physically/mentally)

Establish primary trends to make as sure as possible that I’m trading in the direction of the overall market.

Look in detail at the portfolio of stocks I’m holding.

Look at strategy scans.

Determine trade plans.

Setup conditional orders or alerts.

Double check for input, earning reports etc etc.

What I’m seeking to do is light years removed from punting my money around. This is a serious business for me and as the sums of money involved become larger it will become ever more so.

Question, are you trying to do the same as Humbug and I? Namely use the power of the stock market to create financial freedom for yourself?

If you’re new to it you’ll find there are 101 different ways to generate wealth from the markets. Some people build income portfolio’s, some focus solely on capital gains, some a combination of both. Some invest, some trade and a few do both.

Many shrewd investors now have millions of pounds in their ISA’s, it really can be done.

The question Humbug and I are trying to answer, is which way is more likely to make us wealthier. Will trading like George Soros make more money or will it be investing like Warren Buffett ?

Under the wing of diyInvestor.net the Great British Trade Off competition was started in April 2017. to find the answer in a controlled pubic way. Humbug and I are employing our own capital to see which discipline, investing or trading, will win over a five year time frame and deliver the most wealth and financial freedom.

Yours Fagin

TO READ ALL OUR OTHER BLOGS, PLEASE GO BACK TO THE HOME PAGE. TO DO SO……..CLICK HERE