Boring Investments: Week ending 4 May 2018

Friday, 4th May 2018 16:57 - by Moosh

There were no changes to my holdings in Asiamet Resources (LSE:ARS), Empyrean Energy (LSE:EME), and Horizonte Minerals (LSE:HZM).

Volume Analysis

All the above holdings this week had days when the daily volume exceeded their 20 day average volumes, suggesting investors are buying and holding before a positive news trigger.

Mystery Holdings (MH?)

This week I opened positions in 2 new mystery holdings which are short-medium term, both of which use the same buying method as stated below. I will reveal them once they have paid out!

MH1 – this has seen a few days when volume has exceeded average volume and the company issued news this week which the market didn’t notice so I will wait until it does.

MH2 – this saw a massive price rise a few weeks ago but has come to relax and I felt the time to be right given that the market is expecting news this quarter.

My Buying Method

I check out the daily volume - If the daily volume is below the 20 day average volume then it’s a potential buy and hold. The reasoning here, and if you go and have a look at historical rises, sustained rises tend to happen once daily volume exceeds 20 day average volume so it makes sense to settle in on the quiet when volume is below this average volume threshold. In fact I tend to split my capital up into two – one set of chunks I buy when the daily volume is below the 20 day average volume and another optional larger chunk which I can chuck at it once a trend kicks in with volume as it rises above the average volume. This way a volume driven trend is supported with volume both before and immediately at the start of it, with interest no doubt increasing as the price then starts to rise, especially with news flow.

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.