RE: Red Braces Brigade9 Mar 2021 16:25
C... you have almost all hands on the "problem". i,e. how to continually make profits. As an example consider my PFC trading since 16 Feb, in 6 sells, I have made 20.7% profit on PFC, the prices I bought and sold at ranged between 126 and 137.5p. Note several things...
1. I hardly ever got the highest sell price or the lowest possible buy price so my return could have been better.
2. I don't compound, my tranches tend to be the same "round" number each time, so my return could have been better.
3. The % gain from 126 to 137.5 is about 10%, I made 20.7%. How? By taking regular smaller profits. Playing the smaller waves that most people don't even see.
4. PFC is non stampy, VERY important point but doesn't prevent making reasonably good profits on volatile stampy shares.
5. My buy and sell costs are £3/trade but this is'nt a deal breaker.
6. One needs to be monitoring the price often, not all the time and can be ameliorated by using limit buys and sells but not quite as profitable.
7. I am not just doing this with PFC but with several shares including PLUS. This is to spead the risk of complete wipeout if a share went bankrupt (has happened to me 3 times ALB, CLLN and NMC) also it gives me options to trade elsewhere in case I am spiked (happerned to me masny times).
8. PLUS is a case in point, like a few of us that have been spiked (having a tranche quite a bit higher than current prices), I have money there doing nothing. Now T has his solution, i.e.sell the bl++dy things and get using the funds elsewhere (or in the same share at a lower point). T has a method, an admirable method, spikes and shakes which has two glorious advantages. Firstly compounding is built in, i.e.whatever funds one raises by selling is used to buy back more (or fewer) shares. Secondly, it concentrates on shareholding size, the number of shares in a company and not the price. This liberates the mind when one baulks at the idea of selling for less than you paid for something.
I still find this a difficult concept, i understand it but find it hard to action. This year I have only twice sold something for less than I paid, and one of them was a miscalculation! Perhaps there is a middle path and I am continually learning.
Hope this is of some help. I am sure T will comment if I have misrepresented him. He would say you have to trade in a method that you are happy with. Everyone seems to have their own method due to familiarity, attitude to risk, etc
Finally, no, he didn't mean 5% a year, he meant 5% per week and it is possible.
Hope
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