Lost in Coventry
Written on Sunday the 28th of February 2016
A couple of weeks ago, I had to go to a seminar in Coventry. I had been to the venue a few years previously and thought that I knew the way. When I got into Coventry, I took the dual carriageway in the direction that I remembered travelling along on the previous occasion. Fairly quickly, things became unfamiliar, and I didn't recognise my surroundings. I took a couple of turns in the direction that I thought I should be going in. Soon, however, I found myself going along the same road that I had been driving along 5 minutes earlier, and recognised the McDonald's on the corner. I then pulled over and switched on my sat nav. Later that day I was thinking about how I thought I knew the way yet still managed to get lost.
Something similar happened last week with my weekly trading system. One of the investment trusts that I follow, had generated a ‘buy’ signal at the end of the previous week. I thought that this signal would be a false signal, and that the price of the investment trust would fall. Therefore, I did not buy the investment trust shares at the beginning of the week, as I should have done, and I waited for the share price to drop. To my frustration, the share price continued to rise, and I made my share purchase towards the end of the week, at a higher price (green arrow) then I would have paid if I had followed my trading system properly.
Furthermore, by not following my system,I created significant stress for myself by monitoring the share price daily, and trying to decide whether or not to make the investment. What I have to learn to accept is that the type of system that I am trading will, inevitably, trigger false signals, both to buy, and to sell. In the long-term, however, it will be profitable, by keeping me out of the massive falls that occur in big bear markets.
Sometimes we think we know where we're going, but we are wrong!
Shares: I am now (eventually!) invested in one of the two investment trusts that I follow (see graph above). The other, international, investment trust has not yet generated a buy signal (graph below).
Property: This sector of my portfolio is currently in cash. (Graph below).
Gold: I am fully invested in gold (graph below):
Commodities: The investment trust that I follow for commodities is still on a 'sell' signal(graph below):
Forex: I have four forex trades open, all of them currently in profit.
My daily trading system has been doing well, and as of today is showing a profit of £1,422.98 since the beginning of this year.
Members of my site get the following:
You have probably realised that these, public, blog posts are published two weeks after I have written them. If you are interested in becoming a member, do contact me. As always, this blog and all information produced by me should not be taken by you, as financial advice. It is not. It is simply information about what I am doing. I am not a financial advisor. Do read my disclaimer.
A couple of weeks ago, I had to go to a seminar in Coventry. I had been to the venue a few years previously and thought that I knew the way. When I got into Coventry, I took the dual carriageway in the direction that I remembered travelling along on the previous occasion. Fairly quickly, things became unfamiliar, and I didn't recognise my surroundings. I took a couple of turns in the direction that I thought I should be going in. Soon, however, I found myself going along the same road that I had been driving along 5 minutes earlier, and recognised the McDonald's on the corner. I then pulled over and switched on my sat nav. Later that day I was thinking about how I thought I knew the way yet still managed to get lost.
Something similar happened last week with my weekly trading system. One of the investment trusts that I follow, had generated a ‘buy’ signal at the end of the previous week. I thought that this signal would be a false signal, and that the price of the investment trust would fall. Therefore, I did not buy the investment trust shares at the beginning of the week, as I should have done, and I waited for the share price to drop. To my frustration, the share price continued to rise, and I made my share purchase towards the end of the week, at a higher price (green arrow) then I would have paid if I had followed my trading system properly.
Furthermore, by not following my system,I created significant stress for myself by monitoring the share price daily, and trying to decide whether or not to make the investment. What I have to learn to accept is that the type of system that I am trading will, inevitably, trigger false signals, both to buy, and to sell. In the long-term, however, it will be profitable, by keeping me out of the massive falls that occur in big bear markets.
Sometimes we think we know where we're going, but we are wrong!
Shares: I am now (eventually!) invested in one of the two investment trusts that I follow (see graph above). The other, international, investment trust has not yet generated a buy signal (graph below).
Property: This sector of my portfolio is currently in cash. (Graph below).
Gold: I am fully invested in gold (graph below):
Commodities: The investment trust that I follow for commodities is still on a 'sell' signal(graph below):
Forex: I have four forex trades open, all of them currently in profit.
My daily trading system has been doing well, and as of today is showing a profit of £1,422.98 since the beginning of this year.
Members of my site get the following:
- Notification of exactly what I am trading and when I am trading it via the private members Facebook page. I often do this with a brief video on the Facebook page that talks through my thoughts and plans,
- The 'manuals' of my daily, my weekly, six-monthly and my annual trading systems (four systems)!
You have probably realised that these, public, blog posts are published two weeks after I have written them. If you are interested in becoming a member, do contact me. As always, this blog and all information produced by me should not be taken by you, as financial advice. It is not. It is simply information about what I am doing. I am not a financial advisor. Do read my disclaimer.
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