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.2016 02 27 shares 2

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).2016 02 27 shares 1

Property: This sector of my portfolio is currently in cash. (Graph below).2016 02 27 property

Gold: I am fully invested in gold (graph below):2016 02 27 gold

Commodities: The investment trust that I follow for commodities is still on a 'sell' signal(graph below):2016 02 27 commodities

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:

  1. 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,

  2. 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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