Just realized that today is the first anniversary of my foray into trading specs in my SMSF. For anyone interested in my last post in December, click on this https://hotcopper.com.au/posts/29672390/single
Although that last post was less than 6 weeks ago, quite a bit has changed. Previously my completed trades totalled 10 trades in 6 stocks with an average profit of 46.18%. The updated total is now 16 trades in 8 stocks with an average profit of 94.35%. Quite a difference and a great example of how one huge winner can make you look very clever (and the reverse is true as well: one huge loser can make you look pretty stupid)
So, my big winner was SYA. Average price was 2.2 cents - got stopped out at 8.0 cents for a profit equal to 16 months' wages. My best result in terms of profit and % ever, by a mile. Bitter sweet really - was up to 12 cents at one stage and put in a very sloppy stop at 8.0 in case of a sell off. As we know, the recent Li news killed a number of lithium stocks and my stop was hit, just. But, I protected my profits and that is the name of the game for me.
I am very pleased with how I handled this: that I put in the stop in the first place; that I didn't delete it when the SP tanked; that I didn't try to convince myself that I should continue holding; and that I didn't start to think how clever I am with this one big win. This isn't boasting ... I'm too old and grumpy to be delusional (will leave that to you young bucks ). Interesting change in psychology now as well regarding SYA: since I am presently not a holder, I am now a stalker. I want the SP to fall and am happy to see it looking a bit weak on the charts (sorry about that holders, but it always works both ways). Looking for a good entry point and hoping for a nervous SP dump sometime in the next month. No stress at all. Would like to start accumulating somewhere in the 7 cents range with a view to holding when the DFS is released (in about 5 months) and news of possible discussions with a major Chinese battery manufacturer.
Quite a few pundits mentioning that we are now in the final stage of a bull market etc. We all know the story but what to do? I am not nearly clever enough, so I'll be dealing with this on a stock by stock basis. I won't be "getting out of the market" by selling everything in one go. I might be tightening stops on some runners I'm holding now. I will probably leave the remaining holdings alone since I have a long term timeframe and can't access my SMSF funds now anyway.
I'm currently holding AJC, GMV, MLS, MTH, NAE, NSL, PNN, SPQ, SSN and WCN. I'm being very strict with parcel sizing. I have maximum parcel size with NSL, the rest vary greatly. NSL is for me a similar stock to SYA: ticks a lot of boxes and yet the market isn't interested. A conviction holding. The rest are punts on them having a run at some stage. I have sold out too early on many occasions (AAJ, KRC and GTG) with the advantage of 20/20 hindsight. Difficult not to sell out on the first run when you have been holding for months with no interest at all. Might just have to live with that since I don't have the skills/time to watch them more closely.
This run in the specs end of the market over the past few months has been quite something. Probably important not to confuse a general market run with your own brilliance at stock selection and timing, but that's asking a lot. I do occasionally read some of the stock threads on HC, but almost always a mistake. I'll be back in a few months with another update on how I'm travelling in the trading area.
All the very best to you all. Would seem that some regulars might be missing in action. I hope that all are well
). Interesting change in psychology now as well regarding SYA: since I am presently not a holder, I am now a stalker. I want the SP to fall and am happy to see it looking a bit weak on the charts (sorry about that holders, but it always works both ways). Looking for a good entry point and hoping for a nervous SP dump sometime in the next month. No stress at all. Would like to start accumulating somewhere in the 7 cents range with a view to holding when the DFS is released (in about 5 months) and news of possible discussions with a major Chinese battery manufacturer.
