Author Topic: Double Your Money?  (Read 203 times)

BWS

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Double Your Money?
« on: February 09, 2021, 10:16:17 AM »
Hello.

I have traded shares for years and use a long term approach with low risk trades. So far it has done me proud.
However, theres not much to talk about when you buy a stock and let it sit for 3,5, or 10 years. So, I've decided to open a separate small account with a different broker and with a different strategy.
The broker Im using charges 5 each way per trade (my usual broker charges between 11.95 and 5.95 depending how many trades you do a month, and Ive tended to do few, so pay 11.95)
Then theres 0.5% stamp duty charged.
So, if you are only placing 1000 per trade, your total trading costs with the new broker from buying to selling are 15 ( 5 to buy, 5 stamp duty, 5 to sell) versus 28.90 with my old broker)
Therefore you need price to rise 1.5% to cover your 15 trading costs (plus a few pence for the brokers spread).

What I decided to do was to open this account with 5k and try to trade it as close to 10k as I could, without being silly, in 12 months. This means I need to average 6% per month, compounded.

Lets see how this goes
« Last Edit: February 09, 2021, 04:42:30 PM by BWS »
"I wouldn't say I'm the best manager in the business, but I'm probably in the top 1" - Brian Clough

BWS

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Re: Double Your Money?
« Reply #1 on: February 09, 2021, 10:44:30 AM »
I started this account on 4th January. Here's what I did in January. (In future I'll try to post 'as it happens', I'll also explain why)

JANUARY 2021

Open Account 5000

5th Jan  Bought 3025 IAG @ 150p  total cost 4537.50   Sold 21st Jan@ 158p total sell 4779.50  Costs 2 x 5 + 22.69 Stamp Duty (SD)    P/L after costs +209.31  Account value 5209.31

15th Jan Bought 80 WH Smith @1590.39p total 1275.12  Sold 20th Jan @1692.80p total 1354.24 costs 2 x 5 +6.38 SD                         P/L after costs + 62.74   Account value 5272.05

20th Jan Bought 756 Dot Digital @ 168.5p total 1273.86 Still holding this share but todays price is 181p so looking good




"I wouldn't say I'm the best manager in the business, but I'm probably in the top 1" - Brian Clough

BWS

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Re: Double Your Money?
« Reply #2 on: February 09, 2021, 10:50:04 AM »
FEBRUARY 2021

20th Jan Bought 756 Dot Digital @ 168.5p total 1273.86 Still Holding - Dot Digital provide a marketing automation platform for over 700,000 marketeers internationally, and this is a growing market. Working on a subscription-based model for 91% of their income, this achieves high gross margins of around 90%. Their ROC runs at 22%. International revenue is growing and should grow more as they focus on this area. One of a small number of UK based tech companies, I believe they are a sound investment for this portfolio - being AIM listed rather than the main market makes their share price more volatile. I would hope this could reach 200p within a month or two.

8th Feb Bought 10 Games Workshop @ 10,010p total cost 1001  Still Holding - Profits for the half year to November showed more than 50% growth to 92m, not bad for a company that makes wargame figures for followers to assemble, paint, and play with. They have a very loyal user base and have recently launched Warhammer 40000, which broke all records for factory production volumes. Another recent move into online gaming resulted in 87% revenue growth. 75% gross margins and increased manufacturing capacity bode well for the future. I am looking for a sell price of around 11,500p per share

8th Feb  Bought 31 Avon Rubber @ 3174.88p  total cost 984.21  Still Holding - Manufacturer of protective helmets for military and fire fighters. Shares fell late 2020 after a hold up in supply for the US army which meant some sales that would have gone into 2020 figures may now not come until 2021. However, still a good company and management adamant that they will still hit budget.  Again, an AIM share so I wouldnt normally buy this, but as a short term bet I feel it is well worth a punt. I'm looking to sell at around 3250-3300 within a month

9th Feb  Bought 151 Cohort @650p total cost 981.50. A digital specialist for defence industries. The UKs defence budget plans should benefit Cohort with their expertise in cyber warfare, AI, and a focus on naval capability. I am looking for a quick turnaround on this share, will sell if it hits 685p



Account at 16:40 today 5,435.44
« Last Edit: February 09, 2021, 04:39:21 PM by BWS »
"I wouldn't say I'm the best manager in the business, but I'm probably in the top 1" - Brian Clough

eddieb

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Re: Double Your Money?
« Reply #3 on: February 09, 2021, 02:41:32 PM »
Hi Ben, liking the new thread as I have been a stock trader much longer than a forex trader.
Particularly like the explanations for taking a stock, clear that you are going relatively short-term on this account so your cliteria for buying in will be different to how you normally trade, so theres a bit of a sea change there for you to adapt to.
You seem to have made a good start, may it long continue.

Namaste
Disclaimer. Posts are just my thoughts,  not recommendations.  Do your own due diligence before trading

BWS

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Re: Double Your Money?
« Reply #4 on: February 09, 2021, 04:37:53 PM »
Thanks Eddie

Ben
"I wouldn't say I'm the best manager in the business, but I'm probably in the top 1" - Brian Clough

BWS

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Re: Double Your Money?
« Reply #5 on: February 10, 2021, 04:39:25 PM »
Not a lot of movement across the UK stockmarkets today.

DotDigital has been my star performer today, up 3%. Games Workshop down 1.5%, and the others flat, although Cohort must have fallen after I typed here yesterday.

Account value today 5419.68



"I wouldn't say I'm the best manager in the business, but I'm probably in the top 1" - Brian Clough

BWS

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Re: Double Your Money?
« Reply #6 on: February 12, 2021, 10:17:36 AM »
Bought another share this morning.
605 shares in Morrison Supermarkets @ 170.82p, total cost 1033.46 plus trading costs. - Whilst still a lot smaller than Tesco, Sainsbury, and Asda, Morrisons did manage the biggest growth in market share of the big 7 supermarkets last year. Add in their partnership with Amazon whereby there are designated Amazon lockers in Morrison stores for Amazon customers living in flats/shared housing can have deliveries sent to, and you potentially have a lot of people making extra trips to their local Morrisons than before. Possible, but less likely, is Amazons growing interest in bricks and mortar grocery stores - could this eventually lead to a bid? Its possible, but probably too long term for this account. Another unlikely possibility is that retail shareholders do a GameStop with Morrisons, since this share has long been a victim of short sellers. Even if that doesn't materialise, at least the possibility may discourage further short-selling.
"I wouldn't say I'm the best manager in the business, but I'm probably in the top 1" - Brian Clough

BWS

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Re: Double Your Money?
« Reply #7 on: February 22, 2021, 02:51:32 PM »
A disappointing last week or so on the trading front. Today being typical, with most shares in the UK trading down as we all wait for Boris to confirm tonight that he is going to stick to his guns and keep the lockdown running until the data says otherwise.
On a personal front, I totally agree, but its hurting business.
The shares in this portfolio have slipped down along with everything else, although Morrisons shows promise and DotDigital is still in profit.
Games Workshop is down, but as this share has grown 20-fold in 6 years I think they are entitled to take a breather. I found this very interesting article about Games Workshop that I would recommend to anyone considering investing it them.
https://www.thetwentiestrader.com/post/games-workshop-a-peek-behind-the-fortress-wall
"I wouldn't say I'm the best manager in the business, but I'm probably in the top 1" - Brian Clough

BWS

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Re: Double Your Money?
« Reply #8 on: Today at 10:07:32 AM »
My bad week or so continues!
Despite promising analysts reviews and updates my overall Double Your Money (DYM) portfolio continues to slide. I am contemplating cutting my losses on one of them, Cohort, which is now about 10% down on my purchase price.
The strengthening of sterling versus the dollar is causing the damage. 3 of my 5 shares earn a lot of their income in dollars and a weak dollar undermines their profit when it is converted back into sterling. Do I wait for currencies to stabilise or change for a stock that is more UK-based?
"I wouldn't say I'm the best manager in the business, but I'm probably in the top 1" - Brian Clough