After listening to the super podcasts by Andy, BigGib and The Mad Stork with Justin at Sharepickers and looking at my trading history, its clear ive been making lots of mistakes. Now im a pretty bright guy, i dont make lots of mistakes in my dayjob so there is no reason i should be doing that trading.
Ive been invested in many resource and oil stocks on AIM, some at the bottom, some in the middle and some at the top. My main mistake is paying more than i should and my main annoyance is delays on the news i have waited/bought in for.
Soooo, the new strategy for the main part of my trading is...
1) Buy at the bottom to minimise downside risk and maximise profits
2) Buy with the catalyst a set date that isnt going to be delayed. This for the main will likely be around financial results, half or full year or a regular trading update
3) Research both public information and speak to the BoD, CEO or chairman
4) Look for a company i feel is undervalued either on what is currently known or what i think the next financial results will show
5) Buy companies that are profitable
6) For the main, set clear of explorers and jam tomorrow companies
7) Await value to be realised
8) If fundamentals change, re assess
9) BUY LOW SELL HIGH!
Ive decided to do a bit of a blog, to share a bit of research, and detail my "journey". Hopefully if ive to write about my trades then i'll analyse them more not make the stupid/impulsive mistake for before.