I have started reading Naked Trader again as I want to get back into investing. I don’t have a lot of money to invest but even with a little you can grow your money and reinvest what you gain.
I have small investments in two index funds — about £2k which I’m going to use to build a future fund. I also held about £200 each in WOSG and TUNE.
Yesterday I checked the shares and TUNE had started falling so I sold it. At one point, about a month ago, it had made me 50% returns, but when I checked it yesterday, that had gone down to just 11% hence selling it.
I realised that I need to keep a more active eye on my shares so that I can cash in when they do well. For me, if a share gives me 25% return I’m happy to sell, take profits and move on. I may hold if I think it can do 50% and set a stop loss so I don’t get less than 25% but generally if I make between 25% and 50% on a share, I’m happy to take profits and sell. If it goes south however, I will limit losses to 15% using a stop loss. This way I can make small gains and build a pot of money that I can reinvest whilst limiting potential of losing my capital.
At the moment I’ve got about 50% from WOSG. I’m still invested. I just need to set a stop loss now so that I don’t lose any of those gains. I think it’s a quality share and I’m tempted to hold, but right now that’s not the game plan. The game plan is to cash in, take small profits and rinse and repeat in order to build up a small pot of investable funds.
I came across a new share yesterday called Cake Box Holdings PLC (CBOX). It’s a company that makes cakes (go figure). I bought £200 worth and will see how that pans out.
At this point those are the only two shares I hold. I’ll be doing more research and tracking my shares more closely. Using the Naked Trader book, hopefully I can make a little change from these small positions.