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howdy partners, here’s a copy pasta from t’other place up to 20th January. A few things have happened since, more to follow.
Many years ago I was trading almost every day, sometimes making money, more usually losing. Frankly I was just gambling and although I never did a final tally I reckon I did no better than break even over about 8 years.
Then I quit.
A few years later in December 2014 I took an small pension pot (a SIPP in Uk terminology) and started using that for trading, but taking a much less frenetic approach, with just 7 trades since.
Recently I have just gone pretty much to cash (just one position open right now) and done a review of results.
Overall, I started with £4675 and value now stands at £8248, for a 76% return over 6 and a bit years.
Trades (in order of % return)
Trade 1: +151%
Trade 2: +71%
Trade 3: +48%
Trade 4: +6%
Trade 4: -27%
Trade 5: -30%
Trade 6: -57%
Three points reflecting on this.
1. Trades 4 and 6 were smaller in size than the others. Keeping losses small in absolute size is a good thing.
2. Trades 1, 2 and 3 were in the dullest companies of the ones traded. For instance, trade 1 was in a company formed over 200 years ago that sells wood to builders. Dull companies can be exciting.
3. If I had been more nimble with market timing then obviously I could have done better, but I spent very little time agonising on the fine detail of timing, and I think that is a good thing. Daily obsession over charts is unhelpful.
Thought the above while it might seem like a brag post might show that learning lessons from past failures and amending approach can yield positive benefits.
I’m working on some more defined rules for my trades for next 5 years and targeting annual return of higher of 15% or market +5%. I may also feed in some extra funds from other larger pension pots that are currently being dealt with by money managers, though on a cautious basis.
Many years ago I was trading almost every day, sometimes making money, more usually losing. Frankly I was just gambling and although I never did a final tally I reckon I did no better than break even over about 8 years.
Then I quit.
A few years later in December 2014 I took an small pension pot (a SIPP in Uk terminology) and started using that for trading, but taking a much less frenetic approach, with just 7 trades since.
Recently I have just gone pretty much to cash (just one position open right now) and done a review of results.
Overall, I started with £4675 and value now stands at £8248, for a 76% return over 6 and a bit years.
Trades (in order of % return)
Trade 1: +151%
Trade 2: +71%
Trade 3: +48%
Trade 4: +6%
Trade 4: -27%
Trade 5: -30%
Trade 6: -57%
Three points reflecting on this.
1. Trades 4 and 6 were smaller in size than the others. Keeping losses small in absolute size is a good thing.
2. Trades 1, 2 and 3 were in the dullest companies of the ones traded. For instance, trade 1 was in a company formed over 200 years ago that sells wood to builders. Dull companies can be exciting.
3. If I had been more nimble with market timing then obviously I could have done better, but I spent very little time agonising on the fine detail of timing, and I think that is a good thing. Daily obsession over charts is unhelpful.
Thought the above while it might seem like a brag post might show that learning lessons from past failures and amending approach can yield positive benefits.
I’m working on some more defined rules for my trades for next 5 years and targeting annual return of higher of 15% or market +5%. I may also feed in some extra funds from other larger pension pots that are currently being dealt with by money managers, though on a cautious basis.
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