Regular readers of my blog will know that I am a supporter of medium/long term investing, building a diversified portfolio, and not being influenced by today’s events.
You may, therefore, be surprised to learn that over the past few months I have enjoyed seeing if I can make some money from the extreme stock-market volatility. This is with relatively modest amounts of money which I could afford to lose.
It is early days but if you would like to know what I have been doing read on. Firstly I chose two shares for no reason other than the fact that they were well traded, were experiencing considerable price volatility and I didn’t expect them to go bust.
So let’s look at Easyjet. I bought 700 shares at 474.312 on 14th May and immediately placed an automatic sell order if they reached 605.00. I also placed a sell order at 450.00 – a loss of 5% if I had got it wrong! Then I didn’t look at them again, so imagine my surprise when I received an email from Hargreaves Lansdown telling me they had executed my sell order on 26th May (twelve days later) at 607.292 a profit of 28%. Since then they have gone even higher. Don’t be greedy- be satisfied with whatever profit level you set at the outset.
What next? I have set a buy order at 485.00(20% below my sell price) and if it goes that low I will start all over again. If not I will still enjoy spending my profit once the restaurants are open again!!
The other purchase is looking ok but has not yet reached its sell level. Lloyds Bank shares were purchased at 28p on 14th May with a sell order at 34.p, Today they are around 31.p – on the right track but not yet enough.
The Lloyds twelve month high is 69.9p and I plan to trade the price fluctuations until they get back to near to that level.
Easyjet is more of a short- term project until the prospects for the travel industry becomes clearer.
Please don’t treat this as personal advice but if you would like to have a go with a modest amount of money let me know by texting me, Richard, on 0770575122 with” Short Term Trading” in the message. If there is enough interest I will see if I can put together an educational webinar and perhaps set up a user group.
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