Sunday, 20 May 2018

No Emotional Attachment To Shares


Blasting out a quick but IMPORTANT stream of mind for you on Sunday...

You should have no emotional attachment to shares. If you own shares you are a shareholder, not an employee.

Even looking back on my life with Centrica shares... I was part of their share scheme but when I left I 'lost' my bonus shares. Centrica doesn't REALLY care about me although British Gas was a good company overall to work for...

For companies you have not even worked for there should be no emotional attachment. HSBC does not care about Mark Howitt. BP does not care about Mark Howitt. Sure I own part of the business and make money out of both shares but they don't care about me AS A PERSON.

So you should not hold onto a share just because you have for years or have any kind of feeling of 'loyalty' to them. They don't have loyalty to you. Chris Bailey is getting onto to make a spreadsheet of all my shares and see if I am making the most efficient use of my capital. I'm not literally going to do that but if I feel a share is overvalued I will sell it. I can always buy it back again if it drops down to a lower level.

With spreadbetting I can make a small financial allocation and get exposure to any share in the world.

So yeah... No Emotional Attachment To Shares. All that matters is how much money you make.

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Mark Howitt


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Done 2 walks today and will be doing one or more per day!

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23s24 seconds ago
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Shares and spreads going pretty well... BP, Shell, GNK and IAG all up nicely... always room for improvement though.

More Zen Wizard


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NEW ZEN WIZARD http://markhowitt.blogspot.co.uk/2018/05/zen-wizard.html …

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Or like a zen monk you could say... but a bit more ruthless than a 'monk'... same none care for consumerism though.

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You have to be calm and 'learned' yet use your wizard power (and money) to see the right opportunity then strike.

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Zen wizard.

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Zen wizard is best description I can think of a good share share investor/trader.

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Saturday, 19 May 2018

Zen Wizard




To be a good share investor/trader you should almost be like a zen wizard. You have to be calm and see the opportunities then pounce at the right time. In a way it’s good to be almost emotionless when trading. You should never panic when there are losses as long as the fundamentals of the share remains the same.

There always will be chances to go ‘long and short’ practically every day but you just have to remain calm and pounce at the right time. And there are more things to go ‘long and short’ on than at any point in human history right now. There will be more in the future. So you kind of just have to hone your ‘wizard skill’ as much as possible and do it as much as possible.

To save time and energy you can always just let a spread hit its limit rather than watch it too much... you should have a clear target in mind when placing a spread that you want to hit.

Wednesday, 16 May 2018

Downside Risk



Downside risk



When you’re thinking of selling a share you should be aware of the downside risk. Best example I can think of is BT. Bought it around 92p in 2009. Got to nearly 500p in late 2015. Now it’s about 208p.

Or think how much BP dropped after the spill. Much higher now though.

It's good to be positive and optimistic but you should try and consider the downside risk in anything. What's the risk of not meeting new quality people? What's the risk of not maintaining relationships with good people?

It's a bit similar to 'opportunity cost'. What are the costs of keeping doing what you're doing and what could you gain or lose by doing something else?

If you have clear goals you'll know what you want so you will often go for it hard... but be aware of the risks too.

You can use it to your advantage in shares by shorting shares where people have not evaluated the downside risks enough. I still believe both Tesco and Morrisons are overpriced because some people don't really see the threat of Aldi and Lidl. They're not as big in London as they are 'up north' for example and I'm sure a lot of rich people have never shopped in Aldi... the threat is there though.

The downside risk is much more pronounced with spreadbetting because potentially you can lose a lot. If you think something is going to be flat or close to flat you shouldn’t do it.



On the flip side the upside risk is much higher. In the 1 minute it takes to place a trade you could make more than your day’s wages with a relatively small amount of money.


Time risk and do not be needy.



It’s very important not be needy… especially when you’re spending time in front of a computer.



Ideally how I feel is that I should get my results from what I’m doing then move onto something else. Don’t waste time just aimlessly browsing.


However you have to sometimes just be PATIENT with spreadbetting. It’s quite hard to know how much time to allocate it but if you’re doing it you should probably allocate a bit each weekday- it doesn’t have to be LOTS though.

You can save time to an extent doing this if you want by just having limit orders and letting the spreads hit them.

You should look at what is the return you are getting on your time and your money. Again trust your instincts.

I’m getting to the stage where I believe I KNOW something is good value and then I should certainly instinctively do it. I’m right at least 85% of the time. However if I look too much I may just do it when it is a quite good opportunity.



Anyway pleased overall with share performance... other areas in life room for improvement though. So less time on money and more time on other things..

Tuesday, 15 May 2018

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Mark Howitt


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36s36 seconds ago
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I guess we're at over 90,000 views because people like a REAL TALK share writer who buys and shorts shares not 'fake' writers who just write for the money but don't own the shares they say they love...

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Maybe I should just charge £6 a month to visit http://www.markhowitt.blogspot.com I think my share tips are at LEAST as good as @ShareProphets :)

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Honestly the way I feel about shares now is very positive... just closed my Taylor Wimpey spreads for a nice profit, ITV has been soaring up, IAG rocketing up, GNK flying up, SSE recovering, BP and SHELL both soaring...

Saturday, 12 May 2018

Connect


Shares and spreads doing well... happy to connect with interesting people this weekend :)