No open positions in LM portfolio
Yes, the portfolio is now 100% cash after I closed the last trade on Monday 5th October.
LM012 was quite an old position - I spent 504 days in the trade in total - and reasonably profitable. Excluding dividends it made 11.74%.
I have this niggling feeling in the back of my mind that I really should be invested in something, that time is slipping away and my money is sat doing nothing. In fact, I suppose I'm technically losing money due to inflation if it isn't growing in some way.
What I need is a plan to use going forward.
So here's the intial draft plan for the LISA Millionaire portfolio:
(1) Continue to monitor the two main UK indices - the FTSE 100 and FTSE 250 - as well as several commodity prices.
(2) Open ETC trades using the 40 day highest high rules
(3) Open an ETF trade on the FTSE 250 when it closes over the 200 day simple moving average (* it did this on 08/10/2020 so I will likely open this at some point in the next few days)
(4) Initial "unit" size will be £1,000.
(5) Need to establish a basis for pyramiding i.e. adding another unit to the trade. Perhaps initially it will be when the instrument's price rises 10% but something more technical may be a better idea i.e. using ATRs.
(6) Look to begin buying UK shares again when the FTSE 100 is above the 200 day SMA (which is currently around 6300).
(7) Limit UK share ownership to one per sector to attempt a reasonable amount of diversification.
(8) Strict 20% stop loss on all trades although closing earlier if/when the price of the share drops below 50/100/200 day SMAs.
None of this is proven and I am testing as I go along but my hope is that by being careful and not rushing in, I will protect my bank during these - and sorry for using this bloody phrase - "uncertain times".
There's some government press conference tonight where it's expected there'll be further restrictions brought in. I'll probably watch something more interesting and then check the BBC website later on to see what we have been ordered to do.
I think everyone has resigned themselves with the likelihood that pubs and restaurants will be closed but I'm more worried about gyms.
There are rumours that gyms will be closed again which is a real pain as I've just paid for a year's membership and, very surprising for me, I've become an enthusiastic regular at spin classes...