LM portfolio as at 14/01/2022:
| Code | Sector | Date Bought | Cost | Value | Gain/Loss |
|---|---|---|---|---|---|
| LM028 LM028-2 |
'No specific industry' | 16/11/2020 10/08/2021 |
£2280 | £2830 | 24.25% |
| LM037 LM037-2 |
Life Insurance | 03/03/2021 05/07/2021 |
£2290 | £2660 | 16.33% |
| LM038 LM038-2 |
Banks | 10/03/2021 04/01/2022 |
£2290 | £2650 | 15.71% |
| LM039 | Pharmaceuticals & Biotechnology | 30/03/2021 | £1030 | £1110 | 7.98% |
| LM040 LM040-2 |
General Financial | 27/04/2021 22/11/2021 |
£2290 | £3030 | 31.93% |
| LM041 | Real Estate Investment Trusts | 27/07/2021 | £1270 | £1350 | 6.36% |
| LM042 | Construction & Materials | 27/07/2021 | £1270 | £1320 | 4.26% |
| LM045 | Gas, Water & Multiutilities | 06/12/2021 | £1280 | £1230 | (3.38%) |
LM046 was closed off on Monday and proved, as I suspected when I opened the trade, to be a complete and utter waste of time and money.
The share purchased was THG or "The Hut Group" and I had jumped in when it looked to be moving up from its recent lows. I was too quick with the buy button - this is easy to see in hindsight - but at the time I was too worried about missing the boat on the huge rise that was bound to happen with this share.
In the end I didn't allow the price to fall to the stop-loss value but closed it off manually a little before that. It means I lost a little more that the 20% that I usually limit losses to but less than I would've if it had hit the stop-loss.
I get the impression that there is something very wrong with THG, it has fallen over 70% since last year and the market does not seem to like it at all. It would not surprise me to see it fall even further but I'll stop short of making any predictions.
Now the position is gone I must admit to feeling better when I view the portfolio. This new strategy didn't work this time, but I will retry it in the future. And perhaps it may even work for THG at some point. I'd never rule out buying THG again as I hold no grudges when it comes to shares!
As I write this, the THG share price hasn't yet hit the level where I had my stop-loss so had I not sold, I would still be in the trade.
There is a trading update for THG on Tuesday 18th January 2022 and I do fear that unless the news is absolutely brilliant, this share will fall further. And because of that, I am definitely happier not being a holder of THG with that update looming.
The FTSE 250 is showing some weakness again, jumping up and down around the 200 day SMA. This makes me a little nervous and so I will hold off from making any new share purchases for the moment. I have noticed that some of my shares have dropped below their 50 day SMAs over the last couple of weeks. None of them are precious or so important that I wouldn't drop them in a heartbeat.
That Covid-related drop in March 2020 showed me that if you no longer want a share in your portfolio, it's best to get rid of it ASAP. When they drop, they can drop hard.