LM portfolio as at 04/08/2023:
| Code | Sector | Date Bought | Cost | Value | Gain/Loss |
|---|---|---|---|---|---|
| LM055 LM055-2 |
General Financial | 11/01/2023 02/05/2023 |
£2560 | £3000 | 17.48% |
| LM056 | Media | 11/01/2023 | £1270 | £1460 | 14.77% |
| LM057 LM057-2 |
Gas, Water & Multiutilities | 12/01/2023 30/05/2023 |
£2540 | £3230 | 27.04% |
| LM058 LM058-2 |
Support Services | 17/01/2023 20/07/2023 |
£2540 | £2790 | 9.69% |
| LM061 | Aerospace & Defense | 20/02/2023 | £1270 | £1420 | 11.75% |
| LM062 | Food Producers | 06/03/2023 | £1290 | £1240 | (3.38%) |
| LM065 | Travel & Leisure | 24/04/2023 | £1280 | £1220 | (4.76%) |
| LM066 | Beverages | 24/04/2023 | £1280 | £1200 | (6.20%) |
| LM067 | Nonlife Insurance | 02/05/2023 | £1270 | £1160 | (8.75%) |
| LM068 | Industrial Engineering | 02/05/2023 | £1270 | £1260 | (1.43%) |
| LM069 | Food & Drug Retailers | 02/05/2023 | £1280 | £1110 | (12.76%) |
| LM070 | ETC | 26/06/2023 | £1260 | £1130 | (10.43%) |
| LM071 | Construction & Materials | 24/07/2023 | £1280 | £1240 | (3.34%) |
| LM072 | No Specific Industry | 24/07/2023 | £1270 | £1250 | (1.38%) |
| LM073 | General Retailers | 24/07/2023 | £1270 | £1140 | (10.78%) |
| LM074 | Industrial Transportation | 24/07/2023 | £1270 | £1330 | 4.59% |
Monday saw the sale of two of the positions in the above table.
The first came as the share (LM069, GRG) fell under its 200 day SMA and stayed there for more than 3 days. This is an instant signal to get rid. The share was Greggs, famous seller of sausage rolls. Who knows what is going on there... I don't care. I sold it and cemented a £171.67 loss.
Second was the ETC - (LM070, NGSP) - Natural Gas. I'd given this trade perhaps more leeway than was due, keeping it despite it hitting 20 day lowest lows a couple of times before bouncing a little. It outstayed its welcome and it is gone, along with £124.24 of the portolio's funds.
The FTSE 250 has bounced off 18,000 a couple of times but is currently just under the 200 day SMA. This means no new positions will be added but I am open to pyramiding trades in the right circumstances.
With a little bump, both LM056 and LM061 could qualify for a further purchase. It has worked well for LM057 which continues to rise. Maybe I should reconsider the rules and allow 3 pyramids per trade...
At present the rules I have limit the maximum units per purchase to 2. That means the initial purchase and one pyramid trade. This rule is in place to make sure I don't risk over 10% on any one share or ETF. The one time I did break this rule it worked really well - I made a large profit on Crude Oil.
It's something to consider in these quiet summer weeks. LM057 would certainly qualify for further investment if the rules were adjusted. And perhaps LM055 too.
Of course, it would have to come with a stricter stop-loss as the more pyramid trades you add, the more you amplify the loss if the price starts to fall.