Archive for the ‘Beazley’ Category

After having started the year with the intention of adding to the portfolio rapidly, specifically to broaden my risk I added Beazley (BEZ:LN) Lloyds (LLOY:LN) and Monitise (MON:LN). Have been happy with at least two of these purchases, and this years’ experience (so far) has only been soured by a stalled price for Lloyds (LLOY:LN) meaning I am carrying a small loss.

However since then I have almost had to have a Fire Sale type situation and have had to sell a percentage of the portfolio for home improvements. So out have gone my holdings in Legal & General (LGEN:LN) Barclay’s (BARC:LN) and Tesco(TSCO:LN) had to go as it crossed the Stop-Loss threshold. Fortunately on this occasion it was a smart move, as Tesco is languishing at just below 300 at time of writing. Longer term I may yet buy back-in but with the falling profits I can’t see how the generous dividends can continue much longer.

Looking at the year ahead for my personal investing journey I have the prospect of having to purchase a new car this year, and funding two overseas holidays, so my stock market ambitions are likely to be limited to one or two further additions this year. Sometimes life just gets in the way.

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Beazley Portfolio recovery…

Posted: November 29, 2013 in Beazley, Portfolio

While I undoubtedly made a large error in not using my stop-loss on this share. I am mightily relieved to see that my judgement (luck) paid off on this occasion and Beazley (BEZ:LN) is now showing in my portfolio as a net gain of 2-3% now, from a previous loss of around 15% at  maximum.

Given that the business seems to be largely following expectations and the outlook hasn’t changed significantly my confidence continues. And while I will reset my stop-loss (and stick to it this time) I will happily continue to hold.

My lessons learned on this share, is that I should have sold-out as it fell (used my stop-loss). And brought myself back in when the share had stabilised and started to gain.  The net gain may be the same, but the exposure to risk I gave my portfolio during the journey would have been considerably less.

And I think it is fair to say that anything that can be done to minimise risks can only be considered a wise practice to follow.

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Candlestick Charting Beazley…

Posted: September 9, 2013 in Beazley

After mentioning my portfolio errors with Beazley (BEZ:LN) after my abandoning all sense and logic and cancelling the stop-loss, I have decided to stick to it out rather than crystallizing a loss now.

Making sense of this madness and trying to rationalise a crazy decision is I know an investing error, however it is true that this “sticking-it-out” on Beazley is going to present me with a real opportunity to first-hand experience, and trial some candlestick charting techniques.  As I posted on an earlier blogpost I am using technical analysis to assist me in my investing, but I am only going so far as the basics, i.e. sticking mostly to breakouts, moving averages, and resistance levels etc.

Candlestick charting isn’t something I am going to put too much faith in, (although I have spent quite a while researching and reading about) but nonetheless when I am watching and directly involved in a sliding share, which has now no more planned key announcements to make until November, it gives me a nice window to observe how investor psychology and habits, might be translating into candlestick patterns that might be of use to me in the future (applied elsewhere).

True I could do this by picking on practically any other share, I feel however that since BEZ:LN is a share I own, and one that I am already holding as a loss making position. It will sharpen how I behave, and analyses the data.

Basically what I am trying to do, is observe a reversal of the bearish pattern which has set-in.  So far a resistance around the 200 mark appears to be the limit where the bears have no further appetite.

Barring further negative news, I imagine this will continue its longer term climb in line with the growth of the business, and I can see no reason why this wouldn’t continue.

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