financial ups and downs

Time to kick this blog back into life, so let’s try by occasionally talking about some financial ups and downs type stuff.

As part of my Master Plan to become stinking rich and rule the World – or perhaps at least become financially stable – I thought I’d experiment a bit with some virtual stock-market trading. So (using the financial BullBearings.co.uk web site). I have, as of 6th March, ‘virtually bought’ 10 of the leading UK stocks. And as this virtual portfolio moves up and down (I hope far more of the ‘ups’ than ‘downs’) I’ll report back here.

The current virtual portfolio is split across Ashtead (AHT), Burberry (BRBY), Carnival (CCL), CRH (CRH), Electrocomponents (ECM), GlaxoSmithKline (GSK), JD sports (JD.), Redrow (RDW), Rio Tinto (RIO) and Tate & Lyle (TATE).

Various financial targets, looking at things over say 6 months or a year. First, and perhaps the most obvious – not to make a loss! Moving up in scale, to beat a high interest bank account. To outperform the FTSE 100 index (surprisingly few ‘professional advisers’ can actually achieve this over the long term). To learn a bit about the financial world of how to sensibly save money.  Also, and perhaps most importantly, to have a bit of fun.

So now we are almost a month in, time for some first thoughts.

These are all big-cap companies varying in market capitalisation size from Carnival at around £680 million up to Glaxo at £1200 million. With these sort of sizes I would not be expecting too many sudden large jumps in value. Six (AHT, BRBY, CRH, ECM,GSK, RIO) are showing small losses, that leaves CCL, JD., RDW and TATE into profit. However despite the majority in loss, overall things are into positive territory through JD Sports increasing by around 8%.

Even as I am writing this there is something I might try. If I have a reason to sell something then it will obviously get sold. However, on a monthly basis, assuming there was the usual mix of ups and downs, then look to see which was the worst performing and if it has fallen by more than 5% then sell it. I must think about this over the weekend (this is being written on a Saturday). Assuming I decide to go with this, then Rio Tinto (down nearly 6% and below its 50 day moving average) will go and probably replaced by Smiths Group (SMIT).

Oh decisions, decisions!

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