While the US and UK markets rose steadily in 2021, several sectors experienced great volatility, causing painful reversals for this column. But the wins outnumbered the losses, with the current profits on my open positions more than making up for the losses on tips that had to be closed.
I started 2021 with ten tips. There were five features: ITV, home builder Bellway, transportation group National Express, pub operator Mitchells & Butlers, and Norwegian Cruise Line. The five shorts included electric truck maker Nikola, online furniture retailer Wayfair, Twitter, Ocado and health insurance broker eHealth.
With the exception of ITV, all have been closed. In issue 1038 I shut down Bellway, Twitter and Wayfair, with Bellway making a profit of £ 750 and Twitter and Wayfair making losses of £ 990 and £ 161 respectively. Mitchells & Butlers closed on the 1040 show with a profit of £ 1,644. Then eHealth was closed in 1046 with a profit of £ 880. I closed National Express in 1054 with a profit of £ 1,074.
In 1060 I closed Nikola and Ocado, Nikola making a profit of £ 1,099 and Ocado £ 337. Norwegian Cruise Lines was closed on show 1064 with a profit of £ 330. Counting ITV, on which I think you should take profit of £ 1,116, eight of the closed positions made a profit and two made a loss, with net profits of £ 3,864, down slightly from levels profit at the end of 2020. In addition to the transactions postponed from 2020, I made 20 recommendations. Five (Interprofessional Broker TP ICAP, U.S. Nursing Home Specialist Ensign Group, U.S. Homebuilder PulteGroup, Royal Mail, and JD Wetherspoon Ad Channel) have not been triggered, and now I suggest you cancel all of them. Of the 15 others, seven have been closed.
Tips closed this year
My DoorDash short, which I reported in issue 1034, closed in issue 1040 with a loss of $ 960, thanks to a temporary increase in the price of the food delivery app. My decision to bypass video game retailer GameStop, which I reported in issue 1036, was not successful (see box below) and was closed in 1042 with a loss of £ 1,000 .
My Snowflake shorts, from 1038, were covered in issue 1074, losing £ 245. My suggestion to bypass the Plug Power hydrogen fuel cell car company, made in 1042, closed in 1076 for a profit of £ 38. My decision to dive back into bitcoin’s shortcut in number 1046 turned out to be an unlucky third time case. I closed the position in 1074 for a loss of £ 950. In 1048, I suggested going for a long time on the e-commerce specialist Plus500. But that turned out to be a mistake. The position was closed on 1080 at a loss of £ 563. In 1054, I couldn’t resist a bet against Tesla, which went wrong. The position was closed in 1076 with a loss of £ 990. The overall loss on closed tips was £ 4,670.
Open positions in the currency
The performance of closed positions may seem mediocre, but those that are still open did very well, with six of the eight winning. In terms of long positions, US builder DR Horton, which I announced on the 1040 show, has benefited from the US property boom and currently sits at $ 105, making a profit of £ 1,350.
Construction firm Morgan Sindall, tilted in 1044, is at 2425p. It made £ 1,478 which makes it my highest grossing recommendation of the year. The company has seen an increase in orders over the past year. Wealth manager Rathbone Brothers, tilted in 1072, is at 1,972 pence, which puts him at £ 88 in the red.
African mobile phone company Airtel Africa, announced in 1074, is at 128p, so it is making £ 1,200, mainly thanks to increased investment from outside investors keen to play in the growing African mobile market. J Sainsbury’s supermarket, tilted in 1076, is at 276 pence, so it loses £ 117.
My short open tips are also doing well. US movie chain AMC Entertainment Holdings, one of the “memes stocks” that I reported as short on show 1056, is $ 24.45, making a profit of £ 986. Telemedicine company Teladoc, which I suggested bypassing in 1066, is currently at $ 88, which puts it at £ 728 in the dark.
Overall, my open long positions made a profit of £ 3,823 and my short positions £ 1,714, for a combined profit of £ 5,537, which is higher than the losses incurred on closed positions this year.
Trading techniques: what I learned in 2021
Be careful when embarking on “meme” actions
A key theme for 2021 has been “meme” actions. People on online forums have crammed into stocks in order to squeeze institutional short sellers, pushing stocks up far beyond any rational value. In theory, this has created opportunities for short selling. But as I discovered with GameStop, just because a stock is overvalued doesn’t mean it can’t go even higher.
Elon Musk’s company has been a favorite among short sellers, due to its sky-high valuation and eccentric demeanor. However, he made a career of defying skeptics and appears to have created a business that has truly turned the auto industry upside down. All my little advice having ended badly, it’s time to throw in the towel and look for new parts.
Catalysts and valuation can be a great combination
As the last decade has shown, a cheap valuation does not guarantee that a stock will perform well. Nonetheless, if you can buy a stock that is both cheap and likely to do well in the near future, then your chances of success are significantly improved, as my success with National Express and Morgan Sindall, both of which benefited from bullish developments. in their sectors and the whole market, has shown it.
Stop-losses are important
Having to close a position because you’ve triggered an upward or downward stop-loss can be frustrating, especially if the price subsequently moves in your favor. But it can also protect you from an even more painful loss, especially if you sell a stock short, in which case your losses are theoretically unlimited. While my advice to sell GameStop cost £ 1,000, if I hadn’t recommended that you automatically hedge the position you would have suffered a loss of £ 5,800.