2008 COULD BE A GOOD YEAR!
I hope you're all very impressed; I'm writing a new column and haven't been lazy and reworked the usual "New year's resolutions" one!
I should really begin by plugging my new book called... er, well the same as the last one actually, "Naked Trader".
The second edition is bigger and hopefully even better than the first! It
also includes my top ten strategies for making money in the market. Plus
loads of pointers towards all the mistakes it's possible to make - including
some of my own - and a handy cut out and keep guide to spreadbetting
exposure. All I hope written in plain English and using no jargon.
If you'd like to buy it at a nicely discounted price from the ADVFN
bookstore just click here:
The Naked Trader
So what is in store for 2008? Many investors are a bit despondent but I
think I can make more money this year than any other.
Of course making a statement like that really means I deserve to get well
kicked in the nuts by the market and if I do I'll tell you all about it.
But...though I am no forecaster I do have a feeling this year could be quite
straightforward. This is my plan!
Buying: I've been buying and will continue to buy and hold oil, oil services
and palm oil stocks.
That's because I think oil prices will continue to soar higher this year.
Many of the stocks in these sectors I hold have already soared since the
start of the year especially New Brit Palm Oil, Dragon Oil and MP Evans.
Shorting: I am going to carry on shorting the FTSE 100 for at least the
first part of the year as I don't think the current turmoil in the credit
markets is yet priced in. I'm already doing well from shorts established in
the 6600 area.
I'm also going to carry on shorting retailers (I did nicely with Marks &
Sparks) as I can't see much recovery this year.
And perhaps a little later in the year I think both property shares and
small cap shares that have both been hammered will start to recover and I
think there will be big gains to be made if I can get in at the right time.
Of course this is all in my opinion and I could be horribly wrong.
Some of the small caps and property companies are very beaten up and there
are, what looks like, superb bargains out there.
I think my approach will be to stay cautious and not get back into these
areas until some kind of upward momentum has already started. I don't mind
missing the very bottom of these companies - rather that than try and buy in
at the bottom only to find there is further to fall.
One thing I don't think can be disputed in these markets: a stop loss is a
must. Cutting losses early before they get any bigger is going to be crucial
to hold onto capital.
And I really think investors ought to think about spreadbetting in order to
try and make some money from the current downside.
Good luck to all of you in these rather difficult markets.