A new monarch, a new era?

Not everyone loves the monarchy, but there is something about the longevity of the Royal family that provides us with a sense of stability, which is something few Republics enjoy.

If you want an example, look no further than the USA and the massive difference between the administrations of Biden and Trump,

As speculators, instability offers us lots of opportunities to profit. But as investors, instability is the last thing we need.

I read so many comments from people who point to the success of investors like Warren Buffet to promote simply hanging on to what you have because, eventually, you will make money. But as someone who lived through the Bunker-Hunt years and the internet Bubble, there is plenty of evidence which proves that hanging on for dear life hurts more investors than many commentators like to admit.

As a speculator and commentator, I find it bothersome that so many speculators who enter a position to make a short-term gain are still holding their losing position one year later because they wouldn’t take a slight loss when their reason to speculate proved mistaken.

To be successful in our business, you need to be it for a long time, and during that time, you need to keep your losses small and, ideally, run your profits. What too many newbies do is the exact opposite.

Worse than this, with so many people eager to make a name for themselves, when it is time to get out, many memes and comments appear endorsing the virtue of hanging on for dear life, which deters other speculators from making proper and disciplined decisions.

I am no fan of the Disney corporation, but the message in Pinocchio was don’t follow strangers who promise you the Earth, or you’ll end up becoming a jackass!

I wouldn’t call anyone a Jackass (well, at least not many people), but sometimes it’s necessary to say something to encourage better position-taking and risk management.

For some time now, I have been sitting on a primarily hedged portfolio because the economic outlook has been “uncertain” for some time, which is a polite way of saying pretty bleak.

I have entertained a few speculative positions, which have been overall profitable, but I have also had a few which went wrong, where I took a hit, which I always discuss when they happen.

However, because trading these markets in the current environment better suits active, short-term speculation, I decided to put some of my trading capital into the Fractionalised funds offered on the Trademakers platform.

The great thing about these Fractionalised funds is that the entry level is very low, which allows you to spread your risk across a few funds yet still receive the returns that more prominent investors enjoy.

I first mentioned these funds at the beginning of the year, but now more funds have been added, they are products worth revisiting and considering.

Many of you who wish to entertain environmentally friendly products might like the exciting Hydrogen project offered by Whitehill Green Hydrogen. This project looks like an excellent offering to me, and the ESG folks should love to have a piece of it.

Another recent addition to the stable of Fractionalised funds offered on Trademakers by SGT is Dunmore FX, which has been giving a remarkably steady monthly return. Please don’t take my word; take a look for yourself.

A few weeks ago, I mentioned that I had instigated a few short positions in EURUSD, S+P, and BTC. They are tiny positions, which I should be reasonably comfortable with, as the markets haven’t rallied much since.

I am not overly concerned about being short equities or the Euro, but I will be closing my short of BTC this week because I am not confident about BTC either way, so will not be pushing my luck.

So, until then…. Let’s be like good King Charlie and enjoy the day.