I am so bored, a 100% in cash, not even a collective investment –all sold. Well not quite true I still have a 15% exposure to goldmines, not just gold, but goldmines, even more risky and what is more I increased it last week but when I didn’t get instant gratification I sold the increase for a 3% loss. I have just replied to purpleski who was advocating the buy quality and hold—can’t disagree, but the pain of getting it wrong just imagine having tied myself to the clothes prop and beat myself with Scottish Thistles—have you seen the size of those things this year? Imagine after all that angst, I then go back into a market only to see it collapse. I have been here before, many times and I can guarantee that the day I go against my basic instinct and re-enter the fray, will be the best technical indicator for a worldwide sell. In July 1987 having been out of the market since Easter, I thought we have got this wrong and re-entered only to be smashed with the unprecedented collapse in October. It was so fast that for a few days nothing could be sold and the pain had to be endured—time passes, a few years actually and everything sorts itself out until the next time. Obviously the long term investor took the pain but also the profits accumulated during the time when I was out of the market, I just took pain.

To amuse myself I read Minervini’s book on how to be a zillionaire. I have distilled all the rules and caveats and applied them to the UK market. There were some confusing rules such as investing after a peak in volume or after a pie dish appeared on the chart, but it was a great book full of very useful information. What I did find was that usually after a big spluge of volume the share usually went down, it also happened after the pie dish appeared so a guide to entry it wasn’t. None the less Minervini is richer than me and apparently more successful so I must park my cynicism.

I started this exercise in March after Ben Hobson’s interview with the great man. Now this is the tricky bit because I am going to pass on the results of my intensive analysis,…

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