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02 Jan | Hitting £100K in 2011

Like Santa and his helpers, late December proved to be a busy period for Investor Trader. On December 17th we completed five trades and then backed up again on the 30th with a further three (including a couple of purchase from our list of 17 potentials I wrote about last week). But more about that soon.

Now, if we’re to hit the magical million by April 2014, then 2011 has to see us get somewhere close to £100K (at least). We’ve got to step it up a little.

Unfortunately I don’t have the exact figures to back this up but I think we begun 2010 around the £7K mark and ended up just shy of £21K (£20,954 to be precise). 300% is a nice return in anyone’s language, though a return isn’t a return until it’s all sold up and sitting in your bank account, but for arguments sake…

So we’re upping the stakes and looking at 500% this year – it’s a huge call I know but as my portfolio value grows I find myself putting more time into this little venture and when you invest the time you tend to get the results. Maybe 500% is pushing it, maybe not. I’m pretty happy with a number of shares in our current portfolio mix and I expect 2011 to start with a bang for shares like Berkeley Mineral Resources, Atlantic Coal and Edenville Energy.

In a way getting to £20K was the easy part. I mean gambling with the initial investment of three shares worth £3.5K you can only lose £3.5K and although the potential investments are out there, you’re limited with what you can get your hands on.

The higher the value of your portfolio, the more there is to lose but with that value and depth comes options. As I type our portfolio lists 13 shares that I can trim a little or sell outright to move funds to another investment. In the beginning there was three. You can see the limitations.

It’s no secret I love highly risky investments and that’s why this time next year a portfolio of £100K is a possibility. As is a portfolio valued at £5K. With potential reward comes risk. Every silver lining has a cloud.

I think the key to 2011 for Investor Trader will be not to over or under trade our account. When you’re dealing with the speculative end of the market, money moves so quickly, it’s important to act just a quickly. It takes a little courage to profit take from a share that’s rocketing and start again with another investment that is yet to make its move. It can be easy to sit back and hold rather than try and ride the highs and low.

Of equal importance is to stick to your initial assessments and not get spooked when discussion turns negative based on hearsay. In fact if I’ve learnt anything in the past 12 months, it’s that these periods of negativity tend to be excellent buying opportunities as the Market Makers are happy to take discounted shares off those who are running for the hills.

Anyway, better wrap this up before it becomes another directionless rant. If nothing else it’ll be interesting to see where we are at when we re-visit the numbers again in January 2012.

Thanks again for dropping by and your continued support in 2010. I hope 2011 is a great year for you and your own portfolios and I look forward to sharing all the ups and downs with you.