more than £2 million banked since launch

Frequently Asked

the questions, answered honestly

Using a SB or CFD account is it a valid strategy to short a share on "ex dividend" day on the basis that it can be expected to go down in price?

No - Spreadfirms and CFD accounts all take into account the ex dividend and it's either in the price or the dividend is deducted - no free lunch!

I want to work in the City/Get a job as a trader... etc.. can you help, how do you do it?

Afraid I have no idea! I was a journalist and I've never worked in the city and don't have any contacts there. I know that becoming a trader is quite difficult and also from books I've read it can be a horrible, stressful occupation with long hours!

I am thinking of buying/selling a certain share.. what is your opinion on this that or the other share... I have found this great one...

As I'm unregulated I simply can't discuss individual shares with you one on one as it could constitute advice .. really sorry! I think even if I was regulated I wouldn't want to discuss a share as I'd hate to influence anyone into buying or selling something then it went horribly wrong.

When I look at net debt on advfn financials it always seems really high etc..

For net debt profits etc don't look at advfn financials or rely on any website. Always go to the last company statement or report and find it there. it is the safest way of doing it. Advfn financials are often out of date as well.

I can't get your traffic lights system to work

You're probably trying to download a company report! It doesn't work on downloads.. once you have set up traffic lights from my book, click quote on any company on advfn and then press news. Then click on the last FY or interim reports and it will work!

Do you think the FTSE will go down/up, what's your view on the economy etc..

I have no idea and just follow the market rather than guess it - and indeed I don't have a view on the economy - remember markets overshoot and undershoot so understanding the economy doesn't really help!

A share went below your stop loss yet you held onto it..

Sometimes that happens.. I use the order book to make a final judgement on whether to kick a share out or not and I don't use auto stops with a broker preferring to make my own decisions.

Help I'm losing money! What should I do? Should I sell, buy more... etc

Again can't really help except to say you need to revise your strategies and maybe even come out for a bit. This is something you have to learn for yourself over time...

The total of what the website has made doesn't match your trades list as I added it all up.

The totals are from when the website started back in 2000. Trade history goes back about 3 years which is about as many as the site will handle!

I've designed a spreadsheet which takes everything from your book/analyses your trades/makes tea/Can you look at it and see what you think?

Please don't send me spreadsheets of any kind. Honestly I'm just not a spreadsheet kinda guy and I won't look at it.

You do well but you could do better if you (......)

There is no point trying to teach an old dog new tricks..

Do you trade currencies or metals..if so can you help?

Afraid not!

Are the website trades the only ones you make?

No - I do a lot more spreadbetting but don't have the time/strength/ to list all these - the website trades are real at the real prices but I will often buy more/top up, etc without declaring it - again due to time/workload.

I'm a complete beginner. Is it too early to come to one of your seminars?

Something you have to decide once I send you the details of what I cover. But they are designed for beginners and improvers - only stipulation is to have please read the book before coming!

My share went down even though there were loads of buys/my share went up even though there were loads of sells. How can that happen?

Don't believe what you see if you press "trades" on advfn or other services. The computer is guessing and usually the buy to sell ratios are totally wrong. In fact they can be ignored. Many trades done via the order book are actually Buys and Sells! That's because someone is selling it but someone buying it and they are matched. Also, trades done through market makers can be delayed if they are bigger than normal size so buys can be disguised as sells and vice versa. Do not be fooled.

I know you go over level 2 at your seminars but can you suggest any books that explain it, apart from your own which I already have.

There aren't any that I know of and I'm not surprised, it's only possible to explain face to face with a live feed and even then it would take hours. And even then it is open to different interpretation!

What makes you decide whether to take out a spreadbet instead of just buying the shares?

I use spreadbets for shorting (Ie betting on a share to go down). I also use spreadbetting to buy AIM market shares as I cannot put these shares in my ISA and I prefer to do all my trading tax free! I also use a spreadbet if say, I am fully invested in my ISAs, and finally I also use spreadbets to top up current holdings in the ISA, or finally, if a share is moving fast, sometimes it is easier to get a spreadbet on quicker to get the price than trying to buy the shares.

How do I find out if a share is going from the AIM market to the main one?

I find out simply by reading news reports every morning using the advfn news service - usually it is stated in either a company's full year or interim report that they intend to move. Then you need to keep an eye on the date it's going to happen. So in general it's a question of keeping your eyes open for these events.

How do I know if a share is AIM listed or on the main market?

Click "financials" on advfn for the share you are interested in. If under "market sector/segment" the first letter is an "A" it is an AIM share - anything else and it's main.

How do you maintain your wonderful hairstyle?

I shave every other day to maintain its gleaming streamlined look - and so hygenic too!

I bought a share because you bought it and oh no it's going down now - help! Should I sell it or not?

A few points here! This is my diary, I don't recommend you follow what I do especially as the share price might already have gone higher. You should never follow anyone into a trade whether it's me or a newspaper, magazine or bulletin board unless you have done your own research, sorted the right timing and that you planned the trade properly. The only answer I can give you is you bought it, you sort it! And in any event I can't give you advice on what to do, and even if I could, I wouldn't! You must learn to take responsibility for your own trading and only you should decide when to take a profit or loss.

I only have a small amount - £500-£1000 or so - is it worth me investing in the stockmarket, if so how many shares should I buy?

Welll, it's a tricky question to answer. Can you afford to lose a lot of the money? Honestly I don't think it is enough - my reason is first of all commissions and duty will eat into any profit. Secondly with a small amount it's impossible to buy enough shares to have a balanced portfolio and with maybe only one or two shares if one goes badly you could easily lose a lot of capital. I would say wait till you have at least £3k because then it is possible to say get 6 shares of £500ish. Those with less than £3k one way is to paper trade, ie give yourself a pretend 20k and see how you would get on. I do think with a small amount of money unless you strike very lucky it probably isn't worth it. However this is my personal opinion!

I don't really understand Isas - I read some people have made a million or more out of theirs and you have made a lot. Can I keep on buying and selling and really building up profits tax free? Could I start with 10k and just keep building it from there?

Yes! There is no limit to the amount of money you can make or the amount of trades! The only rule is: you can only add £10.2k per tax year. So if you bank any profits you can't put those profits back in. But you can trade as much as you want, when you sell something you can immediately buy something else and build your profit just like in a normal trading account. I have made several hundred thousand pounds in my Isas for example. And all profit banked is tax free, there is no need to tell the taxman. Do remember you can only put in fully listed shares and not AIM. Some AIM shares do qualify if they are listed on another stock exchange so it is always worth trying to see. Just pretend to buy and your broker's system will tell you whether or not they are eligible.

I'm a student, want to get into shares but not sure how to do it, I wonder if you need an intern/help/dogsbody at your trading desk...

Erm, no you really would not want to see me in my pyjama bottoms at 10am.. might be worth ringing round brokers/spreadfirms and see if one will kindly let you make coffee for a couple of days..

What happens if I am short of a share with a spreadbet and it goes bust?

Generally you should get paid out! However you may find your bet is suspended for a while until the company is officially deemed to be a bust or has gone into administration. Firms are usually sensible and will pay you out at zero or a penny once it is obvious it is a gonner. Of course spreadbet firms do vary so it might just be worth asking your particular spreadfirm.

What happens when a share I'm in gets bid for?

The price of a share usually goes close to the bid price, if it goes higher market thinks might be a competing bid. if the bid goes through you can either sell at under the bid price to the market or else wait 1-2 months for the full bid price to be paid into your account. But remember there is no guarantee a bid will go through till it is confirmed. If it doesn't get confirmed then the share price could revert to what it was before the bid.

I saw you bought a new issue.. but where do you find out about new issues and that they are going to list?

There is no one place unfortunately. The best way and the way I use is to check the news at 7ish every morning - you can then look for "Intention to list" in the headlines, companies intending to list usually release this fact at 7am so it should be quite easy to find. I usually check every day.
Also I find The Times newspaper pretty good at mentioning new issues on the way, and the Sunday Times. In the end, you just have to keep your eyes open!

How do you decide when to sell a share, any signals you use?

Well, I try and hold onto good ones for as long as I can. However if I made 20% plus on something often I will sell part of the stake, maybe a quarter and bank it. Another thing I do is pretend I never saw the share before and look at it again. Would I still buy it now? I also use trailing stop losses (see my book for more on those). Stops trail up under the current price. If the share starts to go down a certain amount from its peak the stop will sell it. Also worth looking at a chart. Does the share keep knocking up against the same price but don't go through: might be time to bank some of the profit. Remember you don't have to sell ALL your shares !

Do you trade American/Australian shares? If not why not?

No I only trade UK shares on the whole. Why? Because I like to be finished at 4.30pm - I don't want to be looking at live shares at 8 in the evening!
Also I don't really know either market and prefer to concentrate in an area I know well. So, I have no need to trade stocks in either country.
So afraid I can't help you with any ideas about trading either country, or any country outside the UK and have no idea whether my methods work outside the UK or not.

Are you on Twitter or Facebook, if so how do I sign up/follow you?

No to both. I'm just not interested in social media. If you see robbie burns or naked trader on either it isn't me and it will be some sad person pretending to be me. This site and the books are about education and explanations as to what I have traded properly rather than just sticking up a trade on twitter to be followed blindly. Also that would pretty much being a tipster which is not my intention.

They always seem to say sell in May and come back on St Ledgers Day - what do you do?

The summer can be weaker but it often depends on your shares! I don't really take much notice and I'm happy to carry on buying and selling - I tend to follow events rather than second guess them. The market is very good at doing the exact opposite of what you expect! So I could just as easily be a buyer in May as a seller....

I've read your book and I'm paper trading at the moment. As a part of my exercise I do monitor your trades and I've noticed one strange trade in your trade's list on your websites. Optimal Payments (rights) OPAY 5000 166.00 450 150 30/04/2015 Could you please tell me if it was really possible to buy OPAY for 166.00 or is it a mistake?

OPAY did a rights issue which is why it says rights in brackets.
That means all shareholders could buy 5 new shares for every 3 held at 166p. I held 3,000 shares so was offered 5,000 new ones at 166p as did other shareholders. Because of the 166 issue price which was way below the previous value of the shares, the shares have fallen quite a bit to make up for it.
For more on rights issues see my book Naked Trader 4 page 54

What do you think about cryptocurrencies, bitcoin and all that?

To me it's just a crazy gamble - you could make a lot of money but there is a massive risk! They could rise or fall massively and quickly. And it all seems to run on sentiment. If the sentiment blows or say a government bans them, a sudden massive loss could happen. First thing is to work out how much you could lose and make sure you are playing with money you really can afford to lose. Best way probably to make money is a spreadbet, ig.com/nakedtrader trades bitcoin and a couple of others. Good luck but be careful!

Results came out on my share and they were good - but they went down! How can that be when results were absolutely spot on?

It's the old adage: "Better to travel than arrive" It is very common for shares to fall after results. You'll often find it is because they went up prior to results and now results are here traders take profits. The effect can last a few days then the shares start to rise again. If you are happy with results and there wasn't anything nasty anywhere that is all it is and you can usually just hold perhaps even add some on an after results slide!

I see you sometimes buy IPOs - new listings on the market. But how do you find out about them?

There used to be some websites that helped but that doesn't seem to be the case anymore.
Upcoming IPOS tend to appear in the news lists when the news stories come out around 7am - look for "intention to float" in the headlines.
A company floating today usually has the headline "First day of dealings". Newspapers and magazines often cover IPOs as well.

I see you recently shorted the FTSE - what made you short the FTSE then at this point?

I wish I hadn't mentioned any FTSE trades, I rarely do as this is an easy way to lose money and don't want to encourage people into indices, if handled badly it is easy to lose a lot fast.
I shorted the FTSE as it had gone up a lot and then kept hitting the same numbers and coming back. If the trade had not worked out and it kept rising I'd have cut it very quickly. There is always some luck involved.
I don't have any magic answers, I don't use "TA" as I believe it is cobblers. So afraid there is no magic wand. I suggest if you get involved with these kind of trades be very careful.

Why shouldn't I trade with one of the brokers offering free commission?

Personally I would go for a broker with charges.
Problems with free commission brokers:
They might try and get you to overtrade by encouraging trade in Cfds which is where
they really make their money.
A free trade is likely to be done at one time in the day - likely you won't even
know the price you are getting.
All shares won't be available to trade especially smaller ones. This severely
limits the ability to trade properly.
With some of the companies you can only use your mobile, really
not good for proper trading.
The newer companies are usually covered up to £85k if they
go bust - but it can take months
to get back any lost money.
When something is free, there is always payback!
All in all, if you treat trading as a fun hobby, you don't care about
the price or you can't trade all shares it's fine. If you are trading
as a business I really wouldn't. Choose a big broker.

In your book you talk about exchange market size or electronic market size or normal market size - the amount of shares you can normally deal in without having sometimes to pay more for the shares. But this seems to have disappeared from the london stock exchange site.

Indeed it has been dropped! You can try
stockopedia.com/nakedtrader (14 days free trial on that link) The nms is displayed on the info page of any share about
three quarters down the page under "share price quote"
you will see nms.
Another rule of thumb is shares under a value of £100m
can be harder to buy or sell with small market sizes especially if under £25m size.
The higher a market cap usually bigger the size. Once you
get into the FTSE 250 about £600m and above you
should be able to deal in big amounts.