Thursday, August 5

Robbie Burns Naked Trader Tips

Stocks to Buy - Robbie Burns Stock Trader

Robbie Burns is a stock trader who runs a website in the UK in which he details his stock trades as he does them in a way which lets you see just how well or badly he does. From what I can see he does alright ! You can see his website here - Robbie Burns' Trading Diary - scroll down a fair way to see his stock picks section.

In addition to putting his stock picks up on his website for everyone to see, and explaining the reasoning behind his picks, he also runs occasional seminars to teach people in more detail how he does what he does. He has also written a book called the How Anyone Can Make Money Trading Shares explaining how to weed out stocks that are likely to make a profit from the rubbish. I have long admired him for his no-nonsense approach and his ability to pick winners !

He has also just been interviewed by David Kuo from the Motley Fool and you can listen to the podcast here - Motley Fool- Make Money Trading Shares

Robbie Burns says he likes to keep things simple. He does read company reports but picks out 'red lights' that warn him to steer clear of a company in a couple of seconds. One of these is 'debt' he tkes a quick look at company debt and if it is more than three times full year profits he just moves on to a another company. He just doesn't like getting involved in companies with too much debt when there are hundreds of other shares with good cash and low debt to choose from.

He also looks at the p/e ratio but in a simpified and personalised way. He looks at full year profit and multplies it by ten, then he chops off some net debt, and if the company has got net cash he adds a bit on. Then he checks the market capitlisation, and uses this to see if the share is cheap or not. All quite simple and above all unemotional and fully explained in his book I'm sure.

He is also not too keen on penny stocks or bottom fishing, although he has been known to do both in his time (he bought BP at 330p for example). He is a medium-term investor usually holding stocks for a few weeks or months and topping up on stocks that are making profits and are in an uptrend. He tends to sell if he notices that company reports are becoming less bullish. He also emphasizes the importance of putting in stop losses and always sets a target and a stop loss when he buys a share.

So check out his portfolio on his website, listen to the interview.

Three companies he mentions in the interview that he likes at the moment and has done for quite a while are Devro, Dialight, and Agrreko.

His website shows his latest buys at the end of July as

Yule Catto YULC at 195.5p - target 250 stop loss 177
1 month chart

Creston CRE at 85.10 - target 120 stop loss 80
1 month chart

Mouchel MCHL at 97.20 - target 150 stop loss 90
1 month chart

Weekend Newspaper Share Tips
Home : Stocks and Shares