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Investment Stock Market

18% GAIN = Bought it NXT; Held it JSI; Sold it JAS

6/4/2014

Some of you might be wondering what the title is all about. It looks like an equation or a formula, but it’s actually not. 🙂

This is about a stock that I bought a month ago with the stock code NXT for NextStage, Inc.

Few days later, I searched for it on PSE and I couldn’t find it. I found out that the name was changed to Jackstones, Inc. with the code JSI.

The price movement of this stock was downward and sideways before I went on my 2-week vacation in the province so I held it for the meantime.

When I came back, I couldn’t find JSI anymore. I realized that it changed its code again and this time to JAS.

Still confused?

Okay, I understand. 🙂

To make it simple, NXT, JSI, and JAS are the same company.

 

Anyways, I bought this stock at a price of 4.0 on April 29, 2014. It was the same day when I bought BLOOM and my very first day in stock market trading.

All that same day, the lowest recorded price was 2.95 while the highest was 4.42.

In the next 20 days, the price stayed consistently lower than my buy price. There was only one day that it went up to 4.15 and it happened when I was out of town.

Days after my vacation, the price stayed higher than my buy price though it went down a bit at times.

I didn’t invest much on this stock because I didn’t know much about it. In fact, when it was at its low points, it didn’t affect me that much because I knew that it wasn’t a big loss for me anyway. But when my paper gain went up to 20%, I wished I bought more. Yes, I get greedy too sometimes. I think everyone in the stock market does at some point. 🙂

Yesterday, it recorded the highest price of 5.50 in the last 30 days. Today, the price was constantly changing and I couldn’t predict if it’s going up further or if it’s going back down again. It hit 5.20 at one point and went down to 4.57. When it stayed quietly on 4.80, I decided to sell it.

It could have gotten higher. And yes it actually did. It even hit 5.0 again. But I tried to control that greed in me. I went back to my goal. My target was to sell a stock at a 5-10% gain. And I sold it at almost 18% gain. Not bad right? Not at all.

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Disclaimer:
The featured image does not represent the company or stock mentioned in this article. It’s purely a personal choice and the author is not to be deemed liable for any copyright because no attribution was required.

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Investment Stock Market

My Stock Experience on BLOOMberry

6/4/2014

After putting BLOOM on HOLD for more than a month, I finally decided to sell it today.

I first bought BLOOM on April 29, 2014 at a price of 12.22. At that time, this stock was consistently moving up based on the historical data from PSE. This was also my first day in trading so I was a mere speculator. That same day, BLOOM recorded its highest price in a 30-day period. So it was on its peak when I bought it.

A day after I bought BLOOM, the price even went higher and reached 12.52. The highest so far, from the April 24 to June 4 data.

I already wanted to sell it the next day, but I thought it was going to strike even higher so I held it for the meantime.

Then the trend changed from being upward to downward then eventually sideways. At some point, I bought more volume when the price was starting to go up again. That’s when it was at 11.72. I did this to lessen the loss from my first purchase and have a lower buy average. That is 12.22 + 11.72 = 23.94/2 . It gave me the average buy price of roughly 11.97. However, it continued to move with the same trend for the entire month of May. So I was stuck. I had to put it on hold, otherwise it wouldn’t be just paper loss.

I continued to monitor BLOOM’s price movement and I hated to see that it has since been red on my portfolio. It was stuck at almost 10% loss and I couldn’t use the capital for further trading. The value was depreciating and I realized that I had to cut the loss now or I might lose more.

From 10% paper loss, it went down to around 7% and that’s when I decided to sell BLOOM at a price of 11.46.

Yes it was a loss for me, but I have learned to accept it even when it was at its lowest price because I knew that this is stock market and I’m aware of the risks of what I’ve gotten into. In fact, I felt more relieved because at last I’m out of the red numbers and I can use the capital for trading again. So, no BLOOM for me for the meantime.

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UPDATE:

As of today, July 28, 2014, Bloom’s price is at 11.46. It was down for few weeks after I sold it. But it’s good to see that it’s slowly recovering now and has even reached 11.68 last July 22 which was the highest so far in almost 2 months.

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Investment Stock Market

My Portfolio AFTER my 2-week Vacation

5/30/14

After enjoying the heat of summer in Samar and Leyte, I’m officially back home in Manila. Yes, back to reality…

I was very excited and positive! The very first thing I did when I got home was check my portfolio. And guess what???

It broke my heart to see that most of my stocks were in red and my total account equity value was 15% down!

Imagine how you’d feel to see that your portfolio lost quite much. Oh well yes, it’s only paper loss, but it’s the same feeling.

Is this what they call the “roller coaster emotion” in the stock market? Now I understand how it feels when the stock market is not at your side.

It’s sad and frustrating but I was aware that even before I started on this venture, circumstances like this happen in the stock market. And that’s the reason why a lot of people prefer to just put their money in the bank because it’s safer and it’s liquid. Investing in the stock market is indeed risky.

And for a poor newbie like me, there’s nothing much I can do for now. But I definitely need to do something about it.

I spent the entire week reviewing my stocks, researching, and thinking about what I need to do to recover from my paper losses. Inasmuch as I wanted to recover the soonest, I did nothing on my portfolio. The constant movement of the stock values goes up and down much like the roller coaster emotions in me. And that kept my fingers away from the trading buttons on the platform of my online broker.

I didn’t want to touch any of my stocks until my emotions get back to normal. That’s one thing I learned in the seminars that I’ve attended. Never let your emotion dictate you when making decisions in the stock market. More so, don’t invest in the stock market if you still feel bad about your losses (if you had any). Stock market is not the right place to take revenge. 🙂

Instead, learn from your mistakes and continue learning by attending seminars and expos. You can also watch stock market-related tv programs like ANC On The Money and Bloomberg. Or if you prefer reading, you can read newspapers, books or even blogs that are related to investing.

Click this link to read My Portfolio BEFORE my 2-week Vacation

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Investment Stock Market

My Portfolio BEFORE my 2-week Vacation

5/30/14

Our scheduled flight to Tacloban City was May 12, 2014, Monday, 6AM. So the last trading day before I went on vacation was Friday, May 9. My stocks were looking good. I used all my remaining balance to purchase cheaper stocks since I had to leave and I didn’t want it to stay ‘stagnant’. And by that time, I already gained about 3%. Not so big but good enough. So I was happy and hopeful before I conditioned myself that I won’t check any stock updates during my entire vacation.

While on vacation, I tried not to think about the status of my stocks. But sometimes I couldn’t help but imagine that they’re all doing well and they’re all positive. As I was enjoying the waters in the beach and falls, I also felt excited about going back to Manila to see how my stocks were doing. I knew I could check it online even if the internet connection there was very slow but I chose not to. I didn’t want to take the risk of possibly ruining my vacation should I find out that my stocks were negative. So I held my horses until I got back to Manila 2 weeks after.

Click this link to read My Portfolio AFTER my 2-week Vacation.

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Investment Stock Market

Should I buy more when the stock price is low?

5/8/2014

If you think you’re losing the value of a stock because it’s continuously going down, don’t lose hope.. Just like what other investors say, it’s just a paper loss until you sell it. But again, why would you when you know that you’re going to lose your money? Unless you’re cutting losses or you need cash badly that you need to liquidate your paper assets. But if it’s not the point, then we can hold it for now until such time that the price move up again..

Now the question is, WHEN is that time?

The answer is, we don’t know. Not even the best investor or trader can tell what specific time or date will a stock price will go up or down. We can make speculations yes, but again, these are just mere speculations. And we have to bear in mind that not all speculations are correct.

One thing I learned when this is the situation is, to buy more when the price of the stock is low. Why? Because you’ll get to buy more when the price is down. And when you average your total shares, the price of the stock you bought at a higher price will be pulled down. When the right timing comes and you’re almost at your goal, then you’ll probably gain higher returns. It’s hard to recover when you’re stuck at a very high buy price. Thus, buying more stocks when the price is low may be a good alternative.

But before you make any additional orders, make sure that you analyze the trend and movement in the market and do your own research. What if the stock price continued to move down? You’ll get stuck. Or worse, you might have to sell your stocks at a loss. Then who will you blame? Me? Or the market? Or how about yourself? Who made the decision in the first place?

I’m not saying I’m an expert. I’m just sharing my thoughts…

And I’m not saying you follow my advise or suggestions. These are just barely based on my own experiences in the stock market. I could be right. I could be wrong. Again, do your own research.

Always remember that the stock market, just like most investment facilities, offers no guarantee. The best investment is still EDUCATION.

So, Good luck! 🙂

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Investment Stock Market

You sold your stock? MOVE ON!

5/8/2014

Another lesson I learned in trading is learning how to get over with the previously sold stock and move on…

The very first stock that i sold was NIKL. I bought it at 25.2 and it continuously went down for the next couple of days. After a week, it finally went up to 25.5 and I hurriedly sold it because I was afraid that it might go down again. Upon checking my ledger, I was happy to find out that I did not lose on that trade. But I didn’t earn big either.. In fact I only earned P27 net. And this is what I considered as my first ever salary in my ‘stock market job’. Not bad right? But not so good either…

After selling it for 25.5, the price of NIKL went higher in the next couple of hours and even up to this day. It’s now averaging at 25.8
And this is when greed makes me feel guilty of being excited to sell early. it makes me feel bad of course because when i compute, my earnings would have been much higher if i sold it later. greeeeeeeed again…

Lesson learned: It’s ok to check for the current price of a previously sold stock but make sure you won’t feel any regret or disappointment. It’s ok to compute for the difference in profits had you sold it with the higher price. But try not to compute for it more than twice because it’s gonna drive you crazy… (sayang, sayang, sayang… ) If u do, again.. greed will come into place.. Remember, that’s our number one enemy.. And that’s what we’re trying to stay away from…

 

UPDATE:

As of July 24 this year, NIKL’s current price is 35.7

I bet you guessed what I’m thinking right now… SAYANG! 🙂

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Investment Stock Market

Lessons I Learned in Trading

5/8/2014

Most investors and traders say that we should not be too emotional when trading in the stock market.

And as I do my daily trading, true enough, i learned that we should try our very best to avoid greed because it will give you nothing in the end.

I’ve been trading conservatively for the past two weeks and I could say that the reason I have not achieved my goals yet is because I keep on expecting for higher returns. if only I get contented with lower returns then I might get higher profits unexpectedly.

Now I’m beginning to understand why most traders suggest not to be greedy.

Bloom has already reached 12.6 from my buying price of 11.95.
I wanted to sell it that day but I expected that it will go higher.. However, it went even lower than its price when I bought it.

Had I sold it, I should have earned profits already and more so, I have already used my capital to trade for other stocks. Now since it’s low, I couldn’t sell it yet because I’ll lose some amount. Thus, my money is stuck. No movement, no profits, no nothing. Just like a waste of time…

Yesterday I bought MA at 0.02, and it went up to 0.023 this morning. I was surprised.. My initial goal was to sell it when it go up to just 0.021 but again, out of greed, I expected that it will go up by probably 0.024 and that’s when I’m going to sell. And to my dismay, it never reached that point. It even went lower down to 0.021 towards the closing period. So I’m left with nothing again. No gains, no movement, no profits.. It’s frustrating but at least I know where i fell short on.

I guess the big lesson here is contentment. Learning how to be content is something that I need to really work on in the next trading days.

Tomorrow is another day and I will do my best to trade better and wiser. It’s better to earn a centavo than zero. Be content with my earnings be it big or small. Don’t be greedy. Set goals that are realistic and attainable. And be firm with it. Don’t try to change your goal just because you think that it might go higher, because we cant turn back time if it turns out the opposite.

Be humble. Don’t let money control you, but rather, be the one to control your money and use it wisely. Don’t overspend nor use it with negative intentions. If you earn, share your blessings to others and give back to the Lord for He is the one who provides everything…

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Investment Stock Market

My First Bid/Order in Trading, failed!

After making my own analysis and computation, I finally made my first order. The first company that I bought shares with was MARC (Marcventures Holdings, Inc.). The prices were playing at 4.0 to 4.5 with points constantly changing from time to time. Meaning , the values change in a minute or two or 5 or stays the same for a couple of minutes or even an hour, and then drop down or go up unexpectedly.

I didn’t know what’s happening and I couldn’t tell either what’s going to happen next but I was observing the trend. I didn’t rely much on the current price movements but rather on the historical data. I found that its 30-day high is at 5.41 and the 30-day low is at 3.60.

And maybe for a first time trader like me, I just wanted to play it safe. So I placed an order to buy shares at a price of 3.7 which is way beyond the current values. My idea was if the 30-day low is at 30.6 then it’s possible that the price may drop down to 3.7 even if the prices were currently moving from 4.0 to 4.5

Actually that’s possible. Nobody knows what the next value would be so any value is possible. But I guess one of the techniques here is to analyze the trend. And this is only possible if you are completely monitoring the price changes. Because we really can’t tell what the next price would be. At one point it was 4.2, then you blinked your eyes for a second and when you looked back at your monitor it’s already 4.9. That’s how fast the changes could be. And those tiny decimal points matter a lot especially for big-time traders.

What was funny here was the fact that I moved away from the trend. And I think a wise trader should always be on the trend. If you stay away from it, then you’ll be left out. Others will gain while you gain nothing. And that’s what happened to me. The buying price that I chose what too far from the trend line that was almost impossible or unrealistic to go down that much. Therefore, my first bid failed.

For experienced traders who might have seen the price that I posted, they might have said, “Dream on, girl!” 🙂 Or maybe they said, “this fella is a newbie who’s goal is for long term investing.”

But then again, it’s my first day! Please bear with my obviously newbie moves. Let’s see how well I trade in the coming days (if I will get any better…) hehe.

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Investment Stock Market

My First Day in Stock Market Trading

April 28, 2014. Monday. I woke up very early… I felt like it was my first day on my new day job. And I didn’t want to be late so I came to work early. But in real life, I was just at home. I logged in to my computer around 8:30AM. Read some articles and news on COL and PSE’s websites. Reviewed the stock list and quotes. And did some comparisons with the stock prices.

At exactly 9:30AM, the trading began. I didn’t know what to do… I didn’t understand the numbers. I just observed the changes in the values of each stock and the changing of the colors from green to orange and to red which I didn’t understand either. I observed the numbers of the companies that I’m familiar with like PLDT, Jollibee, Meralco, BPI, BDO and ABS-CBN. The rest, I didn’t know what they are.

While observing, I also did some side research about the other companies on the active traders list. And as I was getting keen on the changes of the values, my mathematical and analytical skills also started to get involved. So I made computations from the current values to the previous ones, for one company to another, checked the highs and lows, analyzed historical data and charts, and reviewed what other traders were buying and selling and at what values.

I already got an idea on how to do it based on my observations. But I wasn’t confident. I was hesitant. I was afraid. I knew that this is totally different from the Cashflow 101 board game that I played before. There weren’t emotions like these during that time even if I lost money because I knew that it was all play money. And this one is the real game. We’re no longer talking about play money here but REAL MOOLAH. Hard-earned money yes. And that’s what makes it more challenging.

Time was running and the values were constantly changing. I felt the urge to start doing too. So, despite the varied emotions that I was feeling that time, I finally made a move. I picked two companies that I haven’t even heard of before and made my judgment based on what I have observed so far. The first company was Marcventures Holdings, Inc (MARC) and the second was Bloomberry Resorts Corporation (BLOOM).

Why these two companies of all the others on the list?

Simple. I did the math. Not algebra or calculus but just the simplest math. In fact I only used division, multiplication, and subtraction.

How?

I may not be very good in explaining the numbers yet but I’ll try my best to explain it the simplest way I can.

So this is how I did it. For example, I have P50,000 and the current value of the company or stock that I want to buy is P11.40 per share. I divided 50,000 by 11.40 and I got 4,385.9 which becomes my total number of shares. When the price of that stock went up to let’s say P11.9 per share, I then multiplied 4,385.9 (my total number of shares) by 11.9 (price per share) and I got P52,192.21. My initial capital was P50,000 and after buying and selling my shares, I earned a profit of P2,192.21. Assuming there’s a 20% (could be lower) deduction for charges and tax which is about P438.442, my net profit would be P1,753.768.

COMPUTATIONS:

50,000 / 11.40 = 4,385.9

4,385.9 x 11.9 = 52,192.21

52,192.21 – 50,000 = 2,192.21

2,192.21 x 20% = 438.442

2,192.21 – 438.442 = 1,753.768

I don’t know if you’ll find this easy but this is just how I used my mathematics. I could be wrong. Or there may be other blogs and articles that will show you better computations or techniques on how they do their math and analysis. I’m just sharing mine in case some of you may be interested.

Remember this is my first day of trading and I didn’t have any fundamental or technical knowledge about stock market. I just did it my own way. And as I’ve said in my previous post, I’m looking forward to learn more along the way.

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Investment Stock Market

I Finally Opened an Account for my Stock Market Investing!

4/28/2014

Even if I already gained a little bit of knowledge about stock market investing by reading different resources on the internet in the past couple of months, I knew that I wasn’t ready to get into the real thing yet. Therefore, I attended two free seminars that COL Financial offers to interested investors. Yes you read it right. These two seminars are free and that’s absolutely a good thing for a wannabe investor!

However, I still felt the same thing even after attending the seminars. So I spent some of my free time reading more blogs and articles about stock market. There are two other advanced seminars that COL financial offers for FREE but only for those who already have an active account with them. This means that in order for me to attend the seminars, I need to open an account first. Otherwise, there will be a fee for non-account holders. And for a wise investor, I don’t want to pay for something that I can get for free.

One thing I learned from one of the speakers, Mr. Aya Laraya, is that when we open an account for stock market investing, it’s better to let your spouse or a relative know about it. Or better yet, open a joint account with your spouse (if you’re married). The reason behind this is somewhat similar to having an insurance plan. We don’t know what’s going to happen to us, and if the uncertainty happens (knock on wood), at least there’s another person who knows that we have an investment. Just a disclaimer though, this is how I understood his explanation. I’m not sure if this is what he actually meant.

Going back… When I finally decided to open up a joint account with COL Financial, I convinced my husband to join me to the Philippine Stock Exchange building in Ortigas, Pasig City. I tried to explain to him our purpose of going there but because he doesn’t know anything about stock market and that he’s not interested, I just asked him to affix his signature on the application forms and the other documents. My application was approved after 2 business days and they sent me my COL account number through email. I funded my account immediately and it was activated after four business days.

My account was ready, my fund was enough to start trading or investing, but I wasn’t confident enough to get it started. Two weeks passed and I finally decided to get into the real game.

So this is it!!! My First Day in Trading