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Investment Stock Market

Today’s Profit from IRC, 5%

6/18/14

I tried my luck today in trading even if I see those red numbers on my portfolio. I just pretended that they don’t exist. With 5% account balance and buying power, I used it to buy a ‘hot’ stock which is IRC.

This stock has been moving sideways in the last 30 days based on the historical data from the PSE website. It didn’t even reach 1.30 in the past month until this morning when it surprised everybody with its remarkably high opening value of 1.30. Then it continuously moved its way up to 1.46 which is the highest so far in the last 30 days.

I was more of a speculator as I watched the changes of IRC’s value. I saw it when it was still at 1.37. Then it suddenly reached 1.46 and how I wished I bought it earlier. And then it went back down to 1.35 which seemed to me like I was being given a chance to hop in and join the ride. So I took it as an opportunity and bought it at 1.35.

After lunch, it slowly crawled from 1.39 to 1.41 going vice versa. I knew it went up to 1.46 earlier but it’s really hard to know what will happen next. It continuously moved slowly but surely until it reached 1.44. I was almost done setting a sell price of 1.45 when it went back down to 1.43, then 1.42, 1.41, 1.40.

I waited until the price got stable. That time the values were just moving from 1.41 and 1.42. Then I made my decision which was to sell it at 1.43. In less than an hour, it was sold. And this stock closed at 1.40 today.

What I learned from today’s trading experience is that, if I already see that the trend is moving up, join the ride if given the opportunity – that’s when the value goes down a bit but has a big chance of going up again. If you missed that chance, then you’ll be left behind, while others are hopeful to gain profits.

Another thing is, set a goal. It seems easy but it’s actually difficult especially if greed comes into place. Greed can destroy our goals thus we have to stay focused. If you plan to sell it at 1.43 based on whatever analysis you used, then stick to it. Yes it may go up to 1.46 or 1.5 or 1.8 but we don’t know if it’s really going to happen. So don’t get fooled by greed. Set a realistic and attainable goal.

Lastly, be content with what you have gained from your trading. No matter how big or small it is, it’s still a win. Not everybody wins in a game. While there are winners, there are also losers. You’re lucky because you’re the winner today. So be satisfied with what you got. My trading capital today was only 5% of my total capital. It gained 5% and I’m happy. I knew it wasn’t much and I would have gained more if I had a higher capital but I’m satisfied with it. It’s still better than putting it in a bank with less than 1% interest per annum. My 5% gain today, good enough to buy a month’s diaper supply for my rockin’ baby girl! 😉

Categories
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! 🙂

Categories
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…