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! 😉