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Investment Stock Market

Stock Market Updates as of August 2014

I haven’t shared much about the stock market lately because my posts in July were all about my stock market venture. And I know that it might have been a little boring to some readers who are not interested in this type of investment vehicle.

Also, I kind of took a break in intra-day trading because I have limited funds and my current portfolio seems to be suitable for long-term investment. (Does it sound like a defense mechanism of a loser? 🙂 ) But seriously, as I learn the ins and outs of the stock market plus the knowledge I gained in the seminars that I’ve attended, I’m slowly realizing the advantages of long-term investment over short-term trading. I will tell you more about this in a separate post. In the meantime, I will share some updates related to my stock market venture.

MA (Manila Mining Corporation)

The highest percentage of my portfolio still comes from MA (Manila Mining Corporation). This is not a blue chip company but I still hold on to this stock because I believe in its positive market outlook. The stock value increased a bit after the Stock Rights Offering (SRO) that officially showed up in July. There is a slow movement in its valuation which is indicative to its low trading volume and the trend has always been sideways.

I visited the company’s website to know the disbursements made out of the SRO proceeds. In their report on July 2, 2014, they disclosed that the highest percentage of the proceeds went to Accounts Payable Trade and Accruals while the rest went to the disbursements of  Contractors, Cost of SRO, Care and Maintenance/Adm. Expenses, Drilling Program and Payables to the government like taxes, SSS, etc.

I’m relatively new to stock market and I don’t have enough knowledge in technical and fundamental analyses so if you want to know more about MA, you may visit their website through this link.

I don’t know either if MA was a good choice of stock or if I made a mistake in investing with this company. I’m staying positive and hopefully it follows the footsteps of SCC (Semirara Mining Corporation). 🙂

SINO (Sinophil Corporation)

I used a small portion of my funds to buy SINO (Sinophil Corporation) in June 2014. It was at 1.61 per share when I bought it. A common mistake of a stock market noob is being too eager to go with the flow or buying a hot stock without studying the technical and the fundamental background of the company. Yes I’m guilty of that and I paid my price. 🙂

It was on its peak when I bought it. In technical analysis, they call it resistance. And apparently, after hitting its resistance level, it went back down again and continued to dive until it reached around 1.15 per share. Another heart-breaking experience for me. 🙁

I held on to it and waited patiently. After a month, it bounced back and reached 1.71. And that’s when I decided to sell all my shares with almost 6% profit.

PSEi finally hit its 7,000 level

August is believed to be a ghost month and for some, it is not a good time to invest or open a business. One of the reasons being is that the economy kind of slows down during this month thus some investors take a break from the market. While it is only a belief, historical data show that August seemed to be the weakest month in the stock market.

Surprisingly, PSEi (Philippine Stock Exchange Composite Index) breached the 7,000 mark for the first time in nearly 13 months! PSEi by the way, is the main stock market index of the Philippine Stock Exchange, which is one of the indicators on the general state of the Philippine economy. So when the PSEi is high or is going up, it can be an indication that our economy is doing well or the corporate earnings are improving.

Now, is it a good time to invest?

From what I learned so far, there is no such thing as best day or best time to invest. No matter if it’s ghost month or not, it’s always a good time to invest. But before you take any action, make sure to educate yourself first. As Benjamin Franklin says,

Investment in knowledge pays the best interest.”

Categories
Investment Stock Market

Think Positive – Part II

7/31/2014

My patience and positivity seem to pay off. After availing the stock rights offered by Manila Mining Corporation (MA) on June 16, almost 20% was added to my MA shares of stock. It was only one fifth (1/5) of my total MA shares but it made a huge impact on my portfolio because I bought the stock rights at a much lower price. From almost 10% paper loss, it went down to less than 2% when the additional shares officially showed up on my portfolio on July 1.

As what I’ve shared on my previous article Think Positive – Part I, MA has been down since May. And I got used to it. Sabi ko nga sa sarili ko, manhid na ko. But two months after seeing the consistent double digit loss percentage, for the very first time, MA showed up with an amazing 8.51% gain!

And seeing positive 23% day change the second day after I got my stock rights for MA was absolutely phenomenal. I could feel my ears clapping in joy and excitement. (OA lang 🙂 )

MA has been green since then until the last few trading days of July when it slowly moved down again. Today is the 31st of July and as I write this, I took a peek at my portfolio and saw MA showing red numbers again. 🙁

Could it be that it’s ghost month? (I’ll tell you more about this on my next post.)

 

This is how stock market works. Just like the roller coaster, sometimes it’s high sometimes it’s low. You try to follow the ‘buy low sell high’ strategy but it doesn’t always happen that way. Sometimes you have to hold on to it, pause for a little while and come back later. Truly, patience is the key. And I’m staying positive on MA.

Categories
Investment Stock Market

Think Positive – Part I

6/24/14

What a great day to wake up in the morning, celebrating my husband’s birthday and morning play time with Macey. Not only that, my portfolio looks better today. From 25% to 18% loss last week, now it’s down to 12%. Wow! I haven’t seen this in a while. I’m overwhelmed with the movement. It looks strange to me but I like it. Who isn’t?

My initial goal was to be an intra-day trader – to buy and sell a stock within the day with a profit. I did that a couple of times. But trading days aren’t always the same. There are days when I’m lucky that I get good returns. But there are also days when the stocks go down suddenly and stayed down for a couple of days, weeks, or even months. And that’s what happened to some of my stocks in my portfolio. I bought a stock when it was volatile. Then the market went down. It continued to move down until it stayed there for a while.

MA (Manila Mining Corporation) is one of the stocks that I have on my portfolio. 50% of my portfolio comes from this stock. I bought this stock when I was on my first week in trading. And even if had a little background in stock market, I wasn’t confident with what I was doing. As I was watching the movement of its price, I thought that it was a good buy. So I bought it using half of my total trading capital. What a risk-taker, am I not?

Few days later, the price went up and got a paper gain of about 5-10%. I was very excited to sell it but it seemed like the stock was going to move even higher. So I held it for the time being. Then I went to the province with my family for our 2-week vacation. When I got back, whew! 25% paper loss!

It’s been down since then. So the initial goal of being a short-term trader suddenly became a long-term investor. I was stuck. I had no choice, unless it’s okay for me to sell this stock at a loss. So I held it for the meantime. I even added more when they offered stocks rights. I guess losing is really a part of learning.

This week, this stock started to move again. It’s crawling but I’m positive that’s it’s getting there, slowly but surely. So I’m holding on to this stock for now. I will just consider this as a long term investment. But if it reaches maybe around 20% gain, then that might be the time that I will finally let go of this.

Click to read Think Positive – Part II

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