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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.

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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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Image Source: http://cipworldwide.org/wp-content/uploads/2012/12/think-positive.jpg

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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! 😉

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Investment Stock Market

My portfolio shows 25% Paper Loss

6/17/14

I read somewhere that stock market trading is not about IQ but more on EQ. I couldn’t agree more on this. Seeing my portfolio losing almost 25% of my total account equity value is really heart-breaking. Yes, I wanna cry! Huhu! 🙁

Before I started trading, I tried to convince myself that I won’t let my emotions affect me especially when I’m losing ‘money’ on a stock. And yes, I’m doing it right now. I’m trying hard. It’s truly hard but I’m still holding on to it. I’m still hoping that one day, these stocks that I previously picked will go back on top and regain their momentum. Pretty soon hopefully.

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Investment Stock Market

Still Trying to find a Good Strategy in the Stock Market

6/5/2014

They say that you need to be prepared before you enter the stock market.

First, you should have at least researched some information about how it works and the risks associated with it. Second, you need to have money that you’re going to use to fund your account especially if you’re going to be an active trader. This is the money that you think you can afford to lose and not the money that you expect to use to pay for your next bills. Third, you need to have a strategy. And for me, this is the most difficult but the most important thing to have before venturing into the stock market.

When I entered the stock market, I had a little background about stock market from what I’ve read in the articles and blogs online. I invested a small capital to fund my account to start trading. But I didn’t have the last thing, which is also the most important of all. That’s strategy.

What I only knew is that when you’re in the stock market, you buy low and you sell high. It sounds easy and I thought anybody can do it, including myself.

That’s what I thought. That stock market is just as easy as one two three.

As I trade, I try to follow my rule of thumb: to buy low and to sell high.

Yes I tried… I try… And I keep on trying. But contrary to what I initially thought, it’s indeed not easy.

I try to buy a stock when I feel it’s low and I plan to sell it when I gain about 5-10% profit. But most of the time, the market doesn’t seem to go my way. Thus I get stuck and I just find myself waiting until the price goes up again before I sell it. Sometimes, I sell it even if it’s way lower than my buy price just to cut the losses. And I ‘go home’ feeling down.

I don’t know what my strategy is. I don’t even know what I’m doing now. I feel like I’m going nowhere. And yes I know I’m in the danger zone!

But I believe experience is the best teacher. Had I not entered the stock market, i wouldn’t know how it actually feels to be into it. And most of my losses are giving me a lot of lessons.

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Image Source:

http://blogs-images.forbes.com/work-in-progress/files/2012/09/Strategy.jpg

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Investment Stock Market

Thanks NIKL for my P27 gain, but greed please go away!

I bought NIKL at a price of 25.2 on April 29, 2014. It was my first day in trading.

The next day, the price stayed lower than my buy price and I got bothered. I set a goal that I will sell it as soon as it hits a price higher than my buy price. When it hits 25.5 on the third day, I sold it all without hesitations. I met my target and so I let go of it with a net gain of P27.53.

But the price went up further in the following days. From 26 to 27 to 28 and even 29!

Ugh! I should have held it rather than selling it too soon. Yes greed was slowly killing me at some point. I regret that I sold it early. But I always keep on reminding myself that I should not be controlled by greed.

I guess, one lesson learned for me is when I set a goal, I should follow it, accept the gain or loss, and try not to check it back nor recompute it using its current price especially if it’s higher now than when I sold it because it’s just going to make me feel bad.

Another thing is, I should always think of my decision positively. It’s okay that I sold it early. I may not have earned much but at least I didn’t lose much either. That 27 pesos, no matter how small, it’s a real profit. It’s even higher than a month’s interest in the bank for your P50,000 savings account.

You might say, wehhh? But yes, it’s true. I once had 50,000 on my savings account back then (yes back then :)) and I was happy to see it earned 20 pesos interest. Not bad, was it? It was passive income after all.

But actually, I’m just kind of ‘sour graping’. I’m just trying to make myself feel better with that supposedly higher profit that I earned had I not sold NIKL too soon… Oh greed, stay away from me!

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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

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

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.