Monthly Archives: February 2012

Time for change!

Man… It’s been a tough time balancing studies and learning/trading stocks.  Phil market is generally down, due to the uncertainties in Greece. I think that the worst is yet to come. I think I’ll have to drop 1 subject because it’s too much of a hassle to study stocks together with my full load this term 😦

I’ve been absent for two quizzes and it’s been a problem of mine ever since to keep on procrastinating on my responsibilities. I have this habit of being a perfectionist. I believe in my mind that things can be done, I am quite confident with my abilities, but the problem is that I don’t have enough willpower and discipline to stick to something till the end and just do what I have to do immediately. I know that I easily get distracted whenever I find new endeavors. I had a very bad academic term last time because I got addicted to this “certain” hobby (I won’t share it as not to give clues to my identity :p). Good thing though, I achieved my goal on this endeavor. Because of my passion and dedication–or addiction–I became a champion in it, which actually gave me starting funds to use for my business ventures.

With my garnered funds (50k), I decided to start my online stock trading account. I then used my money from my bank account and raised funds from an investor to make my portfolio reach 200k–the required account equity value in order to avail for their Margin Accounts. Why did I register for the margin account? Even though I am a total newbie in the world of stocks, my experience in this certain brokerage gave me an overview of the market. I basically watched the market and worked with our salestraders and our dealers. From what I see there are certain opportunities that are like “no-brainer” deals, that we can capitalize on. So I use the margin account for short to medium term trade positions.

 

So far not everything is going that good, I have learned a few lessons:

  • If you do not have the patience then chances are the entry price (buying) of your stocks are a bit off, likewise, the same applies to your exit (sell) price. I’ve learned this countless of times, I’ve day traded good stocks on their initial runs such as RLC and AGI. Bough RLC at 12.40, sold at 13.00+ then bought again at 13.20 then sold at 13.80, bought again at 13.14 sold at 13.92) Yes, I was able to accumulate some profit, but the problem was my position during that time was only about 10-13k so my profits were little. I learned that it would have been better if I just positioned early (just like my first entry at 12.40) and increased my holdings for RLC then I should’ve reaped more profits by now–It is trading at 14.70-15.20 levels at this time.
  • When you set a goal and if you achieve it, you must learn to appreciate it and be happy with it. Learned this from MEG Bought at 1.77, I thought that it would go back to 1.80+ levels since during that period it was trading mostly at those levels. Unfortunately it went lower and I had to hold it, when time came that it was about 1.92-1.93 I didn’t sell– I failed to get my first profit of about 4.5k PHP. 😦
  • Learn to Accept Loss. Like they say, time is of the essence, after the surge of MEG from 1.93 tops, it went down to 1.69, it was heavily bombarded by foreign sellers so I decided to cut loss for 3k (ouch my first big loss) . I think that MEG is really sensitive to issues and to foreign news compared to its peers such as ALI, and RLC that’s why I let go of my position there. Another reason I did that was because ORE was trending up during that time (about 4.40 to 5.00) so I decided to switch my position there. Besides MEG, I had other losing positions such as AGI and FPH (lucky me, all of my major holds were affected by sudden selldowns ahahaha 😐 )  I decided to sell MEG instead of the others because I thought that the other two were more superior in terms of foundation. After that I was able to sell my ORE for 5.09 costs at 5.75
  • Proper Analysis and Patience. Sometimes we tend to get impatient and we decide to either buy or sell at premature stages. I’ve had lots of experience with this since I am still on the learning process. I saw BHI being bought by big brokers, then I saw that volume was high, it was trading at 1.67 so I bought at 1.70, after a while it surged to 1.80. A day or two, it surged to 0.185-0.187. It reached .187 then went back to 0.185, then I decided to sell at 0.185, thinking that it would just go down. I didn’t put into consideration the volume during the accumulation stage–meaning, something must really be up on this stock. After I sold, it surged to .210 after a while. Another wrong move for me.. sigh.

So far, I’ve profited a bit, although I really missed some big opportunities. I hope that I learn from these mistakes. Hopefully you will too 🙂

 

That’s for my first post,

Imbang Klase

 

 

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