7.0 Addicted to the Wave

Each day, I always get excited to look at the PSE stock market OPEN, HIGH, LOW, CLOSE price quotes. It fulfills me that my analysis the previous day is indeed correct. I have been analysing PNB stocks vis-a-vis the three peer banks - MBT, BDO, and BPI since middle of January. At the end of the trading day, I immediately gather the four price quotes of the stocks of each bank and update my candlestick chart. PNB, MBT, and BDO stocks behave in the same manner. BPI is more volatile with its price swinging wildly from high to low along the trend. I am trying to understand why BPI is behaving so and it makes me feel unsafe to trade with BPI because of its high and unpredictable volatility. 

06. Birth of a ChArtist

I purposely capitalized the letter “A” in the word “Chartist” for a reason. Although chart analysis is a science as there is a great deal of math, and psychology behind the charts, I am convinced that for one to see the fine footprints of what is going on in the market and where it is going, one has to draw up from his innate artistry of reading the charts. Thus, the generation of the charts is science but its interpretation is art.

05. Learning to Swim

As a novice trader, I fully understand the importance of learning the tricks of the trade fast. Thankfully, I saw an electronic board advertisement along Ayala Avenue by chance inviting applicants for the 5th PSE - Ateneo Certification for Securities Specialist Course. If I am to become a full-time trader, I need to be certified as one. I did not waste my time. After convingcing my wife, I enrolled in the course. I was number 47 and the cut-off is 50 students for this class. I got lucky and I took it as a sign that this one is really for me. The new direction for my career has now taken an irreversible course. It is evident that securities trading is becoming popular among young professionals and I can sense that a lot of them will be shifting their careers too and soon if they get to be confident in their knowledge and experience in the securities market.

04. Wave Lessons 1

While my first foray into stock trading and investing was successful, I consider it more of a freshman luck. I was simply cost averaging and there was totally no systematic and orderly plan at what price I enter and exit the market. It was all trade and no plan. I could have improved my profit and ROI considerably if I did a little technical and fundamental analysis. Looking back, these are the lessons I learned. These shall serve as my trading and investing philosophy from hereon until such time that these will be debunked by future experiences.

03. The First Ride

I was introduced to stock market investing and trading in April 2007. The Bank I was working for alloted a small portion of new stocks issued to its employees at a price of P64.5 per share. A friend encouraged me to buy and so I did and bought 400 shares. The bank was then raising new capital to satisfy Basel II requirements. The newly issued stock was oversubscribed and there was evident excitement that the price would go up to P100 per share within a few months.

02. Aiming for the Moon

My personal moon is a 60% average annual rate of return on investment over 15 years. This is high by any account and most probably unreachable. That is why it is called aiming for the moon. Is this really unrealistic? Am I setting up myself for failure? Is this a march towards self-destruction?

01. A Leap of Faith into Stock Investing

I used to work in a bank. While I loved my job and the people I was working with, I figured that the compensation would not help achieve my long-term goals in life. I set higher and loftier goals than most. When I was a kid, I was already envisioning of grander things. I came across this saying that have stricken me for many years now that "If you aim for the moon, you might hit an eagle, but if you aim for an eagle, you might hit the rock." I believe in this like a biblical truth.