If it’s negative news then people tend to sell on news. Trick here is to be fast because before you know it, the price has already plunged to irrational levels only to recover in the next few days as the market digests the actual impact of negative news. Selling during the plunge itself may force you to sell at very low prices which you might regret tomorrow.
When I was starting I used to hold on to my losses even if its 40% deep already. I wanted all my trades to be profitable. Ain’t gonna happen kid. Now my priority is keep my portfolio profitable regardless of what stocks I ride to achieve that. Don’t fall in love with a stock.
Sell when happy. Nothing wrong with taking profits. Understand the human psyche that fear of missing out (FOMO) is usually stronger than our fear of loss and there are times this can work against us.
Every year, market participants see August as ghost month, and this year, according to Chinese Lunar calendars, it will be from Aug 3 to 31. During this period, believers do not make any major investments, transactions or agreements as the period is well, inauspicious.
I tried subscribing again for Cemex (PSE: CHP) via online broker, as I completely ignored the previous one, Villar’s Golden Haven (PSE: HVN). Was not expecting get allocations on CHP, so I was actually surprised that my whole subscription bid was fulfilled. I was actually expecting a raffle due to oversubscription, but no. Which worries me.
For newbies, don’t get me wrong. Stocks investments and trading need not be complicated, but if you are already comfortable with the easy stuff, you will feel that somehow you can take on the more complicated styles.
At above quoted rates, this definitely beats your time deposit returns. Not risk free though, risk is if SMC files for bankruptcy, preferred shareholders are not the first in line post-liquidation of assets. Lenders will definitely be first, then preferred shareholders, followed by common shareholders.
What happened to TEL shows how Buy and Hold (Forever) can hurt Juan’s investments. Those who bought TEL in 2006, hoping to gain much from it, will be depressed to see that after 10 years, there wasn’t any capital appreciation. Wasted time. Wasted paper gains all those years. I hope not a lot of people did that. Though again, a small compensation is the dividends so in that sense, it is still a lot better off than time deposits (even if invested capital did not appreciate).
Also made a test buy on PSE: SSI, again for my new tsupit fund (TF). Under the same premise that SSI is now ready to climb. After the long bullish candle to start Feb, SSI did not gain much ground in the succeeding trading days. But it seems to be forming a flag waiting for a break on the narrowing channel. Waiting for newcomers?
PSE:MPI remains one of our all time favorites (PD: Very long on MPI, since 2014). Anyway, the last few days, the stock seems to be losing its momentum and may retest its resistance-turned support (5.50) soon. Series of indecisive candles plus waning volume. Stochastics also pointing down.