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.
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.
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.
The market had renewed interest on PX (and mining stocks in general) as investors flocked to safe havens in gold (that’s fundamental analysis right there) due to concerns on major global economies (US, China, Europe). As to whether PX will indeed benefit to merit a 52% increase in share prices, who can tell?
Petron Corp (PSE: PCOR) been’s going down for months now (from a high of PHP12) due to fall in global oil prices. Though it’s latest financial report as of this writing showed that it’s actually starting to benefit from low oil prices since their cost of goods sold is much lower now. Plus it’s recently opened refinery.
As such, dear readers, please be guided accordingly. As follows are my disclosures and warning to you, and I shall refer to this post again and again, every time I post my technical analysis on specific stocks.
I keep my indicators and my system simple because for me, the trick is to use what I understand and what works for me, rather than use too many tools and be stricken by analysis paralysis.