Missed the Trader’s Summit but serious on becoming a stocks trader or investor? Well here are my notes on the event. Sharing with you my key takeaways on the trading inspirations, some technical know-hows and trading psychology.
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).
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.
the timing effect in the investment is minimized since purchases are spread out. Supposedly, the time you buy (whether at a high or low) is no longer relevant since your average purchase price will tend to be lower than future values.
The market was definitely hyped with the news. What if just mere hype? See the sudden increased volume in February as a series of long green candles wrote SMDC’s recent story.
Market Rider hits the nail on its head: “Building true wealth is more a product of deliberate planning than by chance.” So true, not just for stocks but in all other wealth building endeavors.
The ratio tells you that you pay this much for a stock that earns this much. So for a PE ratio of 16, it tells us that market participants are willing to pay 16 times the expected earning of the share.