When I started stocks trading in the PSE, I started from P25,000 and a monthly P10,000 accumulation in my capital, I begin with the Peso Cost Averaging and buying a recommendations. I don’t mind if the price is high, I just buy the stock that I like. My first stock was IDC which I gained P4,500 in 3 weeks.
After I digested some TAP wisdom and studied some basic technical indicators like identifying the support and resistance, buy low and sell high, RSI overbought and Oversold, I started to get-out of my shell. Which I trade on my own and gained a total of P6,705 in two (2) weeks, with 6 winning streaks and 2 losses.
After having my full confidence in my trading execution, I continued jumping in and out in my stock position which has resulted some bad outcomes in my next trading days.
It was the month of March 2018, when I found out the VUL, I saw in this stock that it has a potential of a big spike; they said “The Big Money is in the Big Swings”. And so I tried my luck. I bought the VUL when it was @ P1.00 and closed above P1.04.
On the next trading days, the VUL price is going down day by day and dropped below the lowest @ P0.60. I found out that it was a bull trap. My plan then is to accumulate more shares as fast as I can and hold it, up to six (6) months. In my vision I can see that it will swing higher soon.
Being a newbie trader, I am very confused and I am always asking myself if I should hold or cutloss my VUL stock. During these periods I am losing my hopes and strategy. That’s why I asked an opinion with someone is professional experienced trader. He told me to cutloss and sell. So I sell at P0.96 and in the next day the VUL price rose at P1.11. My bad. I regret.
Reminiscing the past, the VUL went peak as high at 2.46. If only I followed myself on what I believed I must be a bagger now.
I lost everything, I lost my confidence which pushed me in a very emotional distress situation which is resulted a losing streaks in my next trading days. It was very painful to me because I am losing my hard earned money. I know that nobody to blame but myself.
My losing results was 15 streak losses with a total amount of -P50,000 from P100,000 of my capital. I asked myself, why is this happening to me? Why I am suffering this very painful experienced. I wish I have not started this trading. I realized that I became greed from being distress. It was my emotion that put my capital in risk in every trading execution that I made.
As the time goes by, in four (4) months from March to July this year 2018, day and night during my work and even in my sleep I pushed to learn and studied on how to become a profitable trader. I studied the basic technical indicators which are the MACD, RSI, Stoch RSI, Williams %, Ichimoku cloud, PSAR break, Fibonacci retracement. I read news in the edge.pse, I read and try to understand how the news will impact the stock prices.
Day and night I am thinking about the charts. Thinking how on this earth these professional trader can make a money; how do they control their emotions and generate a continuous winning streaks. How they can find a bagger stocks.
After four (4) months of studying of the basic technical indicators and understanding the articles news of each stocks, I confirmed that I became more effective; and I generated 14 wins and 3 cutloss in 17 trading executions of being a tsupitero.
Being a keen observer and as an explorer in fact finding, I therefore conclude that in trading you must not trade by emotion but trade confidently with your positive thinking using the technical indicators. Trade what you see on the charts and do not trade what you hear.
On my journey in exploring the stock market, there are so many stocks that I have missed being a tsupitero and these stocks went through peak as high to the moon! I missed the big move from ATN which I positioned myself at 0.70, and this stock rose high went to peak @ P1.69.
I did found out that this stock is making a higher high and a higher low during its peak. The news were very fresh, I read everything about ATN and its future. What’s my mistake? I didn’t believe to myself. I believe by being a tsupitero. I sold early my positions. Kaya sabi nila, walang yumayaman na tsupitero.
I missed also the big move at IRC which I positioned myself at P1.49 and went to peak as high at P2.80. My mistake I sold early at P1.53. I was a fooled tsupitero. Haha.
As of now, I have one (1) stock that will return all my losses and will generate gains once it breaks the cloud. Bodega lang dudung… I cannot disclose to you. I know everything from this stock, hint? It is the one of the strongest stocks in the PSE fundamentally, good earnings, good book value, good company, everything is good. But technically never mind!
Conclusion: Being a tsupitero will not make you milyonaryo, but being a position trader will do. Set aside a money for tsupit, there must be a separate budget for tsupit like 20% to 30% of your funds and there must be an allocated budget for your bagger stock 70% of your capital.
In my 9 months experienced in the PSE, I generated a total of 62 trades, 34 wins and 28 losses. 55% gains (P145, 113.35) and 45% losses (-P104, 984.41). And a net gain of 24% (P40, 128.94).
I know that my next bagger stock will make me hopefully sooner a milyonaryo. Maybe it’s still early to tell, and too far to come.
One thing I realized when I entered the PSE, I realized that I am entering at the Bear market during end of January 2018 and the Bull market is about to end at the month of March.
I survived the Bear market. I am confident and believe that I can survive too during the bull market when it comes soon. During my nine (9) months in the PSE, the biggest thing that I learned is that I learned not to trade by emotions and by protecting my capital.
My advise to the newbies? Trade on your own, don’t mind the others port, and never ever get hyped! Hype will put you in your greatest losing position.
I am not a guru, I am not a CPA or MBA graduate, I am just an ordinary man came from a poor life from being a balut vendor, pandesal vendor, panadero, pedicab driver, and a garbage collector.
My dream is to create a wealth from nothing and to share it to the poor, to tell them on how to create a wealth from nothing if I succeed my journey in the Stock Market. Thank you.
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