Stock Market 101
Hosted by Mr. Josef Panerio
Presented by Mr. Edwin Cruz
I am a new trader/investor in the Philippine Stock Market and I just started trading last September 2014. A friend introduced me to COL Financial group and offered me some videos presenting the ways and means in investing in stocks and decided to process my application for the said broker.
To my curiosity and eagerness in stock market and to be able to maximize the funds invested in my account, I did some research and joined some FB groups that tackle the same topics, updates and information. And was able to see a post of Josef Panerio regarding the Stock Market 101 webinar and decided to register and see what I can get from it.
It has been a month ( 4-Saturday sessions ) with Josef and Sir Edwin. I can say that the full course had brought up a lot of realization that will take years to acquire if one will do self study, trial & error and practical experience in trading.
In this short writing, I am sharing my experience and my portfolio from the beginning of my trading until the end of the webinar in the past month that affected my outlook, view, goal setting and attitude in trading in the stock market. I hope that this short webpage will deliver the message that I would like to express to the coaches / mentors I've met in the webinar.
To get started, the next line will show my basic background as an individual seeking a vehicle for investment.
As an investor one should be able to evaluate his-self as to what extent of risk he can expose his resources such as time and funds. The above data was taken from my online banking account offering Mutual Fund to their clients. As they would like to know the type of investor putting in the the capital for investment. You may want to see if your online banking account ( if any ) offers the same profiling for their clients.
Beginning of Trading
I was so excited when my trading began!! Yey! I can buy stocks at last!! The hype of having a big initial fund make me think that I can buy almost all of the stocks! LOL. I seemed like a kid who wants to buy all the candies in the store. Hahahaha, I was like an arrogant man asking " how much is this? how much is that?"
Then, I thought that I was lacking guidance of this is money game and I cannot just loose all the amount that I have deposited in my account. And then I decided to subscribe to TRC ( Truly Rich Club ) and there it was, the stock tips were readily given, updated regularly on a daily basis.
But then again, I was not so happy relying on the data given. There was something pushing me to learn those figures.
The Webinar Started
Before the webinar started , I captured the status of my portfolio and made sure that I have accounts of most trades I am doing doing so comparison can be made before and after the webinar. I wanted to know if joining this webinar and coaching will really improve my performance in handling and managing my portfolio. I was not really happy of the figures I was seeing in my portfolio at that time. My capital has been decreased due to the losses in most of my positions.
As the webinar started I was eagerly evaluating my portfolio on what wrong have I done. The answer was given on the first week of the session. The FUNDAMENTAL approach. And the coaches are correct!!! I chose the positions ( some of them ) based on the speculations I see on the FB groups, blogs and posts of friends doing the same trading.
Next was the TECHNICAL ANALYSIS. It was the most exciting part of the session, we even had overtime hour which Josef didn't even bother at. It was really fun, though it did not really sink in my thought then. But somehow gave me more interest in learning and seeking for more learnings.
During the webinar month, I decided not to do any trading while still learning the basics from the coaches, for 3 weeks I had no buying and selling from my portfolio and no addition have been made in my funds. I decided to look at my portfolio and reflect as to it when I started opening it up and compare the lectures I am getting from the webinar. And I think it actually worked.
The next part of the session was the TRADING MANAGEMENT. This part, triggered me to step up and manage my portfolio though there is a dedicated topic and discussion for it, I decided to break out from my silence in managing my figures and the result?
From this :
to this :
Actions taken :
Based from the fundamentals and technical chartings of the stocks I was holding, I made my evaluation for each of them.
1. AB - for 4 months, AB has not given any strong resistance rather kept falling from its immediate support. Verdict - sell to existing price rather than suffer from the long wait of promising profit.
2. BPI - since I opened my account, BPI has shown only small resistance and remained more in its support level. Though it is good to maintain for long term investment I was aiming for momentum of my funds movement.
3. IMI - from the acquisition of its IPO, IMI did not show any resistance break out though, I chose this because of the its field in electronics ( that might be a good fundamental ) since people now a days are in hype of acquiring gadgets.
4. PLC - I only acquired the stock from a friend's noise! negative fundamental since not all Filipinos are into gambling. I don't want to support a company that will become a reason of people's gambling addiction.
5. PSPC - also acquired from IPO, since the day of acquisition, this position did not show impressive performance, though it was rumored that they will cater the Apple's iPhone and iPad's micro chip production somewhere in Batangas region, it did provide a good back up but remained below the immediate support level.
The last part of the session was the PORTFOLIO MANAGEMENT, which, I unfortunately unable to attend to. However, Josef gave me a prompt response for the webinar recording which I tuned into after.
Nothing will beat the perfect combination of fundamental and technical analysis. Josef once shared his top down analysis in picking up the right stocks to buy, it was very informative discussion tuning into his extra video. I have also decided to combine the available resources online ( TRC SAM table, investpsm.com, FB groups, investigram, etc. ) where I can pick positions with the most profitable return and practical capital required. From there I will apply the fundamental analysis and to be backed up by technical analysis. Charting tool to be used in getting the signal to buy or sell the positions in my portfolio. And of course continues coaching consultation from the masters ( Josef and Sir Edwin )
14 Feb 2015 - as of writing, I am reviewing all the feedback from different sources regarding stocks update. There were groups recommending different companies projected fair value, buy below value, etc. I am just wondering how do they come up with these recommendations. Are they being asked by these company owners to provide promotion-like review of their stocks.
As I have observed, one group like Bo's, has a big impact in the movement of stocks.
PCOR Analysis : 11 Feb 2015
To get started, I would like to review on the economic crisis that hit Russia in the last quarter of 2014 - 2015 beginning. The distinctive reason why the Russian rubble collapsed was mainly due to the increase of oil production in the US per most of the news that time, making a fall from $100 / barrel to $60 / barrel. Making Russia to be on the bottom list of the world wide stock market. Now the oil price plummets to $55 / barrel.
This affected most of the stock markets worldwide. Meanwhile, the Philippines noted to be the most country to benefit from falling oil prices. For the main reason that most, if not all of the oil consumed by the country are all imported. Lower price for importing the oil means higher income to generate.
Going to our assignment. Petron Corp. is a well established oil company (since 1957) making a giant spot in the Philippine oil industry.
10 Feb 2015 - In my view and analysis, PCOR from the previous p/s @10.48, moving downtrend and closed @10.06 with support level @9.462 and low volume in its activity might indicate that the investors are selling their shares. Maybe because of the continuing drop in the oil price threatens for a good return - in traders point of view ( short term ). It might burst out from it's resistance @10.65 but will only have small return ~10%. But looking at the opportunity, this is a good time to buy for capitalists in long term investments. From the news in Arab countries where oil is the main produce and the main source of economy, it will take time for the oil to revamp from its previous price of even ~$70 / barrel.
Verdict - I am not yet into long term investment in the local market. I may want to say "bye bye muna PCOR" and wait for better news in the near future about oil industry. However, this maybe a good timing to start taking positions for long term investments.
My Portfolio Update
As of 13 Feb 2015 - I've decided to cut loss in my EEI position, since the movement is not in the direction of it's resistance. Below is my current portfolio as of writing :
As of 18 Feb 2015 - I've decided to buy shares for FGEN as recommended by Bo. My portfolio closed with higher total equity than 14 Feb.
As of 26 Feb 2015 - my portfolio remained untouched since the acquisition of FGEN, minimal movement with CEB and FGEN as of this week. Though SMPH and LRI closed at better numbers. Action plan, follow SAM table from Bo's TRC. Will review on the fundamentals and technicals after. As of this point, my portfolio's total gain is at 4% in 5 months.
As of 27 Feb 2015 - I've decided to sell most of my SMPH and retained a board lot for future peso cost averaging. Since I have reached the target price of Php 20 p/s. Though it was recommended to sell it at Php 23.60 p/s from TRC's SAM table. My portfolio gained 15% from SMPH. Not bad. :)
And currently my portfolio is looking like this :
After the sell, my portfolio gained more buying power, safe guarding my profit from SMPH. I can use to buy more of CEB shares, since it has one of the highest returns from the SAM table.
I am more likely to turn as a trader in the stock market, aiming to utilize the velocity of my money from OPM ( other people's money ). This was based from the book of Robert Kiyosaki's "Who Took my Money". For the long term investment in the local equity, I am looking at investing in a Mutual Fund, this will be with a different blog that I will write to include my journey in acquiring a Mutual Fund, learnings and tips on how to get the ideal fund based from the goal and profile of an investor.
As of 3 Mar 2015 - CEB has dropped from Php 90 - Php 89.5 p/s @ 1.38% loss. I decided to buy additional 180 shares cutting 50% off my available buying power. CEB is most likely to project more than 70% gain in time. This is my goal for my portfolio at this time, to hit that big return. As the market closes for today, CEB even made a drop to Php 87.7 p/s. I tried to acquire additional shares but it was not pushing through, and found out that was putting the wrong price per share. As the market closes I tried on entering another order @ 87.7 p/s. Good thing my order was executed @ 87.45 p/s as the market closed. My stock position for CEB now is @ 88.9536 average price. This will give my portfolio a higher gain of the CEB will perform higher in the long run.
As of 10 Mar 2015 - I decided start to acquiring DNL in my portfolio. For the fundamental reason that this position is in Consumer industry. Looking at JFC which is a main client for DNL which is soaring high provides a good back up on its performance. DNL was acquired @ 20.2094 p/s
As of 11 Mar 2015 - CEB has closed @ 86.00 p/s. loosing 4% in my CEB stock position.
Reaction : panic mode
Solution : Keep calm
Action plan : acquire more of CEB in the low price margin
Reason : to cost average
The market was really unpredictable in these cases, early in the morning, I checked on my portfolio and saw all of my positions all in green mode. But the closing made a twist.
Looking at the technical graph of CEB for 11 Mar, it seems that the high volume in activity was due to profit taking. There was quite volumes of trading, decreasing the market price. I wonder what made the market to go this trend for today. There were no feedback from TRC members nor news. Anyways, I will just proceed with my strategy.
As of 13 Mar 2015 - I was snot able to meet my action plan for CEB, as I was not able to meet the market with 86 p/s. CEB closed at 87.5 p/s ending my position with 2.42% loss. Still in my tolerable margin. Cebu Pacific is promising a soaring high return. With its expansion of flights, abroad and economical fees compared to other airline, and the booming tourism industry of the country. These are all good back up for its fundamentals.
As I look on my portfolio's performance on a daily basis, I admit that I am still looking for better returns, but I also keep on asking my self ( "when did you start trading?") then I answer back my self ( "not more than a year ago") and then I realize, that it takes time and it takes patience to grow my investment. Keep calm lang nga di ba? Nothing happens overnight.
As of 17 Mar 2015 - CEB plummeted to Php 84 p/s. As usual I was quite alarmed and surprised. I'm still thinking, what could be the reason behind the plunging price of CEB. Anyways, I was able to manage to make my move. Some stock switching from my LRI and DNL to make a good peso cost averaging.
As of 22 Apl 2015 - its been a while since i have updated this site for my portfolio summary. The market has been down for the past week until today, though some of my positions have gained back to some profit. My CEB still remains at Php 81.9 p/s. I still stick to my previous action plan : to acquire more shares at lower price ( more volume, higher return ) targeting to lower my average price. Josef had shared an excel template on his blog site for cost averaging computation. It was a lot of help to determine my next buy. As of writing, my portfolio is standing at this :
I am still reviewing the previous information I acquired from the Stock Market 101 and it ease me to answer my questions on my portfolio. I am still looking forward to enroll to anther level of this webinar.
As of 27 Apl 2015 - Yey!! My action plan seems to be effective. Sticking to my strategy and holding on my positions. With CEB now arising back to it's previous price, I can go ahead and proceed with another plan. To take out the last amount I have entered to buy the last batch of CEB shares. Since it helped in lowering the average price down to Php 86.7 p/s. (",). As of writing, my portfolio enjoys the greens from the positions I am holding.
As of 28 Apl 2015 - ok... ok ... so I was so excited with my today's trading. Well. finally, I think, I did it right. The action plan I set for my portfolio actually worked out!! Yey!! ( but the gain I made from the trade is not that big though ). But, my point is, I have made an action plan wand I was able to execute it and it has given me a result!! How about that!!! How about that!!! hehehehe.
So how did it worked? As I observed the sudden plunges in the price per share in most of my positions in my portfolio, I started to panic again. But as I remembered my trainings, this is the best time to invest ( when the rest are afraid ). Then, upon reading some articles and continues market watch, it turned out to be a correction phase in the market, Most maybe are taking their profit ( just maybe ). Anyways, I was able to buy some shares from CEB @ 82 Php per share. In a couple of days CEB went up to 86.65 Php per share. Then I decided to sell the last batch of my shares, leaving the previous shares I am holding and lowering the average price. From that trade alone, I was able to generate roughly 7% profit ( not bad, right ?).
What's the point there? I am not boasting anything ( 'coz if I do, I should have included the exact figures already ). However, the point here is that I can say that this strategy is feasible and profitable. All you need is the right timing, funds and risk tolerance. If these 3 are combined, I assure any investor would gain from trading.
As of 2 May 2015 - I know it's a weekend, and I should not have any updates on my journal. But, I cant help my excitement for Monday's trading. I have formulated a strategy that I know would work. Hopefully, if it will meet the time frame I need to work on it ( which is a month ). Well, eventually, I thought of this strategy when my action plan for CEB worked out.
What's the plan? I am thinking of selling al of my DNL shares ( since I already have some gain from it ) add up the amount to my remaining balance and buy all JFC shares I can acquire.
Why JFC? Well, fundamentally, JFC is a Blue Chip company. Next, JFC has lead the consumer category in the stock market. From it's past performance, if I'm not mistaken, JFC has started at around 50 Php p/s. This year, it has even reached the height of 240 Php p/s. From these figures alone, I am confident that my plan will work.
Looking at below image , JFC maybe plummeting at some period, but the break out is worth the wait. JFC is one of the stocks I was eyeing before, but the valuation is quite high based from my funds. I am so excited for Monday's trading. Hope that things would work out the way I planned it.
As of 3 May 2015 - Pacquiao lost the game with Mayweather today ( so what? lol ), though I'm not an enthusiast of boxing I feel the dismay of my friends and Pinoys as shown on my feeds from Facebook account . Anyways, I wonder how will it affect my stocks for tomorrows trading? Will it make most of the shares to plummet? I doubt!! hahahahaha. Well, going back, I have done an O-H Orders for my JFC ( just to be sure that I'm hitting my goal when the trading opens tomorrow ). Below is the plan I have thought of executing. Sell DNL and buy JFC from my remaining funds. Add JFC shares when DNL executes the selling. Wish me luck!!! :)
As of 4 May 2015 - well, things did not fall into their places as I planned it :(. The O- H order I made for JFC did not go through, only but selling DNL was executed. It turned out that JFC closed @ 207 Php p/s. I could have gained 4.02% from today's trade alone. I even send email to COL as to how did my O-H order did not go through and has given me an immediate feedback. Anyways, shaking things off, I decided to buy my remaining funds from selling my DNL shares ( better than nothing :) on the brighter side ) . I needed to end the day to reagin my funds in the O-H orders for JFC, I will buy additional shares by tomorrow and hold it for at least a month. Looking at the history of JFC, it has reached 240 Php p/s in the 1st quarter of this year, not bad to look forward to. Here is the latest update for my portfolio.
With in the months I was doing my trading. There were advices and techniques that were shared from the forums, groups, blogs and other sites that say guaranteed return in investing in the local equity. The thing is, if we are to practice all of these advices and techniques, it will only give conflict to individual investor. Well, for me, I just have to define my goal, my reason why I have chosen stock market as my vehicle for investment, my time frame and of course my resources ( time and funds ).
For now, I have learned some techniques like stocks switching, foundation, 30/30/30, 30/70. Hahaha. For now I suppose that I am the only one who understands these, but I assure you that these are the things I see from those forums and articles I am reading pertaining to stocks trading, long term and short term strategy. I am still sticking to Kiyosaki's velocity of money through other people's money ( OPM ). Proper timing is the main requirement to achieve this based on my trading experience.
First, let me define my goal - to be able to preserve my capital investment with maximum return. I just want to make the most out of my funds. My account from a bank where I put my 1 year savings triggered my curiosity to find an investment vehicle. I was able to out my savings for a year in that bank but did not give me any return at all. Then I thought, that I should invest my money properly. That year that passed could have provided me some return if I just did the right move. After reading Kiyosaki's book, I learned that I have to employ my money and let it work for me. So I let it work in the stock market.
Why stock market ?
I have become financially literate when I started following some groups and blogs. There are different types of investments like business, real estate, bank deposits, bonds etc. I find stock market challenging and exciting for the main reason that I am hands on, no one to blame but me and me alone. Accessibility on my account gives me convenience in managing my funds plus I am continuously learning from the market. New things everyday. I don't need to depend on someone to manage my funds for me. Though risk is high, return is also promising. I don't need to exert much effort and the transaction is secure and stress free.
Kiyosaki does not believe in a long term investment but rather in the velocity of the money in using other people's money, and this is what I want to decipher. And apply to my portfolio as much as I can. As per my experience, the more your funds move in and out of your stock position, the more they lose or gain return. If these actions will be executed on proper timing, I see the potential in getting a huge return.
My objective in writing this feedback is to account my profile as a beginning investor, evaluate my improvement needs and to make a roadmap to approach my goal in using this investment vehicle ( to preserve my capital with maximum return ).
I would like to join the mentors / coaches of this webinar with their advocacy to expose the benefit of investing in our local stock market. And to invite more investors from abroad especially OFW's who are aiming to provide better future to their familes. To provide insights that there is a vehicle for investment like stock market ( since many of the migrant workers are not aware of our local stock market )
One day will come, that most OFW's will not only discuss their family problems, burdens and suffering that reminds them why they should stay and work in a hostile place but the updates and trends in the local market . One day will come, that one by one, OFW's will go home with out fear of losing their financial stability in abroad because they made the right choice, to invest in the Philippine Stock Market. :)
They call me Doms at work. I was a BPO employee before I left home to work abroad. Undergrad of BS ECE from Mapua Institute of Technology and has been out of school youth for 10 years now, an OFW for 4 years and a new investor from September of 2014. As of the moment I spend my free time on part time learnings such as VA webinars of Jomar Hilario, aiming to work from home one day to replace my source of income and to fulfill my dream of serving and taking care of my parents and help to spread and maintain Catholicism by helping Filipino family to be united by ending the OFW effect ( thanks to Jomar Hilario for opening my mind into this matter )
I dream of acquiring a farm land for my father and put up an organic resto. Soon! :)
Thank you for your time!
- The author does not intend to promote anything or anyone on this site. The above mentioned names and broker were included to support the content of the writing. These are all based from real life experience/s of the writer. This site intends only to provide and relay feedback and information. The writer is not liable for any losses that may occur if the sample portfolio is followed.