SideDish: Come into my trading room - First Steps

I like to review lines or paragraphs from the book i have read. Below is another things to remember when trading the market. It is from Alexader Elder's Come Into my trading room.

THE FIRST STEPS

Trading lures us with its promise of freedom. If you know how to trade, you can live and work anywhere in the world, be independent from the routine and not answer to anybody. Trading attracts people of above average intelligence who enjoys games and aren't afraid of risks. Before you rush into this exciting venture, keep in mind that in addition to your enthusiasm you will need to bring a sober understanding of the realities of trading.

* Trading will stress your feelings. To survive and succeed, you will need to develop a sound trading psychology.

* Trading will challenge your mind. To gain an edge in the markets, you will need to master good analytic methods.

* Trading will demand good mathematical skills. A math illiterate who can't manage risks is guaranteed to bust out.

Trading psychology, technical analysis, money management-if you learn all three, you can make it in trading.

The markets are set up to separate the maximum number of people from their money. Stealing is not permitted, but markets are heavily slanted in favor of insiders and against outsiders.

StockLog: April 30, 2013

* MPI broke out today and close at 6.12.

* BLOOM had a good fight today. It went as high as 12.20 but closed on red territory 12. Bearish sentiment is seen in my indicators.

* FOOD down to 2.05

* PNX confirmed its bullish bias after they announced the x date (May 9) for 30% stock div. if this stock will give me a good price, ill buy.

* FGEN another last minute sell down to 22.55

* PGOLD wow, went as high as 40.35 due income report.

* Market close on May 1 (Labor Day)

StockLog: April 29, 2013

* Sold AP

* Bloom retraced to 12.40 then around 10am, get back and touched 12.80. It was battered by afternoon by touching 12. I added another batch at 12.06. It closed at 12.02 with the board still dominated by bears. Heard that govt will tax gaming companies plus the leak news i think caused this stock to drop.

* Congratz to those who traded BHI. That was a good run. I just watched on the sideline.

* PGOLD already showing the will to get back on track.

* FGEN bears showed their power in morning session but bulls attacked before recess. An unexpected selldown before market close when Papa Sec dumped at 22.70.

* APM have entertained TLB chatroom when it went down to .1570 and bounced back to .1630. Whipsaw? Welcome to stock market.

StockExit: Aboitiz Power

After playing the dividend of this stock. I decided to SELL it today. Fundamentally good stock, they have good position to make it big in Mindanao power crisis. My reason of selling is i may get another good price this coming May. I also keeping cash on my portfolio for some bargain when SELL IN MAY hit the market.

StockWatch: ARA, AT, BKD, FGEN, NIKL and PGOLD

This week I will closely watch BLOOM as SOLAIRE had a
leak on the ceiling that affected some of the slot machine
management said that the problem will be fixed in no time
but still i don't know how traders/investors will react on
the news so better have a close lookout. This is just part
of the plan that even technically the stock is good but
sudden news may cause the stock price to drop

I am also planning to exit AP this trading week.

Traders may be more cautious this week as May 1 is
holiday (Labor Day) and the SELL IN MAY AND GO AWAY.
is just around the corner. But this is the stock market,
We can expect the unexpected.

For the stock that may fit on my trading system, the
following stock is in my watchlist this week:

Chart as of 04/26/2013

1. ARA
* EMA : Down
* MACD : Down on positive territory
* Histogram : tick higher, negative territory
* RSI : 48 pointing down, trading range
* STS : 10.53 pointing down, bottom

2. AT
* EMA : Down
* MACD : UP on negative territory
* Histogram : tick lower, negative territory
* RSI : 39 pointing down, trading range
* STS : 11.18 pointing down, bottom

3. BKD
* EMA : Down
* MACD : Down on positive territory
* Histogram : Down, negative territory
* RSI : 50 pointing down, high risk on trading range
* STS : 21 pointing down, on the line

4. FGEN - This is strong BUY. Need to find a good entry
* EMA : Down
* MACD : UP on negative territory
* Histogram : UP, negative territory
* RSI : 39.42 pointing up, safe start for trading range
* STS : 11.7 pointing up, bottom

3. NIKL - Wait for MACD to be more convincing
* EMA : Down
* MACD : Down on positive territory
* Histogram : Down, negative territory
* RSI : 43.82 pointing up, trading range
* STS :18.6 pointing up, on the line
* Rays : BULLS getting stronger


5. PGOLD - Wait for MACD to be more convincing
* EMA : Down
* MACD : up on negative territory
* Histogram : up, negative territory
* RSI : 42.68 pointing up, trading range
* STS :12.28 pointing up, between line and bottom
* Rays : BULLS getting stronger

SideDish: Failon Ngayon - Sugal

I am curious how Failon Ngayon will show the public about gambling. Why the hell am i curious? Because as of this writing, i have BLOOM in my portfolio. One of their business is SOLAIRE, gaming business.
Well, it's not only BLOOM is in this business, WEB, LR and BEL also have a gaming business. I also heard that Resorts World, also have gaming business is planning to have an Initial Public Offering.

True that these games may lead to addiction, addiction may lead to destruction of family. Destroyed family may also causes destroyed society. These businesses also generate millions of revenue for the government.

In my humble opinion, if my income is just enough for my family's basic needs . I will not get into gambling even if they put a gaming terminal in front of my door. Well that's just me and we don't have the same thinking of those people who blame gambling in the destruction of their lives.

How do I Trade

Here's the list on how I trade the market:

1. BUY : By Indicators
1.1 EMA changed direction from down
to up. If my sts/rsi is in oversold
level and already pointing up, i do
not wait EMA to change direction,
and the price is on or broke the
lower band.
1.2 MACD is in the negative zone.
1.3 MACD Histogram is in the negative
zone but already rising.
1.4 RSI is oversold and pointing up
1.5 STS is oversold and pointing up
1.6 Bull power's latest peak is higher
than previous
1.7 Bear power is negative but rising

I build my position in four tranches, 50% , 25% and another 25% of my planned size or number of shares.


I usually SELL my position when the above indicators started to reverse OR if there is a sudden NEWS that may cause the price to drop. resistance and upper band are also my indicators to SELL. What i like with this trading approach is that it exposes me to minimum risk and a high chance of big profit.


2. BUY : On Rumors OR Stock Disclosure
There are times in the market that i get information about backdoor, inclusion to the index, new asset aquisition, new business aquisition, dividend declaration and other rumor or news that causes the price of the stock to go higher. I then check the chart of the stock according to my indicators, if it fits to my buy signal, well and good. If not i will watch the volume and price action and will try to trade the price movement. This approach is very risky. PROFIT and LOSS is very high. When i trade using this approach, i expose a small amount of capital and jump out quickly when price go against my position.

My Trading System Monitor

Here's how my trading system look like

My chart and setup

COL Chart
Type : Candlestick

Range : Usually 1 year, but i also check 6 and 3 months depending on the stock

Channel : Bollinger Bands

Trend Following Indicators:
- 20Day EMA (Exponential Moving Average)
- MACD (Moving Average Convergence Divergence) 12,26,9

Oscillators
Primary:
- RSI (14,30,70)
- STS (5,3,5)

Secondary:
- 20Day Elder Ray (Bull and Bear)

Books that developed myself as a Trader

Books will tell you a lot of stories. it will bring
you to places you've never been and never imagined. As
for me, it was and still my source of power, wisdom, techniques
and battle gear in every war the market brings to my
portfolio. What i like about today's technology is that
books is not the only source for you to learn, a wide range
of environment is available. i am also following experienced
traders in social media (facebook and twitter). i also have my
favorite forum (www.financemanila.com) and chatroom(www.traderslogbook.com)
as a source of anything about stock market.

Here's the list of the books that helped me how
to trade the stock market:

Michael W. Covel : The Complete TurtleTrader
Jack D. Schwager :
Market Wizards
The New Market Wizards
Van K. Tharp : Super Trader
Alexander Elder :
Trading For A Living
Come Into My Trading Room
Entries And Exits

From this list, my personal favorite are the books
of Van Tharp and Alexander Elder. I learned the psychology
of the market, Indicators or Tools that I need to Use (i modified
and applied according to my risk and trading style) and Money Management.
I advice everyone who is interested to join the market to read these books
before jumping in. The market is always there and will always be there no
matter you've made money or lost all of your money trading/investing.

CAL : My first IPO experience

I think every trader in the Philippine Stock Exchange knew how CALATA entered the market. Many of the traders / investors gained a lot and there were also lost a lot. Well for me, it was one of my best trade of 2012. I subscribe to COL for my ipo shares and also added during actual IPO. Sold at 12 level, bought again then sold at 21. And the rest, CAL became alcatraz of some traders and for me, it served as another inspiration to study more about stock trading. I know someone who lost an ample amount because of CAL and also someone who gained a lot from it. And the rest became history on what happened to this stock. I just hope that the rumor is not true that there were traders who committed suicide because of their loss with CAL.

Seminar and paid stock subscription

Do i really need to share this? Ok, ok fir the purpose of documenting my stock investing / trading history, I'll include this one. I can say that there was a good and bad side of this story.
Due to some disappointments with the market, i bumped one time in a forum wherein this "experienced" trader will be conducting seminar and also offer stock advisories. To make it short, i attended the trading seminar, learned how momentum trading, what causes the stock to rise and some other things about stock trading. I've learned something of course... But since i was very new to stock market and experienced my first losses, i tried to be a paid subscriber. What happened, i blindly buy the stock he recommended. Without any technical /fundamental knowledge, i've added additional losses to my portfolio. Thank god he never stopped guiding me, i gained from PWR, LC and MA. These stock brought back some of my previous losses and my capital got back to where it was.
This time i started to record how much money i have put in the stock market and compare it with my portfolio. That way i have a record wherein i can say if i am in trouble or not. I usually add funds to my portfolio every payday and if i have extra money from sideline jobs. I also realised that i will not survive in this business if i will just rely on advisories and buying blindly. I've seen sharks in the market, it doesn't even give you warning that they will sell which cause me to panic and cut losses. I MUST LEARN AND TRAIN LIKE A SOLDIER for me to survive!
So I decided to put my money first to BDO, SMPH and PGOLD while i focus most of my time learning. I also did not renew my paid subscription but applied for the free version. This time, i just use the info as another source of rumor. Because rumor is one of the reasons why stock price rises.

Broker and the first path

April of 2011, after some inspiration about stock investing, i decided to open an account with CitisecOnline(COL Financial now). My plan during that time was to invest using peso cost averaging, by this i followed what citisec dubbed as EIP or the Easy Investment Program. After my account was activated, i then decided my first stock...JFC or jollibee. Without knowledge about when is the good timing to buy, i just bought current price which was 98. Up until now, i still laugh to myself what the heck i was thinking. Well, thats part of the plan during that time, just buy the stock every payday at market price. As it is the advice with EIP. Of course i was so excited because i am already part owner of the well known fast food chain in the country.
Then i saw how JFC price went down...and that's the time my newbie feeling got in, FEAR, fear that i may lost the money that i invested. Oh, i also bought SMPH that time... But in my dismay, the price also went down. And even now, i can't even remember rhe price and day when i decided to SELl my stock. I believe it was also my first experience of LOSS in the stock market. The next thing i know, i already signed up to attend a trading seminar and paid subscription to recieve advisories on what stock to buy. Yes i know, its another stupid thing a newbie would do. I mean to let a "guru" kuno to tell me what stock to buy.

The first financial book

It was late December of 2010, i accompanied Jeneth in Ayala as she would see her sister. To let them have their sister time, i decided to walk around ayala and landed in national bookstore. I was browsing different book then i came along with "12 Steps to build wealth by Alvin T. Tabañag". I was intrigue with the feedback written at the back of the book so I decided to buy it. When we got home, i begun reading the book and it was really an eye opener for me. The message hit me directly on how i deal and handle money. I think it was the book that shook myself that i really need to get back to my project, to go to stock. But i remember that still i don!t have enough money to start with. So i decided to make a plan to change my mindset on how i can save and raise money for my project. Inspired by the book, i didn't stop researching books. I then again visited national bookstore and saw the books of Francisco J. Colayco. I continue my reading, afterr office and during the weekends. My view about the money became wider and wider and my desire to start my project became larger and larger. But am i really ready at this point?

Once upon a time ...

2008 i was connected with one of the IT companies in Cebu where our CEO always talks about stocks almost every meeting that we had. He always mention about price appreciation and dividends and other benefits one can get in stock investing. I think it was the time when i got first interested about stocks. I can still remember that i opened a virtual account with PSE in order for me to have a feel on what stock is. JFC, TEL, and GLO were my first stock on that "virtual account". Why virtual? During that time, although i am fully interested with stocks, i still don't know every single corner of it, in terms of technical, fundamental, risks involved and I DoN'T HAVE MONEY to use in this field. Time flew, got busy and resigned from that great company, i was still not able ground break the project that i wanted to do.