My 3-Guard Combo Stock Market Investing/Trading Strategy

After sharing my stock market investing/soft trading strategies to the readers of Fitz Villafuerte’s latest blog post “Are You an Investor or a Trader? A Simple Test To Find Out“, I thought I should share them to my readers as well.

But before I do that, let me just emphasize once more the difference between an investor and a trader, as defined so clearly by Fitz like the crystal pristine waters of the South Pacific Ocean.

According to Fitz,

Investing is long-term, which means you buy, hold and sell after several years or even decades.

Trading is short-term, which means you buy and then sell only after a few days, weeks or months.

My Stock Market Investing (and Trading) Strategies

For Filipino basketball-loving fans (especially the Barangay Ginebra), the three-guard combo attack that Ginebra imposes as an offensive threat has been a crunchtime trademark of this SMC franchise.

The trio of the Fast (Jayjay Helterbrand), The Furious (Mark Caguioa), and whoever the third guard is (previously The Fearless, Cool Cat, and now Tenyente Tenorio) would shake the heavens out of its opponent once they run the court like wild horses.

ginebra-burgerking (11)

So much for the poor analogy.

As Fitz mentioned in his blog post, there are so many people who do not know the difference between investing and trading. To explain once more, trading is short term while investing is long term.

Personally, I’m doing the three-strategy combo in my stock market investing/trading since 2011 for my 6 companies.

1) Strategy 1:The Fearless – These first 2 companies are my favorite stocks with great fundamentals dedicated for long-term investing. I don’t care whether the market is up or down, I just keep on buying these two great companies. It’s the mighty, old, yet reliable cost averaging method. (Purpose:Raise my Retirement Fund)

2) Strategy 2: The Furious – And then I do cost-averaging-cum-value investing cross-breed strategy called strategic averaging method (SAM) for my next 3 companies. SAM is a modified version of cost averaging strategy where you buy below prices and continue to buy until target price is hit, in which you sell everything.  In my case, the combination of my 3 SAM companies constantly change as I sell one or two of them upon reaching the target price. (Purpose: To raise funds for a planned business in a couple of years)

3) Strategy 3: The Fast – And finally, I allocate one slot in my portfolio for active trading. I hold on to it for 4 to 6 weeks. Although sometimes i tend to get crazy and dabble on day-trading. (Purpose-To Party! :P )

The last two strategies have been very effective for me so far while I expect my 2 favorite fearless companies to grow at their biggest potentials and support my finances upon my retirement years.

How about you? Can you share your wealth-building strategies in the stock market to our readers? Post your comment below so that more people will learn from your wisdom. :)

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P.S. 1. Bro. Bo Sanchez has appointed me as a coach for our young and new investors at the TrulyRichClub social site. It’s a fun, learning family with the purpose of “helping good people become rich”. I’m inviting you to join the TrulyRichClub too and email me at burngutierrezblog@yahoo.com.ph if you have any questions. Click here to join!

P.S. 2. Learn How To Earn Through Larry Gamboa’s Real Estate System. Real Estate Mentor Larry Gamboa is giving a Seminar on February 9, 2013 on how he buys foreclosed properties or properties from “motivated sellers” and turn them around into rental properties or quick sales. If you’re interested to learn his system, click here now!


Photo credit: mdc100

19 thoughts on “My 3-Guard Combo Stock Market Investing/Trading Strategy”

    1. Thanks Claudine for liking my strategy. Although I would not encourage day-trading to those who are just new in the stock market. Stick with the “semi-active” trading strategy called SAM. Cheers! :)

  1. Thanks for sharing. This made me think how I have chosen my picks and if it fits the purpose I originally intended my funds to work in. Im still a newbie at stocks and so much to learn. I just wanna ask, how do you divide your funds and attention into 10 different stocks? Seems a large list to monitor for me

    1. Hi Gladys! First of all, congrats on your decision to invest in the stock market.

      Actually, they are just 6 companies. 2 “for fearless”, 3 for “furious”, and 1 for “fast”. I think I need to rephrase that “fearless” statement. Sorry for confusing you. :)

      To answer your question, I customized a template in the old school MS Excel to properly allocate my funds and monitor my stocks. I hope to illustrate the template in my future posts to better explain it.

      Thanks for the visiting my blog! :)

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  5. nice.. mayroon ka bang suggested books for strategy 3? on the way na kasi ako sa strategy 3 pero kulang pa ako sa knowledge.. para ma-minimize yung risk kailangan nang enough knowledge for strategy 3.. Thanks..

  6. im almost did the same strategy lately…my col portfolio for sam investing (long-term) & metrosec portfolio for short-term. i thought of having a fast/short-term investment by putting/withdrawing a part of my capital in lending business – here in stocks investing your money will grow as much as you put your money in lending. in bad times your stocks price might decrease but your money is still intact but in lending in bad times your money is gone for non-payment of borrower. in long-term just choose the sam recommended stocks & in short-term pick among companies w/c are aggressive or combined it with blue chips…

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  8. @burn
    I have plan to apply your strategies.
    May I ask how do you pick the companies to be categories on those strategies said?
    I hope you can PM me those companies and strats. Thanks,

  9. Your blogs help me a lot to widen my knowledge of the money world. Thank you. I am planning to invest a large part of my savings in stocks and direct mutual funds through COL this January 2015.I hope you could share the best stocks and mutual funds to invest on. May your generosity of sharing your financial knowledge kept on and on and be blessed more by Him.

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