strategic averaging method

Are You A Cool Investor?

If a friend took your wallet from your pocket and tossed it off the Pasig River, how would you react?

In times like these when the stock market seems like going down the drain, it is but natural to feel really bad especially if you just started investing less than a year ago. Just like your wallet thrown off that muddy, murky, filthy urban river.

At the same time, when the market seem to go up like forever it’s also natural to feel really good. In any case, emotions will always be there. But would you always give in to your fears and joy as an emotional investor?

Here are some friendly reminders. Continue reading Are You A Cool Investor?

I Trade With My Loose Change

If you are an active trader and you happen to read my post on how my stock portfolio looks like, you would say that I’m a very boring investor.

My 3-guard combo stock market strategy is made up of three parts where the biggest part is dedicated to long-term investing. This is where I buy shares from two of my favorite companies: Ayala Land (ALI) and the Philippine Stock Exchange (PSE).

Guess why I chose them for my long-term investing. Cost-averaging for these two companies is like feeding green leafy vegetables for my portfolio’s longevity. 😛

The second biggest part is intended for my medium-term investing which uses the strategic averaging method. For the past few months, I have First Philippine Holdings (FPH), Meralco (MER), and Metro Pacific (MPI) that I buy below prices and continue to buy until target prices are hit. And then sell them all. But I may consider one of them to be part of my long-term investing soon. Continue reading I Trade With My Loose Change

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. Continue reading My 3-Guard Combo Stock Market Investing/Trading Strategy