Web Dev Matters and Me

Web Development Matters - HTML, XML, C#, .NET, AJAX/Javascript(jQuery), CSS, XML-XSLT

ME - LIFE,Philippines, Tokyo, ECE, PhilNITS/JITSE,情報処理, 日本語

things about Philippines, gaming, C# development and web development, how to make money in stock trading

Web Dev Matters and Me

Market broke 5k resistance, investors into selling frenzy due to eurozone crisis

Most of the PSE stocks, if not all went down as selling frenzy occurred since May 2 and ended after almost 3 weeks of red days. The fall was simply fascinating that I almost lose all my shares in OV (majority in my portfolio).

I'm able to sold all at 0.06, then observed a little drop in OV to buyback, which gave me more shares than I originally have. But as I have observed it, I bought too early and should have gained at least additional 3-4 million shares. That's quite a sum.. :(

This might be my biggest trading loss since I started trading. I never expected that the price could drop by almost 35%. I'm still holding and in fact added some more when the price is still cheap.

Actually, I can't think of any good reason why the price should drop. Although the company just released a disclosure that didn't seem to be a bad news, OIL price went down in global market and the greeks are again in turmoil over the crisis that isn't new at all... Well, people really do live in their conviction and the big broker already went out, after hearing JP morgan's big trading loss..(which in anyway not related to PH market..).

Good thing MACQ has been hoarding stocks and rarely sell. But my gut tells me, macq has been selling thru other brokers... hopefully I'm wrong..

One of the things that might be a good thing when trading stocks is to diversify the portfolio. So, let's say I have my portfolio distributed to selected bluechip stocks, one on utilities, one on food and one on oil exploration. When a sector gets a bad trading season (usually by news, etc), chances are, your loss in one stock could be balanced by your gain from another stock.

But of course, having too many stocks means you have to watch for them x times. Also, the above won't be true if the market is really down, just like what we just have this May. I'm starting to believe the foolish saying (just a bit), sell in May and go away.

It is also important to do a research first. Never rely on few alpha-male's recommendation, like a stock will go up by X%. The stock market has UPs and Downs. What goes up, goes down and vice versa. Actually, I asked a manager of one of the leading investment house in the Philippines about a stock he promotes months ago. The answer? Not even a reply. I won't be surprised if he tweeted that he doesn't have any position on it.One thing is for sure, he would entice everyone to buy a stock when he bought at cheaper price then later, ask everyone to sell after he sold, so he can buy back at cheaper price.

So,what's the lesson here? Investing to blue chips is a low risk and high reward investment tool if you are planning to go for medium to long term. So that's why I've been also adding more and more to my portfolio. Hehehe.

I hope I can upload my new site soon. It took me a while to finish it, especially the optimization part.

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