Monday, April 20, 2020

Catching falling knives ( Pagsalo sa nahulog na stock)

At first we don't even know if this stock is already at the bottom. Maraming nagsasabi "don't try to catch the falling knife" and wait until the bottom out before you buy it.. I remember when I catch this stock it was RSI 14 and the PSEi is around 4,100 dated March 15, 2020. Nagpanic lahat ng tao due to COVID-19 even foreign investor are selling. Opportunity to buy ang naisip ko agad kasi bihirang mangyari na bumaba ang isang stock na ganyan kababa.

Lakasan lang talaga ng loob specially kung may nakita akong may tao at sumasalo na din na foreign which is maybe at the back of my mind pwedeng nagpalitan lang sila at magbounce right away kasi -43% in just a minute na bumaba kaya may instinct ako na tataas at magbabaounce sya. Maraming senaryo ang pwedeng isipin pero mas nangingibabaw pa din na undervalue ang PBB na stock.

From the moment I bought this stock I told to myself once I hit my target 5% to 10% I will sell it all but in just a few minutes it bounce back from it’s original opening price it’s very seldom to happen. I might say I am just lucky that the bounce back is a kind of miracle. 

Sometimes over confident to your trade will lead you for some mistakes. Firstly, over managing your trades- moving my stops and target too often minsan kasi binbenta ko na agad naka set na sya automatically nakakalimutan ko isipin na undervalue pa pala siya na kahit tumagal ng 1 week or 1 month okay lang. Mostly ganyan ang ngyayari kapag walang proper management plan. Secondly, fear of losing- lack of trust in the strategy, worrying too much na baka mas bumaba pa kaya napapabenta agad. Lalo na sa ngyayari all over the world due to pandemic Covid-19.

From my experience back then you can avoid pitfalls caused by fear by following your strategy unemotionally minsan kasi through experience doon tayo nahahasa sa mga pwedeng mangyari in the future. Just remember consider losses is a part of learning in trading industry. If you cannot, you will not be around for the big gains. 

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