From Fundamental to Technical: The Stock Market Bandwagon

Except for my 2013 goals post, I have always flocked away from this particular topic. But since a lot of my time now is consumed thinking about stocks, formulating my trading plan, and monitoring the market, I think this couldn't hurt. After all, I always write about my interests, and this, the Stock Market is my latest fancy.

I opened an investment/trading account in Citisec last year, the day I turned 24 to be exact. It was actually something I've always wanted to do since 2010, when my college friends and I were talking about Bo Sanchez' Truly Rich Club and how it was smart on our part to do something with our money other than stash it up in a savings account. Two years passed and we never had the guts to do so, we were just so full of plans on that subject.

When one time, I had lunch with a former officemate and he mentioned he opened an investment/trading account with his friend. And I was like: I could have been doing that right now. And a surge of utter loneliness and regret rushed to me for postponing things I always loved to do, I hated it.

Three weeks later, after cutting my savings accounts to their minimum (and thus I’m left with no emergency money just in case. Please don’t do this because this is totally not ideal, although I have no regrets in the end), I opened a regular account in Citisec Online.

I took a leave from work, actually a birthday leave, just so I can spend half-day in there, maybe talk about the stocks that are profitable. I thought I would learn investment stuff that day, at least on my plan.

I didn't In fact, the girl who took my application seemed to discourage me from opening a regular account. She was asking things like: Do you have any experience investing in the stock market? Do you know what support is? Resistance? Fair value? I answered negatively to all her questions, each no and head shake an appalling admittance of my ignorance. I was so speechless by how seemingly uninformed I am in thinking of conquering the stock market, and how stupid it felt cutting both of my savings accounts. The girl who took my application did a good job of discouraging me.

But alas I wasn't discouraged enough to come home with a changed mind. I read books and articles and stock forums for the latest news and updates. I guarded my trades with caution, and a target value so I know the purpose of each of my trades. I devised my own templates in excel (I know, how geek) summarizing my trades, stocks on watch, profit lost on expenses and commissions.

And after one year of medium to long term investing, I had a 30% profit (computed conservatively). I wasn't sure if what I did is good enough, if I earned more than an average investor in a same trading time frame but I didn't really care. My point of comparison is a savings account so getting what I got in one year seemed like a big plus for me.

I also learned that last year was a bull time for everyone, I consider myself very lucky at that.

Finally, last Wednesday, May 29, I attended a seminar in COL on Technical Analysis, and thus the interest in shifting from fundamental which I’m doing now, to technical. I've always wanted to do technical trading; I do believe that’s where the money is, in trends. I was doing so well in trading medium to long term that I got a little lazy to challenge myself, but there’s got to be more than this.

It’s not so much as greed, but it may be a wasted opportunity if I do not even try.

So after a year of doing well on Fundamental Stocks Trading, I am bit by bit (slowly, because as of today the market’s too down) shifting to Technical Analysis. And the challenge poses a promise of a passion fueling me like there’s a fire on my heart.

thinking april

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From Fundamental to Technical: The Stock Market Bandwagon