Back to Basics Stochastics

2 year stochastic data for the stock SMPH

There's so many things to learn regarding trading that makes it more academic than just siply placing a bid and getting out of the trade as if you re just simple gambling.

There's stock charts to read so that one can be able to  decide whether it's a good time to buy or sell. Check with other indicators to confirm your analysis.

This one is regarding Stochastics 

Commonly used to identify overbought or oversold condition in the markets.

setting of 8% 3 %D 5

briefly sa  stoch kon magpass sya below sa 20 line buy signal sya kon magpass above 80 line sell signal sya

In short:

for downtrending market: trade above 80

for uptrend, trade below 20 

That's all!

How I Simply Understand MACD

The definition is Moving Average Convergence Divergence.

MACD reflects ( 12 day and 26 day period. default)
can be altered depending on your time frame.

If moving averages are touching, MACD lies on the 0 line

when 12 day MA is above the 26 day MA it is considered bullish, You'll see it in positive numbers

In reverse, if the MA26 is below the 12 day MA, it is considered bearish. You'll see it in negative.

Signal line - Exponential moving ave placed next to the MACD.

Histogram - reflects difference bet MACD and signal line.
gives early warning on a breakdown of break up

Things to consider:
1. Histograph
2. Signal line
3. actual cross of the MA

Combine with your other indicators for nang makasiguro purposes.

Disclaimer: 
I posted my financial adventure like this here because I noticed that after the 2,000th mark, nobody reads my posts anyway. This article does not constitute a recommendation or an offer to sell or a solicitation to buy any financial product and stocks.I'm an independent trader and not affiliated to any financial institute (Not anymore). I encourage you to do independent research for your judgment with respect to the matter contained from this site. No liability whatsoever is accepted for any loss that may arise (whether direct or consequential) from any use of the information contained herein.

My Legal HOUSEband

I was all eyes on Double Dragon when I first decided to sell all my bluechips stocks venture into the 2nd and 3rd liner stocks.

Then DD collapsed back to 7.++ after reaching it's all time high at around 11.++. that was it, It's already expensive for my budget so I went to look for another that I could deem as one of my long term bagger as was taught to me when I joined TAP.

HOUSE was the result! I think I blogged about this sometime when I began buying. 

Bakit si HOUSE? 
I'm not very good with balance sheet and accounting stuff but I buy the stock because of how I think I understand it's fundamentals, and how it fits into my principle in life. Sometimes I also just do it logically, or because of my observation.

The following was the information I find about the company 8990 Holdings Inc. also known by it's stock code as HOUSE:

They have been ten years in the business prior to their first IPO which happened sometime in May. I remember when I was in Cebu, I once inquired from their office about acquiring a house from their company. I bought my first shares of HOUSE two days after it's IPO which is still believed to be at a discount at 8.33. 

At this point in time I'm still buying more shares of the company even if the price decreases so I can average down on my portfolio and build my base lower. I'm also anticipating dividends in the future because in the past they use to give .70 cents a share to their shareholders, which is a lot if you have large volume of shares.

It is true that Philippines has a backlog in housing projects, but when it comes to murang pabahay, HOUSE is a winner. Their target market are the working class. Simpleng pangarap ng bawat Filipino sa bansa ang magkaroon ng sariling bahay.

Year over year revenues from $3.8B PHP to $5.4B PHP. 
As per Bloomberg, it is impressive that the company has been able to reduce the percentage of sales devoted to cost of goods sold from 38.00% to 36.94%. This was a driver that led to a bottom line growth from $1.7B PHP to $2.2B PHP.

They have 96% collection success rate. Abangan nyo nalang ang iba pang mga balita jan sa ibang sources at tinatamad nako magsulat kung anupa ang masasabi ko tungkol kay HOUSE. 

I heard from sir JJ last Saturday during TAP classs, that HOUSE is planning to put up malls in the future, they had plans to team up with another big company. what company I don't know yet, but my hubby's speculation is Ayala. We'll see.

Disclaimer: 
I posted my financial adventure like this here because I noticed that after the 2,000th mark, nobody reads my posts anyway. This article does not constitute a recommendation or an offer to sell or a solicitation to buy any financial product and stocks.I'm an independent trader and not affiliated to any financial institute (Not anymore). I encourage you to do independent research for your judgment with respect to the matter contained from this site. No liability whatsoever is accepted for any loss that may arise (whether direct or consequential) from any use of the information contained herein.

Yesterday Was a Good Day!

Saturday... I went to another TAP class and it was one of the best days, I said one of the best because another best one is yet about to come. Sooner or later. It was an enlightening 7 and a half hours of the day, for un-learning, learning and re-discovering.

Let me share something I learned last Friday though. This is the result after a days tiring effort to try and learn trading techniques and graph reading I ventured into listening into some relaxing details. The are my take aways from  Patrick Stockhausen.

1. Define your spiritual purpose
You cannot have  religious cause without a financial cause. They are synergistically put together

2. Your identity.

3. What are your top five value? Most people think they have a value on money but they don't. They only have a value on what they can do with the money.

4. Beliefs on money. There are people who thinks the rich people are bad and that poor people are good. As per sir Tony Herbosa, "Those who use to tell you that you can never have enough money be rich are usually the people who have never had any serious wealth."

5. What you believe is possible in the world.

6. Have a high sense of self worth. What you believe you deserve. Have a sense of self worth and net
worth is related. What's more important to you and you do that.

7. Belief on your capability.

8. Master your emotional state what you focus on. You act according to what you feel. Master your emotions.

9. Your goals, Asset allocation, Reinvestment strategy. immediate gratification cost you money, long term vision makes you money. timing the market, does to make you money than time in the market

10. Create Your predictable income. do not have to have a business in order to be wealthy. You just have to have a predictable source of income. Let your money make more money. PAY YOURSELF FIRST

11. Wealth building and planning process.

12 Your team, your members, you mentors. Who you hang out with is who you will become. Make sure you have the right mentor.

Have the reason first will make you do things consistently the things at the bottom. That's why you need to start from the top.

Today is my birthday, so it's another day 1 of the next 365 days ahead after the next day 1.

The Need to Re-group

The few weeks has been up and down and while I'm happy with what I do as a person who tries to practice the law of least effort. It really will not be the least effort yet unless I really learn the discipline to do so. 

This is my re-think Strategy:

I decided to stop tsupita play for a while since I always get burned the few times I tried it. Sandali lang ito, babalik at sasabak din ako ulit. This is because I do not just want to follow the herd for the stocks I want to make money out of. I know I've attended the FA and TA analysis class already but just recently I realized, I've never really learned anything because back then I was only doing the Peso Cost Averaging strategy so I didn't really bother to ingrain the things taught in my head. 

Anyway, I've been a little loud I know, and I have to stop it and really try to focus so I can listen to my inner voice and discipline myself by reading charts before making a trade so I do not just gamble. For now, I parked my money in my long term stock like $HOUSE and $MARC. Also planning to acquire $MEG again and do some volume play. Why did I ever let her go? Hoping for a substantial consolidation period from the market so I can build my base really low there, just like setting my $HOUSE on a strong foundation. haha.

But hope is NOT a strategy, so I am once again... and I am doing this right now, emptying my cup and re-learning everything there is to know about the technical analysis of stocks. I have been blessed, that throughout this process I have gotten some help from new friends that I got from TAP and other stock market FB groups. We'd message each other back and forth, and exchange ideas and sometimes I participate in the group discussion. In this case, NOT knowing what I'm doing is a gamble, but once I have learned and know and understand what I'm doing, it will turn to be a discipline. I won't be just gambling anymore. Sabi ni Aya Laraya, "aral muna bago invest," sabi ko "mag aaral ako habang nag i-invest" hehehe.

 Thus, my First TA post was born. it was about the CCI indicator posted two days ago. I will post some more later on since I am making this blog as my journal in trading. Of course I will not share everything or maybe I will. I thought nobody would really care to read this blog but it turns out that I've had numbers of readers over the past few months and days without even opening and checking on the blogs I made.

If I share it's ok, If I don't it should also be fine. This blog is not even a business entity nor a reco to buy or sell shares. What I post here are just simply and purely my ideas that I'd have already executed and others I would still like to execute. If they work, then bingo! If it helps anyone whoever comes across this blog. then fine, if it doesn't, totally fine DO NOT BLAME ME. What I'm doing is just simply reporting my progress through this.

How to Own Shares of Stock from the PSE

I just have to write this blog.

It is because I've had occasions where I have been asked several times how to buy shares of stocks or how to open an account with a licensed broker in order to buy shares of stocks for investment or trading purposes.

Take note also that I am not a financial expert but I am just taking action so I can also fulfill my own dream of being financially free one day.

The following are the steps to open a brokerage account:

1. Decide which licensed brokerage company you would like to open an account with. Choices range from traditional brokers that you can call on the phone to execute your orders, to those that have online trading platforms. Since this is already the internet age, having an online platform is a great way to monitor your investments from home. Some of those that have online platforms are colfinancial, bpitrade, utrade and philstocks.ph. Others that I may not have mention, you can google it!

2. Download the application form and submit requirements. You can either download the application form (including the signature cards) or go to the nearest office of the broker of your choice. Rest assured you will be assisted with your application, (in my experience, their services are better than the banks or gov't sorry to say that). The usual requirements would be a photocopy of you 2 valid ID's and your TIN number. If you live further away, LBC will do.

3. Fund your account. When your application is once received, you will then get a call from one of the broker's representatives for account verification (2-3 days). Once your account has been verified, you can already start funding your account. You can do this by personally bringing your check or money to your broker's office, or you can remit your fund through the bank, just like you would when you deposit money. TIP: easier if you have a BPI express online account.

4. Buy shares of your preferred stock or company. Just simply choose a stock or company you think, or you believe will give you good returned for your money. Decide how many shares you'd like to buy, and for how long and you're good.

5. Monitor your investments. Investment experts have this adage, that if you buy growth stocks, or stocks with strong fundamentals can make you SLEEP WELL AT NIGHT. Though this may be true, it is always important to monitor your investments, by reading from the business section of the newspaper or from company disclosures found on PSE edge website. 
   
There you have it! Five easy steps to start your financial freedom and this is just the first step. It would also do some good that while you're at it, attend some Fundamental and Technical Analysis Seminars. There are those that are free like the one that your broker offers. All you need to do is just register to get a slot, because believe it or not, the classes are usually full that you will need to wait for your schedule to come so you can attend.

There are seminars also that are offered for a fee. These classes are full of like minded people whom you can also make friends with and you can talk with while increasing your financial literacy and money.

Good Luck! and Happy Investing!

Caveat!

Disclaimer: 
I posted my financial adventure like this here because I noticed that after the 2,000th mark, nobody reads my posts anyway. This article does not constitute a recommendation or an offer to sell or a solicitation to buy any financial product and stocks.I'm an independent trader and not affiliated to any financial institute (Not anymore). I encourage you to do independent research for your judgment with respect to the matter contained from this site. No liability whatsoever is accepted for any loss that may arise (whether direct or consequential) from any use of the information contained herein.

Technical Analysis Lesson for the Day (Sept. 3, 2014): The Commodity Channel Index or CCI

The Commodity Channel Index or CCI is one of the trading indicators that help traders decide whether to buy, or sell the stock picks they are eyeing on. It was developed by Ronald Lambert and was featured in the Commodities magazine in 1980. Barely 3 years before I was born.

70-80% CCI value falls between -100 and +100. It can also tell whether a stock's condition is oversold or overbought.

Anyway here is the formula I learned how I can enter a trade and get out of the trade using the CCI.

Consider strong momentum:

if CCI cross above +100, stock will be considered trending.

If CCI crosses below 0 sell

Once it crosses below -100 signals strong downtrend (sell)

Identify reversals:

-100 oversold wait till buy signal is generated

+100 sell signal when CCI moves back crossing 0

There you have it! I'm now learning to read the charts using this indicator.

Tomorrow or the next day I will share another indicator that I learned on Technical analysis.

Caveat!

Disclaimer: 
I posted my financial adventure like this here because I noticed that after the 2,000th mark, nobody reads my posts anyway. This article does not constitute a recommendation or an offer to sell or a solicitation to buy any financial product and stocks.I'm an independent trader and not affiliated to any financial institute (Not anymore). I encourage you to do independent research for your judgment with respect to the matter contained from this site. No liability whatsoever is accepted for any loss that may arise (whether direct or consequential) from any use of the information contained herein.