Was it yesterday that I asked to be flown off to the moon? Let me just say it was a rather smooth takeoff on-board the FLI spaceship! And as I have recently discovered, you truly are in good hands with Metrobank!
Anyway, jokes aside, the Aboitizes are still at it. They never get tired now, do they? I can't seem to ride the AP-AEV wave since I'm totally uncomfortable with them at current prices. I think they're already too high. I got whipsawed a lot of times there too as they have the tendency to consolidate for so long. Now that I think of it, JGS consolidated longer than AP/AEV ever did recently but I was still able to hold JGS. I bought last June 16 but it was only today that I finally got rid of all my shares for some profit. Had I bought AP instead, I would have earned more than I did in JGS.
Anyway, jokes aside, the Aboitizes are still at it. They never get tired now, do they? I can't seem to ride the AP-AEV wave since I'm totally uncomfortable with them at current prices. I think they're already too high. I got whipsawed a lot of times there too as they have the tendency to consolidate for so long. Now that I think of it, JGS consolidated longer than AP/AEV ever did recently but I was still able to hold JGS. I bought last June 16 but it was only today that I finally got rid of all my shares for some profit. Had I bought AP instead, I would have earned more than I did in JGS.
I looked back on my recent failures called GMA7/GMAP and PX. I realized now what went wrong, why they didn't break out as I expected them to. It has all got to do trend. These stocks are trending down. I tried to bottom pick these stocks thinking they had no where else to go but up. As every trend follower would say, low/high is relative. Just take a look at the Aboitizes. They haven't stopped their ascent. Just when you think they're too high, they continue to form new all time highs. All I'm saying is that it's hard to guess bottoms or peaks. As long as the trend is up, you can continue to assume that the uptrend is intact unless a clear reversal proves otherwise. These reversals take some time to form so I resort to short-term indicators/formations that point to possible peaks or bottoms, but that's just what they are...short-term.
Anyway, it's clear to me now what kind of setup works well for me. My ideal setup is a consolidation after a short-term / medium-term uptrend. Let me demonstrate:
Vista Land and Lifescapes, Inc. (VLL)
Agrinurture, Inc.
Universal Robina Corporation (URC)
Let's compare these with the recent stocks I bought that are currently in a downtrend.
Philex Mining (PX)
Century Peak Metals (CPM)
Energy Development Corp. (EDC)
As you can see, I was able to generate more profits on stocks that were in an uptrend. Therefore, I will not bottom pick on a stock that is in a downtrend. I will try to pick relative bottoms on stocks that are in an uptrend. Lesson learned.
Cheers!
2 comments:
Hi, someone told me that you're upset about my comment on facebook - about recommending TA and FA courses. Sorry about that, it was my mistake to generalize that you were a Novice trader (by the title of your blog and the PX trade position) so I thought it would be helpful to recommend these. Anyway, it's not my intention to do harm. My apologies.
Also thanks for sharing your thoughts on your experiences in trading. I hope you don't mind if I subscribe to your blog =). Hope the best of everything in your endeavors.
Hi Ian Patrick! I was really just surprised when I read your comment since I'm a TA practitioner and I trade for a living. Given my background, you must understand how I could have misunderstood your suggestion. I also offer you my apologies for jumping the gun.
Anyway, for the record, I consider myself a novice trader since I only began trading last February 2009. In trading years, I'm a toddler. As for PX, I ventured into that trade since in the short-term, it looked like it was already sideways when it bounced off its support at 10.50. I expected it to head back up near its resistance at 12.50. It looked poised to head back up the day I entered the trade but as you can tell, it failed to break its minor resistance of 11.50. I decided that I had to exit the trade.
I don't limit myself to trend following strategies especially in short-term trades since here, I'm only after the bounce. I was able ride the bounce in EDC and CPM but not quite on PX. I wrote this entry so that I will always be reminded to not expect much bounces from stocks in a downtrend. This experience actually led me to my ideal chart setup which I demonstrated to be found in stocks I recently traded like VLL, ANI, and URC.
Sure, sure, feel free to subscribe to my blog. I assume you trade too. How are your trades? Good, I hope. :)
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