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Jerah Y. Torrejos
I’ve heard of trading securities a long time ago. Still, the concept is new to me
because I did not really feel the need to study it before because I thought it was for
rich people. My reaction when I first learned about having trading as a requirement
was feeling excited to learn stock trading but somehow expectant to flop this. I
watched videos about trading and it just sounds so difficult so I don’t really have a lot
the learning I have from class discussions and my few readings about the subject.
However, I clearly understood the concept of diversification. I know that I need to buy
stocks from different companies to manage risks. Although they are not distinct type
of assets, but they came from different companies so I was thinking that maybe the
performance of others. I also like think of myself as a value investor because I was
searching for potential stock that I thought was undervalued at this time and hoped
that it will somehow increase its value in the future. I belatedly realized that this
strategy will not work for me because I’m only going to trade for days and not years
and I don’t have any bit of information about the company and how well they were
incur losses so I did not sell my stocks prematurely. I waited it out so that I could
have revenue from my sale that will be enough to cover the transactions fees and
also gain a bit of profit. I’m still unfamiliar with the movement of the stock prices. I
can’t really predict if the prices will continue to rise or fall. Every time I can see that I
can gain profit if ever I sell a company’s stocks, I always sell it even if my profit did
not reach 2% because I think that it’s better to accumulate the small amount than
At this moment while writing this paper, the stock market is doing fine
compared yesterday because the day change today is +126.72 (0.13%). Yesterday
everything was on the red and I can’t sell anything but it was a good time to buy
stocks.
I bought the stocks with an expectation that the price will rise at the end of the
day and I’ll be able to sell and gain immediately. I was disappointed for obvious
reasons; I was naive and ill-informed of what a stock market really is all about. Below
are three investment strategies I hoped that I read before I started trading.
Speculation
basis for buying and selling securities or commodities. For other people it has no
He argued that speculators have an information that other investors do not know of
that can be used as an advantage in trading. Rather than blindly putting your money
of a company with a huge potential. An investor does not randomly choose a no-
name company but typically choose strong companies and evaluate their financial
statements to gauge the intrinsic value of the stocks. Investors believed that the
valuations in the market place do not really reflect the true worth of the securities;
they try to look for this kind of securities and buy it at a price they believe as a
Passive investing
to maximize its returns. Its goal is to hold the investments for a long term because
passive traders believe that market returns is positive over time. In contrast with
active trading, passive trading does not capitalize in the short-term price fluctuations.
It seeks to avoid the fees and limited returns that happen when trading regularly.
I did not have systematic criteria for choosing companies to invest in. What I
considered mainly is if it’s selling at a lower price compared to the high price listed in
In figure 1, for example, I bought the stocks for 18.28. It is lower than the listed high
price of 19.36. At that time, I assumed that the stocks can still increase its price in
the coming days because it still has a huge room to grow. My choice of companies
was also influenced by their popularity. ABS-CBN, for example, is a popular network
in the Philippines. I only bought 1,000 shares for 18, 333.93 including other fees
because I learned not to put all my eggs in one basket. Basically, my investments in
naturally want to profit that’s why I invested in less risky companies like BPI, ABS-
CBN, and Alliance Global Corp. They are businesses that made name in their
respective industries and are already deemed reliable because of their long years
operating the business. I also have aggressive stocks like from the mining
corporation Atok-Big and the newly formed corporation Axelum Resources Corp.
They are high risk but they merely comprise less than 30% of my portfolio which is
tolerable.
belonged to, but it was the least of my concern during buying stocks. I belatedly
learned its importance, but now I know that some industry in the economy actually
perform well compared to others. I need to seek it out and find a company that is
spearheading it.
My decisions were not influenced with any news because I stopped reading
news a while back because it became toxic and full of hate. I realized that I should
not limit myself in the mainstream media but to seek out more information especially
the business news. It will help me in the long run because my course is business
related and maybe sometime in the future I will try investing in stocks for real.
There were few that were performing least like AXLM and ABSP. The two were on
I sold stocks from 5 different companies namely ABS-CBN, 2GO, AGI, and
BPI. I realized a total gain of 897.49. I choose to sell them because they can give me
profit, although miniscule, but still I want to accumulate them. Given the time
constraints of this requirement, I thought that it was better to sell them already.
Conclusion
hard. It took a lot of my patience just to buy and sell those stocks. It requires timing
and prior knowledge. I also realized that I shouldn’t have invested wantonly just
based on the prices. I need to read the company profile before making buying
If given a chance to do trading again, I will apply my learning from this activity
to the new one. There were things that I wished I did differently and now that I have
a better grasp at trading, I know that I will do better the next time. I will read the
company’s information first before buying their stocks. I will research about the best
performing industries within the current economy and seek out the leading
companies. And I will invest my money there. I will also try to be more of a risk taker
because, as what I learned from this subject, “the higher the risk, the higher the
return”.
What I enjoyed most about this requirement was checking the prices everyday
after I went home from school. The first time I saw that one of my investment turned
green, I was ecstatic. It’s like an achievement for me. Over all, it was a different
Lewis, M., et. al. (2019, May 29). 4 Types of Stock Market Investment Strategies -
https://www.moneycrashers.com/types-stock-market-investment-strategies/.
https://corporatefinanceinstitute.com/resources/knowledge/trading-
investing/stock-investment-strategies/.
https://www.investopedia.com/terms/p/passiveinvesting.asp.
APPENDIX
My Order History
Alliance Global Group, Inc. (AGI)
Transport System.
Asiabest Group International, Inc. (ABG)
Oriental.
Bank of the Philippine Islands (BPI)
Consing.
resources.