Have you ever experienced an emotional roller coaster ride when it comes to trading the markets? In most cases, most traders have experienced this otherwise. The most common experience for an aspiring market participant is feeling a plethora of emotions before executing a trade; afterward, the trader cannot enact their well-planned transaction.

There are also other occurrences that a trader both undergoes a plethora of emotions before executing an unplanned or impulsive trade while also being unable to perform the said transaction. It’s a double whammy, as they say. The said situations are called Analysis Paralysis. 

Despite all these similar events that transpire every day, many individuals still think that their system is their main problem. It seems that several traders do not value the aspect of Trading Psychology in their respective systems, thinking that it isn’t mechanical in the sense that it isn’t a buy and sell strategy towards financial assets. 

It is a non-negotiable for aspiring market participants to heed their mentality when performing their trades. Experiencing the Analysis Paralysis is a taxing occurrence, and the solution to the said problem is quite simple, yet many find it hard to do.

Traders should plan their trades during cold hours or outside market hours. Moreover, traders should accept that we won’t grasp every opportunity in the markets as it happens every day. Once you have embraced these facts, you can avoid solely using unnecessary emotions in trading.

Discipline and patience also play a significant role in this step. The trader must follow their trading plan with 100% accuracy and the patience to enact their trades once the opportunity presents itself. The thinking and planning part of this endeavor must be initiated while the said market sleeps. 

Besides mastering your strategy towards the markets, one must start from the premise that the solutions are in your head and not in the market itself. As the say, trading is 80% psychology and 20% methodology.

A market participant’s strategy is nothing if the end-user is perhaps afraid to execute their trades. One must see the financial markets from an objective perspective while eradicating unnecessary emotions that distort your trading methodology. 

Then again, this is easier said than done. It is impossible to learn and accept these concepts right away. Trading the financial markets is a lifelong endeavor that requires an individual to commit their so-called deliberate practice or 10,000+ hours to this craft.

Managing their emotions will take time, but the individual must put in their conscious effort to apply the change. Individuals who accept the inevitable aspects of trading, such as the risk involved and the occurrences that we don’t have control, such as price behavior, do not perceive anything about the markets as unpleasant. To function as a professional trader, the said market participant must align their mental environment this way.

IN A GLIMPSE:

Intro

• We often overlook investing on ourselves
• Money isn’t the only resource you invest
• Self enrichment is as important as wealth accumulation 

Body

• Read a book
• Pay attention to your Health and Wellness
• Push yourself to something new
  • Business / Side Hustle
  • Learn a skill
• Expand your network
• Hire a business or career coach

Conclusion

• Improvements will feel just as good, if not better, as clinching that 50% gain in the stock market
• Don’t overlook yourself, you are more important than your wealth

In our persistent attempts to get out of the rat race, we become fixated on businesses, the stock market, our careers, and many other things. We often overlook investing on the most important asset there is, ourselves.

Stocks, bonds, and real estate aren’t the only things that appreciate over time. Furthermore, money isn’t the only thing that we invest, time and effort are also things that we invest to generate more of a particular something. Self enrichment is just as important as wealth accumulation, but how exactly does one invest in his/her self?

One of the best things that you can do to invest on yourself is to push yourself to new experiences. Perhaps something that you’ve never done before, a fear that you haven’t conquered, making a side hustle, or even as simple as attending a workshop for a particular skill. Pushing yourself to these new experiences and learning makes you feel more in control of your life, and makes you more equipped in your career or business. Not everything can be learned in school or in the workplace. Sometimes you just learn useful things in the most unexpected sources.

Another self investment that could really pay off is expanding your network. Attend networking events, get to know people and make a connection with a variety of professionals in different industries. A lot of business opportunities and jobs never make it to LinkedIn or even on the internet, that is why it is vital that you connect yourself to these people. Maybe you’ll land an awesome managerial position or take part in a startup with the cool people you’ve met. You’ll never know.

If you already have a large network and a wide arsenal of skills and experiences, then maybe the next thing that you can do is to hire a business or career coach. Even the greatest athletes and businessmen have coaches or mentors. Coaches can be useful in identifying more areas of improvement and further increasing the quality of your work. Remember that there is always room for improvement.

Lastly, and perhaps the most important investment on yourself is paying attention to your health and wellness. Miller (2014) mentioned in her article for the National Career Development Association that healthy individuals are more productive and tend to be better in the workplace. After all, you do want to live long enough to spend the money you’ve earned and enjoy the rewards that you worked so hard for.

In sum, investments aren’t just about stocks or the like. Investing in yourself is just as rewarding, if not more, as clinching that 50% gain in the stock market. To put it in investment terms, don’t put all your eggs in one basket, diversify your investments in stocks, bonds, real estate, and most importantly, yourself.

Read the source here.

IN A GLIMPSE:

• What are Cryptocurrencies
• What is different about it
• Examples
• Why is it hyped
• What method do we recommend
• Recap on the tips

Everyone is talking about cryptocurrency nowadays. Most investors have bad things to say about cryptos, yet a handful of investors still invest thousands upon thousands of pesos on them. The stigma about cryptos being unstable, too volatile, and widely used by criminals all contribute to why a lot of people stay away from them completely.

Although cryptos are relatively new, the intent behind it is actually revolutionary. In essence,  cryptocurrencies are digital currencies that are meant to be a medium of exchange just like the US Dollar and Philippine Peso. 

What makes cryptos unique is the technology behind it, blockchain technology. Blockchain technology is innovative because it doesn’t require a centralized authority to regulate a specific cryptocurrency. In blockchain technology, everyone has their own ledger that updates automatically.

What’s more interesting about this technology is that it is being recorded with powerful cryptography that makes it very difficult to counterfeit the digital currency.

So basically, cryptos are digital currencies. But why is there such hype about them if they’re just like normal currencies such as USD, PHP, and EUR? Cryptocurrencies are hyped due to their high gains (and losses). To put it in perspective, Bitcoin, the most famous cryptocurrency, was valued at $15 in 2012.

Now in 2021, Bitcoin is valued at around $30,500, that’s about 1.46 Million pesos per bitcoin. Early investors and cryptocurrency miners got rich quickly with Cryptocurrencies. In 2020 alone, Bitcoin from $7200 in January up to $28000 in December.

There are many more cryptocurrencies out there besides Bitcoin, which are called “Altcoins”. Some famous altcoins are: Ethereum (ETH), Ripple (XRP), Litecoin (LTC). Some of these even have greater daily gains than bitcoin itself. Investors with very high risk appetite seem to enjoy the volatility of cryptocurrencies, many of which are Filipino investors. In 2020, the telegram group Binance Filipino was recognized as one of the most active telegram groups around the world.

The simplicity of getting intro cryptos makes it very enticing. Unlike stock trading, which requires a bunch of documents and government IDs, getting into the crypto game only requires an app, an email address, and money. No more banks, no more documents, no more valid IDs. Since many Filipinos don’t have bank accounts, this makes cryptos very convenient, since apps such as Coins.ph, GCash, and PayMaya are enough to be able to cash in and start trading.

However, cryptos aren’t just like casino chips that increase in value greatly. Advancements in technology and familiarity with these digital currencies allow some businesses to already accept payments in cryptocurrencies. Only time will tell if cryptocurrencies will push through to their main purpose as mediums of exchange, and not just cash farms for the hardened trader and cash burners for the newbie trader.

Definition 

• Cost averaging is the method of investing where a certain amount of money is invested in a specific interval over time. 

Advantages 

• Mitigates Risk 
• Very Smart way of investing in the long term 

Conclusion 

• It is asset accumulation 

Additional Ideas:

Investing long term without the anxiety 

Not everyone can time the market as well as the top traders in Investagrams, and not everyone can handle the pressure red candle sticks bring during dumps. Even though there is no absolute risk free method of investing, there are methods smart investors use to minimize risk.

Cost averaging is perhaps the simplest and least stressful approach to investing, wherein the main objective is to accumulate as many shares as possible and stay above the average price to gain profit. 

Cost averaging is a very long term and conservative investing strategy. Instead of investing a lump sum and risking everything all at once with a single pump or dump ready to make you rich or penniless, implementing cost averaging regularly takes portions of your lump sum and invests it in a preset schedule.

Being able to accumulate shares over time at different price points protects your portfolio from the painful losses of sharp dumps. Since Cost averaging is very conservative in nature, it doesn’t benefit as much as other methods from breakouts. It, however, does a very excellent job of preserving your wealth. 

To put cost averaging into perspective, suppose that you want to invest 1M in Jollibee Foods Corp., which is currently 4 pesos per share. If you invest everything in a single price, and that price drops to 3 pesos per share in the following week, you would have already lost a quarter of your capital if you were to close the trade. 

Now, if you were to invest your 1M evenly in a span of 8 months, you wouldn’t have to commit to a singular price that can dictate your capital the next day or so. Investing 125 000 per month, and purchasing as many shares as your monthly budget can afford mitigates your risk and prevents a single price to lift or crush your capital.

Yes, you would sometimes buy an overpriced share, sometimes an underpriced share, but as you accumulate shares over the months, time will do its part and grow your capital. No more FOMO, no more complicated Technical Analysis, no more stress. 

It is important to note that like everything in investing, there is still risk involved in this approach, and that cost averaging isn’t the one size fits all answer for getting rich. Declining markets can still be a threat to your capital even if you follow this approach. 

The cost averaging approach is not for everyone though. Investors who are really thinking long term will find this strategy stress free, easy, and effective. It eliminates confusion during entry and exit, and gives clarity to investing in the stock market by keeping things simple.

Traders with higher risk appetites however, may find this method a bit slow and boring for their liking as they are used to riding trends, anticipating pumps and dumps, and getting in and out fast. Even as such, cost averaging shouldn’t be completely overlooked by traders as this can still be a useful approach to preserving the wealth that they have accumulated over time.

We would like to congratulate our featured trader for this week: TechnicalsbyBinsoydgreat a.k.a @puretechnicalsbybinsoy!

Despite frustrations in current market conditions, Binsoy still remains patient, diligently sharing stock updates in his stock picks: $PSE:BSC, $PSE:PHA, $PSE:APL, $PSE:ACEN, and $PSE:PPC . Unlike many traders in the community who have fallen silent during the market’s trip to Chinatown, Binsoy still continues to share his sentiments and expected scenarios.

Binsoy is currently looking at $PSE:MRC, plotting historical support and resistance levels and fibonacci retracement levels, waiting for the perfect time for a re-entry. Binsoy applies the Elliott Wave Theory in his trades. And with $PSE:MRC invalidating the corrective waves, Binsoy changes the game plan and braces for the dip. At present, Binsoy is waiting for a catalyst for MRC and hints at possible consolidation due to decreasing volume.

Binsoy also shared his insights with $PSE:MM after it broke out from the Trendline support and the Darvas box around the 7 peso level down to the 6.6 peso level. Binsoy plotted a key support level around the 6.48 to 6.31 levels, with the price close to hugging the support level. The last candle, which formed an inverted hammer, indicates a possible bounce on the support line. Decreasing volume suggests that the stock is resting from last week’s bullish movement.

ACENatics are covered by Binsoy in his $PSE:ACEN stock update. Binsoy looks at the current pattern as promising, with the Elliott Wave count being obeyed as expected. The bounce on the 5.8 levels after the C wave is very favorable for ACENatics in the community as the price movement, backed with strong volume, shows signs of high demand. A possible Bullish Engulfing pattern can shoot $ACEN up to Binsoy’s resistance 1 at 6.62 or even up to resistance 2 at 7.05 next week should strong demand continue.

Patience to those waiting for re-entry and kudos once more to TechnicalsbyBinsoydgreat a.k.a @puretechnicalsbybinsoy for constantly sharing stock updates and highlighting the available opportunities during these times. And as appreciation to your relentless contribution to our trading community, your 1-Month InvestaPRO is on its way!