Tag: philippine stock market

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Featured Trader of the Week: @uigie

Let’s give a round of applause to AlMar for being this week’s Featured Trader! 

AlMar has been a member of the Investagrams community since 2020, and he is consistent poster who shares his thoughts and chart studies to the community. Something unique about what he shares versus other members is that he often shares bigger picture views of stocks. While others tend to share daily timeframe charts, he often shares weekly timeframe charts

Months ago, our featured trader posted his trade ideas for PSE:WEB. A widely known gaming company, its stock price has been in a downtrend for quite a while.

PSE:WEB has actually fallen by as much as roughly 96% from its peak a few years ago. With a lot of headwinds and sour earnings, a lot of investors have become pessimistic with the stock. After many months of poor returns, it seems that stock may have gotten some life back. In his post, AlMar mentions that the stock could breakout from its long-term downtrend line. As seen in recent trading sessions, PSE:WEB has just taken its first step should it look to perform a reversal. 

TECHNICAL STANDPOINT

In terms of price action, PSE:WEB came from its lows and formed a pocket near it’s weekly EMA100. Once volatility contracted, a strong breakout was imminent as buyers rushed in on the day of its breakout. The stock’s recent move makes it a prospect for a big picture reversal play. Although high volatility is still present in the markets, strongly breaking out from the EMA100 is a big first step along with breaking out of its long-term downtrend line. 

FUNDAMENTAL STANDPOINT

PSE:WEB is a company that mainly revolves around gaming, with it’s primary business being e-Games Stations, or internet cafes exclusively dedicated to casino games. Through the company’s technology, users gain access to hundreds of casino games and even sports betting. Although they are in a lucrative industry, they haven’t had that much success in recent years as they struggle to become profitable. 

What should be my next step?

As the stock has just recently broken out strongly from key levels, prices need to at least hold above the 3 to 3.2 area in order to retain its momentum. The next major resistances would be the 4.5 and 5 levels, with volume by price indicating that 4.5 could be the heaviest level it would need to break. Breaking out of 4.5 should cause the stock to experience less selling pressure, but we need to keep in mind that we are currently in a bear market, and even though the set-up looks good, most traders and investors might look to sell earlier than usual to lock in gains in a tough market. 

Once again, KUDOS to AlMar for being this week’s Featured Trader! Enjoy your 14-day InvestaPrime Access and continue to be an inspiration to the trading community.

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CHART your way to PROFITS

Physicians have x-rays and clinical tests. Sailors have their maps and compasses. Us traders have our charts. Especially for short-term traders, charts are essential as they will be present from planning to execution. As part of our mission to aid everyone in their financial journey, our InvestaCharts have always been a core part of our offerings. Our charts offer everything that a beginner, or even an expert, would need to map their way to profits. However, we don’t want to stop at just helping our users to be profitable. We want to provide users with charts that will help them become phenomenal traders. This is why we came up with a premium version of the InvestaCharts that can be used by our InvestaPrime members.

Want to take a glimpse into what new features you can use to chart out your trades? Scroll down below to see the features and examples of how they can be used

  • Delay-free experience

Having delayed data can be a hassle, especially for traders who need to execute quickly. Even a few seconds can become crucial when executing trades during an explosive breakout, what more 15 minutes? Unless you avail of the level 1 PSE data plan or an InvestaPrime subscription, you would be subject to delayed market data by up to 15 minutes.

For example, on the day PSE:EMP rallied, prices quickly soared within a matter of minutes. For Prime users and those who availed of a PSE data package, they wouldn’t have had a problem. However, users with a 15-minute delay, they would see a stock price of 14.04 whereas the price had already risen up to 16.50. 

  • Premium indicators that automate charting for you

As traders grow and gain more experience, simple charting becomes easier. However, who wouldn’t want to have someone else do repetitive tasks for them? As an InvestaPrime member, you will be able to unlock premium features on InvestaCharts that help you automate your charting process.

As a premium user of the InvestaCharts, you will have access to Auto 52-Week Highs and Lows as well as an Auto Support and Resistance that will help you plot important price levels faster.

There is even an Auto Fibonacci feature that will help you save time when plotting your Fibonacci Retracement levels. 

  • Premium indicators that give you a strong edge

Saving the best for last, we have developed premium InvestaChart features that will greatly help your trading decisions. Support and resistances are foundational concepts for every trader. Even as we get better, determining which levels hold the most importance will always be the challenge that we will face. Let’s look at how our features can help you with that challenge.

With the Bull-Bear Meter, we can help you determine if the Bid and Ask board is showing signs of demand and supply. A good example of how this can help would be for buy-on support strategies. In essence, buying on support is done because you expect that support area to be an area of demand. It would then make sense that when prices reach near that level, the bids and asks should show more eager buyers. Even if a level looks like a solid support, it wouldn’t mean anything if buyers don’t show up. With the Bull-Bear Meter, you wouldn’t need to check the board manually as the meter will weigh in all the bids and asks for you, telling you if buyers have shown up or not.

Another very useful premium tool that will help traders is the Volume Profile Visible Range. Basically, this tool plots out how much volume was traded per price point. A deeper understanding of supports and resistances would tell you that more volume on a support level signifies that the market deems that area a very cheap place to buy, whereas more volume on a resistance level would signify that there are participants there who have lost money and would most likely want to break even at the least. Thus, you can use the Volume Profile Visible Range to better understand what price levels hold the most psychological impact on the market and its participants. 

They say that the only indicators needed for a trader to be great are price and volume. By being an InvestaPrime subscriber, the premium features of InvestaCharts will no doubt make it easier for you to study price action and will help you take a deeper look into the volume traded behind the prices. 

Want to know more about what we offer? Head on over to the InvestaPrime landing page to look at all the features that we provide to our subscribers!

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Featured Trader of the Week: @thejpahit

Let’s give a round of applause to GeldReich for being this week’s Featured Trader! 

GeldReich has been a member of the Investagrams community since 2020, and he consistently shares his trading plans for his picks. One of the things that caught our attention was the number of details he put into his posts. It is obvious that he really spends time preparing the charts that he shares as he also indicates specific entries and exits along with his convictions for the trades.

A couple of weeks ago, our featured trader posted his trade idea for PSE:PHR. As a company in the tourism industry, investors started to take notice of this stock as hints of an economic re-opening started to pop up. Most are expecting the company to perform better once tourism gets back to 100% hopefully in the next few months.

PSE:PHR actually came from a strong rally from its bottom a few months ago. Although the hype died down for the stock, the price found support above the 0.9 level as the stock went into consolidation. As bearish sentiment was prominent in the PSE for the past weeks, only a few really paid attention to PSE:PHR. GeldReich was one of the few who still looked for opportunities in the stock, and he felt that the consolidation was an opportunity for a momentum play.

TECHNICAL STANDPOINT

In terms of price action, PSE:PHR fell by a significant amount from the peak of it’s rally before finding support – a possible reason why not many traders still looked at this stock for trading opportunities. Our featured trader took note of this as well as he mentioned that the price consolidation actually formed at the lower ranges of the market structure’s Fibonacci levels. However, this didn’t mean that a big move is completely impossible. After finding support near the 0.9 – 0.95 area, volatility, as well as volume, quickly receded signaling that a big move could come. GeldReich also notes that the consolidation formed a symmetrical triangle, with different moving averages acting as key levels. Most notable is the 200 day EMA possibly acting as a resistance level.

FUNDAMENTAL STANDPOINT

PSE:PHR mainly owns businesses that revolve around gaming, leisure, and tourism. It comes as no surprise that the pandemic caused the stock price to sharply fall and that covid restrictions becoming laxer could serve as a catalyst for a rally. With strong domestic demand along with the prospects of laxer travel restrictions and a resurgence of tourism in the Philippines, investors are starting to pay attention once again to this company. Although the financial numbers aren’t there yet, the market is pricing in rejuvenated cash flows in the coming months.

What should be my next step?

Even though PSE:PHR is showing some signs of strength, given the current market conditions it is still not fully advisable to aggressively trade momentum and continuation set-ups. However, this doesn’t mean that outliers don’t exist in weak markets. Looking at the bigger picture, it looks like 2.00 will be the next big level to look out for. Should you want to look for a trade, it would be best to wait for consolidation or continuation pattern to give you a proper entry with good risk to reward. 

Once again, KUDOS to GeldReich for being this week’s Featured Trader! Enjoy your 14-day InvestaPrime Access and continue to be an inspiration to the trading community.

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The Road to Trading Mastery Made More CONVENIENT

Practice doesn’t make perfect – perfect practice makes perfect. As traders, we could be charting, analyzing, and trading day in and day out non-stop. But, we could actually be just going within a loop and not improving even though we keep on doing the repetitions. It’s important to work hard, but being sincere in mastering the craft means more than just showing up – we need to look for the bitter pills and painful lessons that help cure our shortcomings and weaknesses. This is where mindfulness comes into action as we need to be aware of how our trades are playing out in order to find out how we can be better the next time. However, It can be overwhelming to do everything on your own – from building your trading logs to going through and creating the analytics for your trades. This can be troublesome. We know the pain, which is why we came up with the InvestaJournal, a tool to help you work on yourself and even bigger trading returns. More than just being an all-in-one solution for trading notes and tracking your portfolio, the InvestaJournal features a wide variety of advanced analytics that can help you level up your trading game.

Let’s see how convenient and powerful the InvestaJournal is in helping us grow as traders.

  1. Creating a journal account

Once you have access to the InvestaJournal, creating journals is as easy as just clicking a few buttons. You just need to click on the add account button on the right to start making a new trading journal.

You are free to make as many trading journals as you’d like should you need to create multiple for organizational purposes.

  1. Logging deposits and withdrawals

The next step towards building your own trading journal in the InvestaJournal is to input how much capital you’ve put into your trading account. Again, this will be as simple as just clicking a few buttons. Simply go to the portfolio tab, and you’ll find the option to add deposit and withdrawal transactions.

Adding these transactions shouldn’t take long as all you need to do is input how much you withdrew or deposited when you made the transaction, and how much the transaction fees were. 

  1. Setting up strategies

Should you have multiple strategies under your belt, you can list all of them in your journal so that you can tag what strategy was used per trade that you made.

You can even add buy and sell conditions, along with a description of your strategy should you need to review your rules on a later date.

  1. Logging trades

Of course, what’s a trading journal without our trade executions? To start taking note of trades, you can head on over to the Trade Logs section and select the option to Add Trades. 

Here’s the fun part: while adding your trades the InvestaJournal will let you do a lot of neat customizations. Aside from adding the trade details (ex. Price and amount of shares), you can also add notes such as what you could have been thinking while executing the trade. In addition, you will also have the capability to add what strategy you used for the trade as well as a screenshot of the chart to further help you when reviewing. 

You can even take note of what you felt! You can use the emojis in the description to note if you were happy, neutral, or fearful.

BONUS: Should you need to input a big amount of trades from your brokerage account, the InvestaJournal can save you time by simply importing your ledger to the journal! Just choose the import option and simply follow the instructions for the brokerage that you are importing data from.

  1. Analyze, analyze, analyze!

Once all the data is set, you’re good and ready to start analyzing your trades. InvestaJournal still includes basic information such as the current equity value along with realized rofits and losses. However, what sets it apart are the advanced analytics that you can take advantage of in order to find improvements left and right. 

For example, statistics such as Avg. Profit can be used to determine if you really make the most out of your trades. If ever you feel like you take profits off the table too soon and want to explore holding on to a bigger portion of moves, this statistic could help you gauge how you’re improving. The InvestaJournal even shows you how strong your different strategies compare with one another, so you can see what strategy really works best for you!

Although the InvestaJournal is really simple and easy to use, it will surely make an impact on your development as a trader. We guarantee you that you will be able to find a lot of insights through the InvestaJournal that will let you take the next step towards mastery. 

Want to know more about what we offer? Head on over to the InvestaPrime landing page to look at all the features that we provide to our subscribers!

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Third Side of the Coin

As a self-proclaimed bounce specialist, or how my teammates like to call me, “bounzerizt,” most traders ask me, “Sir how can you be so good at picking the bottoms? What is the secret?”

To the best of my knowledge, I don’t have any. What you know about trading more times than not are the same things that I know. See, I don’t really consider too much variables before I enter a trade. When I see a signal, I execute with no questions asked. People who know me always hear me say, “execute now, ask questions later.” because that’s how I think it should be, trading without hesitation.

My philosophy is this: fundamentals don’t necessarily matter, technicals don’t necessarily matter. What matters is the crowd psychology manifested through price action.

Cliché as it may seem, but I believe that Price Action is King. Some of you may argue, “isn’t price action a part of technical analysis?” and I would respond, “I don’t think so.”

Technical Analysis for me falls under the belly of price action and not the other way around. Phrasing it this way makes it clear that price action towers over technical analysis.

I know you think that sounded weird but don’t worry, most people do. My thoughts have always been plagued by criticism and skepticism not only from beginners but also from experts in the field. The very main reason is the counter-intuitiveness and seemingly illogical ideas that I present. Most of the ideas I say contradict common knowledge yet agreeing with it at the same time. I don’t have any words, but I think this may describe it lightly—paradoxical.

Now, going back, how the heck do fundamentals and technicals seem to not matter in my eyes? Let me tell you what I think about them.

Fundamental Analysis or Fundamentals is anchored to the idea of valuations. Using balance sheets, cash flows, or whatever, fundamental analysis aims to give intrinsic value to the company. The calculated “value” of the company then gives the analysts an idea of the cheapness or expensiveness of a stock.

On the other side, we have Technical Analysis or Technicals. Technical Analysts use various mathematical indicators like RSI, Stochastics, Moving Averages, and artistic models like, Harmonics, Elliott Waves, etc. to tell whether the price will go up or down in the future.

You might ask what kind of trader am I between the two—I am neither.

See, both fundamentals and technicals suffer the same fate. They aim to PREDICT what is about to happen, they predict future prices of stocks based on their calculations. They are trapped in the future where they think price will be. They seem to be disconnected from the present moment. 

“WhAt dO yoU uSe Th3n?!”

What I have for you is a third kind of analysis that differs significantly from the two. What I propose is price action trading—understanding the psychology of the crowd.

Contrary to both Fundamentals and Technicals, Price action trading anchors to the idea that the current price is the only true price. Anything before or after that, have no significance whatsoever. The idea is to NOT think about the future price, but rather to accept that what you see is the only truth and that you have no control over what will happen next. What you only know is what it currently does. This removes the disconnect from your mind on what the price SHOULD BE and where it’s currently at.

Price action analysis deals with the collective behavior of the market participants, being in synch with the market at any instance. To not think about the future or the past. To be present in the moment. To enjoy, feel, and taste every bit of the movement. To have an intimate relationship with price. To be one with the market.

Knowing that you don’t have to know is one of the greatest discoveries I had, and it changed me forever. 

That for me is the third side of the coin. Both fundamentals and technicals have long been crowned as the only types of analyses there are. I think it’s time to honor the third side of the coin, the price action. And call for a separate study of it, divulging from its commonality with technical analysis.

Price action trading gives you insights about the behavior of the crowd behind the movement. The fear, the greed, the denial, the despair behind the price. Technical analysis just fails to do that.

To end, I would like to give you a quote that I think most of the traders reading this would need to ponder upon.

“It is not that we know too little, it is because we know too much.”

Think about it for a moment, do you really think you know too little? Or are you just learning too many at the same time?

Lessen your analysis and focus on price. Who knows what things you’ll uncover?

Contributor:

Full Name: Geyzson Kristoffer S. Homena
Investagrams username: @GeyzsonKristoffer

Channels:
Investa: bit.ly/GeyzsonKristoffer_Investa

Facebook: bit.ly/GeyzsonKristoffer_FB

YouTube: bit.ly/GeyzsonKristoffer_YT

About the Contributor:

An Applied Mathematics graduate and a full-time teacher, Geyzson Kristoffer is a part-time trader who has been an active user of Investagrams since 2017. He spends his mornings, afternoons, and evenings learning about trading and reading books: Alexander Elder’s Trading for a Living being his favorite. Cohering to his passion and profession, he set his heart on teaching and helping newbies, but only the dedicated ones.

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Short-Term Investments You Can Start Now

Do you have liquid assets you want to see grow? Short-term investments might be exactly what you’re looking for. A short-term investment is a temporary investment that can be easily converted to cash. These investments are typically stored between 6 months to 5 years. The end goal of this type of investment is to gain more money quickly mostly through a passive income.

MONEY MARKET FUNDS

Money market mutual funds are a type of mutual fund that invests in low-risk and short-term debt securities. This is definitely a good choice for liquid assets because it still earns small returns without having to wait a long time. This type of fund takes about 6 months to 1 year to mature. It’s considered one of the least risky investment options because of its high liquidity.

Some of the things that need to be taken into consideration with looking into which money market fund options might be right for you are the minimum investment needed, the administrative fees, the maturity period, and the early withdrawal fees.

TIME DEPOSITS

Another good investment option is a time deposit. Time deposits are a kind of bank account that earns a fixed interest over a period of time. During the specified term, the money cannot be withdrawn. In some cases, it can be withdrawn with but it will have an early withdrawal fee.

The selection of lock-in periods can range from 30 days to 5 years. Interest rates of time deposits are higher than savings accounts. This could be a good investment if you have passive money that you would like to grow. Just like savings accounts, these are options often given by traditional banks but digital banks have better rates.

STOCKS

Investing in stocks can be for the long-term or for the short term. Short-term stocks mean more attention but with the right research, you should be able to get a good return. A disclaimer would be that stocks do not always guarantee a return.

Some things to consider when looking for short-term stocks would be the stability of the company and understanding the risk involved for each stock bought. If you would like to learn more about stock trading and the stock market, definitely check out the free lessons at Investa University.

ONLINE SAVINGS ACCOUNT

The most common option in this list would be a savings account, more specifically a savings account opened in a digital bank. To be honest, traditional banks’ savings accounts often provide the worst interest rates. Instead of investing your money there, look for higher interest rates in digital banks.

Digital banks can offer fewer fees which means more profit for the customers. Some things to keep in mind when looking for an online savings account would be to make sure they don’t have a minimum deposit, check if they have fees per deposit, and no hidden fees.

Remember Ka-Investa, there is no better investment — only the one that fits your lifestyle. Whatever you choose among all of these, the most important thing about investing is to START NOW.

 

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Do I Need a Trading Break?

When we want to do things for a prolonged period of time, it is necessary that we take the appropriate amount of breaks at the appropriate times. But how exactly would a trader determine when to take a break when the markets trade for 5 days a week? Before we move on to the “when”, let us first discuss the “why”. 

For starters, taking trading breaks is necessary for the long term sustainability of your trading. Let’s say that you are on a losing streak  and you are trying to decide whether to take a break or not. On the one hand, taking a break for one week will let you evaluate your system.

On the other hand, continuing to trade despite your losing streak might be what you need in order to end the streak. Although continuing to trade might sound like a compelling option, there is a possibility that you’ll end up with more losses thereby by lowering your spirits which eventually leads to the end of your trading journey.

Journaling

Now that we have established the importance of taking breaks, let us discuss exactly when you should take breaks. It is worth noting that these tips are only possible through journaling or the act of recording your trades. You can use anything from Investajournal to simply using a notebook to record your trades as long as the journal contains your entry and exit prices as well as your entry and exit reasons. Now that we have our journal, we must discuss two important metrics: VAR (Value at Risk) and Exit Notes.

Value at Risk

Value at Risk (VAR) is actually a statistical measure used by financial institutions in order to determine the risk involved in a certain portfolio. However, in the context of retail trading, VAR pertains to the amount that you are risking relative to the size of our portfolio. So lets say that you have PHP 100,000 in your portfolio, 1 VAR is equal to PHP 1000. This means that if a trade involves the risk of losing PHP 1000, then you are risking 1 VAR. 

So how can we use VAR to determine when to take a break? Well, it can be as easy as taking a break when you are down 10 VAR. This means that if your initial capital of PHP 100,000 has turned to PHP 90,000. This is the perfect time to take a break because it shows us that there is something wrong with our system. Losing 10% of your portfolio is not something that you should take lightly. This requires an evaluation of your system that usually entails virtual trading and continuous learning. 

Another metric that you can use is if you lose 5 VAR in consecutive trades. So if your capital is PHP 100,000 and you raise it to PHP 120,000 but lost PHP 5000 in consecutive trades (net PHP 115,000), then maybe there’s something happening to the market that requires you to adjust your system. In summary, you can either take a break when you’re down a certain number of VAR from your capital (regardless of win/loss ratio)  or you can take a break when you lose a certain number of VAR to consecutive trades. 

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Exit Notes

Aside from the amount that we gain/lose, we also have to look at WHY we lost/gained money. Basically, if you are losing for the same reasons (e.g. failed breakout, whipsaw) then maybe you need to adjust your system in relation to that.

An example is adding Average True Range (ATR) to your system to avoid further whipsaws. It’s easy to say that you don’t need to take a break to adjust your system but in reality, you cannot be objective with your trading setup if you have open positions.

Conclusion

It does not matter if you are a beginner or an experienced trader, everyone goes through losing streaks. In the end, we have to remember that bouncing back from losing builds character which is the primary tool that we need in order to find success. However, you do not need (nor should you)  bounce back right away. Oftentimes, a break is necessary in order in order to avoid making the same mistakes that brought us to our downfall in the first place.

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