LET THERE BE LIGHT.... PLEASE

       It's been quite some time since I last saw my portfolio in green. When the market correction started, so does my portfolio turned into red. Now, the newbie stock investor is like a man walking in the dark without a lamp to help him follow the right path. I need to do something but I'm a little bit confused right now. I don't know what to do whether I'll buy now, I'll sell now or wait for further correction. 

       I need to ask for an expert opinion that's why I have asked Mr. Gus Cosio for his advice, "sir Gus, It’s been a long time since the market correction started that  made my portfolio stagnant. Could you please advise me here or even just post comment in my small blog on what to do. I’m just a newbie and has been reading your blog ever since I started last June. My portfolio is posted in my blog/diary…"

        I got a short but very nice reply from him and he told me this, "I must reiterate that you need conviction to be in the market. You must also have the humility to take losses whenever you have to. Money management is as important as stock picking." It was further explained to me by my friend Louis ( lead star KFAMserye in our stock investing thread.... just kidding! hello bro Louis!)

       The chicken little inside of me is starting to scare me but I'm not minding it right now as I believe that I have fundamentally sound stocks in my portfolio. I got Ayala Land Inc., Philex Mining, Manila Electric, SMPH etc.. which are cash rich and even most of them I can't sell right now, I'll still earn cash dividends if I decide to hold them for long term.

       Whatever passion that drove me to start investing in stocks several months before, it is still with me. Time really comes that we are confused and don't know what to do but it is up to us how to handle the situation. If you are into stocks like me, don't panic. Relax and think not just once or twice before deciding. Or else you might lost your money (I mean lots of money) if you listen to chicken little who is shouting that the SKY is FALLING.

       So, will I buy or sell now? Let me think. By tomorrow you might see some changes in my portfolio. One thing for sure, I enjoy investing in the stock market! Do you?

"He who has a bountiful eye will be blessed..." < romer is ayeckanic, ayeckanic is romer > Ayeckanic™

MARKET CORRECTION

       Have you ever tried mountain climbing and in the middle of the trek you took a rest or even a nap before continuing to climb? or participated in a cycling race wherein you got tired and you need to slow down a bit to have 2nd wind for the later part of the race? 

       In the stock market, we also have that similar situation wherein the market that is having an uptrend will slow down for a while with stocks prices taking a dip of around 5% to 20% or so. It is just a short period of lowering of prices which can not be considered yet as bear market already. Market correction should be welcomed by stock investors instead of being feared as this is the opportunity to buy more fundamentally sound stocks. And for those who got to purchase stocks at high price, they can lower down their average price during this time. It is also a perfect time to reposition your stocks portfolio as you could sell those who are non-movers and allocate the proceeds for more liquid stocks that are at a bargain. 

source: http://www.meghainvestments.com/

       For the past 2-3 weeks there was a market correction in the Philippine stock market, unfortunately for me who is just a small time stock investor I don't have enough cash to buy. So many blue chip stocks like TEL, ALI, MER, SM, AEV and a whole lot more were on SALE. It was like a little kid entering a chocolate and candy store which have big discounts! All I could do during this correction time was watch on the sideline and study how does the traders and investors behave while prices were going down. Some of my friends were able to sell their stocks and also added more good stocks to their portfolio. Anyway, as a newbie in stock market I learned a thing or two during this market correction. It is advisable to always have extra cash in your funds ready for any correction also just relax and avoid panic selling. And as for me, it is still better to be an investor instead of a trader... 

       How about you, do you also want to try stock investing? Don't waste your time, it is better to start investing while you are young.

"He who has a bountiful eye will be blessed..." < romer is ayeckanic, ayeckanic is romer > Ayeckanic™

GREEN is RELAXING...

       After several days of seeing "the red flag" in the stock market, finally I saw the "green flag" waving in the PSE index. 

source: https://www.firstmetrosec.com.ph/login.asp

        

       Is this already a sign of the end of market correction for the time being? I'll be glad to welcome that as I don't have free cash anymore for buying. Our salary is still a week from now meaning the new kid in town is just watching at the sidelines while the correction is going on. I also observed like what Bro John316 had noticed in Stock Investing Thread that the casts of the No. 1 KFAMserye were gloomy during this market correction. All free cash were used already, no more "bullets" for everyone probably... Not much posts... 

       Ok guys, I've just read one post in KFAMserye which might make us all smile. Here it goes...

John wrote:

"Anyways good news is we're not in Bear Market. According to Mr. Barredo's Elliot Wave Analysis of the PSEi, we're somewhere between the first and second wave of the three waves before the 2 downtrend waves of the Bear Market. Basically this is a healthy correction in preparation for a bigger Bull Run and after that it's the dreaded Bear Market.

So for the moment, cheer up mga katoto. Something great is ahead."

source: http://www.kerygmafamily.com/forum/viewtopic.php?pid=142711#p142711

       There it goes friends! I really like KFAMserye, the casts are sooooo nice! Sweet!  Thanks Bro John. Have good night everyone! 

      

"He who has a bountiful eye will be blessed..." < romer is ayeckanic, ayeckanic is romer > Ayeckanic™

UNTIL WHEN?

       Until when will this market correction be?.... Some says it will still take around 2 more months, others 1 more month.. Who cares? Do you? If you are an investor, it's a good opportunity for you to accumulate fundamentally sound stocks. As for me, when I have my extra cash once again after my salary I'll be buying probably stocks under the Banking sector. After selling my BPI stocks, I wasn't able to buy again stocks under that sector. Whatever happens most people still save their money in banks rather than investing them, right? So I believe having stocks under banking sector in my portfolio is a good decision.

       Tomorrow will be the last trading day for November, I hope it will be in a good note to have December a very nice start! During this market correction, I still have to figure out how could I earn in my present stocks because I only have one stocks in green. PX, please lead the way for my whole portfolio. Please please please! Good luck to everyone tomorrow...

"He who has a bountiful eye will be blessed..." < romer is ayeckanic, ayeckanic is romer > Ayeckanic™