MY STOCK MARKET EXPERIENCE (2010 IN REVIEW KUNO)

source: http://www.coverdude.com/

       Today was the last trading day of the year, 2010, but my last sell for this year was not done though . I woke up late and when I posted a sell for MER at 230, it did not reach that price anymore after reaching once then going down. Actually the night before, some buys and sell were posted but I was surprise to see when I woke up that my off-hours orders were all canceled. Anyway, it's okay and no need to cry over spilled milk as they say.

       Checking my portfolio as of today, it was not so good because almost all of my stocks were in red meaning at the moment I have some paper losses. I used the term paper losses only because as long as they were not sold at their current price, I haven't lost anything yet from my investment on them. I'm looking forward for a better year for all stock investors this coming year, 2011.

       Same with the previous day, the last trading day for this year ended in green. The Philippine Stock Market had a very good year in 2010 and I'm hoping that the bull continues to "run" when the trading continues next year! It's so nice to learn that the Philippine Stock Exchange Index or PSEi has surged by 1,148.46 points ending the year at 4201.14 according to the business news.

       But going back to my stock market experience, let me reminisce how did it all started and how did I fare compared to the PSE performance.

       Getting my feet wet in the stock market started one fine day (Friday to be exact) on May 7, 2010 when I started participating in the Stock Investing Thread started by bro John316. I was already reading his posts before I decided to participate in the thread... http://www.kerygmafamily.com/forum/viewtopic.php?id=4833&p=2

       I continued to read and learn what the original casts were talking about. on their comments and posts. There were nights that I couldn't sleep early because of my eagerness to learn, I repeatedly read the posts in the thread and searched for other forums, websites and blogs to understand the basics of stock investing. And then I started to play the PSE Stock Trading Game, http://www.kerygmafamily.com/forum/viewtopic.php?id=4833&p=3

       I continued to read and ask my friends in the KFAM forum about the things that I could not understand about stocks and they were very kind to explain to me kahit medyo makulit ako. And then the day has come that playing the PSE STG was not enough for me anymore and I wanted the real one!

source: http://mdb2.ibibo.com/

       The waiting game for the application for my online account was like a torture to me. Each day that was passing is like a month because of my excitement to have my first set of stocks. And on June 16, 2010 a new stock investor ( that was ME of course! ) was able to start ( although my first set of stocks, BPI and PX, were bought only after 2 days), http://www.kerygmafamily.com/forum/viewtopic.php?id=4833&p=8

       Along the way while waiting for my stocks prices to rise, I have received cash dividends on my stocks and stock rights also which I did not avail because I still don't know how to take it. On July 20,2010 I sold one of my stocks for the very first time, my BPI shares. http://www.kerygmafamily.com/forum/viewtopic.php?pid=130026#p130026. Then it was followed by PNX and FLI, all of them at a profit.

       It is not easy to choose the stocks for me this year because there are lots of good stocks to buy but I only have limited cash due to the fact that I am only using my free cash for my stock investing. Anyway, if you want to do stock investing you need to bear in mind that only your free cash should be use for it as what my LIP casts friends always reiterate in the thread.

       So how did I fare in my first 6 months in the stock market? I will rate my self a passing grade of .... 75! LOL! Yes, I did not lost any money but there are still lessons to be learned. When I read some blogs, forums or news they were saying they earned this or that percentage which would sometimes let me ask myself how did they do that or why didn't I achieve that? I already paid my "tuition fee" for the stock market this year and I believe there would be more. The opening of an opportunity for me to start investing in stocks is already a big step towards my financial freedom and I am very thankful for that.

       Looking back at my stock market experience for 2010, I have learned a lot specially from my friends in LIP thread ( bro john316, bro louis, sis krissy, bro john, sis cjv and the whole gang ) "Ang dami na natin guys!". The greatest one is to SHARE... And I am here to share my Stock Market Experience and let everyone know that EVEN YOU CAN INVEST IN THE STOCK MARKET!

       A HAPPY & BULLISH NEW YEAR TO ALL! Let's invest in the Philippine Stock Market!

source: http://www.lateralthinking.biz/

 Pahabol : Bro John316, ayon sa bolang kristal na may ginto sa loob..... MER ang hahataw... si bro MER! hehehe... thanks  to all of you guys talaga!

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

ARE YOU PLANNING TO INVEST YOUR FREE CASH THIS 2011?

       Are you still confuse how the stock market works even after reading all those articles and forums in the web which talks about stocks. So, for you dear readers who are considering to invest those hard earned money in the stock market this 2011, I have some videos taken from the You Tube for your better understanding about how the stock market works.

source: www.youtube.com/

       And here's more which talks about the Philippine stock market;

source: www.youtube.com/

source: www.youtube.com/
       
       I hope you enjoyed the videos and at the same time learned more about the stock market. Investing your free cash as one of your New Year's resolution would be a great idea!
       

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

BEAR MARKET

       As  I was making this blog entry, I was also watching the movie, Over the Hedge, which  is about RJ the raccoon who tried to steal the foods and stuffs owned by Vincent the bear. Unfortunately those stuffs were crushed by a truck and he was caught by the bear. What does the movie have anything to do with my topic then? Not that much actually, although it just showed there the fear of RJ being killed by Vincent the bear if he could not replaced the items before Vincent is fully awake from his hibernation. The bear in the movie is portrayed as a fearsome character. Just like in the stock market, bear market is being feared by stock investors. But what actually is a bear market?

       A bear market is a general decline in the stock market over a period of time. It is a transition from high investor optimism to widespread investor fear and pessimism. According to The Vanguard Group, "While there’s no agreed-upon definition of a bear market, one generally accepted measure is a price decline of 20% or more over at least a two-month period."

       A bear market followed the Wall Street Crash of 1929 and erased 89% (from 386 to 40) of the Dow Jones Industrial Average's market capitalization by July 1932, marking the start of the Great Depression. After regaining nearly 50% of its losses, a longer bear market from 1937 to 1942 occurred in which the market was again cut in half. Another long-term bear market occurred from about 1973 to 1982, encompassing the 1970s energy crisis and the high unemployment of the early 1980s. Yet another bear market occurred between March 2000 and October 2002. The most recent example occurred between October 2007 and March 2009.

source: http://en.wikipedia.org/wiki/Bear_market#Bear_market

       So its been some time that my portfolio was in the red zone... Are we already having a bear market at the moment? If we just read the news in the web and browse forums that discuss about stock market, there they were mentioning about market correction going on. What does this mean? There is no need to panic for us investors because it is an opportunity to accumulate more stocks as fundamentally sound stocks are now in a bargain! It is a good time to enter the stock market if you haven't started yet because we are still in a bull market only having a market correction and not in a bear market.

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

BULL MARKET

       I got inspired today and also there was a free time for me in the afternoon that's why I was able to write an article about bull market instead of waiting for the 3 day holiday here next week.
       While browsing an online community several days ago, a post by Sir Gus Cosio, "Bull on the Loose", caught my attention at once that I immediately read it. No, he wass not talking about a live bull running around the neighborhood. Ha ha ha! In his post he mentioned about the PSE index surging around 20% over the past 2 months and he mentioned some of the stocks he has been following that gained so much in just that short span. Also, we have been discussing in LIP thread in the KFAM forum about having a bull market at the moment in stocks. But what actually is a bull market?

Bull market

A bull market is associated with increasing investor confidence, and increased investing in anticipation of future price increases (capital gains). A bullish trend in the stock market often begins before the general economy shows clear signs of recovery. It is a win-win situation for the investors.

source: http://en.wikipedia.org/wiki/Bull_market#Bull_market

 Also,

Bull market  

A prolonged period in which investment prices rise faster than their historical average. Bull markets can happen as a result of an economic recovery, an economic boom, or investor psychology. The longest and most famous bull market is the one that began in the early 1990s in which the U.S. equity markets grew at their fastest pace ever. opposite of bear market.  

Source: http://www.investorwords.com/616/bull_market.html

       In Ayeckanic™'s term (as what I have understood from its meaning of course), we have a bull market if the market is "continuously" going up and with the share prices keeps on rising because of some reasons like an economic recovery, an economic boom or investor psychology.
       Example of a well known bull market is in India's Bombay Stock Exchange Index, SENSEX, which had a bull market trend for about five years from April 2003 to January 2008 as it increased from 2,900 points to 21,000 points.

Source: http://en.wikipedia.org/wiki/Market_trend

       You may check this video about bull market:

http://www.youtube.com/watch?v=D7X7_EBYI0I

       Article worth reading about bull market in the Philippine Stock Market:

http://www.usnewslasvegas.com/business/bull-market-driving-rp-stocks-to-historic-highs/
http://www.businessweek.com/news/2010-09-06/philippine-bull-rally-to-be-massive-macquarie-says.html

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