AYALA LAND INCORPORATED (ALI) is on a roll enjoying active trading this week at the Philippine Stock Exchange. SmallCOST took advantage of this and made a trade ourselves. Details of the transactions can be found in the Weekly Stock Trading Journal section.
Emotional trading
Examining the emotions involved in our decision to trade at this time, we have to admit it is largely motivated by the urge to play the stock market rather than the more logical goal of earning a decent profit. We would strive to veer away from this tendency the sooner the better.
Yet knowing the allure of placing the order, whether to buy or to sell, and the excitement of learning the immediate result of the trade relative to the closing prices, we know it is a difficult habit to break.
Ayala Land
On the 10th week of the current year, we closed our outstanding position of 100 shares of ALI which we recently bought the week ending February 06. In the process, we had a net gain of 49 pesos.
Trading at the marginal level of one board lot, we have no alternative but to split our gross profit with our online broker BPI Trade every time we trade. The solution therefore is to achieve the minimum value of 10,000 pesos for every transaction to spread the cost.
Our tendency to trade without much consideration to profit led us to purchase 100 shares of ALI this week at 11 pesos a share. A good volume of shares changed hands at this price in the past few days, so we thought we could do the same and grab our portion.
Anchor position
We are thinking of considering this board lot of 100 shares to be our anchor position. This means we would perish the thought of ever selling this position whatever happens to the market price of ALI. Let us see if we could hold on to this state of mind for as long as we can. (smallCOST could not and sold the stock on Week 16).
Stock trading game
The rest of our capital, we would use for position trading. We have a starting capital of 5,000 pesos. This means we still have nearly 4,000 pesos to play around with and place our bet on whatever stock we think would give us the best return, blue chips or no blue chips.
Thursday, March 11, 2010
Sunday, March 7, 2010
Weekly Trading Tracker 2010
Online Trading Lessons Learned: An Analysis of Our Performance Tracker
Dito natin malalaman kung paanong ang halagang limang libong pisong (5,000 pesos) capital ay mapalalago gamit and stock trading sa Philippine Stock Exchange.
| Week | Ending | Sell | Buy | Profit/ (Loss) | Total Equity | %Gain/ (%Loss) | |||||
| Opening Balance | 5,000 | ||||||||||
| 1 | Jan 02 | - | - | - | 5,000 | - | |||||
| 2 | Jan 09 | - | - | - | 5,000 | - | |||||
| 3 | Jan 16 | - | - | - | 5,000 | - | |||||
| 4 | Jan 23 | - | - | - | 5,000 | - | |||||
| 5 | Jan 30 | - | - | - | 5,000 | - | |||||
| 6 | Feb 06 | - | (1,073) | - | 5,000 | - | |||||
| 7 | Feb 13 | - | - | - | 5,000 | - | |||||
| 8 | Feb 20 | - | - | - | 5,000 | - | |||||
| 9 | Feb 27 | - | - | - | 5,000 | - | |||||
| 10 | Mar 06 | 1,122 | - | 49 | 5,049 | 1% | |||||
| 11 | Mar 13 | - | (1,123) | - | 5,049 | 1% | |||||
| 12 | Mar 20 | - | - | - | 5,049 | 1% | |||||
| 13 | Mar 27 | - | - | - | 5,049 | 1% | |||||
| 14 | Apr 03 | - | - | - | 5,049 | 1% | |||||
| 15 | Apr 10 | - | - | - | 5,049 | 1% | |||||
| 16 | Apr 17 | 1,370 | - | 247 | 5,296 | 6% | |||||
This is our last update as of April 17, 2010
Turning a Profit and Moving Forward
Updated April 7, 2023
As we close the books on our Weekly Trading Tracker for the year 2010 at Week 16, we are pleased to announce that we have ended with a profit of Php296.00 after 4 trades, resulting in an overall gain of 6%. While we are pleased with this outcome, we would like to be candid with our readers: we are not guided by any formal trading strategy, and we acknowledge that our knowledge and understanding of the market was not as extensive 13 years ago as it is now.
Beyond Luck: Valuable Lessons Learned from Our Trading Journey
That being said, we have learned an important lesson from our experiences in the market. We have discovered that, outside of a well-established trading system, luck can be the determining factor between a large profit and a deep loss. While some may argue that trading is simply a matter of luck, we believe that it takes a combination of both luck and skill to succeed in the market.
Empowering Yourself: The Importance of Continued Learning in Trading
For those who are new to trading, we encourage you to take the time to learn as much as you can about the market before investing your hard-earned money. Whether you choose to follow a well-established trading system or develop your own, it is important to have a clear understanding of the risks involved and to be prepared to make informed decisions.
Closing the Books on a Successful Chapter
As we look ahead to the future, we are excited to continue sharing our trading experiences with our readers. We hope that our Weekly Trading Tracker has provided some insights into the world of trading and has encouraged you to learn more about this exciting and ever-evolving field. Thank you for joining us on this journey, and we look forward to sharing more with you in the years to come.
Coming Soon: SMALLCOST's Return to Online Trading - Stay Tuned!
We invite all of our readers to stay tuned for our upcoming posts, as we announce the restarting of our online trading activities at SMALLCOST. We are excited to share with you our journey back into the world of trading and to provide you with a firsthand look at our experiences and results.
As we embark on this new chapter, we remain committed to providing valuable insights and lessons that we have learned along the way. We hope that our experiences will inspire and inform you as you navigate the world of trading and investing.
Thank you for your continued support, and we look forward to sharing more with you in the near future.
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