My experience Trading in the Philippine Stock Market.

I opened my account with COL Financial late 2014, when I was already in Switzerland. I still had some money in my savings account in the Philippines and I knew that it would just lose its value due to inflation. I applied and after sending the required documents from Switzerland to the Philippines, I was aproved. It was actually an easy process.

In four years, I have made 11 deposits to COL and to date, my portfolio has grown to 12%. It is definitely much better alternative than just a regular savings account however, I would also not say that I am satisfied with it. The reason is that I could do better.

Because of the time difference between Philippines and Switzerland, I could not really trade from the opening to the closing of the stock market. And for the past years, I just viewed my investment as an ‘alternative to savings accounts’, thus I did not really make much effort rather than sell when I have gained what I thought was good enough then wait for the buy back. I did not have a definite strategy and lost so much of what I could have gained because of its lack.

I will give an example. November 2016 during the US Elections, I anticipated that the stock market will go down because historically, it always goes down and even crashes whenever a new US president is elected. So days before the election, I sold all my stock positions in anticipation of the new crash. I would buy when the crash comes after a new president is elected. That was my plan. So then Trump was elected and I was surprised that the day after his win, the markets were up. I read all good things coming and they were all saying everything is actually good this time and the doomsayers were wrong. I know that the prices go up ad down in matter of days which is very normal and this trend is not affected by any major event or presumptions. So I waited a day or two for the euphoria to settle down and the prices to go down so that I can buy. Then the prices go to their normal down and I bought stocks from PLDT and Ayala Corporation which are my favorites. I bought 70 staggered shares from PLDT at 1513.14 pesos average price per share and 150 shares of Ayala Corporation at 821.14 pesos per share and at that time they were already low. I thought I bought them at their normal low price and that afterwards the price would again go to normal high and then I can sell.

Then at this point came the election crash. PLDT shares went to about 1200 pesos per share and Ayala at about 690 per share. I was so mad at myself for not sticking to my original plan of waiting. What I thought was just a normal up and down of the market was actually the start of the spiraling down of the market. This is what normally happens after a US Election which I originally anticipated. So I lost a lot because had I waited, I could have bought a 690-700 per share price of Ayala instead of an 821.14 per share that I currently had. Also I could have bought a much cheaper PLDT share which I was really desiring because PLDT shares are very expensive and pays the best dividend.

So I punched myself but because there was nothing I could do, I waited for the price to go up again. Came March 2017 and the prices were going up again. Maybe because I was so weary of the long wait and all those time I saw my money get smaller and smaller that on the first sight of it getting a life back, I sold. That was second biggest mistake. I lost a lot of money by not waiting in buying and again, I lost a lot of money by not waiting when to sell. When PLDT went 1540 pesos per share, I sold my positions for just a net win of almost 1,400 pesos. The same thing I did with my Ayala share, when the price got to 849 pesos per share, I also sold my positions for a mere 3, 200 pesos win. Well they were not bad sells because I was thinking of buying them back when they go low again but then again after I sold my positions, these stocks went higher and higher and they traded to 1.700 per share PLDT and almost 800 per share with Ayala. Dumb me, I should just have waited before selling.

So there, this is the reason why I am not satisfied with my 12% portfolio earning because I could have had more. Th reason really is lack of strategy. This is why I want to make a clear decision on what I should do.

At the moment, I have 100 Ayala shares, 130 PLDT shares, and 7000 Belle Corporation shares. I bought my Ayala and PLDT at very high prices so I am waiting for an earning and I will sell them again. However, Belle Corporation is I think a fairly good company and it still has a lot of room for price growth so I plan to just continue buying this stock. Actually, since Belle stock is very cheap, what usually happens is that after I bought PLDT and Ayala and other stocks, there is usually an amount of money left but could not buy expensive positions anymore so I end up just buying Belle stock. In short, the leftover cents go to buying Belle.

This is jus to tell my story of trading/investing in Philippine stock market. I wish I could do better because one can really earn a lot in this market if done properly. This is what I am hoping to achieve.



Note: This is an old post I made sometime in 2016. I included this to make a reader aware of the fluctuations of the stock market investment.

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