Lessons on Stock Market Investing, Vol. V

One year after my last post in this series, I’m writing again to celebrate another milestone in my financial life — my third anniversary as a direct stock market investor via COL Financial!

So far, things have been doing great. The market is bullish once again after several months of being bearish. During those gloomy months, I intentionally didn’t check on my port. The few times I did, I just bought more stocks so I could average down those that were in the red at the time, SSI included. And what do you know? SSI finally recovered last month. It went as high as PHP4.33 per share against my average price of PHP3.88. Thinking that the trend would die down soon, I sold my SSI shares immediately when it got to 4.07, which gave me a gain of around 4.8%. Now, why did I not wait for it go higher? I have to admit I got emotional. It’s been more than a year since I had SSI on the red, with losses reaching as high as 43% at one point. Having seen it turning to green recently was an overwhelming feeling. I just felt I needed to sell it right away for fear that its price would go down again and I would have to wait for a long time before it could recover. At least I still made money from it. The decision also prevented me from selling at a loss when I felt like it.

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Lessons on Stock Market Investing, Vol. IV

Today marks my second year of investing directly in the Philippine stock market through COL Financial. So far, everything’s okay. I have a number of paper losses but my profit way exceeds its amount so technically, I’m just losing a part of it, not my capital. Also, as long as I don’t sell the losing stock positions, the paper losses will just be imaginary.

Here are more lessons I feel compelled to share with you as I continue on this exciting financial journey:

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3 Cash Dividend Payments in 1 Month

There are two ways to earn money in the stock market: capital appreciation and dividends. Last month, I was pleasantly surprised to receive three cash dividend payments. These were from the three companies in my stocks portfolio: Meralco (MER), Ayala Land, Inc. (ALI) and Banco de Oro (BDO).

mer
notice of cash dividend (MER)

As a newbie stock investor, this good news made me very happy. It was my first time to receive dividends, after all. The feeling was kind of surreal. Haha. They were just small amounts, but they were still passive income. I didn’t work for it; my money worked for it. And thinking about it now makes me more inspired to manage my finances better so I could continue making my money work for me (hello Mr. Robert Kiyosaki!).

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My First Selling Transaction in the Stock Market

While some investors wait for a gain of as high as 15% to 30% before selling a stock, I thought I’d settle for a lower percentage in my first selling transaction in the stock market. (It was my first, kaya medyo kinikilig at kinakabahan ako habang pinoprocess ko yan, hehe!) I believe that as long as it’s higher than the inflation rate in the country which is at around 4% to 5% annually, it’s a wise move. Okay, maybe next time, I’ll go for 10% or higher. Haha.

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proof of my trade as sent to me by COL Financial via email

On August 27th (just the other day!), I sold my 40 shares of First Philippine Holdings Corp. (FPH) at P81. I kept them for a total of 36 days before selling. I bought them at an average price of P73.89 per share. I’m using “average price” here because I bought the shares in staggered amount at different prices. For this transaction, my net gain/profit was P222.47 or 7.47% as indicated in the stock computation tool I downloaded from SmartPinoyInvestor.com. A small amount, yes, but it was certainly very meaningful to me. And hindi ko rin naman basta mapupulot ang halagang ‘yan, diba?
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