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:
On Long-Term and Short-Term Investing
I’ve learned that long-term investing should depend on the nature of the stocks you’re holding. If it’s a stock that has strong fundamentals and is generally a good performer, then by all means invest in it for the long-term. You see, there are stocks that suddenly move up and down in a matter of months and there are those that slowly but steadily go up. It’s smart to trade stocks sometimes especially if these stocks have high volatility, meaning, the price fluctuates dramatically. This is risky, yes, but it’s worth a try. Observe and time the market if you’re goal is to lock-in more gains over a short period of time.
I have done this “trading” thing for a few times and my gains were impressive. Obviously, I have no regrets. I plan to do it whenever necessary and only after a careful analysis, of course. So yeah, I’m a long-term investor, like what I’ve said in the past, but I’ve recently learned to maximize my profit by doing some trading, too.
On Speculative Stocks
I have three speculative stocks in my portfolio at present. Among them, the most winning one remains to be Double Dragon Properties Corp. (DD). I have experienced doubling my money in it last year and up to 84% growth during the first quarter of this year. Currently, DD remains as robust as ever but its growth has slowed down. I know its price is going to skyrocket sooner or later so I try to keep observing its movement and buying shares whenever I have extra funds.
As for my other speculative stock Store Specialists, Inc. (SSI), the present seems favorable and the future remains bright. I try to buy shares of SSI monthly because I need to average down its price. (I happened to buy SSI at higher prices before, that’s why.) Hopefully, using this cost-averaging method, I could reach a good average price for it.
On Computing Investment Growth
I compute my investment growth at the end of each year. I add up all gains I’ve accumulated from selling stocks and all dividends I’ve received from the companies I invested in and the total becomes my profit. To get the growth percentage, I divide the total profit by the total capital and multiply the result by 100. Do you compute your profit that way also? It’s the simplest I can think of so if you have a better way of doing things, please let me know. Haha.
Lock-in Profits + Dividends = Total Profit
Total Profit/Total Capital x 100 = Total Profit Growth Percentage
Last year, my stock investments grew by 10.74%. That’s good for me already given the not so impressive performance of the stock market all year round. It has even surpassed my target of 8% growth per annum.
On Continuous Investing
Two years into direct stock market investing, I’m still firm in my belief that it’s still best to invest. Investments are risky but just like in life, there are winning and losing moments. I’d like to set my eyes on the former more than the latter. I refuse to entrust all of my money with the bank because I know better than that. And as long as I see good results in what I do with my portfolio, I will continue to do it and improve as an investor.
And you, what have you learned so far in your experience with the Philippine stock market? Share your story, please! 🙂
Check out my previous posts in this series:
May you choose happiness always,