There was not a major change in my total equity in July. For this month, I did not make any additional deposit to my COL Financial account. Nevertheless, I still managed to make little money out of my existing buying power.
Why I Did Not Make Additional Deposit
The reason is because I used the money to pay-off the remaining downpayment balance of the house I recently acquired. There was a bit of urgency for my parents to move-in to the new house. The expected turnover date was supposedly around November or December this year but we decided to expedite the process by paying-off the remaining balance in lump sum.
Well, I’ll talk about that new investment venture of mine in another post in the future. I know it’s very interesting, but in the meantime, let’s focus on my stock portfolio for the month of July.
Hit and Run Strategy
If you remember last month, I was a bit playful. I’ve been trading several stocks for short term only. Everytime I reach a profit of P1000, I immediately sell my shares and I’d move to the next play. It turned out to be working fine, so I decided to continue doing the same strategy.
Let me present to you my humble earnings for the month of July.
Compared to my earnings in June, this one is not even half of it. Unlike in June where a bulk of the profit I made came from my long term investments, this month was purely “tsupit” with the exception of BLOOM. If you noticed in my previous posts, I’ve been slowly selling my shares of this company in staggered manner, with a target profit of at least 10 percent on each sell transaction.
For my short-term plays, I managed to trade 4 stocks, namely: CEB, APX, NOW, and AGF. Why only four? Firstly, because it took them a few days or even weeks to reach the P1000 target gain. Remember I did not have additional deposits in my portfolio so my trading was limited on the existing buying power I had that time. Secondly, I travelled to Singapore for a few days in mid-July to attend a conference then I flew to Manila to see my family. Basically, I did not have the time to actively trade.
How I Choose Stocks for Short Term Trading
In trading, there’s no strict formula to accurately time the market. But with a basic knowledge on how to read the chart, you can get a good idea on where the trend is going.
Among 267 listed companies, how did I choose which stock to buy? Note that this time, I wasn’t paying attention on the fundamentals of the company. Price action was the main factor of selecting the stocks.
Alright, here’s one tip: when you buy something, be it food, gadget, etc., how do you make a decision? Let’s say you are not very familiar with the product you wanna purchase. I’m very sure you’d go for the brand that everyone else buys. That’s the safest way to minimise the risk of making a mistake. What’s the logic? If many people buy that thing, there must be something good about it.
The same goes for stocks. I did not have enough time to do a deep research, so I easily picked the stocks that were actively traded. If the trade volume is high, it simply means there are many buyers out there, the demand is high. Chances are those buyers know something that I do not. All I need to do is to determine the right time to enter.