BomBitz | A Pinoy's Journey to Financial Independence

Income Report and Financial Update - June 2016


I have been wondering how I am doing with my stock investments. I kept on asking myself how much did I make so far. Did I ever earn? Am I still within the target income? Therefore, I decided to keep track of my monthly transaction, and I encourage you to do the same. It’s a good way to keep a journal of all your trades, assess the decisions you made in the past, what you have learnt, and how you can improve.

In this article, I will be sharing to you my income report for the month of June 2016. Just a heads up, you will be noticing only positive earnings. It is because I’ve only sold shares which are on profit. I never cut loss. Of course, I have some shares which are negative at the moment, but since I never sold them yet, they can’t be considered as losses. For me, a complete trade consists of two things: buying and selling. First, you buy shares of stocks. But until you sell them, you don’t make or lose money.

Why I Don’t Cut Loss

The reason why I don’t cut losses is partly due to ego. Sometimes, it’s not easy to accept mistakes especially if you have done a thorough research about the company, and you have employed both the fundamental and technical analysis prior to buying, but the moment you hit the buy button, the odds went against what you expected.

Nevertheless, if I’m confident about my decision then there’s no need for me to cut losses. I just have to ignore the short-term volatility and instead focus on the long-term success.

I remember my very first trade more than two year ago. I bought some shares of Ayala Land Incorporated (ALI). On the following couple of days, the price was going down. I was a totally newbie at that time so I sold everything at loss on the third day. To my surprise, ALI bounced back the week after and it continued to rally for some more weeks. I was in total regret. Lesson learned? I could have been a little bit patient. Yes, patience is our friend in stock market.

Monthly Budget Allocated to Investment

The money that I put into my COL Financial account comes from a portion of my monthly salary which I regularly stash away as my commitment to building wealth. Every time I receive my salary, a certain amount is immediately transferred to my COL Financial account. Of course, I make sure that there’s still something left for my basic expenses such as food, accommodation, transportation, leisure, and family support. I always practice what I’ve learned from the book “The Richest Man in Babylon”, i.e. pay yourself first. Put aside a certain percentage of your total earnings for saving/investing first, then spend the rest.

Financial Goals and Targets

My long-term goal is to achieve a monthly income from stock investing that is equivalent to my current salary. That’s my own definition of financial freedom. When that time comes, I would no longer be dependent on my 9-5 job. It may take a little longer, but I’m getting there.

My short-term goal is to have at least 20% annual profit. With the current economic condition of the Philippines, this is not difficult to achieve.

Lately, I have been playing a little bit, trading a few times in a month. I was experimenting whether it is possible to earn P1000 every day using a small portion of my total investment portfolio. In general, this is very hard to attain given the unpredictability of the stock market. Nonetheless, it is possible from time to time as long as you know how to spot the right opportunity.

Income Report - June 2016

As you can notice in the table, both SSI Group, Inc. (SSI) and Philex Mining Corporation (PX) have gains which are just over P1000. These are the stocks that I managed to successfully trade for short term. My trade plan was to immediately sell them once the gain reaches one thousand pesos.

On the other hand, my shares on Puregold Price Club, Inc. (PGOLD) were held for a longer time. I managed to gain 18.15% of PGOLD in just over two-months. I bought this company on dip. The reason for selling? It already reached my resistance level. This was a really good performance. I think PGOLD has been my most profitable stock eversince I started investing. I’ve been flipping this company for more than 5 times already, always buying low and selling high.

Bloomberry Resorts Corporation (BLOOM) was my nightmare stock. I remember at some point it reached -50% loss on my portfolio. However, I decided to hold and now I’m reaping the benefits of my patience. BLOOM showed an aggressive recovery during the past few months. My trading plan was to sell some shares in staggered manner. Once their price level reaches 10% higher than the price when I bough them, it’s the time to sell. This is what i did.

Conclusion

June was a good month! I am actually happy with the P15,740 profit I have gained. I have already reinvested this amount by buying other stocks in order to grow my portfolio. I’m still far from achieving my financial goal and target, but at this rate I know I will eventually reach there.

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4 Comments | Add yours
  • Jeffrey Abad

    Nice sir. Thanks for the share.

    I have not yet tried trading, as my strategy is using graham's and buffet's valuation in my investments, though I am studying what are the knowledge and skills traders should possessed.

    So far I have good paper gains holding blue-chips companies (SMPH, MPI).

    I would love to try trading too. I know the risks, and these risk management processes I have been studying most, before signals and charts.

    I have been doing test trades using MACD, RSI, and Resistance and Support for my test trade, and so far, I am doing poorly.

    Maybe you could share what indicators you are using.

    THanks

    Jeffrey

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  • BomBitz

    Value investing is still one of the best strategies out there. Stick with it. But with the advancement of technology nowadays, it doesn't harm to combine it with basic skills on technical analysis. I personally like using Bollinger Bands in addition to the basic Support and Resistance techniques. Recently, I was looking into Simple Moving Averages as well to have a better idea on the direction of a particular stock and the entire market in general.

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  • Italionong Wise

    Good read..we both likewise have the same strat on trading..

    I manage to bank a profit of the following
    15% - During May when the Telco deal has been disclosed plus the election turned-out.
    45% - profit out of my monthly salary and this because of timely picking of stocks for near term trading.
    60% - profit last July in which VITA and property is my bread and butter.
    As per the current month I am at roughly 15% of profit and still I am optimistic with my current portfolio.

    It is truly elated when your patience paid off.

    Many thanks and all the best to you.

    Happy Investing.

    Ciao,
    IW

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  • Italianong Wise

    In addition that dividend is on my favor..I managed to trade a day/week before the Ex-Div Date of stocks..and once the Ex-Div Date or record-date reached and spotted that it earns a gain..then time to sell.

    "Bella Vita"

    Grazie,
    IW

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