I really hope you get to read this and I hope you could help me understand my situation better. I hope to see sir you in Abu Dhabi for you seminar, I am just trying to make my schedules work out. I hope you can come back here every quarter like what you did last year.
Jonmarc, Abu Dhabi, UAE
Catch me in my live training events! (quick plug)
The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more on how you could time the market checkout the trainings below.
I will say this as kind as it can be but do not rely on your friend when it comes to stock advise. Your friend might be good and he may have the best intentions for you and he wants to help you out but you must take control of your financial destiny! It is your money, your finances, so it must be you who should take care of it and make the right amount of research whenever you buy a stock. That also goes to every guru, analyst, super trader or influencer out there do not just take their word for it you must know what you are buying. I also would not even tell you to just take my word for it, I want you to study it and build your own conviction from what I teach.
Research at Night
I would suggest that before you buy and sell any stock is you must have done your research and you must know if this stock is a good company or not. As what I mentioned in my 2nd book, Stock Smarts: Winning Strategies for Investing, I would suggest that you do all the research when the market is still closed so that you take the data as it is. No hype, no market movement and no factors that may prevent you from using your emotions to trade. I personally have done this for years and I have made it a habit no matter how busy I have become to make sure I do the right research before any trade. Without any research I would not do any trade.
I hope that this blog helps give light to your questions!
Does Peso Cost Averaging Work?
My take on this topic is that it is not a very straight forward answer. Why? Because, Peso Cost Averaging just answers when and how frequent you should buy the stock. I know you have been investing for quite a long time already in this stock. 5 1/2 years just to see your stock hit low after low is very painful. That is why, stock market investing is not just about investing for the long term but also buying the right stock. A bad company will always be a bad company no matter how long you hold on to it.
Peso Cost Averaging and Fundamental Analysis
Even if you are using Peso Cost Averaging you must know the fundamentals of the stock you are buying. You must know if the company is actually making money or not. That is one of the most basic pre-requisite before you even look at other parameters. To tell you honestly, the stock has been losing money for the past 5 years. That is a sign of a bad company. That is a company that I personally would not touch and I would avoid as much as I can.
No matter how long term you are in the market, no matter what buying strategy you use, if the company is losing money for consecutive years, it may not have shot to go back up again until something changes in the company itself. I will discuss more on the fundamentals of companies more on this blog and in my next books but if you have the time to attend our seminars I encourage you to do so.
Peso Cost Averaging and where the market is headed
At this point, the stock is still in a very very very large downtrend! As of this point, there are no signs of reversal yet. The market is just reacting to how the fundamentals of the company really is. So this is a case when both Fundamental and Technical analysis all agree with each other telling you to stay away from the stock at all costs.
Did you make a mistake?
Here’s the thing, I wont sugar coat it. Yes it is a mistake. However, don’t make mistakes like this define who you are as an investor. Don’t let this one trade hinder you from your financial destiny. Learn how the market works, use this as a stepping stone to learn how you can improve and be better in your trades. Everyone in the market makes mistakes, even Warren Buffet does and he is considered the greatest investor of all time! What’s important is you try to improve from where you are, I know things like this hurt but it is something I know you will overcome!
Don’t rush into things, take the time to learn, learn and learn. You can never go wrong when you invest in yourself Keep on reading, keep on learning, invest in your trading education. Build your strategy and conviction because after all profit is just a by-product of all of these things.
I hope this helps you!
I hope my suggestions and tips above help you in your investing as it is my greatest desire to see you prosper and that you use the stock market to make you reach your dreams of financial freedom. If you have questions about stocks, business and personal finance feel free to click on this link and I will try to answer your questions the best way I can! God bless you!