The PSEI is now down 5 consecutive days and as of this writing it has dropped 4.3% (7,358 to 7,041). From this previous article, technical analysis is telling us that if the selldown continues the next landing spot of the PSEI is at 6,880 and if that gets broken the next landing spot could be 6,574. However crossing 6,880 downward would move our market from bullish to bearish, which will happen for the first time in since February.
Our Fundamentals is still amazing, however a good portion of our stocks are already relatively expensive. Also we have been in an uptrend from more than 10 months now and like any other market people need to take profits and the market also needs to breathe and relax a bit.
As part of our Fast Five series, here are Five Fast Tips On What to do while the Market is Going Down.
1. Pause. Then pause again. Review your plan and don’t do anything until you’ve formalized your gameplan both using fundamentals and technicals.
2. If you are a trader, follow your take profit/loss points. This will allow you to maximize your gains and minimize your losses.
3. If your goal is to accumulate stocks via peso cost averaging, continue what you are doing and don’t mind the volatility. The fundamentals of the stock does not change just because there is a selldown in just a few days. Great companies always bounce back higher than how deep it has fallen.
4. If you are a buy and hold investor, stick to your plan. Look for bargains if the market continues to drop. The cheaper they become the better it will be for you.
5. Disregard your emotions. Your emotions will make you panic and will force either buy or sell rashly, which you may regret in the future.
I hope this “Fast Five” tips help you in your trading in the market. I want to see you profitable not just in good markets but that you have a plan regardless of what conditions may come your way. God bless you as you move forward into financial freedom!
Stock Smarts: Stress Free Investing is now out!
November 28-29: Singapore -Stock Smarts Basics and Technicals
December 5: Iloilo – Technical Analysis
December 2: Manila – Stock Smarts Basics
December 9: Manila – Fundamental Analysis
December 12: Dumaguete – Basics and Fundamental Analysis
December 16: Manila – and Portfolio Management
January 15-16: Bangkok, Thailand – Stock Smarts Basics, Fundamental Analysis and Technical Analysis
February 5-6: Sydney, Australia – Stock Smarts Basics, Fundamental Analysis and Technical Analysis
*Pictures via google search
*Charts by Chartnexus
