Que on MER @ SMP Forum

August 12, 2013 at 1:46 pm 2 comments

sacredspader Wrote: Mga sirs gud am ask ko lang po, if for example pumasok ako sa MER with 50% of my capital nung around 300+ days before sell off ng SMC shares (@270/share) at medyo stuck ako sa 290+ average using a total of 70% of my capital. Is it advisable to average it down using my remaining capital and leave it long term or pull it out and try other stocks? I know it really depends on my financial plan pero in your opinion, what is the best thing to do at this point?

I dont know if nasa tamang thread ako nagpopost. If ever mali po pasensya na. Smile

Sagot si spy…
as much as i would like to practice being disciplined, nag mimintis ako pagdating sa cut loss senor.

senor INDO *beso* Big Grin

example: i buy mer coz nag breakout sa 300. nung bumaba, i hold it coz of fundamentals. the “mintis” of being a disciplined trader or investor is that, you bought using technicals, you hold it using fundamentals.

another example: i buy mer coz of its sound fundamentals and base on its pe ratio, undervalued sya. i sold mer coz sabi nila nasira na yung support nya sa 300.

but sometimes, we should adapt rin. bottomline, ,may plan. easier said than done ofcourse.

personally if ako ang nasa katayuan mo, i will hold mer (70%) of “my” port. the remaining 30% i will seek a short term trade to lessen my losses. but since 290 is near mer’s current price. i wont do any “short term” positioning muna. if mer goes than more, that 30% i will use, otherwise no move. if umakyat mer past 300, and say may “gain” na yung 20% na pinasok ko, then ill sell it to lessen my loss and to lessen exposure on a single stock.

“my” mistake is that, i bought in 50%, and added 20%. meaning baliktad. if i do cost averaging, it would be same amount (thus more shares on lower prices) or a bit greater than my first buy.

that 30% remaining fund in my port is crucial. it will be my “moment”. either makakarecover ako or maipit lalo. this is where we stand on our last battle field.

question then is this. am i willing to sacrifice my 30%? if i am prepared to do so, i must in any circumstances APPLY DISCIPLINE. meaning, kapag ng kamali ng pasok ang 30% ko, i need to CUT. this is a MUST in keeping “my” port alive.

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Entry filed under: Phisix's Closet (PSEi).

I can sell you FEAR or I can sell you ek-ek story. Quote of the Day

2 Comments Add your own

  • 1. Smiley  |  August 12, 2013 at 8:18 pm

    HOLD it, average down below 285.. :DD v

    Reply
    • 2. spyfrat  |  August 14, 2013 at 1:28 pm

      smile smile na 🙂

      Reply

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