How did you start learning how to trade and invest in the Philippine stock market?
Just like many of you, I tried almost everything. I came to the point of having so many indicators on my chart that I ended up seeing a chart that looked like the drawing board of my son with Godzilla and Barney on it.
As a computer scientist, my training has always been to be a well-rounded cyborg – sorry, I mean human – who knows the headline news in business, politics, technology, sports, science, health, and entertainment.
How I Started
I started by studying the A to Z of the stock market.
MACD. RSI. Stochastic. CCI. ATR. Bollinger Bands. Chaikin Oscillator. EMAs. MAs. Fibonacci. ROC. VWAP. Candlestick patterns. Dow Theory. Harmonic Patterns. Valuation ratios. Income statement. Balance sheet. Accounting 101. Abacus. Zombies.
Yes, including abacus and zombies as my way of self-reorientation when I have to go back to Earth from the Stock Market Universe.
They were right! The stock market has its own world.
Kidding aside, I have read and studied as much as I could. It was an extra-challenge for me because there were only a few Filipino traders cum bloggers during that time. Most of the write-ups were about US stocks. Plus, I was self-studying the stock market.
I’m Allergic to Uniformity
After years of continuous learning, I’ve started to ask myself: “If we all studied about the exact same stuff, followed the exact same classical methodologies, and used the exact same indicators, what advantage did I have against everyone?”
My training and experience in cognitive science inspired me to develop my own methodologies for short-term trading and long-term investing in the Philippine stock market.
For the past 19 years that I’ve been in and out of the stock market, I’ve discovered six must-have skills to be an independent short-term trader and a profitable long-term investor.
In this article, I will introduce these six skills that I’ve discovered and mastered after years of trial-and-error in finding what methodologies and framework will solve what used to be my biggest problems in stock trading and investing.
6 Skills I Have Mastered (and why you should, too!)
1. how to identify the best stocks to trade when you’re busy
I do a lot of stuff. I’m an entrepreneur and a social-action volunteer in my community.
One of my biggest challenges was how to find the stocks that have an attractive reward-to-risk ratio out of the nearly 300 stocks in the Philippine stock market.
I realized that my problem is also the problem of every busy professional and entrepreneur.
I have developed a method that is not time-consuming and easy to do with proper training.
My solution could be the panacea for all busy professionals like you who want to find the best stocks to trade despite your very busy life.
Finding a needle in a haystack is no longer as difficult as you might think, so to speak.
One problem solved!
2. how to identify a confirmed buy-signal
I do not want to make any decision based on what “think, feel, and believe” only.
Computer scientists are data-oriented people.
Give me data, I can be any superhero I want to be. Take away my data, I’ll only be a regular hamburger.
I find it relatively easy to find buy-signals by using classical indicators together with the classical way of interpreting them.
There is a number of websites that count the number of available buy-signals through oscillators or technical indicators.
For example, if 11 technical indicators gave a buy-signal and 4 technical indicators gave a sell-signal, that would still be a buy-signal since the former outnumbers the latter.
That’s so vanilla for me. It’s like programming using FORTRAN and Pascal in 2019. It’s nowhere near Python, Ruby, or C#, so to speak.
When the methodology is so vanilla, expect it to be a saturated strategy.
What’s your edge when all of you are doing the exact same thing, looking at the exact same stuff, and thinking the exact same way?
I’m not a fan of uniformity or doing what everyone else is doing in unison.
I am also not content just by being different.
I got to be advantageously different.
My way of thinking paved the way to the discovery of my minimalist methodology in finding confirmed buy-signals.
Two problems solved!
3. how to check if the current trend is more likely to continue
Maybe you love cats.
But I’m sure you don’t like Dead Cat Bounces, do you?
Once upon a time, I often caught myself asking, “Is this ascent or descent in price more likely to continue?”
It’s important because I don’t want to buy and sell too early or too late.
If the stock has been registering red candlesticks for so many days already, I’d like to know if the decided sellers have reached an exhaustion level already.
Once these sellers reach an exhaustion level, what do you think is bound to happen?
After throwing up, the market participants’ stomaches are empty. They’re now ready to buy and join the rally.
In the same way, you want to know if the ascent in price is still more likely to continue when the stock breaks above a resistance level.
If the upward moment is still strong, you have a logical reason to enter a new position or to top up.
I have solved this problem already.
Three problems solved!
4. how to identify the price range where it’s best to trade
So you have identified the best stocks to trade.
You have also seen confirmed buy-signals.
You have also identified that the rebound in price is more likely to continue.
What’s the missing piece of the puzzle now?
Answer: It’s the asking price where you should buy.
You must know in which price range it is more logical to position your buying price.
This thought is not only applicable when it comes to buying but also when selling.
You must know the price range where there’s a high probability of getting your trade fulfilled whether you’re buying or selling.
One of my biggest problems back then was buying and selling at a price that was a shoot for the moon.
Thankfully, I’ve fixed that problem already.
Four problems solved!
5. how to know the true market sentiment
I don’t rely on one indicator or method.
It is my practice to get a second opinion from my other indicators or methods.
What do I do that for?
I do that for confirmation.
At least two of my methods must agree with each other for me to have a high conviction in executing my trade setup.
If my second method does not agree with the sentiment of my first method, I might continue monitoring the price movement and not execute my trade setup yet.
There must be a confluence of sentiments.
After I’ve developed a method on how to know if the prevailing trend is more likely to continue, the next thing I wanted to do was to find a method on how to confirm the sentiment derived from my first method.
It took me a while to find a compatible framework for my initial method.
The good news is I’ve already developed the second method that’s compatible to the first one.
Five problems solved!
6. how to sell logically if you’re an emotional trader
Which of the seven deadly sins do you think is more associated to emotion-related problems of a trader and investor?
Is it pride, greed, lust, envy, gluttony, wrath, or sloth?
Some may say “pride” but I say “greed.”
I was a victim of my own greed.
In my longing to bag the highest possible price, I almost ended up either bagging the breakeven price or selling at a loss.
The stock market can turn happiness into a complete sadness in seconds if you do not have the discipline and a system in place that will guide you how to sell more logically and less emotionally.
Notice that I said “less emotionally” and not “emotionless” because the latter is unrealistic unless you’re a dead meat.
Being greedy is very tiring.
I’m glad I reached that point of exhaustion on greediness.
I have developed a customizable selling strategy that preserves my capital, protects my gains, and prevents unbearable losses.
Yahoo! Six problems solved!
There’s a 7th Problem
But it’s not my problem.
It’s the problem of other traders or investors.
It could be your problem, too.
What is the 7th problem?
“Where will I find a mentor who can teach me all six skills?”
I also have the solution for that 7th problem.
I will teach you these 6 skills below through my advanced Evergreen Strategy in Trading the Philippine Stock Market seminar.
- how to identify the best stocks to trade when you’re busy
- how to identify a confirmed buy signal
- how to check if the current trend is more likely to continue
- how to identify the price range where it’s best to trade
- how to know the true market sentiment
- how to sell logically if you’re an emotional trader
These are my proprietary methods which you can apply in short-term trading and long-term investing.
You cannot find my methods on Google. These are all proprietary.
Take it with a sense of urgency, however.
I only welcome 20 to 30 enrollees per seminar so I can accommodate as many questions as I can from my students.
First come, first served.
Once seats are taken for my seminar in your area, you will have to wait until I open another batch in your area.
Just to let you know, I’ve never had a chance to conduct another batch of a seminar in the same area this 2019.
In other words, you may have to wait another year before I can go back to your place if you missed the previously scheduled seminar in your city or province.
If you’re a subscriber of Equilyst Analytics or if you’re planning to subscribe, I highly recommend that you attend this Evergreen Strategy in Trading the Philippine Stock Market advanced seminar near you so you can have a crystal-clear understanding of my methods and processes.