The first one is kapag may trabaho ka, you can use MAMA or ALMA or kung ano pa man na strategy meron ka but please use DAY na timeframe. Stay away sa lower than that na timeframe. It does not mean you are not that good of a trader, it only mean na you play the timeframe na in favor sayo ang odds.
The second thing is this. When you are a technical trader or you use TA to trade stocks COMPOUNDING is a bad strategy.
I will explain. Compounding is the process in which an asset’s earnings, from either capital gains or interest, are reinvested to generate additional earnings over time. Compounding is yung kunyare capital mo is 100k kumita ka ng 10% that would make your money 110k. E trade mo ulit kumita 5% so 115,500 pesos na pera mo. So on and so forth until maging billionaire ka.
Sa real fundamentalist/value investor, compounding works as we have Warren Buffet as a great example. He buy stocks cheap and wait for the business to realize its potential. It takes years/decades of holding.
Now balik tayo sa mga gumagamit ng TA sa pag trade.The chances of a technical trader to keep compounding his/her money to riches is next to zero. You will encouter losses along the way and it will eat up your profits if you keep re-nvesting your money back to your trading account.
Here is what you should do. I won’t sugarcoat anything. I will say it as it is. So may 100k ka as capital kunyare. You have a job at every month nagdadagdag ka sa trading account mo 10k from your salary. If you want to make it as a trader eto dapat ginagawa mo. You trade out of that 100k. Whatever kita mo doon ke 10k or 5k or 3k you need to withdraw it at ilagay sa separate account. Either sa savings account, sa pang longterm trading account or sa alkansya mo. Kung saan mo man gusto ilagay is up to you.
Then pagdating ng sahod lagyan mo 10k yung capital mo mula sa sahod mo so 110k na total capital mo. Whatever profit mo doon e withdraw mo ulit at ilagay sa ibang account or alkansya. Do this everytime you profit. This will make you earn more yet lose less. You can even do the math.
Let us say same lang ang percentage ng profit at loss mo pero palitan Profit ka 10% sa 100k that would make your money 110k. Loss ka 10% sa 110k that will make your money 109k wala pa sa usapan yung fees.This is not a theory. It is being used way before pa ako magtrade.
If you want a deeper discussion about this idea visit our Facebook group Trader’s Lounge and look for this on weekly lessons na topic. I also included my trading ledger on this lesson over there to support my claim.
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