Market vs. Your Expectation
Have you ever heard traders saying “I dont waste time on stocks with less than 10% gain. Sayang effort.”
Ok, I know that this lesson will strike a nerve sa ibang traders but just try to listen and maybe what im saying mag mamake sense. I remember a long time ago when I was still a newbie na mga hinahabol ko din na trade 10% and above. I like the excitement. It was fun. Then the person na naghelp sakin kinausap ako one day about movement ng market esp PSE. You see our market moves somewhere between 3-5 percent per week. It don’t matter if the move is up man o down. Generally yan ang movement nya. In a month I think nasa 3-7 percent but yung important na tandaan nyo is yung 3-5 percent. Ok, general movement ng market yun. Sa chart just to support the claim e ni highlight ko ang weekly moves ng PSEi since benchmark natin sa PSE yan. So sabi nya sa akin it is foolish to expect no less than 10% na gain if the general move ng market is between 3-5%. AT that time I did not understand what that person mean. I understood it later na noong i trade for a living na. Ang tanong is, kung totoo yang 3-5% na yan e bakit maraming traders kumikita 10% or 20% minsan 100% pa. Yes! Totoo yan. Marami nag exceed sa 10% but those are outliers. Di na mamaintain. It has nothing to do with skills its just the movement ng market.I make good gains naman on my trades. I make gains na above 10% but if I will be honest with you. My bread and butter or majority ng income ko nagmumula sa 3-5%.
Wala akong TP ha. Alam nyo yan kasi may post ako about TP. I sell based sa pagbreak ng alma. I’m talking bout expectation ko sa trades. If I hit 10% or 20% that’s good but still my expectation lagi is 3-5% , sobra dun is a plus na lang. It is a little bit tricky e explain eto na topic sa mga newbies kasi mostly namulat sa mga big gains na post. I wanted to wait pa sana bago ito e lesson kasi mas maiintindihan ito ng mga traders na years na sa trading. Mas makaka relate sila na di norm yung mga 50% or DYM or TYM sa trading esp dito sa Pilipinas na halos 2B pesos lang yung value ng kabuuang trades daily. Sa mga traders na only trades yung set up na may 10% or more na gain ok yan if bullish ang market. Doable yan but di nyo sya pwedeng gawing hanap buhay believe me. Try to look sa market natin now.
I want to be as real and as truthful sa inyo.
To date the biggest gain I have on a single trade this year was 96% pero aroung 80 plus percent ko na nabenta.
To sum up this lesson. Try to understand the market at e level nyo expectations nyo sa movement neto.
I hope this post helps you in some way.
