Let us imagine for example that you are a newbie. You have been trading for a couple of months. You are on trading websites and trading groups on Facebook. You are minding your own business then all of a sudden this happened to you.
You see a lot of gains. Thousands after thousands. May mga hashtag im blessed pa.
You have no plan on buying KPPI. You dont know KPPI. You have not studied its chart. You have no idea what it is but YOU DONT WANT TO BE LEFT OUT. NO WAY YOUR GONNA MISS THIS OPPORTUNITY!!! So you buy…
My question now is….Did you really missed that opportunity?
“To know why opportunities, exist in the market, let us first understand what equity markets represent and what they entail-
Stock markets exist to serve the wider economy. It helps individuals earn a profit on their income when they invest in the market and allows firms to spread their risks and receive large rewards. So, in this sense, stocks are a representation of the companies that are an integral part of the economy. There is a general idea that companies will grow as the economy grows, and its revenues today will in most cases be surpassed tomorrow.
Inflation plays a very important part in this scenario as well. As prices increase, companies will have to grow at pace, if not faster than inflation, in a bid to make some profit. So, if the underlying company grows, it is natural for prices of stocks to grow as well. In general, today’s stock price is partly based on the historical performance of a company. Largely, it is taking a bet on the future potential of the company. So, in most cases, stock prices are forward looking. If we assume companies are expected to perform better in the future, then we can assume that in the long-term stocks tend to go higher in the long run.
Why is this important?
This is broadly incorporating the reasons why there will always be opportunities in the stock market. Given that stocks more or less represent companies across the economy, there will always be some companies that tend to prosper in tandem with the phase the economy is in.
“In high growth phases, you will see smaller companies and start-ups prosper, while in a slow-down you will see defensives take the lead. If we assume that a good, fundamentally sound company will always have an upward trajectory in the long-term, there will always be scenarios for smart investors to invest in. This is the quality that makes stock markets stand-out when compared to other forms of investment.”
– Mr. Gagdani, CEO at 5paisa, 15 years of Capital Market Experience
HINDI NAUUBUSAN NG OPPORTUNITY ANG STOCK MARKET. NANDYAN LANG YAN. DI YAN AALIS BUKAS.
Lets take a look at FRUIT.
Next thing you will probably hear or read from traders especially those na hindi nag cut ng losses are “scam to” “na pump and dump tayo” “mandaraya” “bakit pina IPO pa eh loss pala to” “Walang kwenta pse” “Galawang Calata” “trip to Buhusan”.
The truth be told, much of trading involves doing nothing…which can be boring, unless you put your time to good use. If you find you are bored, the last thing you should be doing is chasing trades and frankly, you probably should not be trading. You will make impulsive decisions that usually turn out bad. You have to be disciplined and not trade for the sake of trading.
Don’t feel bad if you see na marami gains ang iba. Stay away sa tinatawag na FOMO. Kapag wala sa watchlist mo or di mo napag aralan a night before or few nights before just avoid it. Lagi naman may opportunity sa stock market. If you plan to enter a stock when condition x is met, do it only when condition X is met.
Stop seeing trading as a game. It isn’t a game. You could ruin your life. On days you have no trade, walk away. Do something else. Trading shouldn’t be all you think about. Hindi lahat ng lumilipad na hindi mo nasakyan eh missed opportunity na. Kadalasan blessing in disguise pa nga na di ka nakasakay. Just ask those who bought PPG and KPPI sa top noon.
If you want more sa “Do Nothing” na lesson kindly visit Traders Lounge na Facebook group at e check nyo ang weekly lessons. There is a topic there called DO NOTHING.
Next time you feel like you missed an opportunity or you are missing an opportunity, go back and read this post.
If you want to learn more about stock trading join our Facebook Group called Trader’s Lounge.
Our advocacy is sharing ideas, experiences and knowledge to traders for FREE. We offer free Technical Analysis, Fundamental Analysis and Market Psychology learning materials for free.
We also have weekly lessons over there. We created different trading strategies like MAMA which made a lot of traders profitable. Other trading strategies include FISHBALL, PAPA, CALMA and more. We want to offer OFW’s, Employees and all Filipino people a chance to learn without paying a cent.
We also have a Youtube Channel wherein I myself discuss strategies and trading related topics.
Come join us. Let us push free learning.