Weekly Lessons

Specialization vs Trading for a Living

April 21, 2019

“I’m a breakout trader” Äko bounce lang tinitrade ko” Äko pullback expert” “reversal lang gusto ko”

Ok please wag kayo magalit sa mga sasabihin ko. First of all nasa PSE tayo. Problema talaga liquidity dito kasi di interested mga foreign sa emerging markets like ours.

I hear traders often say na ganito or ganyan specialty niya. If you plan to trade for a living, it will be very very hard for you if you confned sa isang strategy. I know i know meron mga guru na nagpupush na maging specialized trader kayo. Pero listen. I will not talk about my experience. Lets talk about yours. From January to April… ilang successful breakout na nangyare? ilang successful reversal na nangyare? You could say 5 or 6..maybe less. So if you plan to have a steady income month in and month out you can’t rely on having one specialty sa trading. I know some old traders na iisa lang ang specialty or iisa lang na set up tinitrade but they have businesses at they don’t rely sa trading as their source of income plus they don’t even spend so much time sa trading. Breakout traders only look at the market kapag bullish sya. Rest of the year naka focus sila sa kani kaniyang business nila.

You may not have figured this out yet but momentum at breakout traders don’t do well sa market condition natin ngayon. You can observe that by the less amount of port gain post na nakikita nyo out from them.

If you want to have a single strategy na e master ninyo that is okey pero if you want to earn a living sa pagtrade try to have different strategy sa iba ibang market condition. Dito sa Trader’s Lounge i provided you with strategy or tools sa pagdeal sa iba ibang condition ng market o ng stock. You are all free to use or modify it. Gift ko yan sa mga members here.

Stock trading is not really about you or me. Market has its own movement. Product ng mga galaw ng mga buyers at sellers esp those with huge money. I remember myself trying to beat the market long time ago. I was so naive na its funny. You can never beat the market kasi its the market. Analogy siguro na best is if you are playing badminton. You can beat ur opponent but you can never beat badminton. Im not sure if clear. Its like this. bumili ka ng PXP kunyare dati at umangat. Yung index at that time eh bagsak. Did you beat the market?NOPE. PXP is part of that market you are trying to beat.

Ok, i know parang lumayo. I’m literally typing this lesson as im thinking it kasi nga nasa bakasyon ako.

To sum up try to understand the market more. Try to learn different movement ng stock. Para kahit walang breakout or walang bounce eh may laban pa rin kayo sa trading.

I will never tell u na maging expert like maging breakout trader lang na alam ko na halos 15% lang ng mga breakouts ang successful.

I apologize if marami kayong mga natutunan sa iba na kinocorrect ko. I want to be real kasi and tell you how are things dito sa stock market sa Pilipinas… Thank you.

4 Comments

  • Shogun Incarnate

    I totally agree with this.

    To be a specialized trader means you are sticking to or using a certain strategy. Every strategy is applicable to a specific condition, in this case, to a certain market condition. The market follows a cycle with different phases – accumulation, mark-up, distribution, and mark down. Now, for every phase of the market there’s a certain strategy that is applicable to it. Let’s use momentum trading, for instance. Momentum trading it generally used during a mark-up phase and you can not use this in a mark-down phase.

    To trade for a living, a trader must go through, trade successfully, and surpass EVERY market phase.

    You can be profitable if you’re a specialized trader, no doubt about that, but only for a certain market phase.

    To trade for a living, you have got to have that toolbox (experience and mastery) with an array of tools (strategies) you could use for every task (market condition/phase).

    As the saying goes:
    “If the only tool you have is a hammer, you will treat every problem as a nail.”

  • IAN

    This is so true. As a newbie trader, I’m so obsessed in learning how a particular strategy works. Na I drive myself to further read on it kasi nga, gusto ko siya eventually ma-master. But what you have written here makes total sense. We can’t just rely on that strategy alone if we want to be full time traders. At one point, we have to learn how to apply new strategies that works well with the current market conditions.

    So, it’s not just about learning how to master one strategy – it’s all about knowing what strategy to is applicable in a certain scenario. Kasi laging magiging iba ang takbo ng market, and that is something na we don’t have any control over.

    Thanks Ganda! Good content as always! ♥

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