Last updated on February 27th, 2014
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Read below and be inspired!
The Story of Mr. Marlowe Alain Tadili.
When I started learning last Sept about stocks investing, before I engaged myself into this I asked myself first:
1. My purpose/objective?
2. How much money I am willing to invest in regular basis?
3. My time horizon, how long I intend to this?
4. What reward-risk I am dealing here?
5. How much time I am willing to spend without putting my regular job at risked?
Ok, I had compelling reasons so I told myself I am in. Now, what are my plans and strategies?
1. I will buy stocks by top of October, my brain automatically suggested I only have one month preparation. Can I do it? Yes, Go!
2. Information gathering, Google google google, youtube youtube youtube, ebooks from IPSM, stock analysis from bloomberg, Financial Times, Reuter.
3. Sorted out the resources that I gathered, and listed priorities to read&watch focusing on basic fundamentals, read IPSM discussions. Even read basic financial report
4. Browsed PSE and picked companies by elimination method first, looked at the market caps, sectors, CEOs, high level financial health at Bloomberg, FT and Reuter.
5. When it down to 20-30 companies, I listed Top 10 companies and downloaded last financial reports and visited their websites.
6. I created portfolio mixing growth and value investing, aligning to growth sectors. 70% BC, 20% 2nd Liner, 10% 3rd Liner.
7. Set entry and exit point. Part of my exit if a stock went down to -8% think and consider to sell or buy to cost average.
8. I set a rule that I will not buy other than I listed.
9. I also commit myself to monitor the announcements, disclosures, and news of the companies I invested in.
10. Plan to rebalance every quarter
Oct came, opened COL account.
1. 1 week browsing COL tools, this was when I realized COL is really a good resource to leverage that will simplify my life in stock investing
2. 2nd week bought stocks. Here I tried to find company in my list that has a big price fluctuation window to buy it at discounted price.
3. I also observed charges and found -1.09% (max) immediate loss everytime I buy stocks at >=Php8,000. Around -1.40% loss at Php5,000, -2.28% at Php2500, -3.30% loss at Php1,500.
This gave me an idea to find price fluctuation of around +-3% to break even if I only have 1,500 which I intend to buy it in penny stocks.
4. Created spreadsheet to add these buy/sell charges, to plan ahead and calculate how much shares I should buy.
5. In parallel, when I started buying stocks I am also reading TA for right timing to buy from any of my top picks.
Until now, I keep on reading, also some inspirational books to keep me on track with my plans.
It boils down to the idea that stock investing is all about ME- how I react on the reiterative cycle of plan->act->monitor->adjust->Believe to have a predefined self-system to achieve my goals!
So, I believe knowing yourself is the key, plan and act to have a system!
Here’s the image of the matrix I did to fillin my portfolio.
Enjoy this Sunday!
Have fun investing!
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