A round of applause to SteadyTito for being this week’s Featured Trader! 

Trader Steady Tito has been a member in the Investagrams community since 2018, making this his 5th year in the platform. On his entire stay, he remained a valuable community member as he constantly shares his analysis and insights on stocks that are showing strength.

Based on observation, Steady Tito is fond of trading on strength when prices are attempting to break resistance. He supports price action using the Relative Strength Index (RSI) and Moving average convergence divergence (MACD), 2 of the most commonly used and effective indicators, to validate strong breakouts.  

Steady Tito spotted Lepanto Consolidated Mining Company (PSE:LC) , a company that specializes in Gold mining, when it was attempting to break its resistance at 0.1450 just a few days before it made its way to 0.1560 level, an instant +7.50% gain. It’s MACD was trading slightly above 0 levels showing signs of strength, followed by its RSI still approaching overbought areas. For this kind of setup, it is wise to look for proper entries whether you wait for a bounce off the resistance to buy on support or buy on a strong breakout with volume.

Remember to never give in to FOMO! 

Buying due to FOMO is one of the worst methods done by an emotional trader who does not have a solid plan, ending with them slicing their portfolio’s hard earned profits. If you’re late to PSE:LC, best to wait for a retest back to its support or a short pullback to minimize your risk and also widen your profit window on this trade. Buying at its peak will not give you an attractive risk-reward ratio as your cutloss level is far below your average price. Worst case scenario, you will avoid cutting your losses and hope that the stock will recover.

The best traders don’t just make good profits, but also have the best risk management setups.

To learn more about Risk Management, visit here 

FUNDAMENTAL VIEWPOINT

Aside from looking at its technical view point, one of the main catalysts of the stock’s strong uptrend is due to the weak U.S dollar and strong inflation happening globally especially in the U.S which often drives metal prices like gold higher. As you know, U.S inflation is at its hottest it has been since 1982 reaching 7.5% over labor shortages and tight oil supply.

The operation of PSE:LC engages in the exploration and mining of gold, silver, copper, lead, zinc, and all kinds of ores, metals, minerals, oil, gas, and coal and their related by-products (PSE EDGE). This uptrend may stay intact for a while, but always remember to have your setups ready and manage risk.

Once again, KUDOS to SteadyTito for being this week’s Featured Trader! We hope you’ll enjoy your 14-day InvestaPrime Access and continue to be an inspiration to the trading community.

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It has been awhile since we’ve featured our fellow traders in the community. To start off the year, let’s congratulate PreserveYourCapital a.k.a @pc for being this week’s Featured Trader! 

Trader PreserveYourCapital is one of our most active traders on the platform as he consistently shares his personal insights and continues to add value to the Investa community. 

What makes trader PreserveYourCapital standout is the way he includes his own checklist PLUS a catalyst to back his analyses of his trades, which makes beginners understand them easily!

Trader Preserve Your Capital is fond of using the moving averages 20,50,100,200, and simple  which are commonly used and effective indicators to determine the short-term and long-term trend of the stock. Trader PreserveYourCapital posted his analysis on PSE:AGI back on January 24. Based on the chart, it is clear that it respects MA 50 and is trading above MA 20 indicating a strong short-term and long-term uptrend. I recommend buying on support areas set by trader PreserveYourCapital or when prices touch MA 50 level for better prices.

Kudos to PreserveYourCapital for spotting a good trade on PSE:AGI! Just like he said, the stock made a minor correction to close the gap at the P12.25 – P12.35 levels before a strong bounce to the P12.7 area. PSE:AGI began its uptrend in the 4th quarter of 2021 after it broke the first resistance set at P11.35. 

Fundamental Analysis [PSE:AGI]

After a long consolidation phase that happened during the first 3 quarters of the year, PSE:AGI finally started its rally by the end of November. We interpret that this movement was caused by the further easing of restrictions in the country which boosted productivity in the different sectors. More to this, PSE:AGI has consistently bought back shares which is a good fundamental catalyst for investors in the stock market. Companies usually do share buy-backs for 3 reasons:

• To preserve stock prices
• The Stock Price is Undervalued
• To look financially attractive to their investors 

Aside from moving averages, PreserveYourCapital also loves to use the Ichimoku Cloud when making trading decisions. According to his analysis on PSE:MONDE back on January 25, the stock has been retesting the cloud for the past few trading days and he is currently waiting for a buy signal once price breaks the cloud. Take note that the stock is in an uptrend if price is trading above the cloud, vice versa. As always, he adds the catalyst which is the possible inclusion of PSE:MONDE to the index.

After making a strong +65% rally from its listing date, PSE:MONDE has struggled to break past the P20.00 – P21.00 area causing it to tumble -25% from it’s all time high. PSE:MONDE tried to recover which only validated a Head & Shoulder pattern when seen at a longer time-frame, a bearish technical indicator causing it to tumble by -20%. We recommend buying this stock once indicators start to show bullish signals on this stock. In the case of PreserveYourCapital, he considers this stock to be bullish once prices break above the Ichimoku cloud. 

PreserveYourCapital has also been an interactive member in the community by creating engagement posts that are relatable and entertaining to other traders. One of his latest posts garnered 9 reacts and 22 comments, showing how other community members are enjoying the topic as it acknowledges the bashers of PSE:SPNEC who only wish to buy-back the stock at a lower price. You have to do what you got to do, right bashers?

Job well done to those traders who learned and gained profits by following the insights provided by PreserveYourCapital, and congratulations for being this week’s Featured Trader! Let’s continue to be an inspiration to the trading community.

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“DON’T LET IT BURN YOU TWICE” is a lesson every trader should keep in mind all throughout their trading journey. It’s in our nature to emotionally react to situations when all else fails against us in the stock market. But, what does it mean to “Not let it burn you twice?”

When we encounter a fail trade, we become overwhelmed with emotions that may lead us to:

Not follow the original trading plan

Your plan has already failed but you’re still hoping that prices will go back up and favor your way. Always remember, HOPING is not a trading strategy. This will only further wipe out your hard-earned profits or worse, your capital.’

Force more trades to try and make up for the loss trade

You can’t accept the fact that you lost your previous trade. To make up for it, you’ll force an impulse trade to try and generate profits without a solid plan of action. If luck is on your side, you’ll win the trade. But reality is, you’re placing even more risk to your portfolio.

Be demotivated and give up

The worst possible scenario is for you to become demotivated and give up after a failed trade. Trading is a difficult process and even the most successful traders incur losing trades. Remember that the biggest difference between winners and losers is that the former don’t quit and they continue to fail until they succeed.

How do we keep ourselves motivated and stand back up after experiencing failure? Here are a few tips that could help you stay on your goal:

Focus on yourself

Traders tend to compare themselves with other professional traders who earn large sums of profits. Remember that most successful traders have their own stories where they also incur large losses but only choose to share their profits to the community. So instead of wasting time on others, focus on yourself and be patient in your success.

Take a break from trading

It’s not wrong to take your mind off trading for a couple of days. Give yourself a short vacation to relieve yourself from all the stress and frustration your body has taken from trading. Remember that overtrading can cost you your portfolio as you start to make less sound decisions on your trades. Once you come back from your break, you’ll be trading at your best self physically, mentally, and emotionally.

Remind yourself of successful trades

We tend to only focus on the bad trades because those are the ones that hurt us the most. This puts us in a negative mentality that our entire trading journey is completely downhill. But, if we shift our mindset and constantly remind ourselves of the excitement and joy we felt as we made those profitable trades, it motivates and encourages us to make more of those in the future.

Go back to your goals

One of the most effective ways to get yourself back on your feet in times of failure is to go back to your goals and ask yourself why you started trading in the first place. Traders tend to fall off course because they forget the goals they set when they first started trading. Worst case scenario? They stop trying and leave the goals they were very excited to accomplish.

Don’t let a small setback stop you from moving towards your goals. Remember that a goal is like a target, it’s not always easy to hit. But after a couple more shots, you’ll eventually hit a bullseye.

Learn and unlearn

It may sound counterproductive to learn and unlearn. But the truth is, it is much more effective to unlearn old knowledge and replace it with new ones. Think of it as a hard drive with only a limited capacity. The only way to inject new files is to delete old and useless ones.

Start unlearning the old and bad knowledge and replace them with better ones to improve ourselves as traders. Ask yourself “What are my common mistakes and what strategies do not work for me?” Once you’ve gotten your answers, find alternatives to your strategies and implement them to improve your trading set up. If you’re interested to learn more about trading for free, check out Investa University!

Understand what motivates you

There is no “One Size Fits All” tip for motivation. Everyone has their own personal techniques on how they motivate themselves when they fall hard. Remember that the person who knows you best is yourself and understanding what motivates you will keep you consistent and on your feet throughout the journey.

We hope that these tips will help you in your future trades!

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Have a setup that suits your personality

It’s like how the saying goes “Your business is a reflection of you.” Similar to trading, your setup should be a direct representation of your personality. If your setup does not suit you, then you are making yourself more vulnerable to headaches, stress, and even losses in your trades. Choosing a setup that suits you will give you better chances of gaining profits.

Before you start trading, ask yourself these questions:

1. What are my strengths?

   A trader must know his/her own strengths to use them to their advantage. Pro-traders often show patience, firmness in following their plan, and control over their emotions when trading.

2. What are my weaknesses?

   A trader must recognize his/her own weaknesses to avoid them when executing their trades. Common weaknesses shown by traders are being greedy, being overwhelmed by emotions, and not following their trading plan.

3. How much time can I commit per day to trading?

It is important to know how much time you can commit per day to trading. This will help you figure out what kind of trader you want to be whether you are a scalper, a day trader, a swing trader, or a position trader. These will be further explained below. 

There are a dozen more questions you should ask yourself before you start trading. But, these questions should help you understand yourself more and establish grounds on how you are going to create your own trading setup.

Scalper 

This type of trader makes quick profits out of small price changes on their trades and they focus on making high volumes of small profits to accumulate large amounts of gains for the day. They also require a relatively strict exit strategy compared to other trading setups as one major loss may erase all their small profits.

Day trader

Like scalpers, day traders buy and sell within 1 day but trade on a longer time frame. Day traders find the best opportunity to trade for the day and hold for a longer period of time to gain large profits.

Swing Trader

Swing traders hold stocks or other tradable assets in the short-medium term (usually a couple of days to weeks). This type of trading considers the trend of a stock to tell which direction it is heading and execute an order. Unlike day trading, swing trading requires less time in monitoring your trades as there are no plans to make quick gains. 

Position Trader

Position traders buy and hold assets for the long term expecting an appreciation in value over the months or years to come. This type of trading removes the worry of short-term price fluctuations as this focuses more on the future value and outlook of the stock. Position traders consider the general market outlook, market trend, historical price data, and other fundamental factors that could affect their decision in purchasing the stock.

Do a Backtest

“History repeats itself” is a famous quote among the trading community when planning their trades. Backtesting is a strategy on how traders utilize historical price data and trends to help them execute and maximize their gains when trading. If the backtesting is proven valid on a market or stock, traders will grab this opportunity and use the historical data to their advantage.

The theoretical concept of backtesting is that the strategy that worked well in the past also works in the future, vise versa. Don’t forget to take into consideration the market condition when utilizing a backtesting strategy. Strategies used in the past during a bull market may not necessarily mean it would work on a bear market.

Try Virtual Trading

Practice really makes perfect. This is one of the best pieces of advice for newbie traders entering the market without hurting your capital while executing your trades. This way, you will know which trading strategies and setups you are most comfortable with and confident to execute when trading in the future. 

Use Investagrams virtual trading platform to practice spotting trends & patterns, setting profit targets, placing stop losses, and controlling your emotions to prepare yourself when you trade with real capital. Sign-up is completely free!

Journal your trades

It is highly encouraged for every trader to journal all their trades, especially for newbies.

Journaling will help you learn and assess those trades that went well and those that went wrong, learning from them afterward. If you don’t start journaling your trades, the tendency is you will be committing the same mistakes again in the future, resulting in losses.

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