Category: Latest Posts

Definition 

• Cost averaging is the method of investing where a certain amount of money is invested in a specific interval over time. 

Advantages 

• Mitigates Risk 
• Very Smart way of investing in the long term 

Conclusion 

• It is asset accumulation 

Additional Ideas:

Investing long term without the anxiety 

Not everyone can time the market as well as the top traders in Investagrams, and not everyone can handle the pressure red candle sticks bring during dumps. Even though there is no absolute risk free method of investing, there are methods smart investors use to minimize risk.

Cost averaging is perhaps the simplest and least stressful approach to investing, wherein the main objective is to accumulate as many shares as possible and stay above the average price to gain profit. 

Cost averaging is a very long term and conservative investing strategy. Instead of investing a lump sum and risking everything all at once with a single pump or dump ready to make you rich or penniless, implementing cost averaging regularly takes portions of your lump sum and invests it in a preset schedule.

Being able to accumulate shares over time at different price points protects your portfolio from the painful losses of sharp dumps. Since Cost averaging is very conservative in nature, it doesn’t benefit as much as other methods from breakouts. It, however, does a very excellent job of preserving your wealth. 

To put cost averaging into perspective, suppose that you want to invest 1M in Jollibee Foods Corp., which is currently 4 pesos per share. If you invest everything in a single price, and that price drops to 3 pesos per share in the following week, you would have already lost a quarter of your capital if you were to close the trade. 

Now, if you were to invest your 1M evenly in a span of 8 months, you wouldn’t have to commit to a singular price that can dictate your capital the next day or so. Investing 125 000 per month, and purchasing as many shares as your monthly budget can afford mitigates your risk and prevents a single price to lift or crush your capital.

Yes, you would sometimes buy an overpriced share, sometimes an underpriced share, but as you accumulate shares over the months, time will do its part and grow your capital. No more FOMO, no more complicated Technical Analysis, no more stress. 

It is important to note that like everything in investing, there is still risk involved in this approach, and that cost averaging isn’t the one size fits all answer for getting rich. Declining markets can still be a threat to your capital even if you follow this approach. 

The cost averaging approach is not for everyone though. Investors who are really thinking long term will find this strategy stress free, easy, and effective. It eliminates confusion during entry and exit, and gives clarity to investing in the stock market by keeping things simple.

Traders with higher risk appetites however, may find this method a bit slow and boring for their liking as they are used to riding trends, anticipating pumps and dumps, and getting in and out fast. Even as such, cost averaging shouldn’t be completely overlooked by traders as this can still be a useful approach to preserving the wealth that they have accumulated over time.

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We would like to congratulate our featured trader for this week: TechnicalsbyBinsoydgreat a.k.a @puretechnicalsbybinsoy!

Despite frustrations in current market conditions, Binsoy still remains patient, diligently sharing stock updates in his stock picks: $PSE:BSC, $PSE:PHA, $PSE:APL, $PSE:ACEN, and $PSE:PPC . Unlike many traders in the community who have fallen silent during the market’s trip to Chinatown, Binsoy still continues to share his sentiments and expected scenarios.

Binsoy is currently looking at $PSE:MRC, plotting historical support and resistance levels and fibonacci retracement levels, waiting for the perfect time for a re-entry. Binsoy applies the Elliott Wave Theory in his trades. And with $PSE:MRC invalidating the corrective waves, Binsoy changes the game plan and braces for the dip. At present, Binsoy is waiting for a catalyst for MRC and hints at possible consolidation due to decreasing volume.

Binsoy also shared his insights with $PSE:MM after it broke out from the Trendline support and the Darvas box around the 7 peso level down to the 6.6 peso level. Binsoy plotted a key support level around the 6.48 to 6.31 levels, with the price close to hugging the support level. The last candle, which formed an inverted hammer, indicates a possible bounce on the support line. Decreasing volume suggests that the stock is resting from last week’s bullish movement.

ACENatics are covered by Binsoy in his $PSE:ACEN stock update. Binsoy looks at the current pattern as promising, with the Elliott Wave count being obeyed as expected. The bounce on the 5.8 levels after the C wave is very favorable for ACENatics in the community as the price movement, backed with strong volume, shows signs of high demand. A possible Bullish Engulfing pattern can shoot $ACEN up to Binsoy’s resistance 1 at 6.62 or even up to resistance 2 at 7.05 next week should strong demand continue.

Patience to those waiting for re-entry and kudos once more to TechnicalsbyBinsoydgreat a.k.a @puretechnicalsbybinsoy for constantly sharing stock updates and highlighting the available opportunities during these times. And as appreciation to your relentless contribution to our trading community, your 1-Month InvestaPRO is on its way!

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These traders have gains ranging from 100% to 200%. The most impressive part from all of this is they were able to achieve these stellar gains in only 3 months! And now, everyone will be given the opportunity to learn from these super performance traders directly and discover the strategies they used to maximize the opportunities given in the stock market. 

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The stock market, not only in the Philippines, but around the world, went crazy last 2020. To start the year, we experienced one of the biggest market crashes of our lifetime. Countless traders lost money, while many decided to quit trading overall. March 2020 was definitely a very difficult time for traders, newbies and experienced alike. 

However, that crash wasn’t the end-all-be-all. Little did we know that once in a lifetime opportunities were about to arise, we just needed to be prepared and patient. Those who quit and decided not to persevere early on were most likely unable to take advantage of the several opportunities later in the year. But to those who continued to dedicate their best efforts to trading, they were handsomely rewarded. 

The Investagrams Trading Cup 2020 was created as an avenue for trading in the Philippines to BOUNCE BACK from all the struggles and challenges that 2020 brought us. The entire concept of the competition was to find traders who wanted to make 2020 their comeback year. Countless shied away from the challenge, but there were definitely those who stood up to the tall task.

Joining the competition and deciding to commit was actually a win in itself, but there were those special few who made the Top 100. Then if we drill it down even further, we will find the ELITE Traders who are part of the Top 1% who made it to the Top 10. 

These traders have gains ranging from 100% to 200%. The most impressive part from all of this is they were able to achieve these stellar gains in only 3 months! And now, everyone will be given the opportunity to learn from these super performance traders directly and discover the strategies they used to maximize the opportunities given in the stock market. 

We invite you all to the upcoming Trading Cup Defense which will be happening on February 13, 2020. This will be a live event via zoom where our Top 10 will be sharing with the community the strategies and setups that allowed them to outperform thousands of other participants. For as low as Php 1499, you will get the trading secrets of InvestaCup2020’s Top 10 that will help you reach your first million and beyond. 

Make the smartest investment today by investing in high-quality trading education. 

Just like the countless opportunities given by the Philippine stock market to end 2020; you don’t want to miss out on this. 

JOIN HERE: http://invs.st/TradingCupDefense2021

 

Trading is a time-consuming job that demands having to check the market for good entries and exits. Unfortunately, not all of us have the luxury of time. Some of us may be preoccupied with other things, such as day jobs, school work, chores, etc. The easy answer here is to go for the long term and to invest instead of trade. However, trading can still be feasible even with a busy schedule as long as you keep the following habits in mind.

Know your own time

As a first step, it’s important to know your own time, when you’re at your busiest, and when your free times are. This entails for you to plot when should you plan for the week’s investments and possibly analyze the market for the time being. 

For example, weekdays are busy days and often are non-negotiable, however, weekends are free. Then you should allow a few hours of your day and look into the market!

Create a Plan

Now that you’ve set a time, create a plan. This includes analyzing and predicting your market. Given that you barely have the time, it’s important to already anticipate both the best and worst-case scenarios. Knowing at what price your entry and exit points are, as well as your cut loss, and scheduling it beforehand through your online broker is an easy way to do this. 

Plotting all these in your notes or better yet, in an excel sheet could keep these organized and give you easy access to the plan you’ve made.

Download Apps (like Investa)

Lastly, maximize all the resources available to you and use an app to monitor your stocks! Investa has a watcher feature that could give you alerts every time a significant indicator is triggered or a certain price level is hit. This lessens the amount of time you constantly have to allot to trading while still getting its perks.

Time is indeed a trade-off, however, a few simple habits and techniques are the key to including trading in your schedules. After all, allotting just a few hours of your day and getting the returns that you expected are what make all the difference.

People with a stable and good internet connection tends to work from home rather than working from the office. These are some people who want to work for some side hustle so that they will achieve their financial goals anytime in the future.

One thing they have discovered is that in the stock market, there are the living “Day Traders” where they trade in the market for a day from the opening of the market until the market closed. With the right amount of capital and side hustle scheduled, they can already trade in the market. But the real question is, are they really ready? 

It is not easy to day trade without any system and discipline on yourself. With that let’s take a look with the 5 tips to become a successful Day Trader.

Risk Management

Risk comes from not knowing what you’re doing – Warren Buffet

In trading, we all know that you can’t control the market and you can’t control the number of participants who will participate in the market every day. You can’t even control the volatility that will happen on the market. To avoid being whipsawed by the market, you must control your risk in every trade. You must set for yourself a risk appetite that you are willing to risk per trade.

Control your psychological state so that when the market goes against you, you won’t be emotional because the market is just being abusive to you. Know your timing of entry and exit before trading the market so that you won’t get stopped out easily. When it comes to the risk reward ratio, always get a good risk reward ratio that will help you to be profitable in the long run. Always and always put a stop loss and follow that stop loss plan so that you won’t be dragged by the market. 

Cut your emotions

When you get your profits, avoid being too happy and when you take your losses, avoid being too sad that will force you to quit trading. A good trader will always be a robot because they trade without the emotions and stay neutral as long as they are in the zone of trading the market. The only rule in emotions is to control it and think properly while trading the market.

It is not about the gains

In the market, it is not always about gains, it is about being consistent in your trading plan that will help you to survive in the market. Once you are in the mindset of focusing on the money not the trading plan. I imagine that you will be affected by the greed that will lead you to terrible decisions when trading. That is why always focus on your trading strategy, stick to it and follow it no matter what because you created it.

Follow your Plan

“He who fails to plan is planning to fail” -Winston Churchill

Now that you have a trading system then always follow it. All you need to do is to follow your plan and nothing else. Always have an entry and exit, control your psychological state and know your risk management techniques. This will help you to survive in the market as a day trader in the long run. In the end, if you follow your trading plan, you will be a profitable trader in the future. 

Stay Disciplined

When you wake up in the morning what do you always do? Open your phone? Take a bath? Eat? Meditate? Or sleep again? The next action will help you to stay focused on the course for the entire day OR will make you do nothing for the whole day. Choose your decision well and stay disciplined on your routine. This also applies in the stock market.

Do you follow your trading plan consistently or do you break your rules when the market goes against you? It is your choice if you will stay consistent with your plan and become a successful person one day or trade and trade and trade like a machine gun without stop loss until your capital will become 0. Again, choose your decision well.

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