Tag: investing

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CHART your way to PROFITS

Physicians have x-rays and clinical tests. Sailors have their maps and compasses. Us traders have our charts. Especially for short-term traders, charts are essential as they will be present from planning to execution. As part of our mission to aid everyone in their financial journey, our InvestaCharts have always been a core part of our offerings. Our charts offer everything that a beginner, or even an expert, would need to map their way to profits. However, we don’t want to stop at just helping our users to be profitable. We want to provide users with charts that will help them become phenomenal traders. This is why we came up with a premium version of the InvestaCharts that can be used by our InvestaPrime members.

Want to take a glimpse into what new features you can use to chart out your trades? Scroll down below to see the features and examples of how they can be used

  • Delay-free experience

Having delayed data can be a hassle, especially for traders who need to execute quickly. Even a few seconds can become crucial when executing trades during an explosive breakout, what more 15 minutes? Unless you avail of the level 1 PSE data plan or an InvestaPrime subscription, you would be subject to delayed market data by up to 15 minutes.

For example, on the day PSE:EMP rallied, prices quickly soared within a matter of minutes. For Prime users and those who availed of a PSE data package, they wouldn’t have had a problem. However, users with a 15-minute delay, they would see a stock price of 14.04 whereas the price had already risen up to 16.50. 

  • Premium indicators that automate charting for you

As traders grow and gain more experience, simple charting becomes easier. However, who wouldn’t want to have someone else do repetitive tasks for them? As an InvestaPrime member, you will be able to unlock premium features on InvestaCharts that help you automate your charting process.

As a premium user of the InvestaCharts, you will have access to Auto 52-Week Highs and Lows as well as an Auto Support and Resistance that will help you plot important price levels faster.

There is even an Auto Fibonacci feature that will help you save time when plotting your Fibonacci Retracement levels. 

  • Premium indicators that give you a strong edge

Saving the best for last, we have developed premium InvestaChart features that will greatly help your trading decisions. Support and resistances are foundational concepts for every trader. Even as we get better, determining which levels hold the most importance will always be the challenge that we will face. Let’s look at how our features can help you with that challenge.

With the Bull-Bear Meter, we can help you determine if the Bid and Ask board is showing signs of demand and supply. A good example of how this can help would be for buy-on support strategies. In essence, buying on support is done because you expect that support area to be an area of demand. It would then make sense that when prices reach near that level, the bids and asks should show more eager buyers. Even if a level looks like a solid support, it wouldn’t mean anything if buyers don’t show up. With the Bull-Bear Meter, you wouldn’t need to check the board manually as the meter will weigh in all the bids and asks for you, telling you if buyers have shown up or not.

Another very useful premium tool that will help traders is the Volume Profile Visible Range. Basically, this tool plots out how much volume was traded per price point. A deeper understanding of supports and resistances would tell you that more volume on a support level signifies that the market deems that area a very cheap place to buy, whereas more volume on a resistance level would signify that there are participants there who have lost money and would most likely want to break even at the least. Thus, you can use the Volume Profile Visible Range to better understand what price levels hold the most psychological impact on the market and its participants. 

They say that the only indicators needed for a trader to be great are price and volume. By being an InvestaPrime subscriber, the premium features of InvestaCharts will no doubt make it easier for you to study price action and will help you take a deeper look into the volume traded behind the prices. 

Want to know more about what we offer? Head on over to the InvestaPrime landing page to look at all the features that we provide to our subscribers!

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The Road to Trading Mastery Made More CONVENIENT

Practice doesn’t make perfect – perfect practice makes perfect. As traders, we could be charting, analyzing, and trading day in and day out non-stop. But, we could actually be just going within a loop and not improving even though we keep on doing the repetitions. It’s important to work hard, but being sincere in mastering the craft means more than just showing up – we need to look for the bitter pills and painful lessons that help cure our shortcomings and weaknesses. This is where mindfulness comes into action as we need to be aware of how our trades are playing out in order to find out how we can be better the next time. However, It can be overwhelming to do everything on your own – from building your trading logs to going through and creating the analytics for your trades. This can be troublesome. We know the pain, which is why we came up with the InvestaJournal, a tool to help you work on yourself and even bigger trading returns. More than just being an all-in-one solution for trading notes and tracking your portfolio, the InvestaJournal features a wide variety of advanced analytics that can help you level up your trading game.

Let’s see how convenient and powerful the InvestaJournal is in helping us grow as traders.

  1. Creating a journal account

Once you have access to the InvestaJournal, creating journals is as easy as just clicking a few buttons. You just need to click on the add account button on the right to start making a new trading journal.

You are free to make as many trading journals as you’d like should you need to create multiple for organizational purposes.

  1. Logging deposits and withdrawals

The next step towards building your own trading journal in the InvestaJournal is to input how much capital you’ve put into your trading account. Again, this will be as simple as just clicking a few buttons. Simply go to the portfolio tab, and you’ll find the option to add deposit and withdrawal transactions.

Adding these transactions shouldn’t take long as all you need to do is input how much you withdrew or deposited when you made the transaction, and how much the transaction fees were. 

  1. Setting up strategies

Should you have multiple strategies under your belt, you can list all of them in your journal so that you can tag what strategy was used per trade that you made.

You can even add buy and sell conditions, along with a description of your strategy should you need to review your rules on a later date.

  1. Logging trades

Of course, what’s a trading journal without our trade executions? To start taking note of trades, you can head on over to the Trade Logs section and select the option to Add Trades. 

Here’s the fun part: while adding your trades the InvestaJournal will let you do a lot of neat customizations. Aside from adding the trade details (ex. Price and amount of shares), you can also add notes such as what you could have been thinking while executing the trade. In addition, you will also have the capability to add what strategy you used for the trade as well as a screenshot of the chart to further help you when reviewing. 

You can even take note of what you felt! You can use the emojis in the description to note if you were happy, neutral, or fearful.

BONUS: Should you need to input a big amount of trades from your brokerage account, the InvestaJournal can save you time by simply importing your ledger to the journal! Just choose the import option and simply follow the instructions for the brokerage that you are importing data from.

  1. Analyze, analyze, analyze!

Once all the data is set, you’re good and ready to start analyzing your trades. InvestaJournal still includes basic information such as the current equity value along with realized rofits and losses. However, what sets it apart are the advanced analytics that you can take advantage of in order to find improvements left and right. 

For example, statistics such as Avg. Profit can be used to determine if you really make the most out of your trades. If ever you feel like you take profits off the table too soon and want to explore holding on to a bigger portion of moves, this statistic could help you gauge how you’re improving. The InvestaJournal even shows you how strong your different strategies compare with one another, so you can see what strategy really works best for you!

Although the InvestaJournal is really simple and easy to use, it will surely make an impact on your development as a trader. We guarantee you that you will be able to find a lot of insights through the InvestaJournal that will let you take the next step towards mastery. 

Want to know more about what we offer? Head on over to the InvestaPrime landing page to look at all the features that we provide to our subscribers!

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How to & Advice

How to Find The BEST Stocks and Crypto to Trade

Planning is a very crucial task in trading. As they say, if you fail to plan, you are planning to fail. As a trader, you should always have a plan for any situation that may happen. Part of the planning process for every trader will always include looking for the best stocks to trade. You always have to find the best stock that fits your style of trading. It would be troublesome to go through each and every chart just to filter out ideal trade candidates. Luckily for us, there is the InvestaPrime ProScreener to help us look for the best trading opportunities. Using the InvestaPrime ProScreener will let us save a lot of time as it will do all of the screening and filtering work for us. It’s even easy to use! You just need to know what kind of trade you are looking for. Since stocks in a strong uptrend are the easier stocks to trade, let’s focus on finding opportunities for continuation pattern trades and momentum trades. 

Let’s go over how we can use the InvestaPrime ProScreener to make trading easier for us. 

  1. Market

Before you look for stocks or other assets that you would want to trade, you would first have to set which market you are looking to trade in. 

We offer our screening services across seven different exchanges:

  • Philippine Stock Exchange (PSE)
  • Singapore Exchange (SGX)
  • Commodities (CMD)
  • Cryptocurrency (CRYPTO)
  • Forex (FX)
  • New Year Stock Exchange (NYSE)
  • Nasdaq Stock Market (NASDAQ)

  1. Trend Parameters

You would want to use the Moving Average Parameters in order to look for stocks that are in a strong uptrend. An example of this would be to use these parameters: 

EMA 20: Moving Average above EMA 50

EMA 50: Moving Average above EMA 100

EMA 100: Moving Average above EMA 200

By using these as your parameters, you will be able to find stocks that are in a strong uptrend. When these moving averages are aligned, it means that traders invested in this stock are making money and the outlook is bullish for the near future.

  1. Value Average 

Aside from finding stocks in a strong uptrend, we also need to check how liquid these stocks are, or how much money is being exchanged. Value Average refers to the average total amount of money that goes in and out of a stock for a certain period. Although a stock may be in an uptrend, a low Value Average shows two warning signs. First, if you are investing a big amount, you may have difficulties selling later on if liquidity is low as you may find it hard to find buyers for your shares. Second, a low exchange of money within a stock may signify that there really isn’t that much interest for the stock as not a lot of people are trading it. Although liquidity isn’t that much of a problem in the U.S. and crypto markets, it is a necessity to look at liquidity when trading the Philippine markets.

To look for stocks that have shown to be liquid, an example would be to use these parameters: 

Value Average (20 Days): Value Average >= 5M

By using this parameter, you will be able to find stocks that have at least 5M worth of PHP or USD traded per trading session. 

  1. Fundamental Filters

Aside from Technical Analysis, Fundamentals should also be taken into consideration depending on the market that you would want to trade. For example, if you are looking for strong uptrending stocks in the U.S. market, then it would actually be ideal to look for high P/E stocks to trade. P/E, or the Price to Earnings ratio, is a measure of how cheap or expensive a stock is. Although it may be a common idea to look for cheap stocks, when looking for stocks in a strong uptrend a higher P/E ratio is actually ideal as you are looking for companies that are in their explosive growth stage. This means that their earnings are not yet there since they are still developing, but investors are already placing a premium for their shares as the future potential is too good to pass on.

An example of a Fundamental Filter for these kinds of stocks would be: 

P/E Ratio: Over 20

By using this parameter, you will be able to filter for companies that are being priced at a value a lot higher than its current earnings due to the potential of exponential growth.

These are actually just a fraction of what you can do with the InvestaPrime ProScreener. We have multiple screener filters that you can play around with in order to really find the best trades that you can take, from looking for stocks that are making new all-time highs, to being selective and minimizing your search to only select industries. 

When you launch the InvestaPrime ProScreener, we have pre-made screeners for different trader types and different needs should you want to use some of the screeners even we use for our trading. 

Want to know more about what we offer? Head on over to the InvestaPrime landing page to look at all the features that we provide to our subscribers! Start your FREE 14-day trial today.

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Third Side of the Coin

As a self-proclaimed bounce specialist, or how my teammates like to call me, “bounzerizt,” most traders ask me, “Sir how can you be so good at picking the bottoms? What is the secret?”

To the best of my knowledge, I don’t have any. What you know about trading more times than not are the same things that I know. See, I don’t really consider too much variables before I enter a trade. When I see a signal, I execute with no questions asked. People who know me always hear me say, “execute now, ask questions later.” because that’s how I think it should be, trading without hesitation.

My philosophy is this: fundamentals don’t necessarily matter, technicals don’t necessarily matter. What matters is the crowd psychology manifested through price action.

Cliché as it may seem, but I believe that Price Action is King. Some of you may argue, “isn’t price action a part of technical analysis?” and I would respond, “I don’t think so.”

Technical Analysis for me falls under the belly of price action and not the other way around. Phrasing it this way makes it clear that price action towers over technical analysis.

I know you think that sounded weird but don’t worry, most people do. My thoughts have always been plagued by criticism and skepticism not only from beginners but also from experts in the field. The very main reason is the counter-intuitiveness and seemingly illogical ideas that I present. Most of the ideas I say contradict common knowledge yet agreeing with it at the same time. I don’t have any words, but I think this may describe it lightly—paradoxical.

Now, going back, how the heck do fundamentals and technicals seem to not matter in my eyes? Let me tell you what I think about them.

Fundamental Analysis or Fundamentals is anchored to the idea of valuations. Using balance sheets, cash flows, or whatever, fundamental analysis aims to give intrinsic value to the company. The calculated “value” of the company then gives the analysts an idea of the cheapness or expensiveness of a stock.

On the other side, we have Technical Analysis or Technicals. Technical Analysts use various mathematical indicators like RSI, Stochastics, Moving Averages, and artistic models like, Harmonics, Elliott Waves, etc. to tell whether the price will go up or down in the future.

You might ask what kind of trader am I between the two—I am neither.

See, both fundamentals and technicals suffer the same fate. They aim to PREDICT what is about to happen, they predict future prices of stocks based on their calculations. They are trapped in the future where they think price will be. They seem to be disconnected from the present moment. 

“WhAt dO yoU uSe Th3n?!”

What I have for you is a third kind of analysis that differs significantly from the two. What I propose is price action trading—understanding the psychology of the crowd.

Contrary to both Fundamentals and Technicals, Price action trading anchors to the idea that the current price is the only true price. Anything before or after that, have no significance whatsoever. The idea is to NOT think about the future price, but rather to accept that what you see is the only truth and that you have no control over what will happen next. What you only know is what it currently does. This removes the disconnect from your mind on what the price SHOULD BE and where it’s currently at.

Price action analysis deals with the collective behavior of the market participants, being in synch with the market at any instance. To not think about the future or the past. To be present in the moment. To enjoy, feel, and taste every bit of the movement. To have an intimate relationship with price. To be one with the market.

Knowing that you don’t have to know is one of the greatest discoveries I had, and it changed me forever. 

That for me is the third side of the coin. Both fundamentals and technicals have long been crowned as the only types of analyses there are. I think it’s time to honor the third side of the coin, the price action. And call for a separate study of it, divulging from its commonality with technical analysis.

Price action trading gives you insights about the behavior of the crowd behind the movement. The fear, the greed, the denial, the despair behind the price. Technical analysis just fails to do that.

To end, I would like to give you a quote that I think most of the traders reading this would need to ponder upon.

“It is not that we know too little, it is because we know too much.”

Think about it for a moment, do you really think you know too little? Or are you just learning too many at the same time?

Lessen your analysis and focus on price. Who knows what things you’ll uncover?

Contributor:

Full Name: Geyzson Kristoffer S. Homena
Investagrams username: @GeyzsonKristoffer

Channels:
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About the Contributor:

An Applied Mathematics graduate and a full-time teacher, Geyzson Kristoffer is a part-time trader who has been an active user of Investagrams since 2017. He spends his mornings, afternoons, and evenings learning about trading and reading books: Alexander Elder’s Trading for a Living being his favorite. Cohering to his passion and profession, he set his heart on teaching and helping newbies, but only the dedicated ones.

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Short-Term Investments You Can Start Now

Do you have liquid assets you want to see grow? Short-term investments might be exactly what you’re looking for. A short-term investment is a temporary investment that can be easily converted to cash. These investments are typically stored between 6 months to 5 years. The end goal of this type of investment is to gain more money quickly mostly through a passive income.

MONEY MARKET FUNDS

Money market mutual funds are a type of mutual fund that invests in low-risk and short-term debt securities. This is definitely a good choice for liquid assets because it still earns small returns without having to wait a long time. This type of fund takes about 6 months to 1 year to mature. It’s considered one of the least risky investment options because of its high liquidity.

Some of the things that need to be taken into consideration with looking into which money market fund options might be right for you are the minimum investment needed, the administrative fees, the maturity period, and the early withdrawal fees.

TIME DEPOSITS

Another good investment option is a time deposit. Time deposits are a kind of bank account that earns a fixed interest over a period of time. During the specified term, the money cannot be withdrawn. In some cases, it can be withdrawn with but it will have an early withdrawal fee.

The selection of lock-in periods can range from 30 days to 5 years. Interest rates of time deposits are higher than savings accounts. This could be a good investment if you have passive money that you would like to grow. Just like savings accounts, these are options often given by traditional banks but digital banks have better rates.

STOCKS

Investing in stocks can be for the long-term or for the short term. Short-term stocks mean more attention but with the right research, you should be able to get a good return. A disclaimer would be that stocks do not always guarantee a return.

Some things to consider when looking for short-term stocks would be the stability of the company and understanding the risk involved for each stock bought. If you would like to learn more about stock trading and the stock market, definitely check out the free lessons at Investa University.

ONLINE SAVINGS ACCOUNT

The most common option in this list would be a savings account, more specifically a savings account opened in a digital bank. To be honest, traditional banks’ savings accounts often provide the worst interest rates. Instead of investing your money there, look for higher interest rates in digital banks.

Digital banks can offer fewer fees which means more profit for the customers. Some things to keep in mind when looking for an online savings account would be to make sure they don’t have a minimum deposit, check if they have fees per deposit, and no hidden fees.

Remember Ka-Investa, there is no better investment — only the one that fits your lifestyle. Whatever you choose among all of these, the most important thing about investing is to START NOW.

 

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Unconscious Incompetence Stage: A Superhero’s Journey

This 6-episode series that I will be releasing in Investadaily will be about how we are progressing as a trader based on observations from the journey of high-level traders and by checking how they react in the social media. This is also based on the four stages of competence.

First, we will talk about the infancy stage or the Unconscious Incompetence Stage. I will be calling this as the Superman Stage. This is where most of the traders experience the beginner’s luck and the Superman Syndrome. This is not only experienced by new traders but also veteran traders who seek growth by either trading a new market or using a new strategy. Every time a trader tries something new, he/she will get back to this stage. The difference between a new trader and a veteran trader on this stage is how fast they can get out of this phase.

Common characteristics of traders on the Unconscious Incompetence stage

  • Superman Syndrome

In trading, Superman Syndrome is a highly deadly disease that will kill a trader’s port if not treated. This is where most of the traders vastly allocate their positions, leverage their port and focus on the rewards. They are on a high that they think they are invincible. Most new traders who gained from their first few trades have experienced this while others who have not, either quit or are still finding that euphoric feeling through adding more positions to their losing trades or overly sizing their positions to trending stocks without any plans.

  • Validation

The need to experience the profits and the validation to prove that what they are doing is right is what fuels them during this Unconscious Incompetence Stage. Since the experience is new, there is still doubt at the back of their mind and the only thing to create confidence is the validation from others that what they are doing is right. 

  • Highly Volatile Emotions

A trader who is extremely invested in a trading idea or, for lack of a better word, is head over heels in love with a certain stock is exposed to a very emotional ride. Traders who are constantly deliberating to every comment, group chat or any other type of social media is a big sign that they are still at the infancy stage. Even a superhero is awfully emotional when he is aware of his superpower, how much more a trader who experienced profits just by pressing that buy and sell button?

How will the Unconscious Incompetence Stage end?

Like in any movies, Superman will deal with many challenges including a face to face with Lex Luthor or worse, a comet of Kryptonite. The only to end this is when a trader experiences a big loss or a series of losses that will shatter his confidence.

Like a kryptonite spear piercing on their flesh, they will feel that burning sensation once they see their port turn from green to red. In the movies, we only see Superman win in the end but if you analyze the movie, there were a lot of Kryptonians who perished. Just like in trading, many will quit and will not survive but to win, one must also do what any Superhero did to defeat the enemy.

How to overcome the Unconscious Incompetence Stage?

If you have watched any superhero movies, most of the superheroes overcome their challenges by being humble, assessing what they did wrong and accepting that they simply do not know everything yet. Yes, NO ONE KNOWS EVERYTHING YET.

The problem of traders who are stuck on this stage is that they do not know what they do not know. This is because of Ego constantly whispering on their ear telling them that they are always right and that they already know everything about trading just because of one jackpot trade or a series of winning trades. Only by being humble and starting to understand the basic concepts of trading will traders overcome this stage.

If you are trapped on this stage, my proposal is to humble yourselves and focus on the basics. Even Superheroes need a break and learn the essentials in controlling their power. As Spiderman said, “With great power comes great responsibility”.

Contributor:

Full Name: Jan-Angel Echano
Investagrams username: @Soral

Channels:
www.investagrams.com/Profile/soral
www.facebook.com/soraltrading
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www.youtube.com/c/SoralTrading

About the Contributor:
A passionate trader who aims to share the reality, the HOWs and the WHYs in trading. My goal is to help traders and investors like me to continuously improve and refine our skills to the path of mastery.

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How to & Advice Latest Posts

Do I Need a Trading Break?

When we want to do things for a prolonged period of time, it is necessary that we take the appropriate amount of breaks at the appropriate times. But how exactly would a trader determine when to take a break when the markets trade for 5 days a week? Before we move on to the “when”, let us first discuss the “why”. 

For starters, taking trading breaks is necessary for the long term sustainability of your trading. Let’s say that you are on a losing streak  and you are trying to decide whether to take a break or not. On the one hand, taking a break for one week will let you evaluate your system.

On the other hand, continuing to trade despite your losing streak might be what you need in order to end the streak. Although continuing to trade might sound like a compelling option, there is a possibility that you’ll end up with more losses thereby by lowering your spirits which eventually leads to the end of your trading journey.

Journaling

Now that we have established the importance of taking breaks, let us discuss exactly when you should take breaks. It is worth noting that these tips are only possible through journaling or the act of recording your trades. You can use anything from Investajournal to simply using a notebook to record your trades as long as the journal contains your entry and exit prices as well as your entry and exit reasons. Now that we have our journal, we must discuss two important metrics: VAR (Value at Risk) and Exit Notes.

Value at Risk

Value at Risk (VAR) is actually a statistical measure used by financial institutions in order to determine the risk involved in a certain portfolio. However, in the context of retail trading, VAR pertains to the amount that you are risking relative to the size of our portfolio. So lets say that you have PHP 100,000 in your portfolio, 1 VAR is equal to PHP 1000. This means that if a trade involves the risk of losing PHP 1000, then you are risking 1 VAR. 

So how can we use VAR to determine when to take a break? Well, it can be as easy as taking a break when you are down 10 VAR. This means that if your initial capital of PHP 100,000 has turned to PHP 90,000. This is the perfect time to take a break because it shows us that there is something wrong with our system. Losing 10% of your portfolio is not something that you should take lightly. This requires an evaluation of your system that usually entails virtual trading and continuous learning. 

Another metric that you can use is if you lose 5 VAR in consecutive trades. So if your capital is PHP 100,000 and you raise it to PHP 120,000 but lost PHP 5000 in consecutive trades (net PHP 115,000), then maybe there’s something happening to the market that requires you to adjust your system. In summary, you can either take a break when you’re down a certain number of VAR from your capital (regardless of win/loss ratio)  or you can take a break when you lose a certain number of VAR to consecutive trades. 

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Exit Notes

Aside from the amount that we gain/lose, we also have to look at WHY we lost/gained money. Basically, if you are losing for the same reasons (e.g. failed breakout, whipsaw) then maybe you need to adjust your system in relation to that.

An example is adding Average True Range (ATR) to your system to avoid further whipsaws. It’s easy to say that you don’t need to take a break to adjust your system but in reality, you cannot be objective with your trading setup if you have open positions.

Conclusion

It does not matter if you are a beginner or an experienced trader, everyone goes through losing streaks. In the end, we have to remember that bouncing back from losing builds character which is the primary tool that we need in order to find success. However, you do not need (nor should you)  bounce back right away. Oftentimes, a break is necessary in order in order to avoid making the same mistakes that brought us to our downfall in the first place.

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