This is his port. He is a position trader of 1-2 mos in the stock market. First let's check if it is legit or not. Looking at the market value it is computed by current price multiply by number of shares and a multiplier of .99205. How did we arrive with .99205? It is 1 less the commission cost of .00795 then we will arrive at his market value. The profit is computed using market value less total cost. Although there is something wrong with the % profit due to technical errors of the platform we can still compute for the real average gain which is 3,424,658.88 over total cost of 9,164,455.63 for an average of 37.37%. Now that we have seen that this port is totally legit then we can now go through the interview so newbies will know what to do to profit from the market.
I gave him 10 questions most of the traders are curious about and this is how the interview goes:
Q.1. How much is you Starting Capital?
- I started initially with 450,000 six years ago, then opened up another account using my business money with 5 million. I considered myself armed six years ago but lost 50% of that within six months. Paper loss they said but when emotions came, cut, cut, cut. Stopped for 3 months and entered again with 5 million on hand after doing notes during my off time, Parang lotto nag-aaral ng mga possible winning number lol para maka jackpot!
Q.2.3: Mistakes and learnings. How much is your total losses before you found your system?
- Too many to mention. I was bullish on gold last year but didn't see G.Lo coming, my average then was around .22 good that it went up to .34 and waited, dropped a bit but still waited. Short story, I exited the position at .22 and never looked back. Profited a little bit also on DD with ave prices of 10 and exited when it was consolidating on 20, bought it at 22 got tied at it for a while and exited again when it consolidated on 35+ levels. DD was a buy on rumor, will reach 100 daw so sayang yun nabili ko nung 10 pesos haha. I'm bullish on DD that's why I bought on pullback, but that's just me. You guys do your homework :) So what I did there was locking profits too early and selling 100% of my positions. Having a mediocre allocations on a bagger stock is another lesson learned from me. At the same time I had a habit of going all in which was a poor decision because it left me tied to the stock when the trade went against me. Hoping is another. I missed a lot of opportunities when I went all in.
Q.4: System used and where you learned it?
- Lesson learned have enabled me to come with my own system, its not absolute because you must have room for flexibility. Bottom fisher, support buyer, or sniper whatever you call it, it has worked for me. MA, candle patterns and RSI MACD lang gamit ko. The simple the better.
Q.5: How to build the proper discipline and mindset?
- Learnings from 2&3. I'm not a 100% trader or what you say 9am - 3pm person. Sayang yung oras staring blankly on a computer screen. Boy Plunger died doing that.
Q.6.7: Do you have a mentor or do you believe in such?
- Jack Schwager's Market Wizards. Boy Plunger. I don't believe in mentorships. There are only fund managers, inside traders or scammers. Pick a group you like. There are a lot of free information on the internet, you can start on the books that I mentioned and try doin virtual trading on your own. If you are looking for stock picks read your online broker's research and start from there.
Q.8: Advices you can give to aspiring traders.
- Buy on supports during rumors. Sell on news or resistances whichever comes first. Filter the noise, cross reference if you must. Also never envy someone else's portfolio.
Q.9: I noticed you still have lots of buying power in your port. What's the reason for that?
- Learnings from 2&3. There are times where I will miss a trade but I think its much better to wait holding your money than to wait holding nothing. No chasing. Ignore the noise or troll some :)
Q.10: Your Year To Date Annual return.
- 2016 was net 250% up.
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