Its a big lesson for me this week, for me to know on what type of investor I am. Before, I am investing for speculation in shares of stocks in the Philippine Stock Exchange. I always read business news, searching articles, and the trending on what is happening next regarding the company I will select . For the year 2010, my investment portfolio grows 31% when I started trading in December 2009 and ended December 2010. It's a big deal to have that growth, but as It comes 2011, I lost about 23% by selling my portfolio due to speculation. One scenario is the banking sector scenario during the February 2011, where their is a upcoming crisis regarding the global banking category and the worst step is the reorganizing of free float of San Miguel Corporation. This are the scenarios that tumble my portfolio during the first and second quarter. Now, comes the third quarter, the credit rating crisis, as also global exchanges tumbles and swings down due to this crisis face by US. This also have a great impact regarding my portfolio to decide to reorganize my portfolio again.
Then come to think this night. I might be wrong for my decision this year 2011. Due to they are two types of investors, the technical investor or known as speculative investor who has technical tools in predicting the price of the stocks and the Fundamental Investor, who invest due to fundamental decision regarding the companies performance through financial statement analysis and long-term capability of the company. So I come to think, that having swings over my stock portfolio, they are certain fundamentals that I think I must consider before selling any shares. I am not as great as the fund managers of multi billion funds of mutual and etfs decisions. But I must know how strong my selected company's fundamentals. From this, it is only a short effect in my portfolio any swings just as I believed myself that I selected a great fundamental stocks in my portfolio and any missed chance in selling shares in a reasonable price, I must considered it as opportunity cost/lost, besides stock markets always continue to operate after you missed that chance. There will be next time.
I believe that I would choose to be a fundamental investor and embraced that as fundamental investor "TIME not TIMING"(as the best investor gurus said) is the best important to keep in mind while trading in stock market.
Be savy everyone.
No comments:
Post a Comment