High Heeled Traders

The Perfect Pick

March 13, 2012

The only thing we needed was “The Booth” and it would have seemed like I was in a heart-pounding “Question and Answer” portion of a beauty pageant aired live! As if knowing my “beauty queen aspirations” a fellow trader posed this question in the PSE thread : “What stocks do you like today and why?”

Well, JT, (the trader who asked the question) — had asked me nearly 10pm which is my bedtime, so I had to tell him I’d answer it today. And that’s today! Ready?

Actually, it was a timely question as I was surfing the PSE site yesterday.
I looked at the Most Active List
I looked at the Advances (of course!)
I looked at the Declines (had to check those out too!)

I looked at the eye-popping 50% stock rise and wished I had a position on those. 🙂
The day before. LOL

However tempting that may be though, for a girl like me, first time dipping her toes in the Philippine market, I’ve got to remind myself of what I do, and those things I consider as low-risk high-reward trades.
1. I trade stocks and options. I trade Options to be able to protect my stocks on the downside risks. PSE has no Options, so, I have to be careful on choosing only the uptrending stocks.
2. I trade Oil stocks – and I intend to stick to this so I can just leverage on the market analysis I am already doing. So hint: It will most likely be an Oil stock.
3. I trade short-term (2 days to a few months usually 2), I am not a day-trader, so JT if you are not too disappointed with that, you can read on.
4. I trade stocks where I can get an optimum position (such that the risk is low yet I hold a number of shares that is worth for me to trade and compensate me for my effort and time). So I have to make computations about the price level and what the daily volatility is like, and the price move in a 1 month timeframe. This was a bit complicated so I didn’t finish it yesterday as I need to get more data.
5. I was looking at blue chips – dividend paying stocks – those that are already making money.

So, I didn’t really zero in on my “perfect pick” as of yesterday. Which is which?

what's the perfect pick?

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