That popular stock or even AAPL you bought may have been sagging with the market last week. How are you feeling? I wasn’t happy about it but thank goodness I was busy last weekend with a class reunion and a road trip with my kids, I come into the week with a fresh perspective… looking at my investing at a different angle. One of the keys to investing is to know when you are WRONG about the trade or the investment, meaning the investment is not working out. Yes, one of the pitfalls of investors is to insist upon the market what they think is right. It’s painful to admit you are wrong, but to take the “pain” away, know that the market will do whatever it wants to do, and it’s best to just get out if your maximum allowable loss or “stop” is reached.
On my side, my different perspective on my investing is to do more of the position-trading style (that I’ve been doing for years) instead of purely day trading which I thought I’d do since it’s summer vacation from school. I’ve been much more successful with the short-term (2days to 1 month) timeframe and definitely fits my lifestyle as a mom. So AAPL sagged last week, if I was day-trading I would have to cut the loss on it several times, but with position trading which has a wider stop, it’s more relaxed, I slept while the stock was down and woke up at an advantage.
Volatility is definitely in season, so keep in tune with the market and know how to manage your risks to make a better investment decision. Many point to the Europe distress over Greece however the market has started getting Earnings reports in the US and many read it as positive in the wake of banking stocks reported better earnings. The economic reports so far point to a not-so-hot-not-so-cold “goldilocks” economy. So there’s definitely the interpretation that there won’t be a rush to raise interest rates. Of course we have no control over how other investors would react, and that is why we need to focus on managing our risk. I will be focusing on this topic in the “Low-Risk High-Reward Investing Workshop” that I will be leading on Saturday April 25. Details here.
I will be holding a webinar version of this since many are moms and it is best where they can learn at their own time and comfort of their homes. So do watch out for that.
I will also be a speaker at an invitation-only event organized by the Philippine Stock Exchange in May, so keep posted I may be able to bring some of you as my guest.
Meanwhile, here again is the link to my workshop “Low- Risk High-Reward Investing Workshop” where you can get cutting-edge market ideas to give you a different angle that produces results.