Did I Make The Right Stock Market Decision?


Did I Make The Right Stock Market Decision?

A lot of “long-term investors” who sold their shares when the market was down due to several factors have asked me this question, “Did I make the right decision?”

STICK TO YOUR INVESTMENT STRATEGY

In contrast, when the stock market was setting record-highs earlier this year, everybody seemed to be stock market experts — not thinking twice about their decisions.

Now, regardless of the market situation, every decision should be made with prudent judgment. A lot of “long-term investors” found themselves confused whether to sell and cut losses or to buy and take advantage of the low prices.

The SM Situation

Remember what happened in SM Mall of Asia last September 16? A part of its ceiling collapsed and an 11-year old boy got injured.

Stocks of SM closed at P805 last September 16. The next day, it went down and closed at P795. It even went down further and closed at P785 two days after the incident.

Kung nagpadala ka sa takot, malamang nag benta ka. Pero kung long-term investor ka talaga ng SM, wasn’t it a good time to buy stocks of a great company at a cheap price?

Paano kung nagbenta ka, eh umakyat ulit ang stock price ng SM nung September 19 at nag close sa P829.50, ano bibili ka ulit? Ano ka ba talaga investor o trader?

Tandaan, ang investor ay part-owner ng business, samantalang ang trader ay gumagawa ng desisyon base sa price movements.

Is the Sy family SM investors or traders? If they were traders, they would have sold majority of their shares when the prices were down. If they did that, their family will no longer own the largest mall chain in the Philippines.

Who Makes the Decision?

If you’re really a long term investor, why did you sell your shares?

Don’t buy as an investor and sell your stocks as a trader.

Don’t buy as an investor and sell your stocks as a trader.

As I always teach in How to Pick Winning Stocks seminar, you can do both, but that is a recipe for disaster.

Don’t get me wrong. If you sold your shares and you were able to sleep better at night, who am I to question that decision? But it’s a different case if you took advice from a person you do not know.

Different people have different needs, different purposes, and different levels of risk tolerance. That is why I find it strange when people ask for investment advice from people they barely even know, especially on Facebook. (Read “Warning: Investment Tips on Facebook”)

Now, I’m not saying that asking advice for your investment decision is wrong. But you should know the difference between learning from the advice and blindly following the advice. As I always remind everyone, If there is anyone who should take care of your money, it should be you. That’s why before investing in the stock market, ARAL MUNA!

Understanding how the market works will help you make wiser investment decisions based on analysis, not on your emotions. Also, you are taking the advice from someone who knows you better than anyone else – yourself. You understand your needs, your wants, how much you want to earn, and how much you can afford to lose. Therefore, only you can tell if you made the right decision or not.

The market is still going up and down the past few weeks. There is a lot fear, and people left and right are making speculations. Are you stressed, losing sleep or even losing your hair? (Kidding!)

Remember the reason why you invested in the stock market and why you chose that company for long-term investing. If you have confidence with your “business partner” (Read: Be a Partner with Business Tycoons) and believe that they know what they are doing, then
STICK TO YOUR INVESTMENT STRATEGY.

Aya Laraya

public seminarofw


Comments

  1. says

    Hi Sir Aya,

    I am guilty of this. Nung nagsisimula pa lang akong mag-invest sa stock market, I was blindly following other people’s advise. Glad that I studied some basics. I realized na hindi pala mahirap. Although there are times na napapaisip ako kung trader or long term investor ba ako. Kasi, it’s very tempting to time the market lalo na pag sobrang baba ng presyo. :)

    I agree with what you said that different people have different goals and risk tolerance therefore walang one size fits all type of investment decision. The best thing to do is, I agree with you, mag-aral muna. :)

    Thanks for a great post.

  2. Pretticel says

    Hi Sir Aya

    Nice post. Ang daming tatamaan nito.. hehehe.. well i hope most investor knows how to control their emotions. For me maganda sumali at magbasa ng mga threads sa FB page but somehow yung iba kase hindi talaga nila pinag aaralan kung ano talaga yung papasukin nila. Weird lang!

    Never stop teaching sir aya. You’re one of the best mentor in Stock Investing and I follow most of the strategy that my mentors told :)… When the market reached 7400 psei i sell most of my stocks :).. Happy Investor here.. and now still accumulating when the prices are cheap .. hehehe.. Im not saying na Im so good in STock Investing..its just that i learned how to follow rules from my mentors :)… Kudos to COL , Trulyrichclub and pesos and sense :)…

    God bless

      • Edward says

        This is nice sir Aya. Mostly po kasi ng stocks n hawak ko now ay nabili ko on thier peaks..so now that the market went down, so their prices followed. I don’t have fresh capital to average down. Im thinking to cut loss big time (-30%) and move to the faster horses. Kaya nga po tamang tama ung post na ito sa akin e. Naappreciate ko po sya. Tama po ba ang naiisip kong move?

  3. Che says

    hi po, ako din victim ng maling adv. mataas kong nabili ung sa equity and ilang months na e loss pa din po. naiisip ko iwithdrw na kahit lugi. pero ng mapanood ko mga videos at basa ng articles mo po, naisip ko tama ka po.. kaya eto intay intay lang po.. thanks ng marami. more power and god bless.

  4. Anthony D. Bartolome says

    Hello sir aya, isa po akong ofw at nag simula s pagbili ng stocks last dec. 2012. Paulit ulit ko pong pinapanuod ang segment nyo s youtube at lgi ko ring binabasa ang mga post nyo at dun ko nkukuha ung mga tips s pag handle ng stocks ko… Lalo n ngaun, ang sarap mamili hbang mabababa pa ang prices. Hindi pa po ako nakakahuli ng malaki pero alam kong darating din ang araw n un. Patuloy lng po ako sumusubaybay sa inyo. Salamat sa mga tips ninyo.. GOD BLESS and MORE POWER!!!

  5. Simrich Toleron says

    Hir sir Aya, How to pick winning stocks” online seminar is fantastic very informative and the way you teach is very clear… I highly recomend it…. thanks a lot….

Leave a Reply

Your email address will not be published. Required fields are marked *