Yesterday I was driving along Guam's EDSA, Marine Corps Drive, and several traffic lights were not really working specially in the four-way intersections. At first it was in the early morning after i came to the office to save someone who left an important thing and in my afternoon long walk crossing in the pedestrian lane with baffled tourist not knowing how to go to the other side.
That is why this question came up to me.
Lots of new stock investors in the Philippine Stock Exchange are actually inexperience and just heard of the nice things happening in the Philippine Stock Market and economy and so they jump in to the bandwagon. And because of that lots of them are now actively seeking answers in forums, Facebook groups, and blogs which is good because they are following one of the important rules of stock investing which is not to be shy to ask.
But advice of caution. Always remember that you and I haveÂ a different exposure to the stocks that the guys in the forum, FB groups, and blogs. Even your own online stockbrokers have different advice because they don't just handle thousands of funds but billions of funds of several stocks. Because of this I am cautioning you of the way you pick your stocks.
Lots of you follow some kind of a bulletin, memo, or stock pick report sent out by groups. Again I am not saying this is bad but always remember that you still make the decision. That is why I mentioned about traffic lights.
Such bulletins, guides, stock pick reports are like traffic lights. Yes we rely on them to guide us in the road same as we do in our stock investments. A lot of you might get impatient when the traffic light is red and you are in a rush which if we compare in our stock investment activity we become impatient by buying or selling right away only to realize afterwards we made a mistake. Also at times we follow it and at times we end up late or miss our appointments. Same too with our stock investments. We keep on waiting and waiting for the signal to sell and after waiting it came and we sold it but only on a small profit because we never sold it when it was actually high.
Yes traffic lights are good and we should obey them but if you have planned your route well and if you have studied your travel you would probably be in your destination faster and on time. That is why you should have your own trading strategy or plan that you stick to. It doesn't mean that you have to strictly follow someone's advice, in such things like your own money you get to decide its future and not let someone make such decision for you.
Plan your trades. Established your trading strategy.