My thoughts as I become more engaged in Stocks Market and Currency Trading.
I think , no one gets to engage in stocks market as much as we do because of the nature of the job that we have.
And ,hmm I came to appreciate how conservative stocks look like in comparison to currency trading. That despite of the risks that one may incur in stocks, there is always this possibility to not lose it all until the company you bought – liquidated.
Its really amazing, but I cant say that stocks is not challenging as the currency trading. In fact, I find it more uncertain and sometimes I just dont know how close we are to getting affected by the buying and selling of those whose caps is bigger enough to move the price. You see, we dont really have that much problem in currency trading because no matter how many million pesos we trade, it is still at no par to international
banks and the Central Banks who are the major players of the market. So there is no really a chance that our position can affect currency prices.
Second, I dont think one can make it in stocks without knowing all the projects, the financial reports, the players of the company he bought. I agree that
one should really study the fundamentals of the company that you’re going to buy so that when it gets affected, lets say by the recent China Economic Slowdown and slumping of Oil Prices, you’re confident that it can survive atleast long enough till the market recovers, because it will. Meanwhile,there is just really nothing you can do as it goes down – that momentarily bearish market condition that we all have to endure.
I cannot discount technical analysis as well, because charts dont lie. In currency trading, we can make it or should I say a lot is making it without considering the economic factors of the currency pair they are trading. Says its evident in chart anyway. Well a lot of us, find it really hard to analyze the world market per se because its really complex,
and its like every central bank’s decision is set to affect every country in the world. But we get no weary , because not like in local stocks market we can buy right away ,
and we sell right away as well – making this a very liquid market despite of whats happening in the world. Now, there is more room to take advantage and to earn well.
I’m having more realizations though as I approach another month as an institutional trader. And I apparently did the right decision in getting into stocks trading
because there is so much that you can learn here. In currency trading, we cant have that luxury to access big bank’s traders unless we’re one of the biggest corporation or we’re really darn good enough to melt their asses off with profits. But in stocks, everyone who stayed longer- much longer than one can think of is right at your neighborhood- well that is if you have same society though. Stocks market is really a mind game, it is not so rare that you ask yourself why do they do that and at the end of the day it all comes down to who do best in beating someone else’s position in the market – because there will always be losers and champions. The people I get to deal with now got 20-40 years experience in the market, its really cool, its like having mentors everywhere who have endured so many bear and bull markets and who can take care of their clients like its really their moral obligation to make an informed market decision, because you are wearing your license, your brokerage’ name and the Philippine Stocks Market.
So this is my 2 cents as a trader. :)) Looking forward to share with you my thoughts in coming weeks. Wishing us a greeny PSE next week since it is said that we are leaving the bearish territory now and that US stocks closed higher last friday because of Japan’s Negative Interest Rate decision. Caveat.