Completed Building My New Rig: Mio

Just finished setting up my Dragon platform. So far so good. Decided to name her Mio taken from the anime K-On!

• CPU-Z
• GPU-Z

Will try to overclock this rig within this week. For now, time to rest.

Some stock trading pointers

I think it's time for me to post some pointers with regards in trading. No I'm not an expert but this is based on what I've experienced so far and helps in protecting my capital. I don't earn that much but I'm still happy with the result and I still have a long way to go.

1. Always stick to your trading plan. In the first place, you're the one who created it so strickly follow it. Based on what I've experienced before, I've already a list on what stock should I buy, when is the right time to enter or exit, how many positions should I buy/sell etc. But whenever I see the price move up fast or drops down rapidly I immediately enter or exit a trade immaturely. Result is, either I missed a lot of potential profits or the worse case scenario I'll be having a drawdown. So if the price action is against on what you expected based on your trading plans, better not to enter (or exit) a trade.
2. Do not easily believe on what other traders are saying. I know there are traders that gives a good advice, analysis, where the stock is headed etc. But some of these are just only making market noise. Do your homework
3. Be up to date. Read and watch news.
4. Watch for important support and resistance as well as pivot points. What I could recommend here is whenever you intend to buy, buy the stock in between the support line and pivot point or if that price is near the pivot point, buy it as near as possible on that level. NEVER buy when it is already hitting a resistance line. Well this method works well for me as I can easily determine how much I will gonna bid for the stock.
5. Watch DOW's movement. Most of the time, PHISIX reacts on DOW's movement. So far here's what I've observed. If DOW is down or up by more than 100pts, expect that there will be a blood bath in PHISIX (or a rally if DOW is up by more than 100pts). If DOW drops 2 digit, PHISIX is still quite healthy.
6. Have a core stock. It is advisable to focus only on 2-3 positions. Having more than 3 is good in spreading the risk but the profit is greatly sacrificed. On the otherhand, having only 2-3 positions will have a greater risk but in turn gains are maximized.
7. Position sizing is very important. There are several models in this one such as the % Risk Model.
8. Focus on having a good exit rather on a good entry. Even if the chart shows up all the signals you were looking for it doesn't mean that this will lead to a successfull trade. Once you enter a trade, many factors could happen. The trade could be against you so you should have already think a good exit plan whenever this happen.
9. Day trading is good but do not day trade if you can't take that extremely risky move. For me, it is still the buy and hold strategy works best.
10. There's no easy money. NEVER think that the stock market will make you a millionaire in the span of 1 year. Stock trading requires extreme patience and perseverance.
    

Mid Year Trading Result

It's been a while since I posted in my blog. I was enjoying this bear market rally that started last April & ended last week. My portfolio went up by 20% within this period but last week it's only up by 4% due to some paper losses. I'm not sad because loosing is part of trading. Moreover, I have only 1 stock that I'm currently holding and I intend to hold some of my positions in this one for the next 2-5 years. What stock is this one might a ask. Simple answer: MegaWorld. I believe that this company has a good future so I want to hold it that long.

Anyhow, where is MEG heading right now. In it's daily chart, I have already signals that it's already down. ADX is declining as well as -DI is rising indicating there are a lot of sellers. Sooner or later it will start to test its short term support level @ 0.92. If the DOW will be down for consecutive days, it will also test its intermediate pivot line @ 0.89.



On the weekly chart, it had established a strong resistance @ 1.21. At this point, this stock might consolidate for the time being. Am I getting nervous? No -- as long as the intermediate pivot line @ 0.89 wont break. So what I'm gonna do with this stock. Below are the best option I have right now:

1. For the positions I bought @ 1.18-1.20 it's best to hold this for a long period since this company has a bright future as long as this company is carefully managed.
2. For the positions that I recently bought @ 1.04-1.06, I must dispose it immediately tomorrow @ 0.97-1.00. Much better if I can sell it @ 1.00 but I doubt that would be as the DOW closed @ -15.87 points.
3. I will not touch the positions that I recently bought @ 1.00 & I intend to hold this for a couple of weeks. If there's a small rally and hits @ 1.08-1.10 I'll dispose it immediately.
4. Plan to add some positions if this hits @ 0.90-0.95 level and the following conditions are met:

• 4 Day EMA crosses above at 20 Day EMA
• RSI is above 50 level
• ADX is increasing at the same time +DI is also increasing
• DJI support @ 8300-8500 respectively is strong
• PHISIX support @ 2300-2400 is strong.

For now, I must do action item # 2 to minimize my risk.

PLDT DSL Helpdesk Rants

After a month of 1Mbps connectivity (see my post here) my DSL speed went back to prehistoric ages again.

As usual, I called the helpdesk last week, March 1 to be exact and they've told me that they will investigate this and will give me feedback within 24-48 hours. Wow that was fast (sarcasm). 48 hours elapsed and I didn't get any calls from them so I've called them Tuesday or Wednesday night. They've told me that they are having a system update and they can't access my records on their database but they have already created a ticket for this one. So ok, there's nothing can do so I patiently wait till Saturday. So I've called to them today to followup this issue and guess what they've said -- the usual stuff, that there's no connection problem in our area and that they will investigate it and give me feedback within 24-48 hours (you heard it right, it's the exact same line they've said to me last Sunday). And the most ridiculous thing I've ever heard is that in their database my package is still for 512kbps because we are still using their so called "old facility". Ok, I've told the CSR that I've already reported this one last January and requested it to upgrade to 1Mbps. That CSR told me that this one can not be requested, what the.. on my January call, it is one of the CSR who told me to report it on a number (I've forgot the exact number) but that guy said that they will process it. And yes indeed they've processed my request and that's why I've got a 1Mbps connectivity good for 1 month and now it's all back again to 300kbps. If our area is still using the "old facility" that you were talking then what do you call this:

Before:


After:


See the date and difference? You can control the bandwidth that will be distributed in our packages. Before I subscribed to your DSL way back in 2006, you don't have those terms "old facilities" and "legacy". And I bet during those times, all of your covered areas are using the "old facilities" way back then. Besides, during that time there's already a 1Mbps package so why can't you just provide that 1Mbps package to the areas who are using "old facilities". It is very unfair for us that those area that are using the "legacy" facilities are experiencing a 1Mbps while us only getting 300kbps at average at the same P999 rate. And all you will gonna say to us is sorry. We don't need an apology from you, we need a quality service from you which is why we are paying a high amount using our hard earned money.

Post Trade Analysis: DGTL

Digital Telecommunications Philippines Inc (DGTL)


Analysis:

• Early sign when the 4-day EMA crossed above the 9-day EMA on 12/18/2008.
• +DI crossed above the -DI at 12/23/2008.
• Confirmation signal occured on 1/7/2009 when the 9-day EMA crossed above the 20-day EMA. This is also where the extreme point rule breached when the stock closed at 1.02.
• RSI is above 50.
• -DI crosses above the +DI on 1/20/2009. However it's a false since extreme point rule was not breached plus the +DI crosses above again the -DI on 1/26/2009. At this point, extreme point was again breached on 1/27/2009 where the stock closed at 1.04.
• All EMA are on bullish alignment.

Trade:

• Purchased the stock at 1.12.
• Target price at 1.18 - 1.20 range. If the price hits, apply trailing stop on previous day close.
• Stop loss at 3-5% of purchase price for loosing trade. 7-10% loss is already very devastating.

Mistakes:

• Late entry. I should have purchased this stock at 1/8/2009.
  

Post Trade Analysis: MER and GLO

Manila Electric Company (MER)



Analysis:

• Early trend signal had happened where the 4-Day EMA crosses above the 9-Day EMA.
• +DI crosses over -DI at 12/10/08. Extreme point rule breached at 12/15 when the price closed at 59.
• We can see that a higher high was established at 02/03/09.
• The 3 EMA are in bullish allignment.
• The ADX line is also rising
• The gap between the +DI and -DI had widened
• The RSI consolidation at the 58 level was breached at 02/03/09.

Trade:

• Purchased the stock at 62.
• Sell at 7-10% of purchase price for a loosing trade.

Globe Telecom Inc (GLO)

Analysis:

• 4-Day EMA crossess above 9-Day EMA at 1/28/09. This was confirmed when the 9-Day crosses above the 20-day EMA at 1/29/2009.
• +DI crossed above the -DI at 1/27/2009. Extreme point of 820 was breached at 1/29/2009.
• The 3 EMA are in bullish allignment
• RSI is rising.

Trade:

• Purchased the stock at 842.
• Sell at 7-10% of purchase price for a loosing trade.

Updates:

• 02/11 - MER closed at 78 and it is still trending. Moving my trailing stop at 75. This will be the turning point if this will breach or will consolidate again on the 80 level.
• 02/10 - MER target price of 75 was hit. Stock closed at 75 and looks poised on testing its 77-80 level. RSI is at 80 and very overbought already, however the ADX is still rising plus the +DI is still trending up and widening its gap with the -DI. Decided to hold this for a while. Moving my trailing stop at previous day close at 73.5
• 02/09 - MER target price of 72 was hit. Stock closed at 73.5 and will be retesting 75-77 levels. Mvoing the trailing stop on previous day close at 69.5.
• 02/07 - MER target price of 70 was reached although the stock closed at 69.5. The stock is already overbought and many who has positions on this will probably take their profits now. However, my prediction on this one is probably it will climb towards its 72-77 level and will retest again on 80 level where the stock consolidated for a year. I'll be selling some of my position on Monday to lock some profits. For my remaining position, I'll be moving my trailing stop at previous day's close of 65.5
• 02/05 - Sold all my GLO positions as it formed a bearish engulfing pattern yesterday.
• 02/05 - MER target price of 63.5 was reached. Today's close was 65.5. Moving my stop at previous day's close at 63.

PLDT Xperience Plan

Finally after 2 long years of having 400kbps DSL connection w/c is supposed to be a 1Mbps connection




Its already 1 week since I've experience this and I hope PLDT maintains my speed at this range. But if this speed becomes a 512-700kbps again, then they will hear me complaining again.