Classic Strategies to beat the Philippine Stock Market

Plan your trade, Trade your Plan

     "Is it reasonable to expect success in the investment game without thorough study and training?"

      The reason many of us are unrealistic is that we have been brainwashed into thinking that trading and investing are easy and do not require much thought or attention. We hear through the media that other made have quick and easy gains and conclude incorrectly that we can participate with little preparation and forethought. Nothing  could be further from the truth.

     Markets are a zero-sum game: For every item bought, one is sold. If newcomers as a group expect to profit, it follows that they must battle successfully against this some people with decades of experience.

     The experience does not end even when you feel you have learned to be objective, patient , humble, and disciplined, for you can still fall to the trap of complacency. It is therefore vitally  important to review both your progress and mistakes on a continuous basis because no two market situations are ever the same.

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1. Know yourself.
               - A good starting point for self examination is to review your own investment or trading record over the past few years. Even if you have made profit, careful examination may reveal that the record owes a considerable debt to one particular investment whose success was due as much to chance as to any other positive factor.

2. Making a plan and sticking to it.
               - If we are following a particular approach or methodology, whether it be a trading system or a longer term fundamental philosophy, it is also important to stick with it. Otherwise we lose our basis for making sound decisions.

3. History repeats, but contrarian must be careful.
             - The study of previous market experience indicates taht history does indeed repeat but rarely does it repeat itself exactly.

Quotes from investors and traders

"There are no certainties in this investment world, and where there are no certainties, you should begin by understanding yourself"
                                                                           - James L Fraser

"If you are intelligent the market will teach you caution and fortitude, sharpen your wits, and reduce your pride. If you are foolish and refuse to learn a lesson it will ridicule you, laugh you to scorn, break you, and toss you on the rubbish heap.
                                                                                                              - Frank J Williams