So many people are asking me to continue giving stock recommendations. I know they were earning from my stock recommendations. Why would they ask me to reinstate it if it was doing them more harm than good?
So why did I stop it if people were benefiting from it?
I stopped it because I noticed that most of my clients were not doing their homework anymore. It came to the point that I felt I was forced to decide for themselves instead of just seeking my guidance. I offer advice; not decisions.
It’s easy to say yes or no to everyone’s close-ended questions. However, what’s easy is not always what’s right.
Questions like “Should I sell now?” should not be answered with a straight “yes” or “no” by any person other than the individual who’s asking. Why? Only the person who’s asking knows his or her financial goals, investment horizon, and risk tolerance.
While we still stick to our guns of not providing a ready-made table of stock recommendations in the Stock Signals Philippines, I’ve decided to create a new section in our forum called Trade Setups.
What to expect in the Trade Setups section?
We will pilot-test it with the daily top 5 gainers and top 5 losers. We will talk about the probable directions of the stocks regardless if we see a bearish or bullish bias based on the stocks’ historical price action and chart pattern. We will dissect the stocks from all the angles we know. We will talk about the stocks’ foreign fund flow, top 10 players’ sentiment, online foreign brokers’ transactions, volume, and risk level using our proprietary risk level calculator.
We will talk about fundamental analysis so you will know which among the top 5 gainers and top 5 losers of the day are fundamentally sound as far as their income statements and balance sheets are concerned.
We will discuss technical analysis so you will have a data-driven estimate of the best price points where you should wait (either to buy or to sell).
After all, our purpose is to make sure that you are disciplined with your stock investment decisions, organized with your trade and investment setups, and knowledgeable with why you do what you do and how you do it.
Is this a sign that we’re reinstating the issuance of stock tips or a ready-made table of stock recommendations like what everyone else is doing?
No. Not a single chance, bro.
So, if you’re my client and you ask, “Sir, shall I sell at a loss now?”, here’s how my team or I will answer.
If you are a beginner in trading, it is best for you to buy or wait near support. Check the Risk Level of that stock. We have a Risk Level indicator for all the companies listed on the Philippine Stock Exchange. Then, your stop-loss price should be below that support level depending on your risk tolerance percentage. For example, if you bought at P10.00-apiece and your risk tolerance is 5 percent, your stop-loss price should be at P9.50.
But do not etch that P9.50 on the stone. What I mean is this: even if P9.50 is your tolerable risk below your entry price, check the Price-Volume Distribution chart of the stock as trading happens.
Do you see a substantial volume building up at or near P9.50? It is a sign of a possible bullish reversal.
If you see that on the Price-Volume Distribution chart, why would you hurry to cut your losses? Consider waiting some more if the current price is still within your tolerable risk.
Learn how to be flexible on your trade setups without disrespecting your financial goals, investment horizon, and risk tolerance.
In vernacular, hindi porke P9.50 ang lumabas na cut-loss point sa calculator mo eh magka-cut-loss ka na kaagad sa P9.50 ng hindi muna tinitingnan ang price-volume distribution. Paano kung traders are trying to hold above P9.50 na pala at di mo lang nacheck na may institutional brokers na palang nagba-buy up at pa-reverse na and prevailing intraday sentiment sa stock? Na-check mo na ba yung intraday 1-minute, 10-minute, or 15-minute chart?
Laking-hinayang mo na lang kung bumalikwas paitaas ang price ng stock pagka-cut-loss mo sa P9.50. Nanghinayang ka kasi di mo muna chineck ang price-volume distribution at ang average buy and sell price points ng top 10 players ng stock.
Kailangan bulatlatin mo muna yung mga pwede mong icheck to confirm and to build your conviction dun sa final decision mo.
While hindi naman sure-ball na bullish reversal na ang intraday trend ng stock kapag may nagba-buy up na, with volume, sa isang price point, at least, mainaman na yung may mga ganung bagay kang nalalaman. Pagdagdag rin ng conviction sa decision mo yung may mga ganung bagay kang alam na i-check kaysa sa puro tantyahan at pakiramdaman na lang.
Make sure you employ a trailing stop-loss to preserve your capital and to protect your gains.Jaycee De Guzman
We will provide all the charts that we will mention in our response. Do not worry on that.
It is how we’re going to respond to your questions in the Trade Setups section of the forum. We are not going to force down your throat a decision. As a matter-of-factly, we’re so careful that we don’t want to use the verbs “you should” or “you must” but “you have the option to…” or “you may want to consider.” We are not going to influence or pollute your decisions prematurely.
I know that we’re all rational beings. But because my clients see me and the analysts of the Stock Signals Philippines as icons in stock trading or investing, they have the tendency to do whatever follows the verb “you should” or “you must.” It is for this reason why we’re so careful in our word choice. We’re careful not for our sake but for our clients’ sake.
Please know that my team and I are so concerned with helping you trade efficiently and systematically. I am with you.
So who wants to join our conversations in the Trade Setups section of our forum?