Losing Much Money in Stocks Via Impatience

The year is almost over and I guess I'll write a few more Season's Beatings huh? Right now, I'm keeping an eye on the PSEi score is around 6,500+ as of late. I could remember the time when the stock market went bloody red and this never left my mind...

I could remember all the sarcastic "YEHEY?" from the toxic world of Twitter. There's also such stupidity on Facebook. I could remember arguing with some people who ended up using Ad Homimens in regard to the red stock market scores. Yet, what Warren Buffett says is, "Buy when there's blood on the streets." (read here) As Buffett would also say, "Be fearful when others are greedy. Be greedy when others are fearful." That's if one talks about market timing. Still, I believe in timing the market and time in the market. It's like if I decide to cost-average during low-tier days and add more money when the value is low. In my case, I prefer to use an index fund (in my case the Philippine Equity Smart Index Fund). I also want to learn to buy some individual stocks though I think index funds are suitable for the less aggressive type.

I've heard a lot of stock market horror stories. I don't want to deny some people got poor from the stock market. I wanted to learn via simulation only to find myself practicing using the day trading simulation. What I discovered for myself (via Charlie Munger) is that day trading is practically a speculative orgy (read here). All I depend on are the fluctuations of the day if I do day trading. Buffett even says day trading isn't investing but it's like having a one-night stand. It's really more on gambling than investing. Besides, I tried a simulator on day trading only to find out I could've lost more than PHP 550,000.00 if it were real money. It's a good thing I read more about Buffett and discovered the "boring world" of cost-averaging. I guess a lot of those stock market horror stories are from day trading.

It's safe to assume that it's impatience that causes people to do day trading. There's more thrill in day trading than if I had to pay PHP 3,000.02 every month in an AXA equity fund. Buffett himself is a proponent of cost averaging. Cost averaging can be a very boring method. Value cost averaging will mean waiting for the market to dip before you put in more money. Most of the time, both methods are "boring" by the standards of a thrill seeker. High levels of impatience would even say, "I want to get rich quick now!" When Jeff Bezos ran into Buffett, he asked, "Your strategy is so simple. Why don't they copy you?" "Nobody likes to get rich slowly!" is a correct answer from Buffett.

It's because stock market investment is never meant to be short-term. As Buffett would say, "If you're not willing to own a stock for 10 years then don't think about holding it for 10 minutes." This is all about time in the market vs. timing the market. Sometimes, it might be best to hold some equity funds for a year. Maybe, it might be best to pull out some equity funds during the incoming bull market. I'm simply anticipating yet another decrease because I might buy more units of participation in an equity fund. Unfortunately, some people foolishly panic-sold their devalued stocks and equity funds when the bear market struck (read here).

Instead, the bear market should've been meant for a real genuine "Horray!" I saw the opportunity and decided to slowly invest in three types of equity funds. The Philippine Stock Index Fund, the Global Technology Feeder Fund, and the Global Consumer Trends Feeder Fund from ATRAM. I decided to continue my AXA investment because I want to have time in the market over timing the market. I decided to invest a certain amount of money knowing I'll get more units because of the crash. I shouldn't worry about short-term fluctuations because as Buffett says to treat fluctuations as a friend instead of an enemy in the stock market. For the person who uses cost-averaging--it means getting more during the crash and getting cash when not in a crash. For a value-cost-averaging investor, it means the chance to buy more during a crash.

This kind of impatience can be a real killer. I guess that's why people all bought the hype regarding cryptocurrency. I guess that's why some people decided to engage in Axie Infinity. I guess that's why we've got people who would rather go gambling instead of investing (read here). I've heard of short-term stories where people supposedly got super rich through cryptocurrency. I heard how some people supposedly got super rich from playing Axie Infinity. It's the kind of investment for the impatient. It's pretty much the same reason why some people who married in their 20s are already either legally separated or even divorced in their 30s. Some people marry for the sake of marrying. Meanwhile, your old maid of a batchmate is probably happily single while your other batchmate who married in her 20s is unhappily married to a bad husband.

The bull market isn't around yet. The bear market may linger longer due to factors that affect stock market performance (read here). Company performance, investor sentiments, industry performance, and economic performance all play a role. Interest rates are higher right now so entering stock markets would be good. Bonds and stocks work differently. Bonds are equity so nobody sensible would want a buy a bond (debt) when interest rates are higher. Meanwhile, stocks are all about buying a piece of equity and if it's devalued--one can take advantage of it. It will take a while for the bull market. I will probably have to wait longer until I get to finally trade in at least one of the equity funds.

Until then, it's best to wait. As my high school math teacher once chastised me and said, "If you're more patient, you can do things better. Just be patient and you'll get better." She was right to tell me that every time I yelled when something was hard for me to grasp. I needed to be more patient. Impatience has caused me to make some bad monetary decisions in the past. The stock market investment is no different. Patience is key and that's why I refuse to participate in that speculative orgy of day-trading.

Get Stuck with EDSA, End Up Like Nokia

Yes, we should never forget what history teaches us. A classmate of mine, back in high school, wrote a simple and blunt essay called "History: A Teacher". I doubt he still has a soft copy, given it was already more than 20 years ago. I'd like to quote Duterte critic Andrew James Masigan wrote this in Philippine Star --something that should remain relevant: I would never undervalue the 1987 Constitution. It dismantled the legal framework of a repressive regime and established the democratic institutions we enjoy today. For this, I am grateful. The 1987 Constitution was crafted with the best of intentions. It sought to put the Filipino first in all aspects of governance and to level the playing field amongst sectors and peoples. But it is far from perfect. It failed to consider the importance of foreign capital and technologies and the stiff competition we would have to face to obtain them. In short, its economic provisions were short-sighted . So despite the Constitut...

#SahodItaasPresyoIbaba Economics' Bad Accounting

I would like to apologize in advance to my readers. The picture I'm presenting is in Tagalog, and not all my readers speak Tagalog. I would translate the picture's text into English for convenience. It says: "Ano ang bumubuo sa mga presyo?" means "What comprises the price?" "Gastos ng materyales" means materials expense "Gastos sa kasangkapan" means depreciation expense ""Gastos sa pasahod" means salary expense "Kapitalista" means capitalist Renta is well, rent "Kayang pababain ang presyo" means "Prices can be lowered". It says that capitalists (industrialists, landlords, bankers) and elitist governments are part in the gross profit. Get rid of excise taxes (either permanently or temporarily) for the prices of goods and services. In the times of crisis, in the burden of sacrifices, we need to be watchful for capacity. Whatever savings for times of difficulty by the workers and countrymen, the...

Past Chinese School Education in the Philippines was Based on "Sǐ Jì Yìng Bèi"

Chinoys of my age (and older) may remember these textbooks. I called them as the "symbol of trauma". It was memorizing something without understanding it . One would just memorize (without understanding it) because it was typical. Not being able to memorize what was assigned? Get a bad grade? One can expect physical punishment like hitting the hand with a ruler or chili in the mouth. Chinese language teachers are stereotypically strict . The language textbooks (above) are what were used during the 1990s to the early 2000s. As I wrote it, the Sinjiang textbooks aren't effective in teaching Mandarin , in a world where Mandarin has over a billion speakers! There's a Chinese proverb that says, "死記硬背 sǐ jì yìng bèi" or "Memorize to the point of death". That's exactly what those textbooks are. Memorize to the point of death! Okay, it may sound exaggerated. However, that's how Chinese language teachers in the Philippines were made to teach the ...

Migrante International's Really Bad Economic Literacy

March 17 (which is tomorrow) seems to be an unofficial holiday for some people, right? I'm sickened that the late Flor Contemplacion has been treated like she's some national heroine (and thankfully, tomorrow isn't a holiday) even after Singapore had proven her guilt. A movie was made by Joel Lamangan called The Flor Contemplacion Story . The call for Migrante (Migrant) International has been to remember Flor even after several years. What's not too surprising was to learn that Flor's sons were all arrested for drug-related charges. Even her eldest son died while in prison. You have Migrante International wanting to end the labor export policy. However, a post by Migrante really shows how this group fails basic economics. I will not post the whole press statement but one part that made my eyes roll. >> Further opening the country’s economy to foreign ownership and control will worsen the exploitation of our people and the environment without creating a susta...

"Filipino First Policy" Has NO PLACE in the Rising Asian 21st Century

I guess nobody saw the Asian 21st Century coming, right? China was once a poor nation but look at it now. Vietnam was once a poor nation but look at it now. Singapore was once a poor nation but look at it now. The late great Lee Kuan Yew wrote his book From Third World to First . I'm afraid some people have been using it to go against the presidency of Ferdinand R. Marcos Jr. while ignoring what else Lee Kuan Yew had to say. Lee Kuan Yew described the Filipino press to be rambunctious on pages 304-305 which I agree. I'm afraid that the Filipino press may have had a hand in getting rid of any economic or political reforms that could help the Philippines. Yet, one policy has been holding back the Philippines for decades and yes, it's the Filipino First Policy . Reviewing the Filipino First Policy and why it has no place in the rising Asian 21st century I remembered how the values education subject taught Carlos P. Garcia's stupid Filipino First Policy as a Filipino value...

Has Passing Down Hatred for Singapore (Because of Flor Contemplacion) Economically Helped the Philippines?

PEH.ph It was on March 17, 1995, when Flor Contemplacion was executed in Singapore. I've noticed that I've been addressing her as the late many times, even if the late is a statement that may be ony appropriate if the person has been recently deceased within 10 years. It's about to become 30 years since Flor was hanged in Singapore. However, generational hatred would've been passed down from 1995 up to 2025. Some people are still tagging #JusticeFor Flor. These traits may be passed down from the Batang 1990s to their children in this generation. It may also be passed down from parent to child, even if the child was born in the 2000s to 2010s. Somebody born in 2000s and beyond might even say, "Papa and mama told me about Flor Contemplacion! That's why I hate Singapore!" Talk about a child born in 2004 who's probably angry with Singapore, because his parents kept telling him about how Flor was supposedly "unjustly treated" over there. Some tim...

My First Taste of Sichuan at Yang Hero IT Park

I was doing some random historical study. One of the many things I recalled from Asian history class was the Chinese Communist Party in Sichuan. It's an interesting piece of historical detail that Mao Zedong (and other Chinese communists) were avid lovers of spicy food . Yang Hero had its first branch in Gaisano Tabunok. It opened a branch in IT Park last May 25, 2023 . The menus had Chinese translations. The establishment has made me realize the importance of learning Mandarin . True, I could order their food without speaking Mandarin. However, I still feel that the increasing number of Chinese businesses left and right would mean, "You may need to learn some Mandarin now to connect with more people in the world." For a bit of background, here's what I gathered from Sun Star Cebu: Evanmarie Mendoza, social media specialist at Yang Hero, said: “The Chinese barbecue is also a must-try for foodies as it differs from the regular ones that we typically have here in the P...

Tealive's Aren Caramel (Kaong Sugar Caramel) Series

I usually tend to associate sugar with cane sugar. In this case, Tealive (read my review here ) uses a sugar known as gula aren. I did some research and found out that Gula Aren is made from the sap of the sugar palm tree. The fruit is also known as kaong in the Filipino language. Granted, the Filipino language also derives from the Malaysian and Indonesian languages--it may be derived from the Indonesian word kolang kaling . The Philippines may also be producing its own gula aren or palm sugar. Sugar palm or kaong is pretty much grown as a staple in Filipino cooking too. Here's a video from an Indonesian woman. Watching this, it's safe to assume that kaong farmers in the Philippines follow more or less the same routine. Maybe, some people may call it latik though latik is made from coconut milk and not coconut sap. Though, some Filipinos may still call palm sugar as latik. The video above also shows an Indonesian binignit with some kaong. I was shocked to learn kaong is also u...

Getting Stingy at the Cost of Fire Safety?

March is fire prevention month, right? If there are people who are too extravagant then I'd like to talk again about stingy people (read the article here ). I've tried growing up with the stingy vs. extravagant extremes. Some people become stingy even with the necessities. It's one thing to deny a child a children's party since it's a want . It's another thing to deny a child stuff they need all in the name of saving money . Even worse, some people may be more than stingy enough to ignore fire safety. A stingy person just wants to save. It's almost like the story of the Miser and His Gold or The Rich Miser . I really find these stories entertaining at the same time, irritating. The first story has the miser who hid his gold under the ground. Some people today are too distrustful of banks and investments. The second story has a rich man who even dresses in rags, denies his son's shoes, had his wife cook some cake only for him, and was so greedy he had it ...

Started to Invest in the ATRAM Global Equity Opportunity Feeder Fund

It's time to begin a new road into investing. I went from a moderate risk taker to a moderately aggressive risk taker. Of course, I need to be careful with how much money I invest or I don't invest the money that I need. I believe that one could start by investing 15% to 20% of one's income. Basically, it's money that's not needed now. Fortune Recommends gives this ideal sweet spot: Many of the experts we spoke with suggested, as a general rule, to invest a set percentage of your after-tax income. Although that percentage can vary depending on your income, savings, and debts. “ Ideally, you’ll invest somewhere around 15%–25% of your post-tax income, ” says Mark Henry, founder and CEO at Alloy Wealth Management. “If you need to start smaller and work your way up to that goal, that’s fine. The important part is that you actually start.” Some budgeting strategies account for this, such as the 50/30/20 budgeting strategy, which breaks your monthly budget into three ca...

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