- When it is a bull run, the cost of impatience is expensive.
- Gain is gain but errr you could have earned a lot more for staying a bit longer.
- The story of my IDC.
Okay guys, in case this is the first time you visited iSensey, let me share again that I am a newbie to the Philippine Stock Market. What is shared here on this blog is the journey itself, the highs and lows, the defeats and victories of a new stock market trader / investor. No sugar coating.
If you want to know how this particular trader investor fared in the PSE, come-in, browse through the stock journey posts. Who knows you can gain one or two gems that will hopefully lead you to more profits than losses. Or encourage you to start investing too!
Anything discuss on iSensey is not in any way a recommendation for you to buy my own stock pics. Always follow due diligence when making a trade, because you alone have control of your money and is responsible for any action you may take in engaging in the stock market. Alrighty? 🙂
Why I bought shares of IDC or Italpinas Development Corporation?
Here’s a background why I bought shares of IDC. First, because I believe I can grow wealth more if I invest in companies who are on their way of becoming strong contenders in the PSE or may even become blue chips in the future VERSUS investing in current blue chips issues. Simply said, I believe IDC is poise to become bigger.
Second, I like that IDC’s has projects in Mindanao, Cagayan de Oro to be specific. Our incumbent president is from the south, and one of his administration thrusts is to spread development to the countryside, especially Mindanao, which has taken a backseat in past administrations. So yes, I expect IDC to soar mighty in the next 5 to 6 years following massive development in Mindanao and the countryside in general.
Third, IDC is affordable. Nope, I am not taking about PE ratio. I am talking about plain ‘how much it cost to buy one share’. Market price of IDC as of last trading day July 15, 2016 is 5.79. With my 20,000 I can buy more or less 3,400++ shares VERSUS say buying blue chip Jollibee (JFC) at P250/share, my 20K will only give me about 80 shares.
Fourth, IDC clearly identifies what it is they are selling and who it is they are selling to. “IDC IS A DESIGN DRIVEN DEVELOPER OF SUSTAINABLE PROPERTIES FOCUSED IN EMERGING CITIES IN THE PHILIPPINES.” My background is in marketing and sales, and a clear target market is a good sign for me.
So What Happened? Why the crestfallen face? The frustration?
IDC first got my attention when I noticed a lot of trades happening and there was an opportunity for ‘tsupit’. Nope, I didn’t check any chart, I didn’t research the company. I just felt that the IDC stocks were a good buy for that day and I did.
*I love watching the ticker, and sometimes my attention is drawn to a stock because of its movement in the tape.
So I bought 4000 shares of IDC June 17, and was able to sell it on the same day for P800+ gain. Bought at 5.12 and sold at 5.32. It was a quick day trade. 🙂
After buying and selling IDC quickly, I became more interested in the company and I wanted to know if I can have it for long-term. What I found out about IDC solidify my stand that I can have this stock for long-term.
So I bought shares again starting June 20 then 24, 29, and 30.
By the way I had to average down because I bought IDC near resistance last June 20. I didn’t know much about support, resistance, trends, and pullbacks then. But I am learning now hehe.
Experience is the best teacher, and it’s true. 😀
At the opening bell of July 14 market day, my IDC shares was around 15,800 at average price of 4.69. Not much but if you consider that I am a new stock market investor (stock account opened just last May 2016), an investment of more than P50K on one company is big for me.
IDC was range trading for about 2 weeks with high at 4.79 to low of 4.11, before its breakout last July 14. I got impatient. So last Monday July 11, my thoughts were running like this..
…“Since I am pegging IDC as a long term stock position and since it is range trading right now, I could sell near resistance, and then just buy back at pullback because I am 100% sure price will fall back down to 4.30ish whenever it goes up a few points. I believed my 4.69 ave price right now can be lower. 4.30is is my target price to rebuy and get back the position.
So I put 12,000 shares on GTC Sell Order for 4.80.”
I THOUGHT I COULD BEAT THE MARKET. How wrong I was. LOL.
Every day since putting the IDC on GTC, I was still monitoring it. My plan was that if I can see volume is increasing and price is uptrending I will cancel the GTC order and put in a higher sell price or cancel the sell order altogether.
July 14 trading day was the day IDC broke-out from range trading. And I missed it. 😀
I usually monitor the ticker the whole time the market is open, every day if I have a choice, to the detriment of my other online projects, lol.
Anyhow, I was sick that day so I only spent a few minutes checking all the positions I have, including IDC when market opened.
When I saw IDC trading normally, I just left the GTC Sell Order as is, thinking that it won’t be hit anyhow. Or if it will be hit, there will be a pullback for sure. I then went back to sleep.
Now, just before noon, I woke up and I checked my COL portfolio again. I got confused why I have 50K buying power, when I didn’t put in fresh funds. I hurriedly checked my GTC orders and IDC was gone. Checked my position on IDC, and it is now just 3,000 shares, instead of 15,000.
I looked at the ticker, IDC was trading like crazy, I saw prices at 5.16, 5.20, 5.32, etc.
Let me check the day’s high… 5.60! Whaaaat??? Facepalm!
My GTC Sell Order was executed at 4.80. Waaaaaahhh. Too soon, I missed the ride!
5.60 was the day’s high, If I was able to sell even at 5.40, instead of gaining P3k++ for selling at 4.80, I could have earned at least P10K++. Oh well, impatience can cost dearly if you are stock market investing, especially if it’s a bull run!
Because I was frustrated I sold the remaining 3000 shares at 5.16 per share, Lol. I still have 800 but I couldn’t sell them because the board lot at that point was 1000 shares. So I went into the ODD Lot Market, and placed a buy order for 200 shares at 4.95, planning to close the position if I get one full board lot.
Only 100 shares were successfully executed, so at the end of the day, what remains in my position is 900 IDC shares.
**NEVER TRADE WITH YOUR EMOTION!!! It’s a recipe for disaster. 😀
Check screenshot below, a gain of 31.97%, if I’d have VOLUME then, panalo! But binenta ng aga. :/
Will there be pullback to 4.80 and lower? I don’t know but if it does, I’ll try my best to get some shares at the bottom.
IDC fell back to 4.79 level that day but recovered just minutes after to close at 5ish level. The second day after breakout, it climbed to as high as 6.20, and closed at 5.79. I was able to buy some shares at 5.77. My average price climbed up to 5.35 a share. Ouch, lol.
This is now my current IDC position, check the average price hehe.
SELLING at GAIN Should Be No Regrets
This is one thing I still need to master – that when I sell, and the price climbs higher soon after, to not regret it. Because after all ‘a gain, is a gain’.
But right now, I still find it hard to swallow, knowing that if I had hold on a bit longer, the profit could be more. I still have to find my zen regarding this, hehe.
Anyhow, now I am back to buying IDC shares again, because as has been said, I want this stock for long term. But because I let go of my position prematurely, now my average price has gone way up.
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Happy Trading! Don’t forget to smile!