Last year, I talked a bit about my stocks here, and that I intend to prepare for retirement through it. I’ve been meaning to post about my portfolio in detail for a WHILE now. But honestly, I was just secretly waiting for it to improve from the significant paper losses.
Anyway, after 6 years of “investing” in the stock market, my total paper loss is 41%. Yup. 41%. Like I wrote in my other post, this was driven by TEL (PLDT), with a loss of 59% as of today. I added all my realized gains, meaning the actual profits I made from selling, plus all dividends received, and it is only around 47% of my total paper losses. Meaning, FOR EXAMPLE, if my paper losses are at P100,000, I have only actualized P47,000 in profits – for 6 years. Discouraging :(.
Here is a screenshot of my portfolio:
*I would die of embarrassment or shut down this blog if I had to show the actual amount of losses per stock. *
I like keeping 5-6 companies in my portfolio to maximize gains. So far, I have been maximizing losses (paper!). I picked MAXS, MPI, and LTG because they were recommended by my online broker and a blog I follow – www.dailypik.com. I bought C (Chelsea Logistics) and AXLM because of the hype and I personally like subscribing to IPO’s. AXLM’s IPO listing date is actually today, and it ended 7% down. Just my luck I guess.
Asides from not diversifying and letting my emotions get the best of me, here are more reasons for my portfolio’s performance so far:
- I sold too early – Instead of letting my gains grow and hit the recommended target prices, I sold them at meager profits. This also was credited to me not controlling my emotions. But once a stock breaks a certain resistance or all of a sudden surges, it is recommended to let it reach at least 20% gains. Or in my case, at least more than 5%. Sigh.
- I did not stick to the plan – I trusted the broker picks for which stocks to buy, but I did not trust the target prices set. Although not all stock recommendations by brokers are accurate, I still didn’t have the conviction to hold certain stocks and eventually missed out on several opportunities to realize profits.
- I did not invest regularly and in small portions – If I had extra money, I would buy a lot of stocks at one time to cost average a losing stock. I added so much shares when TEL (PLDT) started to decline – not expecting it to further decline in the next years.
But then again, I can’t let my emotions drive my decisions or suddenly think short-medium term. I obviously can’t give you tips on how to make a killing in stock trading/investing. I can only share my mistakes, which are obviously the opposite of what other finance gurus teach. I am, however, still excited to turn this portfolio around slowly. Even if it takes another 6 years. Everyone has their own personal investment story. Hopefully mine has a happy ending.