Selling Off Megaworld (MEG) and Avoiding Stocks -- For Now

By Aiza Belle | 05 March 2019 | |

Back in mid-February, I sold the one and only stock I bought back in October 2018. Until I get a bullish confirmation in S&P 500 beyond 2800, that's the only time I'll buy again --maybe.

S&P 500
Some may be wondering why I'm looking at US stocks index while buying or selling local PH stocks. My S.O. taught me years ago that overall, our local stock market almost follows the US stock market (he's a pro when it comes to equities 😸).

Since not that much people trade stocks here too (or trade anything at all) compared to Indonesia, Singapore and Malaysia for instance, most of our trading volume here comes from foreign investors as well.

So if they're feeling conservative in the global equities market as a whole, then they're most likely going to sell their holdings here too.

PSE Index
Sold when the PSE index touched the MACD
Will I regret selling this "early"? Nah, I can always buy again. Once it's confirmed that equities have already bottomed and now on it's way to recovery, it's going to rise even higher, then I shall return and buy again-- in S&P 500 beyond 3,000 and in PSE beyond 8,500 levels.

Megaworld (MEG) net gains

I never follow the cliche advice to sell high, buy low because nobody can predict where exactly those tops and bottoms are. I often hear that silly advice from brokers and people who never even traded in their lives. They're just parroting what those brokers, finance consultants and cringey finance gurus say.

You can however, have some "hunch" when to get in or out of the market, but whether you listen to that and act quickly, or simply ignore because you're "investing" in the stock market anyway, is up to you.

when to buy stocks
Unfortunately, I don't hear this yet. Only experienced this in cryptocurrencies lol.

Nothing wrong with "investing" in the stock market, especially that's what Warren Buffet does.

But I personally already stopped listening to him last year especially since he's not even a trader and his strategy isn't aligned with my trading style anyway. Also good luck losing THIS. MUCH. No disrespect, but the older we get, the more conservative we should be because we won't be alive that long to recover that loss. If I were him, I'll just retire, sell half, and treat my family to a better home, a mansion perhaps with a butler or maybe even start investing in AI systems, and just spend more quality time with loved ones.

Berkshire definitely has more holdings and can recoup that loss. Probably. Assuming other stocks perform well. But if they all plunge down if the worse is yet to come, then I wish him a good retirement package at least. Or some good art investment he and his family can easily sell.

I'm obsessed with Gerhard Richter's works!

Back to local stocks. If trading penny stocks here (aka basura stocks) is considered gambling, holding PH stocks too long is high risk especially here in the Philippines, short selling is still not allowed.

They said it's going to be implemented October last year, but I don't know what happened since then. Short-selling is still not allowed in the Philippines as of March 2019.

The lack of short-selling option makes me consider trading S&P 500 one of these days, we'll see. I probably have to practice first and find another broker, because the broker (Robinhood app) being recommended by Ricky Gutierrez is limited to US citizens only. There's a rumor that you can also use that as long as you have a bank account in the US, or know someone who does. I don't have my own US bank account (yet), and I don't trust our relatives (I'm sorry lol), so... yeah.

Feature image by Niv R. of Unsplash


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