Gains Are Not Linear
Kung nagtrade ka using 50,000 pesos at kumita ito ng 25,000 pesos, di ibig sabihin na kapag nagtrade ka ng 500,000 pesos ay kikita ng 250,000 pesos or kapag nagtrade ka ng 5M eh kikita ng 2.5M.
Kung bago ka lang na trader ay maiisip mo ang ganyan.
The more you trade ay the more mo naiintindihan na there are a lot of things at play. May enough shares available ba nung bumili ka or nagbenta? At what price ang may sapat na shares?
Whenever you made some gains at naiisip mo magloan, manghiram or magpapool ng pera ay lagi mo tandaan na gains are not linear.
I remember someone a few years ago na nag all in sa IDC with 50,000 pesos at nag earn ito ng more or less 20,000 pesos.
Back then IDC is talk of the town.
After that gain ay naglakas loob siya magloan sa company nila for almost 1.5 Million pesos.
It did not end well.
If I remembered correctly almost 1.1M yata ang nakuha niya na losses overall in 5 months.
So, maliit lang na pera dapat gamitin mo?
Nope. You can increase your capital or BP but kailangan mo maintindihan na hindi mo dapat gawing basis ang gains mo sa maliit na pera para mag increase ka ng BP.
Always divide your BP into 3 or 4 parts.
That decreases your “earning potential” but also decreases your loss.
Position sizing ang tawag sa ganyan. Protection yan ng traders.
Never chase gains.
Importante yan. Never ka magdecide sa trading na nakafocus sa gains.
Gusto mo lakihan pera mo dahil pag malaki taya ay malaki panalo. Do not do that!
Gusto mo mag all-in dahil pag kumita eh malaki kahit pa 5 percent lang. Do not do that!
Yan yata ang mali ng 90 percent plus na traders.
Green ang nagtutulak sa mga decisions nila.
Its always driven by greed or by the idea of gains.
Sa larong ito, yung natatalo ng maliit sa bawat laban ang sa huli ay nananalo.
Paliitan ng loss ang laro na ito at hindi palakihan ng gain.
One great example dito ay si Jesse Livermore which most consider na greatest trader to ever lived.
Nanalo siya ng more or less 100 Million Dollars.
What happened after? Naubos lang din ang 100 Million dahil sa losses and he ended up broke and comitted suicide.
Let that sink in for a while. 100 Million dollars kinain lang ng losses.
Do not chase gains. Protect yourself from losses.
Kung gusto mo ng seryosohin ang trading at ready ka na magcommit na matutunan ito, we highly recommend that you take Tabula Rasa Stock Trading Course and become a Traders Den Student (TDS).
Tabula Rasa Stock Trading Course is a 6-month course designed to teach the basic of stock trading. Ito yung course na di ka makakagraduate hangga’t di ka natututong mag trade.
Here we will teach you the basic like:
How to chart?
What strategies to use in buying and selling?
Paano ang tamang approach sa trading?
Real time trading tips, diaries and blogs.
Live Trading Exercise
And much more…
We will also give you charting tasks and assignments para mas ma train kayo and maging live trade-ready.
If you think ready ka na, just complete the 5 PAMANA Trading Books either via Shopee Traders Den Student Starter Pack (5 PAMANA TRADING BOOKS) | Shopee Philippines or if OFW ka , pwedeng via this form https://forms.gle/XGtkJLVNTQwKzy3d6 and give us your name and email para ka makapagsimula.
We hope to see you onboard.
Happy Trading!
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