Things to check before buying
#21
(07-05-2012, 05:39 PM)mike_g Wrote: with respect to ROE, how can we tell if ROE is good enough, or below what is expected?

sir,

ROE (or ronw if you must) is a profitability ratio. as such, you generally compare it with three things.

1.) compare it with last year's ROE (to see if it has an increase) - this is useful for both cyclical and defensive stocks.
2.) compare it with last quarter's ROE (to see if it has an increase) - this is useful for defensive stocks (like MER) - and less useful for cyclical stocks (like CEB).
3.) compare it with the ROE of other company's in the SAME industry.

using 2011 ROE figures,
TEL 20.65%
GLO 20.30%

BPI 15.2%
CHIB 13.72
BDO 11.14%
PNB 10.7%

if you only compare are figures, then you'd concluding that based on ROE, BDO, BPI, CHIB, PNB are bad investments compared to TEL and GLO. but if you categorize it by industry, you'd see that among banks (*using only the 4 banks as an example) banking would have an average of around 12.69%**, and both CHIB and BPI are performing above industry standards.

when using ROE, the higher, the better. Smile hope this helps.

** not the correct average since i used only 4 banks.
buy high, sell higher!

stock market abbreviations (for newbies)
http://www.stockmarketpilipinas.com/post...g#pid11738

"when it comes to trading, i'm just barely smart enough to realize that i'm a total idiot. i might be considered stupid, but on the intelligence scale, it puts me comfortably ahead of all the dumber people who thinks they're better than me."


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#22
(05-23-2012, 05:25 AM)mike_g Wrote: say your done with fundamentals and now, sa charting ka na.

anu ba maganda na tignan sa chart? what indicators are best for noobs? of course, basic na ang price at volume. what about MA, what numbers are ok? EMA ba dapat, 10,20,50?

then actual trading na

anu ba meron pag makapal ang bid side? pag makapal ang ask side?

dapat din ba i-check kung anung brokerage house ang involved sa particular stocks?

if you are new, too much information can cause analysis paralysis. stick to some few indicators muna. it's better to be good with a few indicators rather than be faced with a lot and not know how to execute when faced with multiple (and often conflicting) signals.

moving averages is a good start. those who use EMA will swear by it, while those who prefer SMA will do the same. i personally use SMA ONLY because i am more comfortable with it.

as for the numbers, institutional investors always have 50 and 200 set as default so if you're trading blues, those are standard. every stock behaves in a certain way and there is no real "100% correct" setting. i personally have 5/15/30/50/135/200 on all the time because i'm too lazy to toggle between the moving averages. having a lot of them on can cause a lot of "noise" and will make the chart difficult to read if you're in charting.

as for other indicators, RSI, STO, MACD seems to be on everybody else's default list. it's good to learn more about them.

makapal na bid side and makapal na sell side is more of a psychological barrier. a lot of buyers look like a lot of people are interested in the stock (and if you want to buy, you have to buy above them), and a lot of sellers look like a lot of people are trying to unload the stock (and that if you want to sell, you have to sell at a lower price than them).

and lastly, if you're new to trading, don't bother checking the buyer/seller, ma info overload ka lang. but personally, i check to see who has been accumulating/selling.
buy high, sell higher!

stock market abbreviations (for newbies)
http://www.stockmarketpilipinas.com/post...g#pid11738

"when it comes to trading, i'm just barely smart enough to realize that i'm a total idiot. i might be considered stupid, but on the intelligence scale, it puts me comfortably ahead of all the dumber people who thinks they're better than me."


Reply
#23
(05-23-2012, 05:25 AM)mike_g Wrote: say your done with fundamentals and now, sa charting ka na.

anu ba maganda na tignan sa chart? what indicators are best for noobs? of course, basic na ang price at volume. what about MA, what numbers are ok? EMA ba dapat, 10,20,50?

then actual trading na

anu ba meron pag makapal ang bid side? pag makapal ang ask side?

dapat din ba i-check kung anung brokerage house ang involved sa particular stocks?

Personal suggestion lang from experience of course iba-iba ang maririnig mo sa iba-ibang traders pero you are the boss so piliin mo na lang nababagay sa psychology mo.

Ang nga suggestions ko if you just started trading:

1. Stick to one particular trading style. Learn it by heart and become its master.

2. I-master mo ang pagtingin sa Price Action at sa mga support/resistance (S/R) levels. Madali lang yan kung aaralin mo sa ngayon while you are a noob.

3. Kung gusto mo ng indicators ok din pero limit mo lang sa dalawa o tatlo. Ang gamit ko ay 20EMA and 50EMA and volume. Mahalaga yung volume sa stock trading. Yung mga EMA guide ko lang naman. Price is King kaya doon ang focus ko personally yung mga indicators sumusunod lang sa price. Yung views ko sa mga indicators sa akin lang yun personally, pero for you choice mo na yan gawin mo nararamdaman mong mabuti para sa trading mo.

4. Lastly avoid daytrading for the meantime ibang level yan eh. Unless may guidance ka from a full time successful trader/mentor. Kung tipo mo daytrading go to school first mabuti na yung magbayad ka sa isang mahusay na teacher dami dito sa SMP kaysa kunin ng market sa iyo yung perang pang-enroll which is the same thing na rin di ba? Kung mag-aral ka you can ask a lot of questions while learning, you will develop your confidence dahil sa knowledge na makukuha mo. Siyempre establish rapport with your teacher kasi marami kang matutunan sa kanya kahit tapos na yung schooling mo. On the other side if you choose the market as your teacher it will take you much longer and more painful. Its your choice and please choose wiselyBig Grin

Ito lang po and Good luck!
Smile
“If you really believe in an uncertain outcome, then you also have to expect that virtually anything can happen”. --Mark Douglas, Trading in the Zone
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#24
(07-05-2012, 05:39 PM)mike_g Wrote:
(05-28-2012, 10:00 AM)StockJunkie Wrote: @mike_g

Start with ROE, Net Income, long term debt, "moat" . . .

"dami kasi dun" - As in everything, you have to exert effort to be good at what you plan to do.


yan nga yung next question ko. about ROE. before when i got interested in MER, wala ako basis, common kasi cya, then we pay and use electricity, so business is good.

with respect to ROE, how can we tell if ROE is good enough, or below what is expected?



Look for ROEs 15% and above
The World is a Vampire . . .
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#25
My buying decision making goes though a 3-Stage Process:

1. THINK (LEFT BRAIN MODE - clear, logical and analytical thinking)
A. Fundamental Analysis
1. Profitability - What is the earnings record of the company?
2. Products - What is the company's main line of business and
what is the products position in the market - market leader or just a follower?
3. Prospects - What are the company's prospects in the future?
4. People - Who are running the company?

B. Technical Analysis
1. What wave, what stage of the trend is it in?
2. Is the stock in the beginning, middle or end of the trend?
3. What chart patterns do I see?

2. FEEL (RIGHT BRAIN MODE - creative, imaginative and intuitive thinking)
A. If i have the stock now, how would I feel. How about after a week? After 1 month?

3. ACT.
A. If it passes both modes, point and click BUY.
B. If if fails any of the modes, repeat the process.

That is why 80% of my Portfolio are in BLUE CHIPS.

RESPONSIBLE TRADING, my Advocacy, means Practicing Self Discipline, Continuously Educating Yourself, Protecting your Capital at all Times and Taking Full Responsibility for your Trading Results.

MY TRADING PHILOSOPHY:
TRADING without FEAR, TRADING without GREED. GREED causes exposure to DANGER. FEAR causes missed OPPORTUNITIES.

MY TRADING RULES:
1. PROTECT YOUR CAPITAL at ALL TIMES. 2. TRADE to TRADE WELL not only for MONEY.
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#26
(05-28-2012, 10:00 AM)StockJunkie Wrote: @mike_g

Start with ROE, Net Income, long term debt, "moat" . . .

[b]"dami kasi dun" [/b]- As in everything, you have to exert effort to be good at what you plan to do.

kasama po ba dito yong PAR at BVPS? kung ang current price is below PAR or BVPS, dapat ba iwas na ako sa stock na ganito? Rolleyes
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#27
(08-16-2012, 10:55 AM)INDO Wrote:
(05-28-2012, 10:00 AM)StockJunkie Wrote: @mike_g

Start with ROE, Net Income, long term debt, "moat" . . .

[b]"dami kasi dun" [/b]- As in everything, you have to exert effort to be good at what you plan to do.

kasama po ba dito yong PAR at BVPS? kung ang current price is below PAR or BVPS, dapat ba iwas na ako sa stock na ganito? Rolleyes

Bro Indo,

Yes. You are absolutely correct. Kung below par and below book value very high risk na yung stock. Yung book value is equivalent to liquidation value in case the stock goes bankrupt at the time you bought the stock. Plus +1 rep point for you for showing what newbies ought to be concerned about.

A complete decision should cover both Fundamental and Technical Analysis although chartists or technical analysts would disagree with this point of view.

RESPONSIBLE TRADING, my Advocacy, means Practicing Self Discipline, Continuously Educating Yourself, Protecting your Capital at all Times and Taking Full Responsibility for your Trading Results.

MY TRADING PHILOSOPHY:
TRADING without FEAR, TRADING without GREED. GREED causes exposure to DANGER. FEAR causes missed OPPORTUNITIES.

MY TRADING RULES:
1. PROTECT YOUR CAPITAL at ALL TIMES. 2. TRADE to TRADE WELL not only for MONEY.
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#28
Thank you bro ninjatrader919! dancing manbanana
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