A reader emailed me asking for my investment strategy and I realized it is a good topic to blog about.
Note: This is purely my own. This might not work for you.
So, what's my investing strategy?
I am using Peso Cost Averaging or PCA
Peso Cost Averaging is an investing strategy where in an investor invest a fix amount of money in a certain period of time on a giant company/companies. This kind of investor doesn't care if the market is bloody or if the market is green, they just keep on buying. They believed that these companies would still be thriving 20 years from now.
Yup, I am a proud PCA investor but I did bend the rule a little bit coz I didn't invest it all on the " giants" coz I do have 3 "basura" stocks.
I invest fix amount of money monthly. I invest one stock at a time then go on a cycle. I have a list of stocks I am eyeing and I consult my list everytime I buy.
So, how do I determine a good company to invest in? I do have an easy-peasy-lemon-squeezy strategy to share to you and thinking about it makes me laugh. Is this even a strategy or what?
Okay, I regularly browse the list of stocks at PSE's website and when I read a stock that is somewhat familiar to me, and if I recall hearing it since I was younger, that's the major major reason I do Fundamental Analysis on that certain stock and invest all the way. Hearing from when I was younger and it's still around 'til now? Now, that is somewhat a stable company. Tested through time. Ang dami kasi ng publicly listed stocks and nakaka-intimidate masyado. Doing this strategy makes it easier for me to pick the best of the best.
Note: I don't solely rely on my easy-peasy strategy . I do use Fundamental analysis- a very important part.
After I purchased a stock,I have a special notebook wherein I record my recent buy. Below is an example of my list:
First column : Date Purchased
Second column: Price of the stock per share
Third column: Shares own
I do the exact same thing with my mutual funds.
On top of my fix amount invested every month, I do "reward" myself with stocks when there is a special occasion, like on my birthday or such. The biggest I have "given" myself was the Php 60,000 worth of stocks on my 27th birthday last April. I was so proud of myself for buying stocks and not stuffs!
I will be doing PCA until I get home and would take it from there. I am also saving and studying for business ventures for when I'll be in pinas for good. I will be earning my first million peso profit from business (commitment 'yan ah! hihi). Wish me luck.
Watch out for my next post: So, What's My Trading Style?