4 P's of trading in the Stock Market

Every guru, experts, teachers and mentors are using different strategies in the stock market. It can be short term, mid-term and long term strategies. Those mentioned strategies are based on the holding period or time frame. If you are a day trader or holding the stocks in just a day, then you are using short term strategy.

Short term strategy or trading requires monitoring the stocks the whole day, you need to study and learn technical analysis. You need to give enormous time to study and learn this discipline. Technical experts used japanese candlesticks, harmonic patterns, indicators..etc.. etc..

Mid-term or position trading is a strategy with a duration of more than a week in which the trader position himself on the bottom price of a specific stock believing that there is a possibility of collecting gains in few weeks or more than 6 months time. This is very popular strategy in the PAM Academy , in which most members used GTC or Good Til Cancelled Order ( 60 days duration).

Long term strategy or buy and forget, popularized by Sir Warren Buffet. I know many Newbies are using this strategy and dreaming to be like Sir Warren. The time frame should be more than 5 years or when you hit the fair value of the company or hit your target price. Learn fundamental analysis under this strategy.

I would like to share with you, the 4 P's for Position trading:

1. Plans - you need to make your plans. If you don't have a plan then expect to fail. Before pressing the buy button, check the possible time frame of your stock picks then set the target price. Stick to your plan. Many newbies making mistakes because of hyping or bashing around the forums and chat rooms.

2. Price - buy price, check the possible bottom of the stock in which sometimes the 52 week low. This is very important because it will determine if you are going to be IPIT or LAYA. Check the PE ratio. Check the price if it  undervalued according to company's fundamentals.

3. Potential Upsides - This is in relation with the stock buy price and target price, the wide gap between your target and average price determines the percentage gains. Calculate your potential loss that you can shoulder then accept the possible mistakes. Used the PAM PSE Tracker for the calculation of potential gains and monitoring of portfolios.

4. PAM Academy - I included in the P, the academy to financial freedom because many Newbies that are ready to take the challenge and be a part of the growing community. Help and learn. Benefits will be the video lessons, ebooks, Ms. PAM updates with the ARC trademark and the update of your Newbie Mentor which is called Mr. PAM updates.


To those that followed us in our picked , CONGRATS ..Indeed a good start of the year with 12% gains in just 2 weeks>

For those inside the PAM Chat official and veteran helpers in our mission, @Thank you.


Sincerely yours,

NEWBIE Mentor

Comments

  1. may I know, how much is the membership for PAM ACADEMY?

    ReplyDelete
    Replies
    1. Hi Mam Adel, we have monthly subscription of 500 pesos but there are promos for 3 mos.,half year or yearly..here is the link http://www.pamacademy.net/faqs/

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