Monday, April 25, 2016

Zeely Vonka and Charlie Bakit's Challenge

It was a Sunday afternoon, a perfect day to relax. Charlie and I were having late brunch, contemplating what to do with the funds we've collected. Then this exciting idea came to us. 

"Why not fund small businesses for students and fresh grads?" Charlie exclaimed. And it all started from this small idea. Later did we realize the magnitude of it.

We have the funds, some people have the ideas. Why not let the two meet? All for the sake of paying it forward.

The Parable of the Talents. Taken from the book of truths, this was a fitting theme Charlie and I picked for the project.

"To those who use well what they are given, even more will be given, and they will have an abundance. But from those who do nothing, even what little they have will be taken away."


To those who will accept this challenge, head on to Charlie's Page.

Thursday, April 21, 2016

Perspective of A High Risk Trader

"Napapadalas na."

blurt out as I check the zennies left in my account. A sign that I've been trading in and out of the markets with considerable volume.

Most people would panic at the sight of a 4-6 figure loss. But it shouldn't be about the value. Focus instead on the percentage of gains and losses. A 250k loss that is -2% is small compared to a damaging blow of -50k that is -10% of a trader's port. It's just a matter of perspective.

Taking on these high risk stocks with 6-7 figures is quite easy. But with 8? It takes a special kind of crazy. These are my defining moments as I challenge myself to this weight class. Balancing a versatile trading system with volume while trying to keep the right state of mind.

If there's one thing I've learned on these kinds of plays, either you get in early or you get out quickly. Time to test my limits.

Wednesday, April 20, 2016

Primal Hunters

I've been playing a PC game recently, one which I've longed to play since it was announced in 2010. I've deprived myself of this dream for too long and now, the wait is over. I just can't help but see the resemblance with how the markets work.



Traders are like Primal Zergs. Those who are able to kill and thrive in this environment, evolve and grow bigger. Alliances are an illusion. The reality is competition and survival. The market is after all, a Zero-Sum Game.

It's Eat or be Eaten. 

Sunday, April 17, 2016

Personal Notes Series 008 : The Mandate of A High Risk Trader

Personal Judgement and Paying It Forward

I find it odd when some people say we should donate everything to charity since it is "morally" the right thing to do. Does this mean that if we use the money for personal gain we become Immoral or less of a good person?

But the thing is, in ZFT we exercise free will. We don't force each other to do things we do not want. Which means, be it for personal gain, or for paying it forward, we use the funds according to what we believe is right, according to our personal judgement.

And I personally believe having the choice to give away something of value is far more rewarding and honorable than to be forced to give just because.

" ...for God loves a cheerful giver. "

So do not compare us to seminaristas and other trading schools or other mentors. We do what we do because we want to do what we do - NOT because we are PAID to do it or because we could make good business out of it. You don't see us selling stuff to our readers diba? Our trading gains are more than enough to sustain us.


Investing and The People of ZFT

I understand that I am no businessman. My strength is in gaming and in trading. And with the way things are going with our current RAKs, I believe the ZFT fund isn't maximized. Yes we are able to help a lot of people with the funds we are getting. But what happens when we stop the Subasta and Seed mentoring? How many in ZFT would be willing to pledge support to charities and other groups needing help? How long can we keep this up?

There are so many things that we could do together with all the talent in the Tribe. But I hesitate to ask ZFTs to join me in this culture and cause. Because there is no such thing as free lunch. When we have tribe projects like the development of Technical Screeners, Project Seed, and other Tribe Events, it comes with a price. And I'd rather have people come forward and give out of the abundance of their hearts.

And in this light, I am looking for something sustainable. If you give to charity, you help a few to several people for a while. But if you partner with people in their businesses with the same principles as you (and in paying it forward), you not just help the businessman, you also continuously help the community that receives the RAK.

Here's a sample of what's going through my mind.
(Thanks for Introducing the Mindly App Celeste)

I would like to re-iterate that I am no businessman. This is not my strength and alone, I cannot effectively achieve whatever it is that I would like to happen. So If you have a better Idea and would like to partner with us on this ordeal, you may contact our budget secretary Robert Sy.

If you think about it, I could just take the easy path and turn my back on this task and hoard all that money like an RPG gamer would. But I just can't. I love.. Because God loved me first and I would just like to share that love experience with others.

Wednesday, April 13, 2016

Snapshots of A High Risk Trader

As far as I can remember, I've been sharing my portfolio snapshots since my newbie days in Financemanila. And this was way before I was taking in students and way before Facebook Stockmarket groups became a thing. 

(This was the Day I decided to start recording my portfolio every end of day.)

I did so because I wanted to start a culture of openness. I was moved by two anonymous bloggers COM (Color Of Money) and Cliff The Investor (This guy's blog is no more) who relentlessly shared their insights and snapshots every single day to back up their studies and who they are in the markets. They walked the talk.

You see, a lot of people would claim that they traded this or that. And during those times, if you were able to make a killing on stocks that made parabolic moves you'd be respected and followed. Of course you want to know how they were able to do it, so you follow them. And those snapshots are one big help in opening your mind to the possibilities of the markets and dissecting the mind of the trader - Where they entered and where they closed positions.

But the funny thing is, when you ask most of the gurus out there for proof of records, they can't even show it. Kahit shaded di pwede? Did they really trade the stock or are they just claiming sh!t?

Why? I wondered. 

Now here's a question. What is your litmus test to know if a person is legit or not?

Here comes a guru who was able to buy and hold NOW or BRN this quarter below 1.00. That's impressive. But how about the superstocks last year? And the year before that? I don't know about you but for me, consistent results backed up by records would always trump anything else. So don't be impressed by jackpot stocks. 

And like what we always say in ZFT,

"Pics or didn't happen."

Oh. I almost forgot. Here's a fictional snapshot.

Wednesday, April 6, 2016

Emotions of A High Risk Trader

It was Closing time in the Markets of April 5th 2016. This was my first time in my Trading career to experience a 7 Digit Loss in a Day. Lucky me right? 

"How do you feel? Are you okay?" 
People ask.

I'm fine. It's weird I know. I should be feeling something. Pain. Depression. Sadness. But none of these emotions are present. 

"Eh ganyan ka naman talaga noong simula pa! Manhid!"
*Plays Pusong Bato In Background*

It wasn't always like this. And like everyone else who learned this craft, I also had my fair share of emotions - Happily jumping off my chair when I see huge gains in my port from super stocks. Then cry and sleep in heartache after a few trading days, as those gains get eaten up by a series of losses. Believe me, It's normal. 

Learning is a process. It takes time. And the stock market isn't something easily mastered. Don't believe people in social media who tell you trading is easy money, people who tell you all the good things about the markets without disclosing the risks. And especially people who don't talk about managing losses and emotions. 

These people who seem to be always right about everything and give you this illusion that everyone is profiting from the market but you, is a lie. Because no one is immune from the Markets.


I look at the Stock Market as a game - the gains and losses in my account are just numbers. There are good days and there are bad days. Today was a bad day. 

And that's all there is to it. Moping around and giving in to negativity wouldn't help bring back what I've lost now would it? This experience just means I need to refine my system so this kind of damage would less likely to occur in the future.

It's simple discipline of the trade.

So how do I manage to kill my emotions in Trading aside from re aligning my perspective? 


"Study and Practice." 

Here's a link that could emphasize on that.


In ZFT, we have a ritual called "The Purge" where we rid ourselves of all noise that could affect our trading decisions. This noise could be in the form of trading buddies, stock groups, gurus, subscriptions, disclosures, news, rumors, etc.. The process helps us re align our focus and better ourselves. If you are having trouble with noise, Try purging.

Many people fail fast in trading because of ignorance or lack of a better system. Selling plays a bigger part in trading than buying. And cutting losses is the first system every aspiring trader should master.

For everyone can buy with confidence.
But only few can sell with dignity.

Friday, April 1, 2016

Bodega and The Law of Equivalent Exchange

Post Finished : 2:00AM 3.17.2016
Scheduled Post to Avoid Hype : 4.01.2016


Also known as "Warehousing." This is quite a popular term in FB and other social media. And I have taken a liking to it. The popular belief on this system goes like this : "If you believe in the company, Buy it. Buy it slowly until you have amassed a lovely position that will bear you good gains somewhere in the future." 

I believe this method can be effective if used in the right way, by the right person - Be it a fundamentalist or a technician. But one should also be aware of the element of time when warehousing. You wouldn't want to be accumulating something while losing golden opportunities right? So today, we are going to talk about two groups of fictional characters, The Technicians and the Funnymentalists, for us to visualize and understand more about the bodega system. 

(The things you are about to see are of pure fiction)

Let's start with the Funnymentalist. These group of people believe in many truths, which oftentimes results to a non-truth. The most common practice they employ is the combining of the three Truths in the markets : Fundamentals, Technicals, and Speculation.


This is an example of a funnymentalist's port snapshot with a little taste of his wisdom. There has been no full disclosure of where he made his bodegas but we can only assume the following :

"Why don't they buy when the uptrend is confirmed? Isn't it easier that way?" 

Good question. I'm confused as well. But the thing is, Funnymentalists have Vision like no other. They see things in different dimensions and will buy in every season. They see the market's downtrend as golden opportunities to add to their positions. But why not? They are Millionaires! If not Billionaires!

They could have bought on the shifting of the trend. But no. They like to have an underdog's story of breaking even while others are profiting. Who knows how their minds operate? Sometimes they practice cutting their losses and sometimes they don't. Sometimes they have legal wives and sometimes they don't. 

Funnymentalists don't mind holding for a long time because eventually, the universe will align to their favor. This is their truth and their minds will forever remain a mystery.

"A 6-8 Figure Loss? That's nothing to me. BACAT (Buy Cut) 'Till you get it right! Do not think! Be one with the Market."

How about the Technicians? 

They are people bound by strict rules and discipline. Raw data is their Truth. Trends are what they follow. And if a trade goes against them, they immediately cut their losses.


When the market shows signs of a favorable trend, Technicians do not hesitate to execute the bodega system. For why fear a trend that is for you? I made a post before on Trend following and Money Management, You might want to read it by Clicking Here. 

Now to understand these signs, one must look for several ingredients :

(1.) A clear continuous and brutal downtrend for at least 6 months - the longer the downtrend, the better. (2.) Next is a rally, a mini ZS or a ZS, that breaks the downtrend with considerable volume. (Click here to know more about the ZS) And (3.)  A time of consolidation from the initial rally, followed by a sequence of breakouts that confirms the shift in trend.

Below is an example of how a Technican would probably do things if given similar amount of money as the Funnymentalist.

Before I proceed, I'd like to make a shameless plug.

"Humankind cannot gain anything without first giving something in return. To obtain, something of equal value must be lost. That is Alchemy's First Law of Equivalent Exchange."

"Alchemy: the science of understanding the structure of matter, breaking it down, then reconstructing it as something else. It can even make gold from lead. But alchemy is a science so it must follow the natural laws: to create, something of equal value must be lost. This is the principal of equivalent exchange. But I learned that night that some things cannot be measured on a simple scale. My brother and I knew the laws of science, of equivalent exchange. The game required sacrifice, that something had to be taken from us, but we thought there was nothing more we could loose....We were wrong."

~Edward Elric (Fullmetal Alchemist)

It's one of the best Animes out there. 
You should watch it if you still haven't.


Now, where was I?

When we tread the markets, it is of utmost importance that we understand our place. While we are part of the market, we are not the market. If the market decides you are wrong, then you are wrong! Your opinion and positions worth millions or billions are irrelevant. For what we speak and what we have is not necessarily truth. Only the Market speaks truth. And when the Market speaks, we listen. 

(Snapshot as of 3.16.2016)

By the time this is published, either BHI is no more or probably still there. Who knows? Oh what a lovely case of Schrodinger's Cat.