Guide Questions on Authentic Trading

1. What were the steps that you had undertaken in investing/trading in the
stock market?

Before I entered into the stock market, I had understood first how the
stock market works by knowing the basics such as lingos, rules, and
terminologies used in trading. Afterwards, I opened an account with COL
Financial and started executing trades.

2. What factors have you considered in choosing your portfolio?

Since the goal is to earn at least 10% return of my capital during a three-
month trading period, I chose to trade small cap stocks particularly
those stocks that are actively traded both in terms of value and volume.
Considering that small caps are more susceptible to volatility, the goal of
10% profit is more likely to be achieved in a short period of time.

3. Among your considerations, which was prime concern? Why?

My primary concern is just to gain at least 10% of my investment as

much as possible.

4. What were the problems/difficulties that you have encountered before

and during your trading period?

Since my portfolio is composed of volatile stocks, I needed to monitor

almost every time their price actions. However, I failed to buy and/or sell
stocks at my target price due to poor internet connection and/or system
failure.

5. How did you deal with your problems/difficulties?

During off-hours, I placed an order so that whenever the market price

hits my target price, it will be executed even if there is poor internet
connection and/or system failure. This strategy also helped me not to
monitor almost every time the price actions of stocks.

6. How did you feel about your portfolio and why did you feel that way?

At first, I am not contented because there were lost opportunities such as

selling the stocks at a higher price or buying the stocks at a lower price.
But I realized that lost opportunities did not matter as long as my goal
was attained.
7. What did you do during the trading period to ensure that you will meet
your goal?

Before buying the stock, I already set my selling price. As much as

possible, I set my buying price near the stock’s support.

8. How did you ensure that your portfolio will work according to your plan?

I considered opinions of other traders. But at the end of the day, I used
my strategies and traded at my own risk.

9. What was your learning from trading/investing in the stock market?

I am convinced that there is no such thing as “easy money”. Though it is

possible to earn as much as 50% profit in just a couple of hours, it is still
not considered as easy money, since careful and detailed analysis is
required in every trade.

10. What is the relevance of this activity to your subject, Risk

Management?

Without risk, there is no reward. Since risk is inevitable in trading,

having a risk management makes a trader develop strategies to
minimize the identified risks in order to earn the maximum possible
return on his investment.