Truly Rich Pinoy and the FGEN Journey
Friends have been asking why I sold FGEN recently.
In the past year or so, I got shares based on the recommendation of two different groups.
After a while, one of the stock analysts recommended we stop buying FGEN.
But then, there was no attractive stock to buy at that time. And the second analyst was still recommending we buy FGEN.
And so we did.
I guess I got carried away, and before I knew it, FGEN accounted for around 30 percent of my portfolio.
So I stopped buying, since the general rule of thumb is to keep it within 5 to 15 percent only.
Lesson Learned: You don’t have to buy stocks every month. There may be times when there are no attractive buys.
The price dropped over the next several months, and I started to doubt whether we would ever reach the Php 27 target selling price.
So I decided to read and learn more about technical analysis, candlestick charts, and short-term trading.
One day, while reviewing the charts, we saw that the price of FGEN went above P25. We also saw that it was possible it was going to go down again.
I didn’t want to spend a long time waiting again.
We decided to sell a third of our FGEN shares at a little over P25.
I was a bit hasty.
After a few days, the price went up to P26. We sold again another third of our shares at more than P26 per share.
At that point, FGEN accounted for roughly 10% of our portfolio, and we were able to breathe a little easier.
When the price soon reached P27.10, we saw from the chart that it was at an all-time high for that period.
So we decided to sell the rest of the shares.
Will the stock price of FGEN go up some more?
Yes, it’s possible.
But we sold, just the same, because the return was already higher than our minimum target of 12 percent per annum.
As some mentors would say, beginners should lock in on the profits early.
After we sold at P27.10, the price started to go down again. I guess we were lucky.
Just because we have charts and technical analysis, it doesn’t mean buyers and sellers will behave in accordance with those charts.
Do we monitor the stock prices all the time?
No, we don’t. We value our time, so we subscribed to companies who offer stock price monitoring services.
We just plug in the stock and the prices to watch for, and once the stock price reaches those levels, we get a notification via email or Facebook Messenger.
Manny M. Viloria is an IT professional and trainor. He lives in the Philippines, and enjoys helping more people appreciate the life and culture of the Truly Rich Pinoy.
