This is the second part of my prior post TRADER SUMMIT 2018: stocks and economy, insights and highlights, this post is about the afternoon session for position trading conducted by Mr Lawrence Lee.

Basically position trading is knowing when to buy and when to sell.

Mr Lee discussed the so called "facebook analysis" or "tsismis" gossip analysis. These are called "bahala na" trading based on hunch and there is no system being followed. This is one of the major reasons that an investor suffer a dramatic loss.

This seminar helps to have the proper mindset and to avoid these catastrophic scenarios and help you grow your hard earned money.

You have to see the probabilities, you have to think that far to be emotionally and intellectually ready when that scenario comes in to avoid any rash decisions.

You have to make money consistently over time, 10-20% than most investors, it may be small but overtime it will be bigger.

Technicals are not enough. You have to have the following.

An example he gave was what do you do first when you are going on a trip? Most immediately answered "PACK!", but why? Should we not plan and do some research first (fundamentals) about where and what we will be doing on this trip. we needed to be ready about the accommodation, plane tickets, and itinerary (technicals) right? But why do we think to pack first? Same with investing we tend to be all excited and forget the basic yet most important things before we go on that "trip" or trade (whether buying or selling. You make sure to know that fundamentals of the company you are going to buy or sell and also know if you even have the fund and the timing when to buy or sell it.

"Know how the business s doing."

"Time is money, make more of it than spend most of it."

"One trade can wipe everything up".

Another tip is diversification, as they said "don't put all eggs in one basket". Invest on several sectors like banking, infrastructure, conglomerates, utilities, consumer etc. Select the best per sector.

Portfolio management, diversification allows you to make mistakes.

It's advisable to have at least 3-5 stocks in different sectors. Invest around 20%-30% into each stock.

Don't just buy, hold and pray. You need to study and do some research and let go if necessary.

"See the bigger picture, participate in the move".

Trends come and go, take advantage of it and use it wisely.

"Cash is king".

Make sure to have cash on hand when am ideal stock goes on sale to allow re entry.

Also have an objective, it's not all about money, there's a more important reason you invest. You have to know your "why". Why are you doing this?

This may be due to retirement reasons college fund for the kids or simply you are looking to set up a business. This will allow you to endure all hardships and obstacles in the stock market world.

They also handed out some graphs and allowed us to draw our trend line, like up ward (connect the lows), downward (connect the highs) and sideways (connect both). this will give you the right timing to sell, buy or hold. This guide is very helpful. I've also added some notes as we discuss each of them.

I also learned about how to compute for the EMA (exponential moving average). We have 200 EMA (one year), 100 EMA (6 mos), 50 EMA (3 mos) and 20 EMA (1 month). These averages and time frame can help you see the trend without using any chart and will allow you to decide on you next move.

Your decison and the EMA can change overtime due to some events and the result of their quarterly earnings.

He also discussed about magnitude and durations. Whether a stock is ovebought or oversold.

One thing I found interesting is to never average down for the sake of lowering your average price, never add investment in a bad/ losing company. You might as well invest it to a profitable company instead.

Losers you cut, winners you want more of it.

We also discussed his outlook and opinion about the top 10 stocks we would like to be discussed. :)

This seminar was very helpful for me and I hope was able to share something that may help you out as well and young investors in the making :)

Please do support @surpassinggoogle, he has been an amazing person. I support him as a witness. I voted for him at https://steemit.com/~witnesses. It would be very much appreciated if you do the same by voting him at https://steemit.com/~witnesses and then type in "steemgigs" at the first search box. If you want to give him witness voting decisions on your behalf, visit https://steemit.com/~witnesses again and type in "surpassinggoogle" in the second box as a proxy.
Also, a big thanks to @bayanihan for always supporting my posts.