For Richer or For Poorer, ‘Til One Month Do Us Part

You are swordsmen, he said, and you have to hunt for the three elusive musketeers. It was our first directive. A month has gone since. We watched as our stock picks bled and later, turned to the color of the pastures. Some flew to the skies, a few ran out of blood and died.

Here’s the thing: As with most adventures, our quest for the three musketeers would not make for a great story without a couple of mishaps. Our original choices were narrowed down to DD, ACR and IS.  A month ago, they had what we were looking for. Each of them had at least one of the following: AOTS, ZS, PUA. These were the criteria. 

ACR

DD

IS

They showed us healthy uptrends, who are we to ignore that? But, as always, it was anyone’s game. You get in on your own, you get out on your own.

Day 1 of 31 (Friday, Original Game Day)

The Skype thread was abuzz with excitement. It was our first practical after all.

“Got in at DD,” one said.

“Waiting for ACR to hit my bid,” the other answered. I’m waiting for the same thing, I thought to myself. I didn’t type it in. I sat there staring at the ticker like my life depended on it.

“I bought IS. I’m one out of three,” one of the messages read. I can feel everybody’s adrenaline bouncing off my computer screen. I almost forgot how the rush felt like. 

“Hindi ko na mahabol si DD.” It was one of the days DD was on a rampage. Some of us were left in the dust. Still, there was pride in knowing that we were right about its tracks.

On market recess, as if sensing the disappointment of those that did not get to ride DD early on, Zee sent a message telling us that we could nominate more potential musketeers on the roster. Instead of limiting our choices to just three stocks, we could come up with our top five picks, and from there, we buy the triumvirate we think would send us to the metaphorical cloud nine.

By that point, all of us had already bought IS.

Day 5 of 31 (Trading Hours)

IS hit the -8% cut rule. We sold.

Here is the part where I say it was an emotionless cut. And then here is the part where I admit it wasn’t. Maybe because it was our first loss since getting in the tribe, or that we thought the trend is our friend. Whatever it was, being proven wrong hurt. But that's how the market works. She's the queen. Whatever the queen says, we react accordingly. Maybe in the coming months, years, we turn into the trading robots that our mentors have become. But until then, we try and then we try some more.

Day 5 of 31 (After-trading Hours)

We rolled our sleeves and went back to the drawing board.

It was hours of deliberation. This is how our final six looked like: ACR, DD, PXP, PX, MA and EW. Every samurai has to choose three stocks from the list, which three will be based on the samurai’s own prerogative. Those that will make it to our ports are to be our final musketeers, stocks that we are bound to for a month. But this time, no more resets.

Day 1 of 31 (Friday, Real Game Day)

The Skype thread was abuzz with excitement, again. 

Today is the new deadline. Once the market closes, all of us should have bagged three stocks each. “I’m two out of three,” one informed. I was drumming my fingers on my desk, watching the ticker like a hawk. I didn’t know why. I was already three out of three by then. Maybe the thrill was getting in on my nerves.

Day 10 of 31

One thing that you should overcome, the master of the house said, and learn is how to tame your emotions.

Today we bury MA. It closed at 0.013. Those who bought at 0.015 sold. It would have been painful, to once again cut losses. But slowly, we’re learning. That discipline is king and emotions have no place in trading. A trade does not need to yield you profit for it to be a good one. It could cost you, but as long as your trading rules and principles are followed, it is a good trade. And isn’t that what we’re all after at the end of the day, a good trade? So when the tides go against your bias, you let go and you let go fast.

Day 19 of 31

Hurt my mom and I will end you.

“DD just broke 60.” Whoa.

We watched as the dragon turned into the beast that it was, day by day it reached a new high. We were participants yet we were also just spectators. Trading ought to be boring. Once it excites you, once it saddens you, then you are governed by emotions.

Day 25 of 31

PXP is on steroids. Whoa.

Sweet darling DD just breached the 20MA. It came from a high of as much as 80, today it tumbled and closed at 50. Normally, this would be one of the trail stops for trend followers. But a vow is a vow.  It was a one-month hold or a -8% cut. No in-between. My old self would have panicked if I had shares. Even if I got it at a comfortable AEP, I still would have panicked. But not today. Not anymore. There are rules that we have to follow. It's amazing how our trading mindsets have evolved. 

Day 26 of 31

April Tan’s photo popped up on the Bushido Skype thread.

“Sabi na si April Tan 'yung nakasalubong ko.”

“Na-starstruck ka ba?”

Meanwhile, I was enjoying my bag of Piattos while watching a re-run of Friends. Oh and ACR is trying to breach the 20MA support.

Day 31 of 31

A month ago, when the challenge was presented, there were hesitations, trepidation, self-doubts. Today, all our inner Doubting Thomases have been crucified. Any lingering skepticisms about trading being easy and trading being fun are gone. We chose the stocks that we bought solely based on moving averages (MAs). No RSI, Fibo, Darvas, or what-have-yous. Just plain, old moving averages.

Here's another thing: MAs are king, our mentors said. Dare I say, our portfolios agree.

May 20, 2016 to June 20, 2016

Hanzo

Hideyoshi

Honda

Ieyasu

Kenshin

Kuroko

Masamune

Meiji

Miho

Musashi

Samurai Jack

And there, my friends, is how a one-month hold looks like. No stress, no hassle. No rumors, no tips. Just pure, unadulterated technical analysis. 

Trading is easy. Trading is fun.