Latest posts by Jaycee De Guzman (see all)
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Like trading in the stock market, change is always faced with a resistance.
It’s been a while since my last post on my personal website. I’ve been keeping myself productively busy with the Stock Signals Philippines alongside business planning for some new ventures in the tech startup and agricultural industries.
Once upon a time, I offered a ready-made list of stock recommendations in the old Stock Signals Philippines with a constant reminder that the stocks I came up with were chosen based on my own financial goals, investment horizon, and risk tolerance. Sadly, some focused on the stock codes and ignored the reminder. What’s wrong with that? Every person who trades or invests in the stock market should decide based on his or her own financial goals, investment horizon, and risk tolerance.
So in October 2016, I asked myself, “What can I do for me to make people realize that what they trade or invest into must be a company that resonates with their own financial goal, investment horizon, and risk tolerance?”
Some people told me, “Jaycee, there’s a big market for people who want to be spoonfed with a ready-made list of stock recommendations? Why move away from it?”
When I operate a business, I make sure it resonates with my core values, discipline, and principles. Because when I do something that complements with my core values, discipline, and principles, I can assure you that I am going to do it passionately. Then, money just follows naturally. Money motivates me but it’s not my number one motivator. I already tried doing something for money but I ended up abandoning that business because my core values were against that business.
Then they rebutted, “Can’t you continue to offer your services by keeping a table for stock recommendations? Do that and bombard them with reminders that they should buy or sell based on those three factors you’ve mentioned. Use font size 100. Bold it. Use a red font color.”
Well, people who have a flawed and a lazy psychology don’t see the caveat.
I’ve been dealing with retail traders and investors for the past three years. I’ve already gotten a good feel of the retailers’ train of thought. Many people choose to be spoonfed. The problem is, some people think that there’s a “one size fits all” list of stock recommendations. How could there be one when not one of us have the exact same financial goals, investment horizon, and risk tolerance?
There’s only one person in the universe who can create a list of stock recommendations based on YOUR financial goals, YOUR investment horizon, and YOUR risk tolerance. I’ll tell you where you can find him or her. Look into a mirror.
Six months ago, I decided to change the game. I knew the resistance I would be facing. Some people will not like the change because they got used to being spoonfed.
So, knowing that it’s only you who can make a smart list of stock recommendations that suit all those three factors I’ve mentioned, what do you need to do? You need to overhaul your psychology first followed by your analytical skills.
But some people still don’t get it. I got a comment from a troll who hid himself or herself from a pseudonym and a fake email address.
Here’s my response.
Thank you for reading this post. However, I am not sure if this will reach you because you provided a fake email address.
A signal is a signal. I can write a code that can throw a buy or sell signal when the X, Y, and Z conditions are satisfied. But at the end of the day, we need to understand that we all have our own unique situations and status in life.
Even I, who can code a system that does that, still ask myself, “Can I stomach the risk involved in this stock that gives me a buy signal? Oh yes, it’s a buy signal. But what if this stock will have to sink by 40% and stay at that level for 7 years before it bounces back? Can I afford to wait that long?” FYI, this is just one of the many possible scenarios that could happen.
We need to exercise self-talk. It doesn’t make us a psychotic. It helps.
While we’re in a century where people and systems are becoming advanced, we’re still not at a level where we can predict these ever-changing factors for every single one of us: financial goals, investment horizon, and risk tolerance.
These three factors are not constant. A man’s financial goals may change when he gets married. A man’s investment horizon and risk tolerance will change as he gets older (and hopefully wiser). Not one of us have the exact same values for these three variables.
It does not make sense to require a system or the creator of that system to transact every single signal (buy or sell) that his system provides. We all need to exercise our ability to rationalize based on those three factors. We need to synthesize between what the signal tells and what those three variables say. If and when you do that, you can say that you’re taking full responsibility for your own trade and investment decisions.
You can hire a health coach who can tell you the best food and exercise that you need to eat and do, respectively. However, you cannot require that coach to lift the barbell for you but expect your own muscles to grow. That’s not going to happen at least on Earth.
The concept of providing buy and sell signals (stock recommendations) is a good one if, only if, everyone is disciplined enough to make a decision not only based on what the system tells but also based on what their financial goals, investment horizon, and risk tolerance say. Unfortunately, based on my observation, people are not disciplined to do that. The idea of providing a ready-made list of stock recommendations becomes a bad idea if the followers don’t rationalize, if they are lazy to study, if they love to play the blame game, if they are full of excuses, and if they expect their biceps to grow by forcing me to lift the barbell for them.
This is the reason why I abolished the idea of providing a ready-made list of stock recommendations. I’ve replaced it with a system that ranks all stocks and automates the technical and fundamental analyses for every single stock. On top of that, there’ll be webinars (live and recorded) with a quiz that you need to take at the end of each video to ensure retention of knowledge. We will implement a positive reinforcement. Perhaps, those who attended all webinars and got an excellent average score will get something in exchange for their efforts. What award will that be? We’re still discussing it but it’ll surely happen. Plus, there’s a forum where our clients can ask if there’s anything that they don’t understand.
I cannot directly control how people think but I can directly control my system that will make my clients think how they are supposed to think. I’ve just removed the loophole for laziness and irresponsibility to sneak in.
“MJ” commented on this article entitled Why We Do Not Give Stock Recommendations in the Stock Signals Philippines Anymore. I would recommend you to read this article, too.
Here’s what I want you to think about. My eyes are open to the big market of people who are thirsty for a ready-made list of stock recommendations. I chose not to exploit it. If I were only interested primarily on your subscription fees, I would have continued the old system. I am purpose-driven. Money is the by-product of what I do passionately and purposefully.