Lessons I've Learned from CAL

I invested in Calata Corp. (CAL) when it had its IPO last May selling at Php 7.50 per share. Citisec (now COL Financial) only allocated 100 shares (which is fine with me because I don't know much about the CAL, but would like to buy anyway.) Lo and behold, before I knew it, the price continued to rise and I was just there, sitting in my work station, mesmerized, asking myself, "why is this happening?" But then, as fast as it went up, it eventually went down. And me? I was still there, still mesmerized and wondering how low can this get.

But just last week, I felt I finally came to my senses when I read this news. According to the news, there's an alleged manipulation in the price of CAL. As soon as I read that, I sold all my shares at Php 7.19. It was my first ever realized loss. Well, it's a small loss (Php 57.11  including all the fees), but still it's a loss and I knew deep inside that it should have been prevented early on (and gain in the process.)

So here's what I've learned:


1. I should always be in control
When it reached the twenty-something price level, I was really considering unloading all of my shares. After all, it's three times my investment already. But no. I made a call to my boyfriend and asked him of his opinion. He said I should hold because a Php 2K gain is still low. Wrong!

In the first place, what's the basis for saying that it is low? My investment was only Php 750 for crying out loud. In fairness to him, it's not his fault. It's mine. They were my shares, and I should be the one who should be calling the shots.

But this leads me to my second lesson...

2. Don't be greedy
It hurts to admit that at that moment in my life, greed took over me. There was a debate at the back of my head. The first one was saying that it will still go up, and I can still realize a higher gain. The other one was holding a banner saying "SELL! SELL! SELL!" Just when the one with the placard was winning, that's when I made the call to my boyfriend. After our talk, I just told my self to wait for another day. Maybe it will go up and I can finally sell. But it didn't.

3. Look at the signs
Take it from Ace of Base who saw the sign. I should have opened up my eyes. What's the use of buying Investing for Dummies if I'll just put it in my shelf? Why did I attend that free Technical Analysis offered by COL Financial if I did not put the learning into use?

Anyway, I tried to apply the technical analysis and this is what I got. Obviously, I'm not an expert. This analysis may be wrong, but this is how I look at it. I intend to learn more about technical analysis in the future.

Graph from COL Financial

4. When it looks too good to be true, it probably is
And I keep forgetting this over and over again. The thing is, the stock's growth is not unstoppable. What goes up will eventually go down.

I'm not saying that Calata is a bad company. In fact, from the articles I read (not the one about the price manipulation), the company looks promising. Oh and their CEO is only 31 year old. I wish I have that entrepreneurial bones in me.

Anyway, I just started stock trading last year and I'm still learning. In school, there's always a tuition fee. Some would say charge it to experience. I'd say charge it to tuition fee.