Is it time to buy stocks?

In my opinion, we achieved the lowest point of the year in Brazil. IBOV achieved 42.7k points, and, after that, went up to close at 47.1k points.

I don't have any stock in my portfolio right now (we sold all stocks as I described in my previous posts) and I think this is a good time to buy.

I will be conservative and buy less than the usual and I will invest in stocks that I think they are solid (we were investing in these stocks before, but we sold because they were presenting a bad momentum as all stocks in the market).

PSSA3: Start Gain (buy ONLY IF achieves) 33.72 ; Stop Gain (sell 70% of what you buy) +2% ; Stop Loss 31.94
EQTL3: Start Gain (buy ONLY IF achieves) 35.52 ; Stop Gain (sell 70% of what you buy) +2% ; Stop Loss 33.88

Have a great week!

Leo.

Market fell -10% and I haven't sold. What to do now?

As expected IBOV continues going down. This is the third week in a row, but, the downward trend started 5 weeks ago and that is why we closed practically all our trades, when we could have some profit. If we had kept them we would be losing money now and nobody likes losing money on bad investments. IBOV opened at 47.5k and closed at 45.7k points, losing -3.7% in one week. This is the lowest point since March/2014.

Our stocks:
BRFS3. Let's increase Stop Loss to 67.22. If stock goes down, we still have around 6% of profit. If it goes up, we keep it. In the same period IBOV lost -12%.
GETI3. Let's increase Stop Loss to 16.14. If it goes down, we stil have 8% of profit. IBOV lost -20% on the same period of this trade.
VLID3 and GETI3, sold during the week as I explained on last post.

What to do if you have stocks and you haven't sold yet?

Well, I always prefer to use Stop Loss and sell fast. My Stop Loss already tell me the maximum I can lose in one investment. The problem is that many people don't use Stop Loss and don't limit their losses. Then, they say that they are investing for the long term and will keep the stock... (I did this in the past). In my case (and I think this may be happening to you in this situation) is that the pain gets higher and higher every week and you regret you haven't sold yet. My suggestion: sell and relax. I prefer that you have the money back on our account and stop losing (because it may go down even more). If you decide to keep it, you become a person "cheering" for the stock. There is nothing saying that it will go up, but you prefer to think that it will... I prefer that you sell and wait for the correct time to buy the stock again.

I will stay one more week just watching the market.

Have a great week.

Leo.

Stocks are going down. What to do now?

As I was expecting, Ibov continued the downward movement. It opened at 48.6k points and closed at the minimum at 47.5k losing -2.2%.

We made the right decision selling PSSA3 last week, because it fell even more this week and we sold then at the right moment. EQTL3 increased a little bit and may bee a good investment for us if it confirms its momentum.

BRFS3 and GEIT3 continue in upward trend and we will continue with them in our portfolio. But, VLID3 and CTIP3 are going lateral trend. I prefer to increase Stop Loss of VLID3 to 47.08 and CTIP3 to 33.44. IF they go up next week, awesome. If they go down, we still have some profit.

I will continue with my money on fixed income this week, waiting for better definition in the stock market.

Have a great week.

Leo.

80% of profitable trades while benchmark going down

IBOV had a terrible week, opening at 50.8k points and closing at 48.5k points losing -4.5% in just 5 days... Downward trend and things can get worse...

I'm increasing the amount I invest in brazilian treasury bonds (such as LFT) because it is paying 14.25% per year risk-free. How is this possible? Inflation... For brazilians, this is terrible because central bank is increasing the interest rate to try to control the inflation. BUT, if you are a foreigner investor, this makes a lot of sense. So, I imagine that the big funds are getting the money out of the stock market and buying treasury bonds.

This is what I'm going to do this week!

We have an excellent track record because we only invest in stocks that we believe they will go up. In 2 years, we got more than 75% of profitable trades. In 2015 we got more than 80% of profitable trades and IBOV is down in the same period.

This week, we sold our 3 positions in PSSA3. The first one with aprox. 30% of profit, which is amazing! Why not holding more time? Because I think there is too much risk... Also, we sold our positions in EQTL3 for the same reason. We will buy these stocks again when we see a great opportunity.

These are the stocks that we still have in our portfolio
                        %                IBOV (in the same period)
BRFS3         +10.9              -6.3
BRFS3         +11.4              -7.2
GETI3          +13.8             -15.1
BRFS3          +9.7               -9.2
VLID3          +0.5               -10.0
CTIP3           +3.4               -9.9

Have an excellent week!

Leo.

Best stocks to invest in Brazil

IBOV partially recovered from the big loss that happened the previous week. Last week it opened at 49.2k points and closed at 50.8k, earning +3.3%. I'm still cautious about Ibov.

Last week I posted about the stocks that we have in our portfolio. we sold 2 of the stocks because they achieved our new stop loss (TAEE11 and LREN3). All other stocks recovered and BRFS3 earned almost +10% in just one week.

Next week I will post another table that compares our stocks to IBOV.

For next week, there is only one stock that I'm planning to invest (if the price achieves my trigger)

PSSA3: Start Gain (buy ONLY IF achieves) 38.95 ; Stop Gain (sell 70% of what you buy) +2% ; Stop Loss 36.87

Have a great week and I hope you earn a lot of money this week!

Leo.