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TECHNICAL TRADING STRATEGIES AND TRADERS GAIN AT PHILIPPINE STOCK EXCHANGE: BASIS FOR COMPENDIUM

OF BEST PRACTICES 

JOSEPH MICHAEL M. JAVIER

· Volume III Issue IV

ABSTRACT

As the financial industry began to recognize the potential of the public internet and personal computer ownership grew in popularity in the late 1980s, some of the leading brokerages began to look more closely at electronic communications networks. Several enterprising brokerages developed software or purchased companies that had developed software to connect stock traders with current stock price information, allowing them to match buyers and sellers quickly and efficiently while saving money. As the platform shifted from traditional trading where people manually trade at the stock exchange many online brokers were established in the Philippines that offered convenient transactions for traders. Technical trading strategies assist investors in making stock investments by analyzing past stock trends. The trends are based on the stock's previous performance. Using statistical arbitrage tactics, new investors who wish to trade in securities may learn about purchasing and selling indications.

This study used a descriptive correlational design. The respondents were traders who utilized MyTrade.ph and ColFinancial Nationwide. A structured survey questionnaire was used to obtain the data needed which was analyzed and interpreted through the mean and four-point Likert Scale, Pearson product-moment correlation, and regression analysis.

The results of the study showed a significant relationship between the level of observance of technical trading strategies and the level of the percentage of the traders gain in Philippine Stock Exchange. It was also observed that the technical trading strategies such as candlesticks, moving average, Fibonacci Retracements and the Support Resistance of stocks helped the traders to indicate the impact of investor mood on security price, provided information for a possible breakthrough or trend change, helped confirm the up and down trends of the market.

Keywords: Financial industry, traditional trading, online brokers, technical trading strategy, statistical arbitrage tactics.

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