This post is now the second to the series – My Mama Invests in the Stock Market. If you’ve not read the previous update on this, you can check this post how this all started.
Now, I’ll share the first thirty days of this journey.
And to do that, I captured the transactions we had for the entire October of 2013 (This account was opened on October 2 2013).You can check the screenshot below.
As you can see, the account is a JOINT type of account with my mother as primary and I as secondary account owner under COL Financial. Being more experienced on this (I have my own separate personal account), I was also the one who managed this joint account at the initial phase.
(For couples, you can do this JOINT option to have a centralized investment account. Bawal ilihim kay partner! You can check this tutorial how to open an account in COL Financial.)
Also, as mentioned in the first update, we started with initial 5000 to open an account – dated 10022013 (October 02 2013). This is the minimum amount one can start with to open an account – very doable even by ordinary employees.
However, being aware of one basic 8k rule investing tip in maximizing commission charges, I decided to add to this initial amount 12 days after (Oct 14 2014) so I could make our first purchase worth at least 8k. You can check this post to understand why it’s good to have this minimum amount in your every transaction. This is only a suggestion but not a strict rule you need to follow though.
And going to our first buy: it’s 600 shares of SMPH @ 16.00 with net amount of 10,169.91.
Why SMPH? Simply because it’s one recommended stocks in Stocks update of Truly Rich Club.
As you know, I’ve been a member of the club since I started investing in the Philippine stock market. This resource makes investing for me ultra easy without doing complicated analyses.
And I did sell it just four days after at an appreciated price of 18.14 per share.
Result? More than 6% net gain in just 4 days. (To compare, your money in the bank earns less than half of 1% a year!!).
Note: As you can see, what we did was short-term buying and selling. While Truly Rich Club strategy is a strong advocate of long-term investing, there are times I deviate from it (in short – pasaway!) The decision to sell we had above was merely driven by the goal to lock-in profits. I suggest though you come up with your solid plan first in every buy order you want to make.
Anyway, great so far for this account’s first buy & sell roundtrip experience!
Did we have the same success in all our other trades?
Syempre hinde! That’s why it’s important that you understand first how all this works before putting your first peso.
In the next update, I’ll share with you other lessons we learned in the mistakes we had!
But for now, bear in mind the following lessons you can learn from above:
1. No need to have millions before you start investing. You can begin building your asset with as small as 5000 only and just build it through time for any of your personal financial goal.
2. If you have money in the bank you don’t need in the near future, then you might want to put them into investment instruments for greater returns. People say your money sleeps in the bank. That’s not true! With a monster in life called inflation, your money’s value actually gets killed! That’s surely not a good money’s rest!
3. If you’re investing now and want to maximize every peso of your investment, take into heart the 8k Rule. This is not a strict rule thought but merely a suggestion.
4. Lastly, draft your strategy for your every buy/sell! Or if you want this easy, you can delegate this task to your trusted experts so you can focus your attention to more productive things. (Truly Rich Club is just one.)
Stick around for our next update!
Have fun investing,
Author: Omeng Tawid
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