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The key to your financial freedom (the shorter way) is….

In my years studying ways how to improve one’s financial status, I cannot suggest any other better way of achieving this than that of creating multiple income streams.

I mean suggestions like cutting down on your expenses, looking for better shopping deals and other similar measures, while certainly good, can only help you to some extent.

But soon this approach to one’s financial life will lose its power as we humans certainly will stop having a comfortable life if we keep forcing ourselves to live with smaller and smaller financial capacity.

Investing is just a multiplier of your wealth

I remember a good friend asking me what to do with his extra 50,000 money.
He said he just wanted to invest it in paper assets like stocks knowing that stocks can give better returns than what banks offer.

But when I started to dig down and explain to him the risks that stocks carry in the short term, he started getting confused. He suddenly became half-hearted to go with his plans.

Ultimately, the confusion can be seen to stem from his desire to get bigger return yet not wanting to be exposed to bigger risk. I wish I can share other financial instruments that has this risk-reward relationship, but this is simply not the case.

Instruments like stocks are riskier compared to savings accounts and bank deposits, but this greater risk is what makes stocks a good contender when compared to other instruments in the long run.

In the end, I summarized my point with a single line: Investments are just multiplier of your income.

Your potential earnings from this will depend on the size of your capital.
Even if you earn 20% a year, one that is already spectacular, if your working capital is only 10,000 pesos, that would only give you 2000 after a year.

Compare that if you had 1M, then a 20% annual ROI would give you 200k after a year.   Now we can start talk about changing the quality your life. 😀

Shift your focus

So if you want to drastically change the quality of your financial life in a shorter timeframe, you have to shift your focus from investing wealth to creating wealth.

Especially for starting employees who are just starting out in life, this kind of mindset can really make a huge difference.

Unfortunately, our society has trained most of us to work our whole life only for one income stream – that of Salary. Specifically, it’s called an Earned Income. An active income too – one that exchanges your time for money. But since our time is limited to 24 hours a day, this in turn becomes very limited too.

Here’s the good news!

Other income streams are out there waiting for you.

how to invest in philippine stock market create income

Profit income is one that comes from buying and selling.
And with online platform, it’s now easier to do this and reach out to a wider consumer market. Here, you’ll have to learn some life skills like marketing.

Interest income is another income stream from lending money.
Interest payments from lending money to companies, formally called corporate bonds, is an example of this. Other ways of doing this are possible more informally.

For paper assets like stocks, mutual fund and UITF in Philippines, one can earn cash Dividend income and Capital gains with their potential increase in value.

Another good income stream is Rental Income from renting a real estate.
Owning a property can also have an attached capital gain.

And with the digital world, you can easily earn Royalty & Internet income from your ideas that can solve other people’s problems or give them some pleasure. My Youtube tutorial videos for example, which help people learn about how to start investing in Philippine stock market, has started giving me a regular income from Google ads. It may be small now, but the fact that it’s passive is what makes it interesting for me. I don’t have to wake up in the morning, join the traffic rush and please my boss first in the day to earn this. I can sleep all day and money keeps coming the same.

The times has changed and our financial strategies have to adapt to this changing times. When we think about the richest people we have now living the good life, one common quality stands out among all of them – the ability to create giant multiple cash machines.

Our normal education trained us to be functional citizens of our society, which is actually good, but this initial education should only be the start of a greater education that this life wants to teach us.

Be open. Explore. Focus on ways in creating multiple income stream… one by one.

Soon, you’ll thank yourself sticking to this life game.

Have fun investing (and more funds to invest!),
oMeng

PS: Two days left for your discount!
Want to learn creating wealth from the stock market the trader way?
Learn more about Technical Analysis, Market Timing and Portfolio Management through our Full Trading Course 2017. Click here for more details how to get your access.

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How to Invest Online in Philippine Unit Investment Trust Fund (UITF’s) for beginners

There are two way to start investing in stocks – direct investing and indirect investing.

Direct investing is when you open your own trading account with a stockbroker company.
I call this direct investing because you do all the activities yourself in this way.

These activities include funding your account, finding which specific stocks to buy/sell (which could demand lots of time of study) and actually executing the buy and sell orders on your computer screen. You totally don’t need anyone, aside from your funded broker account, to make your profits in stock market since you can do all these things at the comfort of your home just with your gadget connected to the internet.

If you want to invest in, say the company that manages and operates the giant SM malls, then you can just log-in to your trading account and buy SMPH stocks  (SMPH is the stock code of SM Prime Holdings) even with your smartphone. You can also always see how your money fluctuates with the movement of the market on your gadget screen.

Direct investing could be overwhelming for a beginner as with any undertaking at the start, but it becomes very easy to do once you get the hang of it. If you are serious in actively managing your investment, this could be the path for you. Since you are the direct investor on this, you also take full responsibility for the possible losses you can incur.

For passive investors…

But there are a lot of people who have no time or interest to study about how stock prices move and really monitor their investments on a weekly (or daily) basis but instead just wish to get better returns than what ordinary bank deposits can offer. These people include full-time employees, OFWs abroad or financially-established people or anyone who has excess money to invest on top of their normal daily needs.

They simply want to “invest their excess money” hoping that after some time,  they get their money back with decent returns.

That’s where indirect investing comes in, which could be divided into two – UITF (Unit Investment Trust Fund) and Mutual Funds. These two operate very similar since they are just variations of the general pooled investment fund from several investors being invested into a predefined types of investments, and actively managed by a professional fund or investment manager.

I call this indirect investing because the people investing don’t have direct control as to what specific securities the investment fund will buy, except on the allocation of investments of the fund they will choose. In other words, you can choose whether your money will be heavily invested in stocks, bonds, or a mix of both (thus we have the Equity, Bonds and Balanced types of these fund), but you CAN’T control that your investment fund buys shares of SMPH, Meralco or Jollibee for example.

UITF in a nutshell

I have shared in a previous post how you can invest in a mutual fund online. Read here>> How to Invest in Philippine Mutual Funds Online.

UITF operates the same as mutual fund investing wise, except that the fund is managed by a bank in UITF, as opposed to a separate investment company managing a mutual fund.

UITF also just pools the funds of investors to create a large fund which in turn is managed by an investment manager.  They are medium- to long-term investments that have historically better earning potential over a long horizon than traditional bank deposits. )I’d recommend giving your money invested in UITF or mutual fund at least five years time horizon).

The greatest advantage UITF (and mutual fund) gives is the professional management of the fund. If the dedicated fund manager is good enough, it could give you better returns that can even beat benchmarks, with you doing nothing. The disadvantage also stems from this fact – UITF has fixed management costs to cover all its expenses, whether the fund perform well or not, thus decreasing your actual earnings.

In the Philippines, most major banks offer UITF investments (see member banks below from uitf.com.ph as of May 6 2017).  Individuals can open a UITF account with as low as Php 10,000. This amount already forms part of your initial investment. Once your account is approved, you can add more anytime you want, but  this is not a requirement. Still, I suggest that you add regularly and do top-ups remembering that you’re in UITF for the long haul).

UITF also has minimum holding period, so you will incur penalty should you decide to redeem your investments earlier than this holding period.

Opening a UITF in the Philippines

Now I’ll share how I was able to open an UITF account in Security Bank. The process should be the same with other banks as UITF is heavily regulated by Bangko Sentral ng Pilipinas (BSP) to protect the investors.  The steps are actually very simple.

Step 1: Fill-up the application form.
You can do this online or in the branch of the bank of your choice.

For Security bank, you can do this online here and clicking the Invest Now button.
You will be guided in answering the application form and once submitted, you will receive in your email a soft copy of your accomplished application forms. Print the forms and bring them to the bank branch nearest to you.

Step 2: Just go to their Account Officers and give the print-outs.
Affix your signature as needed.
Once all is checked and fine, then you will just have to wait for 3-5 days for your account to be approved and created. You will have to go back to the branch at this point to receive your certificate of participation, a proof that you have UITF account with them. This is where the account opening process ends. If the bank has online banking facility, you should be able to see your account in there too .

UITF Monitoring

If you want to add to your UITF, you can do this through online banking, using the Subscribe facility.

You can also monitor your UITF performance online, so you see exact figures how your investment is performing.

Lastly, you can redeem anytime, that is you encash your investment, which in turn will be deposited directly to your nominated beneficiary account you entered during your application. Just take note of the minimum holding period that applies to your fund to avoid the related penalty.

Below is my actual UITF which I opened with the minimum initial investment of 10,000 pesos at the end of March 2017. As of  May 5 2017, its market value was at 10,599.53 pesos. Pwede na!

With the good performance of the Philippine stock market recently, the market value of my UITF has increased to 11,005.91 as of June 8 2017.  That translates to more than 10% gain in a span of less than three months.

UITF Philippines

Final Comments

Overall, UITF is a good place to invest your money in for long long-term purposes, (I say, at least five years), like retirement.

If you want your money back in say less than three years, I won’t really recommend it for you.

But if you’re in it for the long-haul, you can try it and reap the benefits of a disciplined long-term investing. Just start initially with Php10k, and you can add say regularly a month, say 2k, and build your wealth through time. Regular addition of investments (or top-up) is not really a requirement when you invest in UITF, but history has shown that doing Peso Cost Averaging with pooled funds like UITF (and Mutual Funds) can be good in the long run.

For a more comprehensive review and comparison of UITF performances of different Philippine banks, you can visit www.uitf.com.ph.

Just remember that with any other legitimate investment, past performance is not a guarantee of its future performance.

Have fun investing (in UITF’s!),
– oMeng  Tawid:)

Avoid losing money and become a smarter investor!

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Four Simple Tips for Newbies in Philippine Stock Market

Investing in the Philippine stock market is easy.
However, whether one will be profitable is another more important question.

In fact, this is a common challenge especially for newbies.
With no enough experience, and limited knowledge, they may have incorrect assumptions that could lead to losses when starting this venture.

This is what happened in one OFW who shared his realization.

And I have seen this happended in way more people simply because of failing to do enough study before diving in.

How to avoid losing big when starting?

Let me share three simple tips you can readily apply as a newbie:

(1) Start small and grow through time.

Starting small allows you to limit your possible losses while you’re not used to investing.
There are as many ways to earn from your trades as there is to lose money, so
this simple principle  minimizes the damage you can incur in case you make a wrong move.

(2)Start investing in Mutual Fund.

The good thing about online stockbrokers now is they also allow their clients to invest not just in stocks but also in Mutual Funds.

Shortly, Mutual Fund investment companies pool money from several investors and invest this in an instrument in accordance to its design (with respect to its goals, risk tolerance, etc). Because of the variation of the purpose and investing time horizon of investors,  an investment company usually has several types of mutual fund offering, all of which are managed by a seasoned Fund Manager. And among these types is the Equity Type which is a mutual fund heavily invested in a basket of equities or stocks. It is this basket of stocks that also gives you the mutual fund benefit of “instant diversification”, Divesificaton is one form of minimizing risks in investing.

In short,  if you wanna experience the feel of investing in stocks but want to minimize the risks that come from limited knowledge as a newbie, an Equity type mutual fund is a good alternative.

In  COL Financial and FirstMetroSec, you can buy mutual fund fom the biggest vendors just like buying stocks. Through time, you will see that your investment in mutual fund will also fluctuate, same as what would happen should you decide to buy individual stocks. The advantage here is you ride on the experience of the fund manager in terms of getting the best returns for your money. This is a much safer bet compared to counting on yourself as someone totally new who may be making buying decisions based on whatever “tip” they see in unreliable venue. You can learn more about online investing in Philippine mutual funds here.

(3) Slowly experiment with giant companies.

Once you have enough feel after investing in mutual fund, you can then choose to invest directly in specific stocks. On this, I’d suggest that you choose blue-chips, or those comprising the Philippine Stock Exchange index. This ensures that you’re investing in the biggest companies we have, and there exposed to less fluctuations compared to penny stocks.

Another option is choosing Stock Picks of your brokers in their long-term sample portfolio.
Below is a sample from COL Financial.

While brokers’ recommendations is never a guarantee that you will gain right away, you can at least be sure that there’s some studies made in coming up with their stock picks.  Just make sure that you’re looking at their long-term recommendations (usually six months-1 year) and not on their short-term guides which is designed for traders.

Still another option is to bet on the index with Exchange-Traded Fund (ETF).
You do this very similar to buying specific stocks using stock code FMETF.
This ETF mirrors the whole PSE index and therefore follows the trend of the PSEi with very tiny different. Remmeber that our PSE index is composed of 30 representative companies from severla industries so when you buy an index, you’re effectively buying a basket of stocks already, which is already a form of diversification.

Index-investing is actually a good way for people who just believe the market and country as a whole will rise without the need to handpick and do the stock picking analysis.

Do a mix and match

Of course you can do a mix and match of these. You can invest most of your money in a mutual fund or index fund, and invest a small portion in a specific high-conviction stocks you personally screen. After some period, say from six months to three years, you can see which is much better for you: mutual fund investing, index investing, or doing your own thing.

(4) Trade with your play money.

The three tips above pertain to long-term investing.

But if you really want to gain real experience on the heat of active trading, you can do so with play money. By play money, I mean money you can really afford to lose. This mindset allows you to separate your emotions from your money, a common challenge of new traders.  At this point, just remember that proper trading follows exact rules, violating which means you’re entering into gambling. This means setting up your own rules – the entry and exit points – before you even go into your first trade.

Doing the above approach will certainly leads you to some lessons and open you up to possible mistakes and hopefully improvements. And that is the best thing about stock market: with continuous experience and humility to start small, and grow through time, one can become better and better, rewarding you until your old age.

Have fun investing,

oMeng 🙂

Avoid losing money and become a smarter investor!

Join my online training program for newbies(for OFWs too!) and learn how you can do stress-free investing!Click HERE!

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How to Invest in Philippine Mutual Funds Online for Beginners

How to Invest in Philippine Mutual Funds Online

If you’re  a Pinoy beginner who wants to invest in mutual funds in the Philippines, this tutorial will help you do like that.

Investing in Philippine mutual funds has never been this easy with the advent of online platforms which allows you to invest in mutual funds directly right on your computer or mobile phone screen.

Unlike before where you’d normally go through an individual agent to buy mutual funds, two of the most popular online stock brokerage companies in the Philippines are now offering mutual fund investments too together with their primary stock brokerage business.

These two online Philippine brokers are COL Financial’s Fund Source and First Metro Securities’ FundSmart.

Why invest in Philippine Mutual Funds

A Philippine mutual fund is an investment company registered with the Securities and Exchange Commission (SEC), which pools money from many investors allowing them to create a bigger fund under a common objective agreed by the investors. This fund is then invested in specific types of securities to achieve its stated objective. Economy of size makes this pooled fund as a whole “more powerful” than the initially isolated individual funds in achieving a common goal understanding the risks involved.

With the different possible goals for the fund,  four main types of mutual fund are offered:

  • Money Market Funds invest purely in short-term debt instruments (one year or less).
  • Bond Funds invest in “bonds” which are really long-term debt instruments offered by governments or corporations.
  • Balanced Funds invest in a mix of shares of stock and bonds.
  • Stock / Equity Funds invest primarily in shares of stock.

Investing in a Mutual Fund (under Balanced or Equity types) therefore is an easy alternative way to invest in the Philippine stock market which requires a lot less time and monitoring on your part.

Little time because you just basically “give your money” as your investment and let the fund manager do the job of judging where to invest it and the needed subsequent monitoring. Compare this with direct stocks investing where you yourself does all the analysis (stocks selection) and trades (buy and sell) needed, something that would obviously demand more time from you.

Another good thing about Philippine mutual funds is you can start investing in it with as low as Php 5,000 only. There’s no required regular addition (or top-ups) but I’d personally recommend that you add regularly and really use it as your giant piggy bank for your long-term goals (at least five years).

Another advantage of mutual fund over direct stock investing is the diversification it offers. If you’re buying stocks on your own, your 5k initial capital can only buy at most two stocks. But when you buy a mutual fund, you’re actually effectively buying a basket of stocks and other securities like government/corporate bonds. Diversification is one common investment strategy in managing the risk for any investment.

One downside of mutual fund over stocks are the additional fees involved in mutual fund investing, such as management and front-end fees. Look at these costs as your “payment” for joining in the mutual fund and riding on the expertise of its fund managers.  The good thing about online mutual fund sellers is they are waiving (as of now) the normally charged front-end fees which means savings for you.

When it comes to possible returns on and of investment, with the very structure of the mutual fund, it’s easy to see that the main risk of losing money lies on the skills of its fund manager. A good way to judge this is to look at the consistency of the fund performance at least in the last five years. (Read >> Which is a better investment: Stock Market or Mutual Fund?)

There’s also typically a minimum holding period for your Philippine mutual fund investment, some with as short as 90-days. You can always cash out your investment earlier than this but you’ll be charged an early redemption fee.

Other details about the mutual fund, such as its performance and portfolio mix can be easily found as part of the resources page of your online broker, like shown below.

How much you can earn investing in Philippine Mutual Funds

In terms of potential returns, mutual fund is ideal to be part of your mid- to long-term portfolio, typically with at least five years time horizon.

You can see below a representative historical performance of equity type mutual funds in different holding periods, 1 YR, 3 YR and 5 YR, as of December 15 2016. It’s important to note though that just like in stocks investing, the returns of mutual funds are never guaranteed as this heavily depends on current market conditions.

Mutual Fund Performance Table

How to buy Philippine mutual funds online

As I mentioned, you can buy mutual funds yourself via online brokers COL Financial and First Metro Securities.

Buying Philippine Mutual Funds in COL Fund Source

COL Financial offers mutual fund through its online platform COL Fund Source.
This platform becomes available to you right after opening an account with them.
You can choose from 20+ of mutual funds offered by the top 6 mutual fund companies in the Philippines and buy(invest in) them with ZERO front-end fees.

With COL Fund Source, you can:

  • Access 26 Mutual Funds offered by the country’s top 6 Mutual Fund Houses
  • Invest in Mutual Funds with only PHP 5,000 to start
  • Invest in Mutual Funds without paying for the Front-End Fees
  • Automate your Mutual Fund purchases for regular investing, and
  • Monitor your investments anytime and anywhere

If you already have a COL Financial account, you can readily buy your first mutual fund.
To explore and start using COL Fund Source, log in to your COL Financial Account and just click on the Mutual Funds tab.

COL Fund Source

You can also watch below video tutorial how to buy/sell mutual fund shares in Philippines with COL Financial Fund Source.

Buying Philippine Mutual Funds in First Metro Securities – FundSmart

Another online broker offering mutual fund is First Metro Securities under the Metrobank Group. It’s practically the same as COL Fund Source, offering mutual funds from top six mutual fund houses and also has no front-end sales charges.

Mutual fund with First Metro Securities

If you already have an account in trading broker First Metro Securities, then you can also consider buying mutual funds online as part of your diversification.

Below is a sample portfolio holding mutual fund PSFG (PHILAM Strategic Growth Fund) managed by mutual fund company Philam Asset Management, Inc. I just bought this yesterday (April 28 2017) so you will see a tiny loss, but I expect this to give returns after some time which I will update here. 🙂

UPDATE: Below is its performance as of September 19 2017 (after less than five months).

UPDATE: Below is its performance as of October 19 2017 (after less than six months).

 

This day, I also redeemed my investments (converted to cash).
That is, my money has earned around 10% profit after less than six months (not bad!).

Final Comments

As a final note, while mutual fund is an excellent choice for passive investors who simply want to have greater returns than what banks can offer, it’s important to remember the importance of goal setting and risk assessment in every investment you’ll take.

Fortunately, and in line with government regulations, online brokers offering mutual funds normally have its risk assessment questionnaire that will help you decide which type of mutual fund is best for you based on your answers to the questions.

Additionally, before you invest, ask yourself the purpose of each of your investment This way, it will be easier for you to manage your investment (and your emotions) knowing its original intended purpose. Many newbies fall to the trap of losing this mindset when they start seeing losses even if it’s not yet done within their investing time frame. As with stocks, you’d need to allow your mutual investments to grow over time to achieve optimal returns for your goals.

Hope this helped you in your search of where to invest your hard-earned money.

If you’ve got more questions, you can send them to me through my contact page.

Have fun investing,
oMeng

Avoid losing money and become a smarter investor!

Join my online training program for newbies(for OFWs too!) and learn how you can do stress-free investing!Click HERE!

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Which is a better investment: Stock Market or Mutual Fund?

There are two ways of investing in Philippine stock market.

The first is being a direct investor.
The second one is being an indirect investor.

Each one has its own advantages and disadvantages.
Depending on your personal circumstances and desired control, one may be more fitting for you than the other.

How to become a direct investor

An easy way to become a direct investor in Philippine stock market is by opening your own trading account in a legitimate stock brokerage firm in the Philippines. By opening a trading account, you get an easy and convenient access to buy and sell stocks in Philippine Stock Exchange (PSE).

The good thing is that these brokers paved the way to opening an online trading account by practically anyone, even OFWs abroad, and monitor the day to day performance of their investment anytime through the internet. (It’s just like Facebook but unlike seeing real-time updates about your friends in your news feed, in your trading account, you see real time updates and fluctuation of the value your stocks investment on your computer or smartphone screen).

You can read a review of some of the popular online stockbrokers in Philippines here.

Opening  a trading account is the very first step you need to do to participate in the stock market directly. Once you’re done opening a trading account in any of these broker, and added enough fund, then you can start buying shares of companies you like.

In this case, you’re all on your own.

This is what I mean by being a direct investor – you and you alone have all the control when to do all your transactions.

If you don’t do anything, your money will just be sitting in your account without any potential to earn.

If you decide to buy a stock, then you are free to do so thereby risking your money hoping for a favorable return.

If you decide to sell a stock, you can also do that anytime.

In fact, you can sell a stock minutes or hours after you bought them (assuming of course you know what you’re doing).

At the end of each day, how much you earn or lose is entirely dependent on every decision you managed to play.

From here, it is easy to see the two primary demands from a direct investor in Philippine stock market – time to study and execute trades and skills to come up with the best trading decisions.

Now let’s turn to becoming an indirect investor.

How to become an indirect investor

The easiest way to become an indirect investor in Philippine stock market is to invest in a mutual fund.

A mutual fund is an investment company that pools money from individuals (or institutions) and invests this pooled fund in financial securities – including bonds and stocks. Mutual fund companies in the Philippines are regulated by Securities and Exchange Commission (SEC).

I call this option being an “indirect investor” because what you only need to do is to invest your money to a mutual fund company and let its assigned dedicated fund manager do all the necessary work to grow this money (or at least prevent it from losing) during the time period you’re invested.

What you can control when you invest in a mutual fund

Because you’re just placing your money in a pooled fund, you can only have control on two things with respect to the possible returns you can get in the future.

First is in choosing which type of mutual fund you will buy – which dictates where the fund is primarily investing in: equity, bond, balanced or money market (this is in sequence of decreasing investor’s risk tolerance or aggressiveness).

Second is on the timing when to buy or sell more shares of it.
That is, you can have the option to buy more shares (or top-up) anytime or sell it back to the mutual fund company subject to its conditions.

However, you don’t have any direct control which exact stock the fund will buy or well, and when exactly they will do these trades. That is the job of the fund’s dedicated manager.

Also, since mutual fund has fund managers and other operational expenses as a company, management fees are charged to your investments and top-ups which can decrease your potential returns.

In contrast to direct investing, mutual fund also usually has a minimum holding period, during which an early redemption fee is charged should you redeem(sell) your shares earlier than this holding period. (This is usually at least 30 to 90 days).

Below  shows a general details overview of an actual mutual fund namely Philequity fund (an equity type of mutual fund).

mutual-fund-in-philippine-stock-market

Mutual funds generally perform pretty well in the long run.
You can also check here a comparison of historical performance of various mutual funds in the Philippines. (Note that a fund’s past performance does not guarantee its future’s performance).

You can have both stocks and mutual fund

Personally, I have both investments in direct stock market and mutual fund.

I have a trading account in MakeTrade brokerage company, which enables me to perform my transactions all on my own. (I live in Metro Manila so I just requested them to pick up the accomplished application forms and other requirements from my office.)

MakeTrade as a broker provides lots of information, studies and recommendations to its clients, but at the end of the day, only I as a direct investor can make the decision when to actually hit the buy or sell buttons in my account screen. If I find out a I made losing trade later, I can only blame myself and nobody else.

Also, I have direct control how many times I will buy/sell, and when to do it. In fact, I can buy some shares of a company, and sell it after a few days, or even within the day (if ever I want too.)

An example is shown below where I bought shares of PLDT and sold it only five days after after  earning a little profit.

maketrade-how-to-invest-in-philippine-stock-market-for-beginners

The beauty of directing investing

This freedom to be on your own can be one of the beauties in direct investing.
If you know you can control something, your performance will then largely depend on you.

If you take the time to study, practice and improve your trading skills over time, then your earnings will follow. Ultimately, you can become a one-man team, at the comfort of your home, who is able to perform better than professional fund managers.

This of course is easier said than done.
But I’ve seen people who were so passionate that they decided to do trading full-time.

Certainly, you can do both – investing directly in the stock market and in a mutual fund at the same time.

And just like a stocks portfolio, you can also monitor the performance of  your mutual fund investment online.

COL Financial actually now offers mutual fund via COL Fund Source, in addition to its main stock brokerage business.

col-fund-source-mutual-fund-in-philippine-stock-market-2

COL Fund Source showing 9+% gain in my Philequity mutual fund

First Metro Securities’ FundSmart online stockbroker also now has its platform for mutual funds.

Forst Metro Securities FundSmart

With this service, you can monitor the performance of your stock and mutual fund investment on a single screen. (Read >> How to Invest in Philippine Mutual Funds Online)

From your review of their returns, you can then compare and do an assessment.
At the end, the decision is all up to you what to do next.

Action Plan:
My recommendation is to open both a stock trading account and a mutual fund account.
If you open an account in FirstMetroSec or COL Financial, you can immediately buy a specific stock or mutual fund with a single platform – no need to contact a third-party agent thus saving you some mutual fund entry fees.

Compare your performance after every some regular period (say every three or six months).
From here you will have an idea if you’re better off yourself directly investing, or you find out plainly clear that the fund manager can do a better job of growing your money for you. Do this regularly to help you decide where most of your money  should be invested.

Better yet, you can start buying mutual fund first, invest a bigger share of your fund here, and allot a tiny portion of your fund to direct personal trading. With this small capital, you can then in parallel start your discovery to a  more profitable trading in Philippine stock market.
(You can check a trading course here in case you want to learn all the basic necessary training and tools for a more profitable trading.).

 

Have fun investing!
Omeng 🙂

Avoid losing money and become a smarter investor!

Join my online training program for newbies(for OFWs too!) and learn how you can do stress-free investing!Click HERE!

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How much can you earn investing in Philippine Stock Market?

Investing in the stock market primarily offers its investors two ways to earn money.

These two are called (1) Capital Appreciation and (2) Dividends.

Thus asking how much you’re gonna earn will depend on how good you are in maximizing these two means of making your money work hard for you.

Let’s tackle the first one.

Capital appreciation, as the term suggest, means that your investment capital has appreciated or gone up due to the increase in price per share of your stocks.

There are two things to remember when it comes to capital appreciation.

First, capital appreciation in stock market is never guaranteed. An investor should not expect that his investment in stock market will surely appreciate after some time, even after a long time actually. There is simply no such thing!

Ultimately, the price behavior of any stock, whether it will go up or down, will depend on the prevailing supply and demand of the stock each trading day.

Second, capital appreciation can also turn to capital loss. This could happen when investors lose confidence in the future of the company which translate to investors selling their shares ultimately pulling the stock price down. This is a main risk involved in stocks investing.

Unlike capital appreciation, dividends as a way of earning from the stock market is easier to manager. Briefly, dividends is one way for the company to actually share a part of its earnings with its shareholders. This could be in the form of cash or additional stocks, credited directly to the account balance (if cash dividend) or stock portfolio (if stock dividend) of the investor.

One thing to note about dividends is this is also not guaranteed. Whether a company will give dividends or not will depend on the decision of its board of directors usually done on an annual basis.

An Actual Example

Let’s see how this translates to an actual example.

Cebu Air Inc (stock code CEB), the company operator of the leading brand in low-cost air travel in the Philippines, is a company that is enlisted in Philippine Stock Exchange. That means its shares can be bought through our own Philippine stock market. (If you’re flying with Cebu Pacific Air Buses, you can probably get part of your airfare by buying shares of this company).

Let’s talk first  in terms of dividends.
Luckily, CEB is one of those companies that give out dividends.
Is board of directors has declared the following dividends in the last year.

how to invest in philippine stock market for beginners 3 dividends

 

Since I had shares of CEB as of record date, I was part of the list of its shareholders eligible to receive this dividend (total of P2.00/share). This is already a clean money! Below is the notification sent to my email.

how to invest in philippine stock market for beginners 4

So far so good for dividends!

Now let’s examine how it fares when it comes to capital appreciation.

For the purpose of illustration, we’ll check its price history in the same period last year, starting from August 19 2015, when its price was at 90.30 pesos per share.

Imagine you’re investing at this point, your 10k capital could buy (10,000/90.30) = 110 shares including all fees and commissions.

But what happened in the next six months could be the total opposite of what you you’d expect as its investor.

how to invest in philippine stock market for beginners

 

Instead of making capital appreciation, it turned out to be a capital loss, with its price slowly sliding down to 82.55 after six longs months of waiting. Certainly not good if you need your money back for some reason – you’d be selling at 8+% loss.

2016-08-15_4-21-31

What happened after another six months, up to today, Aug 15 2016, is however a totally different story.

After struggling to reach its original price, gaining a little momentum in mid-May of 2016, and consolidating at around 95-100 pesos level from June to July, it finally broke out end of July and reached new highs in the last 52 weeks.

how to invest in philippine stock market for beginners after

 

So imagine you didn’t sell when you had 8+% loss, and instead hold your investments, then you’d have earned a nice 32%.  (plus the Php 2/share cash dividend!) That’s certainly bigger than what the banks offer!

2016-08-15_4-21-31

You could see the entire picture of what happened during that 1 whole year period

how to invest in philippine stock market for beginners 02

 

Hindsight is always 20/20

But before you get excited with these figures, we have to remember that we’re doing all this calculations in hindsight. In other words, nangyari na! It’s easy to brag these gains when everything had already happened. It’s a totally more difficult decision-making process when you deal with the actual present market conditions.

Also, one needs to answer the question what would be a better decision – selling the shares now if one believes the price will go down, or holding even longer, if one believes that there’s more room available for the price to continue inching up.

These questions in turn is related to the timeframe consideration and market timing expertise of the person investing. So we’re back here to basic foundation of investing – drafting the goals, knowing the time horizon and coming up with the investing strategy of the person.

There you have it –the factors affecting your possible returns/loss as an stock investor.

Your strategy is up to you

Of course, your actual strategy can deviate from the one discussed above – which is merely a BUY-and-HOLD strategy.

Another strategy for example is the monthly buying of its shares, in effect accumulating shares especially when its price was down. By regularly buying especially when the price is down, one is able to maximize the returns with the cheaper levels the stocks are bought.

See for example the actual returns of this strategy coming from Truly Rich Club of which I’m a long-time member. They do this with their strategy called Strategic Averaging Method. You can learn more about it here.

how to invest in philippine stock market for beginners 23

(You can check what’s inside Truly Rich Club here.)

Conclusion

So going back to the question  – How much can on earn investing in the Philippine stock market,
we found out that the answer will depend on
(1) the skills of the investor when it comes to timing  – this affects capital appreciation

(2) the time horizon of the investment

(3) the dividend rate of the stock (if there’s any)

(4) and the specific strategy employed (as a way of maximizing the three above)

Just remember that the time horizon put into investment won’t directly translate to better performance. In other words, even if one is invested in as long as ten years or more, if the stock price doesn’t follow and improve over time, the long time one is invested is useless. The longer time only allows the investment to ride the short-term fluctuations in its long-term uptrend (if this turns out to be the case), ultimately rewarding its smart investors.

Have fun investing,
Omeng 🙂

Avoid losing money and become a smarter investor!

Join my online training program for newbies(for OFWs too!) and learn how you can do stress-free investing!Click HERE!

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Tips, Tricks & Traps for new pinoy investors (Free webinar)

If you are new investor in the Philippine stock market, this free tutorial is good for you.

Some of the lessons shared are

  1. Maximizing your every invested peso
  2. Resources where to get good stock picks
  3. What to avoid as new investors
  4. Common mistakes newbies do
  5. and answering frequently asked questions

 

If you want to learn more about Truly Rich Club & SAM (Strategic Averaging Method) mentioned in the video, you can click here for a short tutorial.

If you have not yet started investing, It will be  really good for you to watch this video  answering the question HOW TO BEGIN INVESTING so it will be easy for you to follow the discussion in the above seminar.

(1) The Open-Fund-Win step by step guide how to start
(2) How to fill out account opening application forms
(3) What to expect when opening an account
(4) Choosing between Mutual Funds or Stock Investments or Insurance
(5) Choosing between trading and investing
(6) And some of my personal investing practices

Also pls keep a copy of your quick start guide document here. It will give you a brief overview where to start investing.

Have fun investing
oMeng

Avoid losing money and become a smarter investor!

Join my online training program for newbies(for OFWs too!) and learn how you can do stress-free investing!Click HERE!

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How to choose what stocks to buy & sell in Philippine Stock Market

Choosing what stocks to buy and sell in Philippine Stock Market is the real game when it comes to investing.

In this post, I’ll be giving you some practical guidance to completing this step.

It’s actually easy to buy and sell stocks in Philippine stock market (the manual part of it is contained in this tutorial >> How to Buy and Sell Stocks in Philippine Stock Market), but whether the action will give you profits is another more important question.

In fact, this is one common question coming from any newbie investor: What stock can I buy now?

The answer of course depends on several factors, but each one of them practically boils down to your target destination.

What is your target destination?

Your target destination can be one of these two: (1) Target Date         (2) Target Price.

To give you an example, let’s say your Target Date of realizing your stock market gains is on your retirement time – which, for example, may come at least twenty years from now.

In that case, choosing giant companies which you think will outlive all of us can be your candidate stocks to buy using the strategy of Peso Cost Averaging (Check here how this strategy works). The goal here is not really to do timing of the market but using your long time-projection to accumulate as many shared of great companies as possible.

So by just knowing your Target Date, you can start streamlining your stocks selection and strategy.

Having different Target Date as destination obviously requires different stocks and strategy. As shared in my last blog, the growth of your investments is a factor of Time, Talent & Treasure you allow your investments to have.

  • TIME refers to how long you’re willing to park your money in the stock market.
  • TALENT refers to your skill in choosing your strategy and stock selection. This  can be monitored as percentage growth your investment money achieved.
  • TREASURE refers to the amount you’re investing. Since growth of stocks is reported on a percentage basis, a bigger base or capital will obviously translate to bigger actual net profit.

In the table below, the same ending target (ending value of 7245) was obtained with different variations in these three factors.

Time Talent & Treasure in Investing in Philippine stock market

With the target date in mind, you can plan how to achieve your goals by looking for the proper combination of your 3T’s – Time, Talent & Treasure.

Now we go to the second type of your target destination – Target Stock Prices.

If you’re investing believing that it’s actually a business, you’d want to invest in a company you believe is going to rise in value fueled by its continuous growth and earnings. This price which you believe a company will achieve some time in the future is called its Fair Value (FV).

More specifically, Fair Value is a company’s estimated worth or fair market value as computed by various ways specific to its industry (i.e DCF, NAV, P/BV, P/E).

This FV kind of target price is different from short-term target prices set by traders who buy stocks to simply ride short-term price fluctuations.

Now, calculating Fair Value is already one complicated animal especially for beginners.

Fortunately, some online brokers provide their own analysis and figures for Target Prices. In addition, some online brokers like COL Financial even give sample portfolio you may want to imitate.

At this point, let’s tackle how online stockbroker COL Financial can help in determining the Fair Value of candidate stocks to buy (If you don’t have an account yet, you can follow this tutorial to open >> How to Open an Account in COL Financial for newbies and OFWs).

This is as simple as logging-in in the website and going to its Investment Guide by following the menu: Research >> Fundamentals >> Investment Guide.

Investment Guide of COL Financial

Here you’ll automatically see the Fair Values calculated by COL Financial’s analysts which you can use as your target price.

Fair Values of Companies by COL Financial

There’s also another helpful data included in the table above called Buy-Below Price (BBP) which you can also follow to give you decent returns when you decide to sell with the FV prices.

The concept of Buy Below Price is very simple –  you only buy when the stock’s current price is below this BBP.

As you will notice, these Buy Below Prices are actually near 85% of the FV, which means that by observing the BBP in your transactions (meaning, you buy only when the stock’s current price is below this BBP) you’re effectively strategizing to have at least 15% expected growth should you decide to sell later on at those FVs.

Fair Values of Companies by COL Financial 2

It’s important to note that computed Fair Values may vary from broker to broker because of the differences in the way they calculate it and the assumptions they make in doing so. Understanding how the FV’s you see were computed is thus important before relying on it. Don’t just follow blindly. Compare using several researches if you can.

The discussion above gives you Target Price you can use. But more than that, COL Financial also has model portfolio you can use in screening your stock selection.

COL Financial Model Portfolio

The model portfolio consists of stocks that COL Financial recommends in its monthly strategy report, COLing the Shots. It consists of the stocks they believe to have favourable fundamentals, and are expected to be the major beneficiaries of the prevailing macroeconomic trends.

In short, it’s a “model” portfolio that COL Financial maintains. COL Financial adds/removes stocks to/from the list depending on their performance and market changes. It’s a porftolio you could literally monitor or copy. You can check this post for updates on COL Model Portfolio.

You can access this info still from the investment guide and choosing the Model Portfolio Set-up.

COL Financial Model Portfolio

Here you can see the selected stocks in its Model Portfolio together with their Fair Values and suggested BBP.

COL Financial Model Portfolio 2

So, if you’re looking for some free guidance what stocks to buy and when, this is a good start. Again, make sure you understand how the figures were calculated before using it in your strategy.

UPDATE: This Model Portfolio is no longer accessible in COL Financial’s website. However, you can see still use as a guide their list of stock picks  in their COLing the Shots reports. An example is shown below. Or you can use SAM by Truly Rich Club which can give you the exact stocks to buy and sell.

COL Financial COLing the shots stock picks

The COLing the Shots reports are available inside the COL website under Research section.

It is “a monthly publication by COL which provides insights on investment
opportunities based on global and local developments that could affect the market. COLing the Shots aims to provide timely and relevant information and analysis as well as a model portfolio for successful investing.”

COLing the shots

 

Paid Resources

Of course there are online resources you can avail to help you in this task.

Pinoy Investor for example gives you an already consolidated data coming from comprehensive researches of eight online brokers.

By having access to several FV’s computed by several online brokers, you can easily make comparison of their estimates and formulate consensus data. You’re also able to validate in case one broker may have bias to one stock.  Lastly, you can also see how many brokers give buy/sell/hold recommendation to a certain stock.

Piny-Investor-Nesletter Updates and Review

Once you’re decided with the Target Price you’re going to use, you can then slice at least 15% from it and just use it as your BBP.

You can check in this post a short review how Pinoy Investor can be a big help both for long-term and short-term investors. In fact, in its latest performance update, it tells of its 10 out of 13 stocks with BUY recommendation from one broker that outperformed PSEi. You can read more about it here.

Truly Rich Club’s Stocks Update is another one that can deliver all these information straight to your email on a regular basis. But as you’ll read in this Truly Rich Club Review, the club is much more than stocks update.

For example, one benefits of the membership called Stocks Alert recently sent just advised the selling of TEL shares after achieving more than 20% growth. This does not include yet the generous dividends TEL has paid out to its owners. You can check the table below and read this post to see how Truly Rich Club of investing works >> Strategic Investing with Truly Rich Club.Truly Rich Club Review Performance 2


As a last note, it is also advisable to just check your investments once in a while to see how it performs. Maybe once a month will do if you’re not the trader type.

Also, before investing you should see your overall finances in a bigger picture and understand that you have to start with protecting yourself and dependents before plunging directly to investing.

I suggest you start studying BTID (Buy term, invest difference) if you have the time to actively manage your investments. Get a term insurance before starting investing.

Hope this helps in drafting your own investment plan.

If you have other questions, let me know in the comments below.

Have fun investing,

oMeng 😉

Avoid losing money and become a smarter investor!

Join my online training program for newbies(for OFWs too!) and learn how you can do stress-free investing!Click HERE!

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Three Core Truths about Money that kept you poorer (or richer)

Lots have been discussed and shared about handling one’s financial life and honestly, with the tons of information available now, sometimes all these make the whole subject matter overwhelming.

But if we take one step backward, there are actually only few truths about money we need to be all aware and only few facts about life we all need to tackle as early as we can.

So forget everything muna you learned about life and let me help you have a new wider perspective on this. This will also help you avoid scams like what happened to a friend I shared below.

Truths about money

1. Money is only a symbol of value.

Think about it.

The richest people we have in the world are people who have given enormous value to others.

Obvious examples:

Everyone uses Facebook and so we have the youngest billionaire man in the world because of that.

SM Malls got everything for all of us and so we have Tatang Henry as the wealthiest man in the Philippines.

And similar businesses who continue to serve our non-negotiable needs keep their owners on the top list of wealthy families in the land.

Here’s the point: All of them together with all other titans are rich primarily because of the real value they give.

And as people of justice, we reward people who give us something valuable, thus their ever growing wealth.

Coins Falling On House Showing Extra Money And Improved Economy

This also explains why a lot of Lotto winners end up being bankrupt just few years after winning. The money they won simply has no innate corresponding value put into them and so it’s difficult for them to sustain (or even handle) it.

So here’s the key:

If you’re asking how to increase your money, focus NOT on the money you can get, but on the VALUE you can give to this world.

Start looking at yourself and finding ways how you can give something that’s going to be useful to others.

Your immediate boss might be in his current position because of the value he offers. (If you don’t agree, don’t worry, things will reflect this principle soon.)

But if you want a sure-win investment and a continuous supply of wealth, focus on expanding your value.

But here’s what seems an irony.

Why are there people who give real value but are not wealthy? (Teachers, Professionals, priests, etc)

The answer is that these people either chose not to monetize their value or were not aware of the other two truths about money shared below. The second group are simply not equipped with financial education, which is critical in one’s financial life.

2. Money has a time value.

The value of money constantly fluctuates through time.

In other words, your money’s value is a function of TIME.

The same amount of money you have now won’t have the same value in the future that it has today which is why investing is a crucial step to cope up with this fact  – to make sure that your money’s purchasing power is made intact.

You don’t want to just save money because inflation would just eat up slowly its value to purchase things and services.

And finally…

3. Money follows certain laws.

I love universal laws.

Natural laws, like law of gravity, make everything in order.

Regardless whether a person is good or bad, the same set of laws apply to everyone.

Because of this very nature of laws, our life becomes more predictable.

Imagine if we have different set of laws that hold in different times, it would be impossible to create the future that we want because it could happen that different principles govern life in the future which we’re still not aware at the present.

By being aware of the laws of money, we position ourselves to a better creation of our financial future.

So what are the laws that govern money?

In our last post, three basic money laws were shared.

First Law of Money: Pay Yourself First – A part of all you earn is yours to keep.
Second Law of Money: Get only into a business you understand. Seek advice only from competent people.
Third Law of Money:  Make your gold work for you. Make an army of golden slaves before you buy luxury.

The good thing is that money laws are very simple and easy to follow. However,  you can either make these laws work for you or work against you. The difference between the two spells the direction if one will become  rich or poor.

For example, the Law of Compounding can apply to multiply the earnings of your investment (thus working for you) or multiply the interest of your credit card debts(working against you in this case).

I recently had a friend who seemed to ignore the Law of Risk & Returns and so was duped into one alleged investment SCAM recently reported. (I thank him for allowing me to share this with you.)

Invetsment SCAM in Philippine Stock Market

SCAM in Philippines

Again, these laws are solid and this universal power of laws helps you predict the future and thus gives you either a positive hope or a warning that the worse is coming.

T3 Law of Growth

Another law which apples to growing your money is what I call the T3 Law of Growth.

According to this law, your money’s growth will depend on 3 T factors – Time, Talent & Treasure.

Simply put, your money’s earning is dependent on the Time you give for it to grow, your Talent in growing it (how much returns you can make for each peso) and your Treasure (how much capacity of money you can invest).

For example, let’s say you only have 1000 pesos (low Treasure), you find an investment that give only 2% returns a year (low Talent), but you have 100 years holding period (high Time), your money will become 7245 after that period. But who can live beyond 100?

And so you study to get better returns (higher Talent) that is 20%, that same initial1000 (still low Treasure) now can reach the same target of 7245 after only 11 years (lower Time). Much better than 100 years!

But what if you start with 7000 right at the start (high Treasure), then that 7245 can now be achieved in 1 just year (low Time) even with 3.5 annual returns (low Talent).

You can see the summary below.

As you can see, the same ending target result can be achieved by varying the magnitude of each of the three T’s.

Time Talent & Treasure in Investing in Philippine stock market

In short, focus on the T3 you can apply to your assets for it to generate the specific goal you want.

Time Talent Treasure in Growth of Money

So those are the basic truths to money, which will help simplify your road to wealth.

The Real Money Game

But ask yourself:

Why again am I here on this game of money??

Well, one reason – YOU have life goals.

In fact, you probably just went into all this money mumbo jumbo because you wanted to achieve some of these life goals and you just realized that  “hey, money seems to play a big role in realizing these goals.”

In the end, we’re led back to our realizing life (and purpose). Unfortunately, life, while achieving its purpose, also faces risks. This in turn leads us to two basic truths about life.

Two Truths About Life

  1. Life has risks.
  2. Life has goals.

The two major risks you currently face in your life are (1) You die too soon or (2) You live too long-Long.

Each one should find a way that suits his preference, personality and capacity to address both of these risks.

In my case, I have my set Life Insurance  to answer the first risk and Long-Term Medical Savings (Kaiser plan) and other investments to address the second risk. Interestingly, my Kaiser plan also has insurance coverage so it’s good as starting point for those who don’t have both life insurance & long-term medical savings yet. More so, this same Kaiser plan also has some short-term benefits too but if you have short-term HMO provided by your company, your Kaiser plan can then focus on supplementing your long term medical savings as its original objective. This is also the reason why I got the same plan for my older sister. (It also has online facility that allows me to track my payment history and set schedules for its services).

My Kaiser Plan

Disclaimer: IMG (International Marketing Group) is the exclusive broker of Kaiser healthcare and as an IMG associate, I was able to save third-party broker fees when I got this plan for myself and my family. I can also get tiny commission whenever I refer people to my trusted agents. Kaiser is only part of my overall financial portfolio. I also have other plans from other finacial vendors like Sun Life Financial. Email me if you’d like to get proposals here.

After addressing these real life risks, now we go back to achieving your financial goals: you can starting saving for your dreams/goals by investing a portion of your current income in various instruments (stocks, mutual funds etc) with a specific timeline and target attached to it.

But I believe that the best solution still is to increase your cash flow so you can add more on your investments on top of your initial investment power coming from your primary income source. I always tell people to explore others ways to have multiple sources of income. You can check my related post here >> How to increase your cash flow.

I believe once your cash flow has stabilized and keeps growing, the rest of the steps in financial planning process – settling debts, securing emergency fund and protection, etc – will easily follow.

That’s it.

Hope this helps to give you a new perspective in your financial planning.
If you can add anything on above,  let me know in the comments below.

Have fun investing,
oMeng 🙂

Avoid losing money and become a smarter investor!

Join my online training program for newbies(for OFWs too!) and learn how you can do stress-free investing!Click HERE!

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How to grow your money faster the easy way

Two weeks ago, a friend came up to me after reading an ebook I wrote back in 2011 – Investing in Philippine Stock Market – A Quick Start Guide for Beginners, which is designed for newbie investors even with zero knowledge.

Investing in philippine stock market - A Quick Start Guide

She also knew about Truly Rich Club of Bo Sanchez being an attendee of The Feast and has actually already have investments in the form of mutual funds.

However, not satisfied with the growth of her mutual funds, she’s now considering going one level higher – investing in Philippine stock market directly.

But as with the case of many, she doesn’t know what to expect investing in stocks. When she told me she just wants to try it out, I asked her how long she considers doing it.

“Six months”, she answered, adding that if it performs well, then she’ll move the rest of her investments into stock market.

Geez.

As much as I wanted to encourage her to start stocks investing directly, I told her the truth that having such a short-term projection may not be a good plan. I shared that there’s a possibility that the Philippine stock market can perform really bad in the next six months, but if she keeps investing even during those bad times to sound giant companies and have a longer projection, those bad times can turn out to be great opportunities. The difference basically lies in the time horizon of the investor.

I used to believe that stock market is a good place to park your money if you’ll never need it within the next 10 years. In fact, in comparison, one chief operating officer of a mutual fund investment company in our country tells its prospective clients to consider at least five-year holding period for their mutual fund investments to grow. Obviously, this idea is not compatible with what my friend wants to do.

Now there’s a way.

Read more

Avoid losing money and become a smarter investor!

Join my online training program for newbies(for OFWs too!) and learn how you can do stress-free investing!Click HERE!

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Simplify all the analysis – Easy Investing with Strategic Averaging Method (SAM)

There are basically two ways how to invest in the Philippine stock market.

You can either be an investor or a trader.

Some call it passive investing versus active trading.

In a nutshell, passive investing in stocks is a long-term approach ranging from few to several years timeframe whereas active stock trading is a short-term strategy with days or few weeks duration.

Active trading means buying and selling every few days or sometimes even within a day. Passive investing just keeps on buying carefully chosen stocks on a regular basis and seldom sells, allowing more time for the investment to grow.

But before going straight to Strategic Averaging Method (SAM), let’s recall first the four rules of making millions in the stock market by being a long-term investor as summarized in Bo Sanchez’s book My Maid Invests in the Stock Market… and why You Should, Too!

Rule #1: Invest Small Amounts Every Month for 20 Years or More

Rule #2: Invest Even When There’s a Crisis

Rule #3: Invest Only in Giants

Rule #4: Invest in Many Giants

 

Needless to say, these are relatively sound stocks investing strategy, but also a pretty boring one. HAHA

If you stick to this strategy, you definitely need three things: money to regularly invest, discipline to stick to the strategy and patience to let your investments grow over time.

Good thing Bo Sanchez’ Truly Rich Club has its third alternative – and it’s called SAM, short for Strategic Averaging Method. This has some minor but profitable differences compared to the common Peso Cost Averaging method outlined above.

The whole story is contained in his book The Turtle Always Wins so you can grab your copy in bookstores to get the complete picture of it. But even before that, Truly Rich Club has already introduced SAM to all its members in its June 2011 stocks updates.

 

Read below Truly Rich Club’s discussion of what SAM is all about and the reason why the club has shifted to this kind of strategy of investing in Philippine stocks market.


Meet Your New Friend, Sam.

By SAM, I don’t mean Uncle Sam.

By SAM, I mean Strategic Averaging Method.

There Were Only Two Ways of Getting into the Stock Market, Until…

In my mind, there were only two ways to invest in the stock market: (1) passive investing and (2) active trading.

With SAM, I’m introducing a third way. (I didn’t invent SAM. My mentor did. He’s a billionaire who has done all three methods with incredible success. The stock market has been his playground for the past 38 years.)

Before SAM, I taught people to be passive investors, not active traders.

Reason? Eighty five percent of people lose money in the stock market. That’s a fact. And most of those are active traders. Active traders buy and sell stocks every day. I have friends who are successful active traders, and believe me, they’re very rare. They trade fulltime, they study every day, and they follow very strict rules. Without these rules, active trading is gambling, period.

Passive investing is long-term. Active trading is short-term.

Passive investing only looks at the quality of the companies. Active trading only looks at their share price. Passive investing comes by many names. Many people call it “money cost averaging”, or “peso cost averaging”, or “dollar cost averaging”. Citiseconline, our preferred online broker, calls it the Easy InvestmentProgram (EIP).

So what is SAM?

SAM is in between passive investing and active trading.

SAM is semi-passive investing.

SAM uses the 4 Rules of Passive Investing, tweaks them, and adds a 5th rule.

To refresh your memory, here are the 4 Rules of Passive Investing:

Rule 1: Invest monthly for 20 years or more.

Buying stocks each month using your small monthly savings. It’s really making the stock market your piggy bank. You do this long-term—for 20 years or more!

But in SAM, we tweak this rule. If you use SAM, there’ll be times when you don’t invest, and choose to stay away from the market. These are times when we believe the market is overbought and is going down. We’d rather wait for the market to go down and buy when the prices are cheaper.

Rule 2: Invest even when there’s a crisis.

Passive investing means disregarding if the prices are up or down, if there’s a tsunami, earthquake, coup d’etat, or recession. You just keep buying month after month after month. In SAM, we tweak this rule too. If possible, we try not to buy on the way down, we try to buy when it’s already down.

Rule 3: Invest only in Giants.

Passive investing means buying only established, enduring, blue chip companies that we believe will be there for the next 50 years. We don’t dabble in penny stocks. Because we believe in people who buy penny stocks will become penniless.

In SAM, we tweak this rule too. Generally, we don’t buy penny stocks. At rare times though, we find gems among them. And we make an “intelligent speculation”. Because of its volatility, we only put “extra funds” in these gems.

Rule 4: Invest in many Giants.

Passive investing means not buying one Giant but a handful of Giants. Why? There’s such a thing as “Black Swan” in the stock market—when an unexpected event happens. We don’t want all our money to be in one company—and tragedy hits that company.

If you’re doing passive investing, we recommend 10 Giant companies or more.

If you’re doing SAM, we recommend five to six companies only, because we’re able to move from one company to another.

I repeat: SAM uses all 4 rules, although tweaked a bit. But it adds Rule 5.

And Rule 5 is the magic sauce that makes SAM more profitable than passive investing.

The 5th Rule of SAM

What is the Rule 5?

Rule 5: We buy when the price is beneath our “Buy Below Price” and we sell when the price is near our “Target Price”.

In my Stocks Update Report, I’ll provide both the Target Price and the Buy Below Price for you.

Remember, SAM is in between passive investing and active trading. In one sense, it is semi-passive investing.

Passive investing never use timing. Active trading is all about timing. SAM uses a little bit of timing.

Passive investing looks only at how good the companies are. Active trading looks only at the share price.

SAM looks at both: companies and share price.

Passive investing never sells. Active trading always sells every day or every week. SAM sells after a few months. We’ll give you the “Buy Below Price” and the “Target Price” of each of our recommended Stocks.

Here are 4 Big Advantages of SAM

1. Faster Giants

As I write this, Citiseconline is recommending 16 stocks for its Easy Investment Program (EIP). They’re fantastic, enduring companies that will most likely be there 50 years from now. But from experience, having so many stocks to choose from can cause confusion. And confusion causes inaction.

For SAM, we’ll narrow down the list to five to six stocks only.

Lesser choices mean lesser stress for you!

Why narrow down the list to five to six stocks?

Because not all Giants are created equal.

Some Giants are so gigantic, their growth may be slower.

Some Giants are in a mature industry, so the growth will be minimal at best.

So we’ll choose the Giants that we believe will rise faster.

Obviously, we don’t have a crystal ball with 100 percent accuracy. So we could be wrong in one or two of our selections. But we’re hoping that our right picks will be enough to make your money grow faster than if you were doing totally passive investing.

2. Lower Prices

Just like in passive investing, you’re to buy a particular stock each month. But in SAM, you only buy when its price is beneath our “Buy Below Price.”

Here’s a secret in making more money in stocks: You make your money when you buy, not just when you sell. What do I mean? If you buy it at a cheaper price, your earnings increase many times more.

How does SAM do this? I’ll give you a “Buy Below Price” for each of our recommended stocks. This will prevent you from chasing a rising stock all the way to the top.

3. Secured Profits

In passive investing, you never sell.

In SAM, we’ll tell you to sell after a few months—when our recommended stock hits our Target Price. By selling, you lock-in your profits. You take your profits off the table. You take your money from a company that’s already gone up and put it in another company that still has room to go up. This multiplies your earnings nicely.

4. Nice Jackpots

And then there are jackpots. Lepanto (LC) was our jackpot stock this year. My mentor mentioned it to me last December 2010—and I wrote about it right away. If you bought when I recommended it last December, you would have earned 157 percent by now.

I warned people that it’s a volatile stock. It may go up or down. So this isn’t our bread and butter in SAM. But I told you that if you had extra money (that you’re willing to lose if things go wrong), you can buy Lepanto (LC).

My mentor calls these calls “intelligent speculations”. I repeat: As a rule, we don’t speculate with penny stocks. But every once in a while, he finds a gem among the penny stocks. It’s very rare. But when he finds one, he’ll tell me—and I’ll tell you. The risks are higher, that’s why I ask you to put your “extra money” only.


So there, that is SAM when it comes to investing in Philippine stocks. You can also scan through the click-by-click tutorial below to see an actual example how it worked recently (2014) for one sample stock. For your quick reference, you can get get a sample copy of this SAM discussion here.

 

Have fun investing!

– Omeng Tawid

PS:Get constant updates. Like our facebook page and follow us in twitter. Check more resources here.

PS2: Below table shows the top 10 winners stock picks of Truly Rich Club. More than showing off the past success and victories of the system, it’s an inspiration to encourage new and existing members to stick with the system and be faithful to their monthly investments with the present stock recommendations. It’s a way of reminding everyone that their patience and discipline will one day pay off. To try it out, you can get more details here.

TRULY RICH CLUB TOP 10 STOCK WINNERS –

DEC 2011 STOCKS UPDATE REPORT

STOCKS
STOCK
SYMBOL
TIME RECOMMENDED
TIME
HELD
PRICE RANGE
YOUR
RETURN
Lepanto
LC
Dec 2010 to
 May 2011
5 Months
P0.34 to P0.85
150%
Jollibee
JFC
Mar 2010 to
May 2011
14 Months
P47.50 to
P94.45
98%
Security Bank
SECB
Mar 2010 to
May 2011
14 Months
P53.00 to
P96.20
81%
DMCI
DMC
Sep 2010 to
May 2011
8 Months
P27.25 to
P44.80
64%
Int’l Container
ICT
Sep 2010 to
May 2011
8 Months
P32.40 to
P48.70
50%
First Gen Co.
FGEN
Mar 2010 to
May 2011
14 Months
P9.80 to P14.78
50%
Megaworld
MEG
Jul 2010 to
May 2011
10 Months
P1.54 to P2.30
49%
Nickel Asia
NKL
Oct 2010 to
May 2011
8 Months
P15.00 to
P22.40
49%
Ayala Land
ALI
Mar 2010 to
May 2011
14 Months
P11.25 to
P16.64
47%
Energy Dev’t Co.
EDC
Mar 2010 to
May 2011
14 Months
P4.85 to P6.49
33%

Avoid losing money and become a smarter investor!

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Bo Sanchez’ Truly Rich Club Stocks Update

Truly Rich Club Stocks Update is one of the benefits Truly Rich Club gives to all its members when it comes to picking stocks and knowing when to buy and sell in Philippine stock market.

You can check below the latest update of Bo Sanchez’ Truly Rich Club regarding investments in the Philippine Stock Market ( Note that this stocks update is as of August 2014, and so the below stocks update and stock picks summary by Bo Sanchez team may no longer be applicable as you read it now. You can follow this tutorial >> how to join Bo Sanchez Truly Rich Club in case you want to become its member and get access to all its timely Stocks Update, stocks picks, alert and other lessons).

Bo sanchez truly rich club stocks update

Bo Sanchez truly Rich Club stocks update. Click here to join and get the latest update.

As you probably know, the club gives regular stock update to help its members in taking charge of their investments in the Philippine Stock Market. But there’s a LOT more components in the entire Truly Rich Club membership than just the easy-to-follow Stocks Updateincluding the Wealth Strategies, ebooks, powerful talks, Stocks Videos, quick-start seminars, mastermind meetings,  and a whole lot more of learning  materials!

In this post I summarized a comprehensive review of what Truly Rich Club can offer and how it keeps on improving.


Many associate Truly Rich Club with stock market.

That’s understandable given the fact that its founder Bo Sanchez has published two of his finance books that are both related to stocks investing particularly in Philippine Stock Market.

The first one which shocked the world is entitled My MaidInvests in the Stock Market… and Why You should Too! This book contains the exciting story of her two maids who aim to make their millions by investing in Philippine Stock market with his own guidance.  In effect they’re getting their club membership for free.

TRIVIA – As of December 14 2017 latest update, the first maid who started her investment program under Bo’s  guidance now had P1,471,874 in her Stock Market account. And she’s only 30+ years old. His other maid has P1,053,521 in her account! Great job! Check the story details here.

The second one, entitled The Turtle Always Wins, on the other hand relates the story of four kinds of participants in the stock market. It also introduced to the public the current strategy of the club which is (SAM) Strategic Averaging Method, one that refined the original strategy of the club during its first days. You can check this post discussing how SAM works >> Easy Investing with SAM (Strategic Averaging Method).

But if you examine more closely the structure of the club, there are more resources available to its members growing their money in the stock market.

Stocks Update vs Stocks Alert

Stocks Update is a formal report sent to members that update the current stock recommendations of the club. Stocks Update is sent every two weeks.

Initially, Stocks Update is merely a short report (at most 2-3 pages) that includes the specific stocks to buy, a buy-below price and a target price with few words from Bo Sanchez summarizing the changes in their recommendation (if there’s any).

However, since we’re in the stock market world, the club devised a more strategic method and called it Strategic Averaging Method. It also made the stocks update more comprehensive by having another section that gives closer examination of the current stock picks of the club. This is where Mike Viñas enters the picture.

The new stocks update also gives summary tables  that show the main point of the stocks update where members can base their next buy or sell. Below is a sample of this summary table (as of June 20 2012).

By doing this, they effectively  serve two kinds of audiences – those who don’t want to study companies can just read the words of Bo and go directly to this table, while those who want to be more knowledgeable of the reason behind the recommendations can also read the section on the closer look of chosen stocks written by Mike Viñas.

You can get here a summary description of SAM but it is almost the same with the original strategy except for very few things.

Both still rest on the power of having your monthly investments and putting on your money at fixed interval of time. But with SAM, the list of stocks to buy is more explicit. You’re given five to eight stocks you can choose from in buying your stocks. This is fewer than the original strategy that contained three subs-plans having its own list each.

Moreover, since this is more explicit and more refined, the stocks update became more useful and easy to follow for the members. It also led to more profits in a much shorter timeframe since there’s now a more concrete direction to sell from time to time.

Here is a sample of a stocks update when it introduced the SAM in the club  – click here.

Now what are stocks alert?

From the name itself, it is an alert for the members whenever the club has important market updates.  Remember that stocks update are sent only every two weeks.  But any stock market can have lots of surprises.  Hence, Stocks Alert  is the way of the club to give quick short important updates to the members between the Stocks Updates release. In effect, through the Stocks Alert, members are guided every day.

It has also a more direct instruction, telling you what exactly to do with what stock – whether to buy, hold, or sell. That’s why many find the Stocks Alert helpful since these short updates guide their hand when there seems a lot to be happening in the market.

Below are sample Stocks Alert.

Stocks Alert: Sell NIKL

Confused?  Yesterday, I said “Hold NIKL” (Nickel Asia).

Today, I’m asking you to sell it.

Let me explain.  The reason why NIKL shot up was because Indonesia issued an export ban for nickel.  So that leaves the Philippines as the biggest nearby source of nickel for China.  So initially, we suggested that you hold NIKL because we feel it’ll go higher soon.

But after much thought, we believe that there are better places to put our money—because of one reason: China’s growth may slow down—and its hunger for nickel may slow down too.  (Obviously, no one can be sure of these things.   We can only guess.)

We’re not saying Nickel Asia will go down.  (Gosh, we could be totally wrong and the price go even higher.)  Nickel Asia’s future is very bright. But because of other options available to us, we can sell NIKL now and transfer our money to other recommended companies (such as MEG).  Perhaps in the future, we’ll recommend that you buy NIKL again.

May your dreams come true,

Bo Sanchez

PS. We’ll explain more in next week’s Stocks Update.  Watch for it. [03/23/2012]

Stocks Alert: You Can Buy MEG

A few weeks ago, I asked you to sell ALI (Ayala Land), so our SAM List went down from 10 to 9.   But out of the 9 Stocks, 4 of them have already crossed our Buy-Below-Price—so you can only actually buy 5 Stocks.Thankfully, we have a new Stock to add to our list.

If you have extra money, you can buy MEG (Megaworld). AGI (Alliance Global), the mother company, is buying back MEG shares. That’s always a good sign.  That means the mother company thinks that MEGis cheap at this level. We’ll explain more about MEG in our regular Stocks Update next week.  Butin the meantime, you can already buy MEG. [03/21/2012]

Stock Alert: Nothing Is Wrong With SMPH

Don’t panic by the BIG negative you see in your SM Prime Holdings (SMPH) stocks.  (Mine says I’m negative 21%!)

You see, SMPH came out with a 25% Stock Dividend.  (That’s a good thing in the long term, believe me.)  Its price was already adjusted today, but your new shares will be credited on your portfolios by June. So everything will be alright by June.   Kick back, drink your fresh coco juice, and relax.

Mike Vinas will talk more about it this Friday’s issue of Stocks Update. [05/21/2012]

Stocks  Alert: Buy: Ayala Corp

We’re now including Ayala Corporation (AC) into our SAM Stocks.

Our Target Price is P520.  (As I write this email to you, it’s now P426.)

Board Lot is 10, so you’ll need a minimum of P4300 to buy.

Reminder: You’re a long-term TrulyRich investor.  If after you buy AC, its price goes down, be happy.  Dance the Gangnam Style.  Because you can buy again at cheaper price next month. [10/22/2012]

There you go!

I hope this clears some of your questions regarding the way Truly Rich Club helps its members who are investors in the stock market.

But as I told you, many are focused too much on these Stocks Alert and Updates that they forget that there’s actually more in it than stocks investing. You can watch this 11 minute video of Bo Sanchez to discuss more how the club can help you but essentially, the entire package consists of below.

  • Receive 2 PowerTalks every month (instant access via MP3)
  • Receive Bo’s Success Mentors Collection (1 every 3 months for 1 Year)–FREE
  • Receive 2 WealthStrategies newsletters every month–FREE
  • Receive Daily GodWhispers Email–FREE
  • Receive How To Be Truly Rich Seminar–FREE
  • Receive How To Conquer Your Goliath Ebook–FREE
  • Receive How To Turn Thoughts Into Things Ebook–FREE
  • Earn Passive Income by being Bo’s Affiliate in the TrulyRichClub
  • Earn Passive Income with Bo’s other Internet Work
  • Receive Bo’s Very Practical Ebook, My Maid Invests In The Stock Market…And Why You Should Too.–FREE
  • Receive Bo’s Stocks Update. –FREE

The fifth, sixth, seventh and tenth are one-time downloadables. The rest are continuous as long as you choose to continue to be a member.

Money-back Guarantee

You can also just try it out first to see if you’d find the materials a powerfully inspiring Wow experience and simply cancel within 30 days so you won’t be charged with its money-back guarantee. So just for trying, you can have and keep all the great stuff that come along with the first month.

To get to know more about it, click here.

Enjoy the day!

Have fun investing (with a guide!)

Omeng  \(“,)/

Top 10 Past Winners of TrulyRichClub’s Stocks

If you followed TRC’s Stock Recommendations in the past, you’d have enjoyed these earnings. This is an encouragement for you to be faithful to your monthly investments today.
Never give up. And you’ll have great winners 10 to 20 years from now!

(Disclaimer: Past performance doesn’t guarantee that you’ll have the exact same results in the future. After all, your earnings all depend on the market’s performance.)

Avoid losing money and become a smarter investor!

Join my online training program for newbies(for OFWs too!) and learn how you can do stress-free investing!Click HERE!

Free Webinar - How to join investing in Philippine stock market for beginners!



The Easy Way of Investing in Philippine Stock Market – Peso Cost Averaging for Beginners

Many say that the stock market is dangerous.

And you know what, I agree.

After all, statistics says that an average of more than 80% of all the stock market players lose money.

Geesh..

Mark Twain once said, “October is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.”

That’s essentially the whole year!

An office mate actually once shared to me his first impression on investing in stocks. He said he couldn’t see the returns being worthy of the time, energy and brain cells being poured into it.

And there’s some truth into that. With the many things that need to be factored in when evaluating entry to and exit from the stock market, it’s really very hard to discern when to start and actually plunge into it.

But the last time I checked, ignorance remains to be not an excuse in trying out something. Most of the times, you only need to know the very basics of anything to make it sense for you.

The Easier Option

History acclaims an established way of investing in the stock market that requires minimal effort. Your fifteen minutes time every month to browse the internet would be enough for this method of investing. That translates to three hours every year – the same amount of time you spend in liking status in facebook a day! :p

It’s called Money Cost Averaging, or in the Philippine context, we say Peso-Cost Averaging.

Peso Cost Averaging (PCA) only means buying stocks of great greatest companies, regularly, little by little, month after month.

The strategy is basically to invest fixed amount of money at regular intervals over a long period in a great company you believe will perform well in the long term.

This is a very passive approach.

Here you’re eyeing for the long run.

You don’t expect big earnings in the near term, but instead a decent profit in the long haul.

If you’re the type of person dreaming for instant money back and returns, sorry, this is not the strategy for you.

But if you are the type who just wanted to make something more meaningful out of your money you won’t need anytime soon, to earn something greater than what Philippine banks normally offer, without breaking your day to day routine, this is the exact method for you.

All you need to do is buy every month of a company which you believe would continue to perform spectacularly in the next 10 to 20 years.

You do it little by little, maybe monthly, not putting all your money in one big shot (lump sum).

You simply invest fixed amount month by month, without worrying about the present market condition.

In other words, you don’t do timing here.

You don’t mind the slips and turns, because you know those are just tiny pixels of the uptrend larger picture you expect in the future.

When will you sell?

Oh, you sell after ten or twenty years or more. Seriously.
In most cases, this will happen come your retirement years.

That’s why you need to select only those companies that you believe would still be consistently earning even after decades. Their solid history and consistent earnings will serve as the safety net surrounding your investments even without your active monitoring.

Personally…

Right now, I have two sets of funds.

One is my investment/retirement fund, and the other my emergency fund.

Emergency fund is a  non-negotiable before you go to investing, and ideally should be worth three to six times of one’s monthly salary.

It’s part of the budget that’s strictly for emergencies, and therefore is saved in short-term liquid investments, making it readily available anytime. Normal ATM accounts can be a place for emergency fund.

What’s the use of emergency fund?

This will serve as your buffer fund. This is important because you don’t want to see yourself dipping into your investments, or worse selling your stocks at a loss, just so you could cover your emergency needs.

Emergency fund also gives you that inner peace knowing that you’re more than ready financially anytime in case these unfortunate events happen unexpectedly.

With this mentioned, it’s also prudent to complete again this emergency fund in case you have used it for your needs.

But if you’re all set with your emergency fund, then you can now start considering starting your regular investments using Peso Cost Averaging technique.

Important Note

Just always bear in mind that Peso Cost Averaging if applied strictly really takes a long time.

For beginners, it’s difficult to develop that patience while seeing your investment going up and down and not minding the fluctuation. The emotions involved often go in the way and can break your investment horizon. If that happens, you step on the border of another strategy called marketing timing, which is a more active approach and therefore requires more resources such as time and skills.

The Four Rules of Making Your Millions in Stock Market

In Bo Sanchez’ book My Maid Invests in the Stock Market, Bo simplified investing, and shares four house rules of making millions in the stock market:
RULE 1: Invest Small Amounts Every Month for 20 Years or More

RULE 2: Invest Even When There’s a Crisis

RULE 3: Invest Only in Giants

RULE 4: Invest in Many Giants

(You can download a free copy of that book here).

Obviously, the rules only make things straight using  the Peso Cost Averaging technique.

COL Financial’s  Easy Investment Program (EIP)

Online brokerage firm COL Financial, formerly Citiseconline, the leading online stockbrokerage firm in the Philippines, has launched its Easy Investment Program (EIP), making it easier for its passive customers to apply the method of Peso-cost-averaging.

Under this program, investors are to put consistently (though not mandatory) fixed amounts every month into solid giant companies with criteria summarized in the acronym GEMSS (Growing Industry / Earnings Visibility / Management Credibility / Superior Products or Services / and a Strong balance sheet). These criteria assure that clients only choose solid fantastic giants and dynamic corporations that compound their expansion over time. COL already provides customers with a list of stocks they can choose from based on the GEMSS criteria.

Since it started last Aug 2008, the EIP list has included only six companies namely ALI – Ayala Land Inc,; BPI – Bank of the Philippine Islands; JFC – Jollibee Foods Corp; MWC – Manila Water Corp; SMPH – SM Prime Holdings and TEL – PLDT.

As of this writing (2011), they expanded their recommendation list to sixteen (16). You can click here for the expanded recommend stock list for EIP or just click the image below. (Make sure to always check their updated list).

 

COL Financial EIP List of recommended companies

UPDATE: Download an updated Recommended Stock List for EIP as of Oct 1 2014 HERE. Make sure to always check the updated list in their website.

How to invest in Philippine stock market for beginners

 

Keep the habit

So you now see the importance of your regular saving habit as your first step in investing.

A portion of your savings, that which you can afford not to use within the next 10-20 years, can leverage on PCA, letting it grow steadily year after year after year.

Invest that small amount regularly every month, and then go back to your normal life.

No need to actively daily watch the market, or hear news about our economy, or be aware of the Wall Street happenings, or bothering with gossips about our bachelor president’s love life.

But take note that you still need to monitor it from time to time,maybe once a month.

Enjoy time with your loved ones instead. Focus on your job or business to increase your cashflow.

Then after ten to twenty years, go back to me.

Subtract from your millions by treating me and my children a Jollibee hamburger!

Take charge of your financial future. Retire a multimillionaire.

Have fun investing!
Omeng 🙂

NOTE: Truly Rich Club, a great learning club started by Bo Sanchez, now employs Strategic Averaging Method or SAM in investing in Philippine stock market.

This works like Peso cost averaging but with some modifications for faster growth and securing profits. This in turn multiplies the earnings nicely.  You can learn more about it in this page. It’s also my personal strategy of choice.

No fear for newbies with peso cost averaging

 

PS: You can also check out Truly Rich Club and see if it will fit your investing needs.
This club gives exact spoon-feed directions specifically when and what stocks to buy and sell.
I’ve been a member of it for years and it has really helped me improve my financial life!

Click here to find more details about it.

Avoid losing money and become a smarter investor!

Join my online training program for newbies(for OFWs too!) and learn how you can do stress-free investing!Click HERE!

Free Webinar - How to join investing in Philippine stock market for beginners!



Investing in Philippines Stock Market Tips & Tricks – Watch Guide

This page summarizes the stock picks and recommendations  of several online brokers.

This will be constantly updated so make sure you bookmark this page for your own reference.

Happy investinG!
+++

Investing in Philippine Stock Market - Tips & Tricks as of May 6 2015

SectorSTOCKBUY BELOW PRICECOL 2015 FV
TARGET PRICE
REMARKS
ConsumerDNL14.2417.80COLing the Shots
ConsumerCICremoved from COLing the shots on May 6 2015removed from COLing the shots on May 6 2015COLing the Shots
ConsumerGTCAP11761470COLing the Shots
PowerAPremoved from COLing the shots on May 6 2015removed from COLing the shots on May 6 2015COLing the Shots
PowerFGEN28.836COLing the Shots
AirlinesCEB124.8156COLing the Shots
BanksMBT87.2109COLing the Shots
PropertiesSMPH18.8823.6COLing the Shots
ConglomeratesAC701.6877COLing the Shots

Check the coverpage of our facebook group for more updates.

How to Use

Buy the stocks only when the price is below the “Buy Below Price”.

By following this model portfolio, you’re effectively using the basic strategy – “Buy Low, Sell High” .

The basics of Value Investing is buying great companies at a discounted price. By observing the “Buy Below Price”, you’re able to buy ONLY when potential upside is at least 15%.

***
TERMINOLOGY

LAST PRICE
Last traded market price for the company or index.

BUY BELOW PRICE
A level at which capital appreciation potential is already attractive relative to the fair value estimate. Any price below the Buy Below price is considered an attractive level to buy the stock.

FAIR VALUE (FV)
Fair Value is a company’s estimated worth or fair market value as computed by various ways specific to its industry (i.e DCF, NAV, P/BV, P/E) provided by COL.


COL Financial EIP List

A selection of Premium Growth Stocks carefully selected by the COL Research Team that represents listed companies that will continue drive shareholder value in the long-term. EIP is designed for long term investing using Peso Cost Averaging. Check this post for a comprehensive discussion of this passive strategy >> Easy Investing with EIP


 

Other financial indicators you can use
P/E RATIO
The PE ratio is the most commonly used valuations measure. It shows how much is paid for each unit of earnings. The PE of a stock describes the price of a share relative to the earnings of the underlying asset. The lower the PE, the less you have to pay for the stock, relative to what it earns. PE is also considered a relative valuation measure.

RSI
A technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset

An asset is deemed to be overbought once the RSI approaches the 70 level, meaning that it may be getting overvalued and is a good candidate for a pullback. Likewise, if the RSI approaches 30, it is an indication that the asset may be getting oversold and therefore likely to become undervalued.

UPSIDE
The difference between Last price and Fair Value in percentage (%). Most investors prefer to buy stocks with at least 10% Upside and ideally 15% and up.


 

Investment Guide’s Rating Definition


BUY – Stocks that have attractive fundamentals and valuations, based on COL’s analysis. COL expects the share price to outperform the market in the next six to twelve months.

HOLD – Stocks will either (1) attractive fundamentals but expensive valuations, (2) attractive valuations but near term earnings outlook might be poor or vulnerable to numerous risks. Given the said factors, the share price of the stock may perform merely inline or underperform the market in the next six to twelve months.

SELL – Both valuations and fundamentals of stocks are not favorable. COL expect the share price to underperform in the next six to twelve months.


Technical Guide’s Rating Definition

BUY – an up trend showing an ongoing upward drive

HOLD – stay with what you have or, if without a position, wait for a BUY

TAKE PROFITS – suggests a reduction in position as a loss in upward momentum may trigger a consolidating reaction or pullback to support

RANGE TRADE – proposes a trading buy from rebounds off supportive areas

LIGHTEN – reduce positions as range rallies seem to be tapering off

SELL – a down trend showing a continuing downward drive

SELL INTO STRENGTH – a down trend showing a technical rally that may offer better prices to sell to, especially if it nears next resistance


 

TOP PICKS

Stock(s) that have favourable fundamentals, and most likely to outperform its peers from their respective sector (Banks and Financials, Consumer, Property, etc) selected by COL. These stocks are the top bet for the “current” year.

 

HOW TO MAXIMIZE


1. Do NOT just buy stocks with the highest UPSIDE unless you are a hardcore Long Term investor, a “Contrarian” investor and has the patience of Warren Buffett and Philip A. Fisher who don’t sell for decades. Fisher’s longest was 49 years!

2. Buy when: it’s near the support as much as possible (check your broker for their Technical Analysis guide); RSI is oversold; MACD is bullish (or starting to be bullish); price closes above Moving Average; PSEi is on up trend.

3. If you’re looking for actual stock analyses, research, reports, and expert information being given to you on a regular basis, PinoyInvestor newsletter is for you, whether you’re in the market as an investor or trader. Click here to learn more.

 

Happy investing!

PS: For those who haven’t signed-up, receive free updates in your email by subscribing to our group’s news letter HERE.

Avoid losing money and become a smarter investor!

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Are you stuck in your financial life?

Everybody wants to be rich and achieve financial freedom.

But why can’t we level up in our financial life?

Sharing my weekend realizations why we never progress so much in any aspect of life as much as we want to.

Happy investing!

Avoid losing money and become a smarter investor!

Join my online training program for newbies(for OFWs too!) and learn how you can do stress-free investing!Click HERE!

Free Webinar - How to join investing in Philippine stock market for beginners!



How do you know if you’re earning in Philippine stock market?

In my last blog, I shared about the three most basic things beginners need to know when buying your first stock in the Philippine stock market. You can access the video tutorial here

In this another video tutorial, I shared how you can monitor the performance of your stock market investment. Using online stockbroker makes this task a lot easy to do since you can do this anywhere and anytime (meaning OFW’s can still do this even abroad).

You’ll also understand the basic jargons in the stock market which you see on your trading platform screen – paper gain, last price, market value and other nosebleed trading terms.

Lastly, you’ll see the potential of how much you can earn in the stock market.
Specifically, I shared in the video how my investment grew 9+% in just two-weeks time).

how i earned 9+% in two weeks time

Hope this helps you jump start in your stock market journey and inspire you to take better control of your financial life.

Have fun investing!
– oMeng Tawid 🙂

Avoid losing money and become a smarter investor!

Join my online training program for newbies(for OFWs too!) and learn how you can do stress-free investing!Click HERE!

Free Webinar - How to join investing in Philippine stock market for beginners!



Have you been working so hard, but earning so little?

Sharing another exciting learning event from one of my mentors!
And the best thing is you can join this wherever you are.

Yep, this will be an online 4-hr seminar session full of practical lessons on improving your financial life. Online access is only Php 100.00. Such a small price for a huge learning experience.

You will also learn here the single very secret I used to level-up my own financial life.
I don’t want to waste your time so you go straight here for sign-up.

For more details, you can read below the invitation.
– Omeng Tawid 🙂
****

I WAS RIDICULED WHEN I SAID
I WANTED TO BUILD SEVERAL BUSINESSES…

BUT I GOT THE LAST LAUGH WHEN
I USED THESE BUSINESSES TO BUILD LIVES AND LIVELIHOODS FOR OTHER PEOPLE.

Do you want to know how?
My answer is simple:
I CREATED MONEY MACHINES.

Have you always felt as if your money is never enough?
Are you one of those people who live from paycheck to paycheck?
Have you been working so hard, but earning so little?

If you said “YES!” to all of these questions, then this message is for you.

Because I, along with mentors who changed my life, will be teaching you how you can make money machines.

For only 100 pesos.

At the comfort of your home. Or offices. Or coffe shops.

From wherever you are.
How?

Join us in

MONEY MACHINES: HOW TO CREATE PASSIVE AND
ACTIVE INCOME AT THE SAME TIME
The TrulyRichClub Online Wealth Summit
on September 22, 2018
8:00AM to 12:00PM

Hi. My name is Bo Sanchez. I’m a preacher. An author. A missionary. But I am also a businessman. I also invest in the stock market. And I teach people how they, too, can earn passive and active income through my talks and seminars.

I own many small businesses that serve hundreds of thousands of people. And these small businesses are operated from the comforts of my own home.

But I wasn’t always like this.

I used to be a poor missionary. I used to give talks for free. And I used to go around the country with only P20 in my wallet.

Because I thought that serving God meant I had to live in poverty.

Because I thought that being holy meant being poor.

SOMETHING TERRIBLE HAPPENED THAT CHANGED MY LIFE.
SOMEBODY NEEDED HELP, BUT I WASN’T ABLE TO HELP THEM.

One day, somebody came up to me and cried because a loved one was suffering a terrible disease, and they didn’t have the money to care for that person.

My heart broke for that person. But it was shattered in pieces when I looked into my wallet and realized that I didn’t have anything to help him with.

So, with tears in my eyes, I just prayed over the person.

That one small event changed my life.

I realized that I couldn’t help people if I didn’t have the means to do so.

And I realized too that I couldn’t give my family a good life, if I didn’t work hard.

So I looked for mentors.

I looked for people who could teach me how to grow — not just spiritually, but financially as well.

MY MENTORS GUIDED ME, AND NOW THEY’RE GOING TO GUIDE YOU.

At the time, I didn’t know how to start.

I knew how to preach, and I knew the Bible from cover to cover, but I didn’t know a single thing about how to start a business.

So I looked for mentors.

And then I met them.

They taught me how to invest in the stock market — and how to make millions on it.

They taught me how to change my financial mindset — from a poverty mindset to an abundance mindset.

And they taught me how to grow in my financial life — I run many businesses now, and I’m already able to help many people because of these businesses.

I have good news for you.

The very same mentors who helped me in my financial journey made themselves available for a day, so they can help YOU, too.

MEET THE SPEAKERS

Aside from myself, here are the other powerful speakers who will guide you into transforming your financial life.

Edward Lee is the founder and chairman of COLFinancial, the largest online stock trading brokerage in the country.

Rex Mendoza is the president and CEO of Rampver Financials, a dynamic niche player in the financial services industry.

Arun Gogna is a powerful preacher, an entertaining speaker, and a successful entrepreneur. He is one of the most sought-after speakers in the country.

WHY ARE WE GIVING AWAY THIS ONLINE SUMMIT FOR ONLY ONE HUNDRED PESOS?

One answer: because I’m serious about helping you.

Because I want you, and every Filipino, to step out of your comfort zone, and start working hard to grow your financial life.

Because you deserve to live a life free from fear of debt, anxiety over retirement, and stress over making both ends meet.

Because I want you to be able to enjoy life with your family and loved ones.

And because I want you to be able to realize that your mission on Earth is not to amass riches, but to be a channel of these riches so that others may be blessed too.

 

I’M SOLD!

SIGN ME UP AND TEACH ME HOW TO BECOME A  MONEY MACHINE!

WARNING:
THIS ONLINE SUMMIT IS INEXPENSIVE,
BUT IT’S NOT FOR EVERYBODY.

Friend, this might not be for you.

Because not everyone is ready to throw away their old mindset, and embrace a new one.

Not everyone is ready to embark on new, thrilling journeys that would require hard work, dedication, and even heartbreaks and failures.

Not everyone has the time for this.

So if you’re just going to join the summit and then forget all about it, then this is not for you.

But if you’re willing to listen.
If you’re willing to learn.
And if you’re willing to stretch and put in some hard work so that you can transform your life…

Then come join me and my mentors on September 22, 2018, Saturday, from 8:00 AM to 12:00NN.

This is going to be the best thing that you will invest your P100 on.

May your dreams come true,
Bo Sanchez

P.S. Don’t miss this historical event. Click HERE to join the TrulyRichClub Online Wealth Summit now.

Avoid losing money and become a smarter investor!

Join my online training program for newbies(for OFWs too!) and learn how you can do stress-free investing!Click HERE!

Free Webinar - How to join investing in Philippine stock market for beginners!



How to invest in Philippine Stock Market – Three Things You Need to know

Buying stocks and investing in the Philippine stock market can be very intimidating for beginners.
In this short video,  I laid out the very simple steps and the three basic things you need to know in placing your first ever buy order in  Philippine stock market,


Happy investing!

oMeng Tawid 🙂

Avoid losing money and become a smarter investor!

Join my online training program for newbies(for OFWs too!) and learn how you can do stress-free investing!Click HERE!

Free Webinar - How to join investing in Philippine stock market for beginners!



Join the Truly Rich Club