Thursday, May 31, 2012

Sold Out!

One of my stocks went up this week after being stagnant for five months. Though I am doing the peso-cost averaging method, sometimes I sell my stocks when the price is high but buy it again when it goes down since the companies I'm buying are great and stable companies. In this way I can increase my investment.

This week I sold my stocks in one of the companies I bought. I am happy because I made a whooping 13.11% gain. This is so much higher than the interest you could get from the banks and this is only for a period of five months.

What I just did is a method known to the Truly Rich Club members as the Strategic Averaging Method or SAM. You buy and hold your stocks for sometime and when the price goes up, you sell it, get your gain and buy it again when the price is lower.

Happy Investing!...(^_^)


Sunday, May 27, 2012

The Philippine Stock Market is Down and I Love It!

The Philippine stock market has gone down for the past weeks and still for the coming weeks ahead and no one knows when it will go up again. I stay informed about what's happening in the stock market because of the stock updates from my Truly Rich Club. It's still different when you have a mentor guiding you because you're confident whatever happens.

I am happy. Though I am seeing negatives in my Citiseconline account, I am not bothered at all because I know that during these times I should be out 'shopping' for my favorite companies because they are cheaper now which means I can buy more shares.

I continue to invest in the stock market, save and invest more. 

Happy investing!...(^_^)


Wednesday, May 16, 2012

Peso-Cost Averaging Method

I've been investing in the stock market for sometime now. I practically tried almost everything.

I opened an account with Citiseconline. I funded it, bought my shares from some of the giant companies that was recommended by Bo Sanchez in the Truly Rich Club, sold some of my shares and withdrew my money from my Citiseconline account. It's easy and convenient.

It's exciting to watch your stocks rise after only several days. At times I'm tempted to sell my shares. If you see the share prices plummets, you couldn't help but be nervous. But that's okay especially if you're doing the peso-cost averaging method. Actually when the share prices go down, it's the best time to buy because of the lower prices which means you could buy more shares with your money.

The first time I sold my shares, I was happy because I had 6.5% profit for only a period of five months.


Peso-cost averaging method is an investment strategy which is recommended for stock trading beginners. By using this method, you do not have to time the market or worry about the rise and fall of stock prices. All you have to do is to invest a certain amount of money at a regular interval (ex. monthly, bimonthly, etc.) for a predetermined period of time, say 10 or 20 years.


PESO-COST AVERAGING METHOD


Please watch the video for more information about peso-cost averaging.

Wednesday, May 9, 2012

How to Open an Account With Citiseconline

The next step after researching and learning the basics about the stock market is to actually invest which is the exciting part and at the same time a frightening one.

Let's start by opening an account with Citiseconline.

CitisecOnline was established in 1999 with the vision of allowing a low-cost and easily accessible means to invest in the Philippine Stock Market. Over the years, it has developed a full sweep of services to empower the retail investor. These include real-time quotes, research services and reports, as well as expert-broker support, by providing him the tools to assist him make intelligent decisions. It also allows real-time execution of trades, which is the best practice in the local online trading industry. With its experience in servicing experienced investors looking for more convenient ways of stock trading, CitisecOnline is well-poised to drive the development of the online trading investor market in confluence with the increased penetration of internet access, broadband services and increasingly tech-savvy investing public.

Who can open an account?

Any individual(s) of legal age of any nationality or legitimate corporation may apply for a CitisecOnline account. Management reserves the right to approve/deny any application as it sees fit based upon its measures of standard.

Can Filipinos abroad open a CitisecOnline account?

Yes. There are no restrictions on place of residence.

How do I open an account?

There are 3 simple steps in opening an account.

STEPSACTIONSDETAILS
1Fill out the necessary forms and submit it to CitisecOnline’s business center
Download the  forms here.
Customer Account Information Form (CAIF)
Online Securities Trading Agreement (OSTA)
Signature Cards (2)
2Submit a photocopy of (1) valid ID issued by the Philippine GovernmentExample:
Passport
Philippine driver's license
SSS ID (1999 credit card type only)
            GSIS ecard plus
            Professional Regulation Commision (PRC) ID
            Comelec Voter's ID
*
For non-appearance:
A billing statement would be needed
Example:
Utility Bill
Credit Card Bill
Bank Statement
3
Fund your account
Minimum of P5,000 for EIP
Minimum of P25,000 for Regular
Funding Options
Online Banking via Merchant Payment
a. Bank of the Philippine Islands –www.bpiexpressonline.com
b. Banco de Oro – www.mybdo.com.ph
c. Metrobank – www.metrobank.com.ph
Over-the-Counter via Merchant Payment
a. Bank of the Philippine Islands
b. Banco de Oro
c. Metrobank


* For more details on the funding options click here 

What is the minimum amount requirement to open an account?

- For EIP (Easy Investment Program) and Starter (student) accounts, the minimum deposit is Php5,000.

EIP is most recommended for people like me with minimum to zero experience in the stock market investing and with little time to spare in trading the stock market. This employs the Peso-Cost Averaging method or long term investing.

I chose the EIP account because I don't have that much experience in stock trading. Long term investing is better for me since the risk is lesser than being a trader.

- For regular COL trading accounts, the minimum deposit is Php25,000.

When can I start trading?

You can start trading after your initial funds have been received and/or cleared which can take from 1 to 3 days depending on your banks clearing time. Once you see your account has funds for trading you can immediately begin trading.

How do I get in touch with CitisecOnline?

Contact numbers are as follows: Trunk line - (632) 6365411
Customer Service Hotline- (632) 6-515-888
Fax No. - (632) 636 3512
E-mail - helpdesk@citiseconline.com

Address is: CitisecOnline.com Inc.
2401-B East Tower Philippine Stock Exchange Center
Exchange Road, Ortigas Center, Pasig City
1605 Philippines

CitisecOnline Customer Service Center
2403-B East Tower Philippine Stock Exchange Center
Exchange Road, Ortigas Center, Pasig City
1605 Philippines


Happy investing!

Tuesday, May 8, 2012

Investing in the Stock Market with Citiseconline and Truly Rich Club

The stock market is one of the most important sources for companies to raise money. This allows businesses to be publicly traded, or raise additional financial capital for expansion by selling shares of ownership of the company in a public market.

What is a share?

share is a single unit of ownership in a corporationmutual fund, or other organizationjoint stock company divides its capital into shares, which are offered for sale to raise capital, termed as issuing shares. Thus, a share is an indivisible unit of capital, expressing the proprietary relationship between the company and the shareholder. The denominated value of a share is its face value: the total capital of a company is divided into number of shares.

When you're not familiar with these terms, it's overwhelming and frightening, too. In my own understanding, I compare the company with a pizza.

Imagine a pizza. Hmmmm. Yummy. I'm hungry already!


The pizza is the total capital of the company or let's just say it's the company itself. In order to raise funds, they will divide the pizza into several pieces. Each piece is worth an amount. The pieces of pizza are called the shares or the stocks of the company. These pieces are then sold to the public through a market which we call the stock market. An individual or a group of individuals who bought pieces of this pizza become a part-owner of the company. They are then called the shareholders or stockholders of the company.

When you buy shares of the company, you are called a stockholder or a shareholder. You are a part-owner of the company. Feels good, right?

Okay, so you are now a stockholder of a particular company. How do you gain or profit from it?

For instance you want to put up a small business. Let's say a banana cue stand. If you're not familiar with banana cue, this is a popular snack food in the Philippines of deep fried bananas coated in caramelized brown sugarDelicious.

But you don't have enough capital to start your business. Let's say you need 100 pesos to start but you only have 40 pesos in your pocket. What you did was to seek help from your two friends named Jun and Julia. So Jun and Julia agreed to contribute 30 pesos each. You now have a total of 100 pesos enough to get your business rolling.

After sometime, you're business is blessed and it's growing steadily which means profit for you and your friends. How do you divide it among yourselves?

Since your total capital is 100 pesos and each of your friends contributed 30 pesos each, 30 pesos out of 100 is equivalent to 30%, meaning each of them are entitled 30% of the profit. Same is through with you since you contributed 40 pesos, you are entitled with a 40%.

This is also the same scenario when you buy shares of your favorite companies. When your chosen companies are growing, your money is also growing. The company share its profits depending on how many shares you have. The profit that was shared by the company is called dividends.

Take note that the company is a business entity so it is also subjected to losing or gaining depending on the economy and other factors that may affect the company. Being a part-owner, you could also gain or lose. 

You can make money in the stock market through dividends. Another way is through buying and selling.

For instance, you bought 1 share of company ABC at 10 pesos per share today. The next day, the share price of company ABC soared high to 20 pesos because of some good news about the company. You then sold your 1 share at 20 pesos per share. So you now have 10 pesos profit less applicable taxes. This is called capital gain. Capital gain is a result of capital appreciation or an increase in the market value of the stock you own. 


That is just for 1 share. What if you bought more shares, then it means more profit for you.

We now know about the stock market, shares, dividends and how does it work. How do you, as individual, actually be able to participate in the stock market and begin investing?

The buying and selling of stocks or shares are made manually or through online and either personally or through a stockbroker. A stockbroker acts as a middle man. There are many traders who do the transactions themselves but to those people who would rather do other things they would opt to have their own stockbrokers who would do the transactions for them.

For me, I opened an account with an online stockbroker, Citiseconline. This stockbroker is endorsed by Bo Sanchez so I am confident in their integrity. The buying and selling of shares are done electronically so it's easier and convenient for me.

After having your own stockbroker, you're now ready to buy your own stocks. 

The next question for me is how do I know which companies to buy. So I joined the Truly Rich Club by Bo Sanchez. Every month, he sends stock updates to all his members. He'll tell you what companies he's investing and how they're doing to give guidance and inspiration. His stock update is very crucial especially during crisis to prevent you from selling your stocks because of panic and lose your money. 


Aside from stock updates, he also sends WealthStrategies once a week. It contains life-changing principles and practical "action plans" on how to grow in your financial life.


There are 9 more blessings that you will receive when you join the Truly Rich Club. Click here to learn more about these blessings.

Happy investing!

Monday, May 7, 2012

Learning the Basics About the Stock Market

Since I know now the difference between an asset and a liability, I was really very eager to look for ways in order to build my assets. I have to start small considering my small savings. I know nothing. I don't know how to start or where to start.


Aside from being inspired by the "Rich Dad Poor Dad" book, I was also educated and inspired by Bro. Bo's articles and his book "8 Secrets of the Truly Rich". Because of him, I was inspired to learn more about the stock market.

The word stock market makes me frightened. Why? Because my friends and family reminded me of the negative things about the stock market. They said that many people or most people lose their money in the stock market and they're worried that I might, too.

It's a tough decision for me so before I decide whether to join or not, I spent my time learning and understanding the basics about the stock market. It's not easy. Sometimes I was overwhelmed, became discouraged and thoughts of surrender crossed my mind but I didn't.

shepherdsvoice.com.ph
It took me several months of learning the basics of the stock market before I gathered enough courage to actually invest

Though I'm not yet an expert, the fact that I started is already something to me. I knew nothing about investing before so for me this is a great milestone in my life.

One thing that really gave me the courage is that I have trust in the recommendations of Bro. Bo Sanchez and his guidance through the Truly Rich Club. If not because of him, it would take me years before I could start investing in the stock market. Thank you Bro. Bo for inspiring more people to be investors and entrepreneurs.