Sunday, February 17, 2013

How I Earn in Philippine Stock Market

www.pocketwisepinoy.blogspot.com
Previous Post:  My First Two Years Investing in Philippine Stock Market


Wanna know my secret for two years I've been investing in Stock Market? I am following 3 strategies and I am unveiling them today. Well, this is your lucky day! hehe. You are about to discover my 3 secret schemes. Here they are:

Secret # 1. Buy when it's "low" and sell when it's "high"

This is the main strategy I am following. By low, I mean the "Buy Below Price" and by high I mean the "Target Price" that Bro Bo Sanchez declares in his Stock Updates for Truly Rich Club Members .

Let me give you an example.
Last April 2012, I started buying stocks from Megaworld Corporation (MEG) as suggested in the Club. Each time I have available funds in my Citiseconline Account (my online broker), I divide them into fractions. For 3 months, I put money in MEG and left it until it hit the "Target Price". Last January 2013, the amount per stock reached the target price and I sold all the stocks I bought. If you have joined Truly Rich Club and followed the suggestion of Bo Sanchez, this is what you might have gotten in 9 months.

Columns:
a. Buying Date - The date the stock is bought
b. Buying Price - The price of each stock on the date it was bought
c. Selling Date - The date the stock is sold
d. Selling Price - The price of each stock on the date it was sold
e. Earnings - Total Earnings per stock


From the Stock Bought in April 2012 for Php 1.95 that was sold for a price of Php 3.20 each, the total earnings per share is Php 1.25. Same explanation goes to the stocks bought in May and August 2012, respectively. All are bought and sold at equal number of shares so the total earnings per share is Php 3.48 which is 56.31% of Php 6.18. This looks small since we are talking about earnings per share but imagine if you have 6000 shares with this breakdown: ( 1.25 * 2000) + (1.23 * 2000) + (1 * 2000). You get a profit of Php 20,880. Now it is big.


Secret # 2. Have Multiple Stock Investments

I've mentioned above that I am dividing my funds into fractions. A fraction went to MEG but on those months that I'm not investing in MEG (You'll notice in the table above that there's a gap before the selling date), I have invested in some other stocks. This is because I've learnt from the articles I received (again from Truly Rich Club) that I should not invest in just one company. It provides security that whatever happens to one of your invested stocks, you have few more to compensate for it.

Secret # 3. Reinvest Your Earnings

Ever since I started investing, I never withdraw even a small amount. This is because I would like to save up for my retirement days. I am getting ready on that day when I can no longer work for myself and for my family. No monthly earnings but I have daily and monthly expenses to take care of. I know that it will be tough to save a big amount of money years or months before that day so I'm saving up small portions of what I have now, invest them and reinvest the earnings.

By January, I have available funds from selling out MEG. Bo Sanchez sent a "BUY Alert" for Alliance Global Group, Inc (AGI). Since one of my strategies is reinvesting, I put my funds here buying the stock for an average of Php 17.60 per share. February came and in less than a month, it hit the target price and I sold it for an average of Php 20.6 per share. It was a 17.07% profit again.


As a newbie, it is really challenging to earn from stock market if you don't have proper guidance and discipline. You will not know when is "low" and when is "high". It's hard to identify what other stocks to invest in since it will be more secured if you have multiple stock investment. Lastly it's tough maintaining the discipline of reinvesting your  profits most especially when there's a promo or sale in malls. But I am thankful with how Truly Rich Club takes care of all these worries by guiding me and reminding me of the do's and don'ts in my 2 years of investing.


P.S. If you are interested to get Bo Sanchez's free e-book "My Maid Invests in Stock Market.. And Why You Should Too." just click this link and indicate your email address where the book can be sent:


This is the book that introduced me to the world of Stock Market. Plain english, no jargons and no mind-twisting graphs. Enjoy!

18 comments:

  1. Replies
    1. Thanks! God bless on your investment. :)

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    2. based sa experience mo, what are the companies that pays dividends monthly and quartely? tia :) great blog btw.

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    3. Hi,

      Thank you for your comment.
      For this year, BDO will be giving dividends quarterly. For monthly, I haven't encountered a company giving monthly dividends. :)

      Do you have an account already for stock market investment?

      Regards,
      Cath

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  2. Very informative. Thanks for this blog I now joined citiseconline.

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    Replies
    1. Thank you! I hope I can feature you in one of my blogs. :) Happy Investing!

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  3. Hi, Thanks for your great post, there are much nice information that I am sure a huge number of guys and gals don’t know.Share Tips

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    Replies
    1. Hi Share Tips. Thank you for not only visiting but also giving your comment. I do agree with you. There are a lot of people who must know this kind of information. Keep viewing. :)

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  4. Hi! Nagcocoduct ba sila ng free seminar kung paano ang kalakaran sa citiseconline? I tried reading pero confused pa rin ako.

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    Replies
    1. Yes, they are conducting free seminars. San ka po nacoconfuse? Maybe I can help you with that. If you want to keep it private, you can go to "Post Your Message Here" tab and send me a message.

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  5. Hi Share Tips. Thank you for not only visiting but also giving your comment. I do agree with you. There are a lot of people who must know this kind of information. Keep viewing. :)
    Reply....how to invest in stocks

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  6. At present time , It is a significant and modern website about financial market. It is a very beneficial for us. So, I like it very much. Many many thanks for make this website. If you want more informastion about stock screener to visit stock screener straightforward located at all. Inside latest depend there are around 17,000 freely exchanged Right, it all would be the perfectly publicly stated who picking great securities just isn't suppliers within the Joined Expresses alone. This sharp level of suppliers may make zeroing through about a quality store somewhat difficult .

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  7. Hi cath,
    i want to join PSE.. pero wla ako alam sa ganitong business. yung minimum na 5k ba eh yun n yung papaikutin to buy and sell sa market? and need b na magdeposit ka every month ng 5k ulet sa account? what are the steps to join here. ill wait for your mail. ascii_babe23@yahoo.com

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    Replies
    1. Hi!

      I sent you a message in your email.
      5k is the initial deposit and that can be used to buy shares. You can also add more funds and succeeding deposits can be less than 5k. :) Mas maganda kung regular kang maghuhulog so you can purchase and accumulate more shares. For the steps on how to join, please check my post below:

      http://pocketwisepinoy.blogspot.com/2013/04/philippine-stock-market-guide-for.html

      Hope that clarifies your query.

      Thanks!

      Regards,
      Cath

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  8. Hi Cath!

    I'm planning to invest soon! Hope you can give me some steps that I need to start my own journey in the stock market. Maybe you can give me a little tips. =) Thanks in advance. Here's my email. ezcudo11@gmail.com

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  9. Hello miss cath ask ko lang po may bayad po ba ang membership ng truly rich club? And aside from truly rich club kanino po kayo kumukuha ng strategy on which stocks to buy?

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  10. Hello ms cath, ask ko lang po magkano membership sa truly rich club? Aside from TRC saan pa po kayo kumukuha ng tips on which stocks to buy? thank you po..

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    1. Hi Dorothy. Membership fee is 497 per month. Sila na po yung gumagawa ng researches sa mga companies then binibigay na lang sa amin yung 5-10 stocks na based on their research magiging maganda yung performance sometime. Meron na din silang target price na binibigay. Predicted lang po ito pero inuupdate naman nila tayo kapag may changes. Minsan po may email blast ang TRC if there are sudden updates. Kaya maganda talaga dahil up to date yung mga binibigay nilang suggestions.

      Kung sa tingin nyo po, hindi pa kayo masyadong expert para magbasa ng mga trends ng companies and kung busy po kayo madalas, I would suggest joining kasi mas mapapadali po yung pag-iinvest nyo. You just have to login sa TRC page mo then check anong stocks ang pwedeng bilhin based sa available funds mo at sa current price ng stocks, then buy. Sa selling naman, once naghit na yung target price,that's the time you sell. So malaki po talaga naitutulong sa akin nung updates ng club. Save sa time at effort magresearch.

      Other sources can be COL Financial Updates din po. Meron silang table ng ratings nila per company as per the price ng stocks. Yun lang nga po, lahat ng companies andon. Hindi filtered as compared sa TRC.

      Sana po nakatulong. Please visit www.crmapili.trulyrichlub.com for more details po.

      Thank you for your comment and question.

      Regards,
      Cath

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