Sunday, December 7, 2014

Is it Better to Invest in December in Philippine Stocks?

One of my friends who is eager to learn more about in stock investing asked me if it is a good time to buy stocks during December. Her reason is due to the high economic activity during December, During Christmas season, more people buy gifts and new things which turns to profit for selling companies.

I don't know how to answer her so I just keep quiet after my several minutes of thinking.
I forgot to answer her based on the historical return.  While browsing on the web, I stumbled on one of the articles of my favorite author in Philippine Star, Valentino Sy.

His article is the perfect answer for my friend.   You can read on his work in december-strongest-month-stock-market

 Is it a good buy to buy stock in December? The short answer is Yes (generally).

Why I decided Not to Day Trade for a Living

I like the idea of day trading. I feel joy when my trade goes in my favor.
I feel like I'm the greatest trader in the world (even if I'm not). I feel like I won the lottery (even if I just gained a few hundred pesos)

I want to do it every hour and every day.  I want to trade more but I know I should not.
My reason is not related to the piling of commission or brokerage fees but more on my productiveness. My reason is not related to risk either.

 I might gain in day trading but even I have profits, I know deep inside that I didn't produce anything.
It's not all about the money.  I know that I exerted time and effort to execute the trade but I didn't produced any product or service for the benefit of the people.  Of course, I helped the broker to earn a little commission and the government to have taxes but I consider it as minimal. I provided service and entertainment for myself because I did what I like but I wanted to serve more.

My point is I can be more productive and earn at the same time compared when I just sitting down, doing manual trades and wait for stock prices to change. If I avoid my manual trades, I can be more productive and produce greater impact for society !  This may also apply with you. Try to think about it.

My Top 7 PSE stocks for Long Term Investing


Philippine Stock Market IPO 2015

Do you know companies who announced intent to conduct an IPO next year 2015?

IPO is also as Initial Public Offering. From the word itseld, it is the initial offering of the company to the the public.  In the previous years of Philippine Stock Exchange, there are companies that conducted IPO and after a few months or years, their stock prices is way way up higher now. One example is PGOLD or Puregold.

If we know companies that are going have IPO, its good to be aware of them early on to research, plan, and save fund ahead.

What is Contrarian Investing?

Here is my basic  understanding contrarian investing. It is a type of investing or trading where someone buys when majority of shareholders sells or someone sells when majority of the shareholders buys.  A contrarian investor do the opposite of what the masses does in the stock market.

I think this type of investing is something that you can't say immediately illogical.
When someone buy a stock which is being sell by everyone and it is easy to get a low buying price for the stock. Also, when someone sell a stock which everyone wants, it is easy to get a high selling price.  They seem to act as leader of the other side or the leader of a new herd.

The problem on being a contrarian investor is they don't know if the masses will continue on what they do or if will they follow them doing the contrary.  Eventually, the trend will reverse butthe question is .. How soon?

The other battle that you have to face if you want to be a contrarian is mental pressure.
If I'm new in being a contrarian, I will feel nervous on buying a stock when all of the other people are selling them. Perhaps, a contrarian doesn't feel fear or greed but they just feel good in doing the contrary.

This is just my view and I might be wrong for others. I'm sure there are some out there who have a contradicting idea.

Happy Investing everyone!

How much should I invest in Stocks?

"How much should I Invest in Stocks? "
 "Magkano ang dapat kong ipuhunan sa stocks?"

This will depend on your risk profile. Age can also be considered as a factor since generally older people should have a more less risky investment or more conservative.

When you are young, you can invest more since there are more income opportunities for you assuming that there are turmoils in stock market. Also, when you are young, you can allow more time for your stock investment to grow.  

How to Increase Montly Contribution to Pag-ibig Fund

The simplest answer is to talk to your employer if you are employed. Usually, these are being handled by your Human resources department. You can also talk tou your manager so they can redirect you to the proper contact or proper procedure.

Be sure to discuss clearly discuss the future change in your contibution. Indicate in your request the current and future amount of your monthly contribution. Include also in your discussion the exact dates of the effectivity of the your new monthly contribution.

Lastly, don't forget to check your payslip and double check with Pag-ibig if your contributions are reflecting timely and accurately.

To buy or Not to buy a Condo

To buy or Not to buy a Condo

The first question you need to evaluate is do you need a condo?
When we are little we are taught to buy the the thing that we need first.

Second, can you really afford it without having too much problems?
If you need to apply for a loan, are you sure that you can repay the loan? Do you have ample emergency fund?  If you are unsure,its wiser to look for a cheaper alternative

If you answered Yes to all of these questions, I believe you really deserve to get the condo the you want.

Bible Verses and Quotes about Money

Dishonest money dwindles away,
but whoever gathers money little by little makes it grow.
Proverbs 13:11

How to start investing in stocks in the Philippines

Stock Investing is getting more and more popular for Filipinos. But even if there is an increase in awareness level, many are still confused on how to start investing in Philippine Stocks.

When I'm assisting a beginner, I always tell them to study and practice first because they might lose a huge part of their hard earned money in just a few days or few months.  I don't want them to feel bad towards stock investing.  However, if I feel that they are fully prepared or can take risks, I always suggest to open an online broker account immediately. There are many online broker account in the Philippines and the famous ones are COL, BPI, and First Metro.

Don't be afraid in opening an account. You won't learn all of the things in just one week in the world of stocks but once you open an account, a new world will open to you. You will think of questions which you never thought before and you will seek and find the answers for every one of them.
One of my tips for beginners with small capital is to start with the minimum amount of investment.
The minimum amount will differ for every online broker but you can find a minimum account for 5,000 pesos only.  This 5000 pesos will serve as your key in learning more about stocks and securities. Don't worry for your 5000 pesos amount because the whole amount will not be consumed as payment for opening your account. It can be credited as fund or deposit to your account. This means that you can use the 5000 pesos to buy shares of your desired company. Although, please note that when you buy and sell you will be charged with a small fee for taxes, commissions, etc.

 Before you get drowned on the idea of getting rich, please assess your risk tolerance first. Is it ok for you to lose 20% of your money in stocks after 1 month?  Try to focus on both the good side and bad side of stock investing. Don't focus solely on what you can gain because realistically there are people who loose money on stock investing.

There are many things to know about stock investing such as when to buy and when to sell, market psychology and even your own emotions like your fear, wants, and greed but don't be afraid to start.
If you don't start, you won't win!

Tuesday, December 2, 2014

Will you still buy shares of X or XURPAS?

Shares of Xurpas jumped on it's first trading day. It rose up to 49.87%.
On its second day last December 3, it climbed up another 41.18%

This is the company description from PSE Website

Incorporated on November 26, 2001, Xurpas, Inc. (X) is a technology company which specializes in the creation and development of digital products and services for mobile end-users, as well as the creation, development, and management of proprietary platforms for mobile operators. The Company also offers mobile marketing solutions to local and international consumer brands seeking to promote their products through mobile telecommunications.

X currently provides mobile consumer content to Sonera Zed, a division of a telecommunications operator based in Finland, and also to local telecommunication companies, Smart Communications and Globe Telecom, Inc. The Company has a 65% controlling stake in Fluxion, Inc., which is engaged in mobile and internet systems design and the development of programming languages, usability and social media.

Source: Prospectus (2014)

If you are curious and we'd like to know more about this company, read more on their website

After soaring high for two days, will the share price of X continue to rise?
Will you buy or sell?