MY STOCK MARKET EXPERIENCE (2010 IN REVIEW KUNO)

source: http://www.coverdude.com/

       Today was the last trading day of the year, 2010, but my last sell for this year was not done though . I woke up late and when I posted a sell for MER at 230, it did not reach that price anymore after reaching once then going down. Actually the night before, some buys and sell were posted but I was surprise to see when I woke up that my off-hours orders were all canceled. Anyway, it's okay and no need to cry over spilled milk as they say.

       Checking my portfolio as of today, it was not so good because almost all of my stocks were in red meaning at the moment I have some paper losses. I used the term paper losses only because as long as they were not sold at their current price, I haven't lost anything yet from my investment on them. I'm looking forward for a better year for all stock investors this coming year, 2011.

       Same with the previous day, the last trading day for this year ended in green. The Philippine Stock Market had a very good year in 2010 and I'm hoping that the bull continues to "run" when the trading continues next year! It's so nice to learn that the Philippine Stock Exchange Index or PSEi has surged by 1,148.46 points ending the year at 4201.14 according to the business news.

       But going back to my stock market experience, let me reminisce how did it all started and how did I fare compared to the PSE performance.

       Getting my feet wet in the stock market started one fine day (Friday to be exact) on May 7, 2010 when I started participating in the Stock Investing Thread started by bro John316. I was already reading his posts before I decided to participate in the thread... http://www.kerygmafamily.com/forum/viewtopic.php?id=4833&p=2

       I continued to read and learn what the original casts were talking about. on their comments and posts. There were nights that I couldn't sleep early because of my eagerness to learn, I repeatedly read the posts in the thread and searched for other forums, websites and blogs to understand the basics of stock investing. And then I started to play the PSE Stock Trading Game, http://www.kerygmafamily.com/forum/viewtopic.php?id=4833&p=3

       I continued to read and ask my friends in the KFAM forum about the things that I could not understand about stocks and they were very kind to explain to me kahit medyo makulit ako. And then the day has come that playing the PSE STG was not enough for me anymore and I wanted the real one!

source: http://mdb2.ibibo.com/

       The waiting game for the application for my online account was like a torture to me. Each day that was passing is like a month because of my excitement to have my first set of stocks. And on June 16, 2010 a new stock investor ( that was ME of course! ) was able to start ( although my first set of stocks, BPI and PX, were bought only after 2 days), http://www.kerygmafamily.com/forum/viewtopic.php?id=4833&p=8

       Along the way while waiting for my stocks prices to rise, I have received cash dividends on my stocks and stock rights also which I did not avail because I still don't know how to take it. On July 20,2010 I sold one of my stocks for the very first time, my BPI shares. http://www.kerygmafamily.com/forum/viewtopic.php?pid=130026#p130026. Then it was followed by PNX and FLI, all of them at a profit.

       It is not easy to choose the stocks for me this year because there are lots of good stocks to buy but I only have limited cash due to the fact that I am only using my free cash for my stock investing. Anyway, if you want to do stock investing you need to bear in mind that only your free cash should be use for it as what my LIP casts friends always reiterate in the thread.

       So how did I fare in my first 6 months in the stock market? I will rate my self a passing grade of .... 75! LOL! Yes, I did not lost any money but there are still lessons to be learned. When I read some blogs, forums or news they were saying they earned this or that percentage which would sometimes let me ask myself how did they do that or why didn't I achieve that? I already paid my "tuition fee" for the stock market this year and I believe there would be more. The opening of an opportunity for me to start investing in stocks is already a big step towards my financial freedom and I am very thankful for that.

       Looking back at my stock market experience for 2010, I have learned a lot specially from my friends in LIP thread ( bro john316, bro louis, sis krissy, bro john, sis cjv and the whole gang ) "Ang dami na natin guys!". The greatest one is to SHARE... And I am here to share my Stock Market Experience and let everyone know that EVEN YOU CAN INVEST IN THE STOCK MARKET!

       A HAPPY & BULLISH NEW YEAR TO ALL! Let's invest in the Philippine Stock Market!

source: http://www.lateralthinking.biz/

 Pahabol : Bro John316, ayon sa bolang kristal na may ginto sa loob..... MER ang hahataw... si bro MER! hehehe... thanks  to all of you guys talaga!

"He who has a bountiful eye will be blessed..." < romer is ayeckanic, ayeckanic is romer > Ayeckanic™

ARE YOU PLANNING TO INVEST YOUR FREE CASH THIS 2011?

       Are you still confuse how the stock market works even after reading all those articles and forums in the web which talks about stocks. So, for you dear readers who are considering to invest those hard earned money in the stock market this 2011, I have some videos taken from the You Tube for your better understanding about how the stock market works.

source: www.youtube.com/

       And here's more which talks about the Philippine stock market;

source: www.youtube.com/

source: www.youtube.com/
       
       I hope you enjoyed the videos and at the same time learned more about the stock market. Investing your free cash as one of your New Year's resolution would be a great idea!
       

"He who has a bountiful eye will be blessed..." < romer is ayeckanic, ayeckanic is romer > Ayeckanic™

VERY LONG WEEKEND

       To all our friends who are into stocks, we will be having a very long weekend because the next trading day will be on December 28, 2010. Let's enjoy this time with our love ones (if you are with them). The PSE memorandum No.2010-0591 states that there will be no trading on December 24 - 27 and also on December 31, 2010 which is the last day of the year.

       

       See you all in the market on December 28 - 30! Got to work right now... 

       Thank you Lord for this wonderful gift!

"He who has a bountiful eye will be blessed..." < romer is ayeckanic, ayeckanic is romer > Ayeckanic™

A BLESSED MERRY CHRISTMAS TO ALL!

        Greetings to all our brothers and sisters around the world!

       Huwag po sana nating kalimutan ang tunay na kahulugan ng Pasko....

       At sa mga kagaya ko na malayo sa mga minamahal ngayong Pasko.... tumawag at text na lang po tayo. hehehe... 

      

Maligayang Pasko po!

"He who has a bountiful eye will be blessed..." < romer is ayeckanic, ayeckanic is romer > Ayeckanic™

NEW LOOK BLOG-BLOGAN

       Hello dear readers! Nope, you're not lost. This is still the same blog you were used to but with some changes. The background was replaced as I am planning to use the old background (green field) for my new blog-blogan which will be about my other passion, FARMING. It is not easy to do this because most of my LIP friends especially my mentor, bro john316 is against it. He will not visit my blog anymore (you're just kidding me bro, right?) if I replace the background which I really did. Anyway, for you dear friends I have added more palabok here;

     

       Did YOU KNOW - facts about stocks, business, famous persons, financial matters etc.

       Video Bar - You Tube videos which are about stocks, businesses, financial matters and the like.

       Popular Posts - List of my posts which have readers of more than 1. LOL!

       Blog List - Blogs that I have linked to with their latest post.

       Hinalukay - from Digg.

       The GOOD News

       Together with the old features I wish to help more people in learning more about stocks and start investing in stocks. Please bear with the changes as I'm planning to add more sidelights for the benefits of my dear readers. Comments, suggestions and reactions are very much welcome.

"He who has a bountiful eye will be blessed..." < romer is ayeckanic, ayeckanic is romer > Ayeckanic™

ROSES ARE RED, AND SO IS MY PORTFOLIO

       Surprise! I told you last time there will be changes in my portfolio. My portfolio is now completely rosy. I sold all my PX this morning because it's not pretty seeing only one stock in green while the rest are in red. Haha! I'm just kidding. I sold it because I already gained more than 40% from my investment in PX and I need to have cash for bargain hunting. On the other hand, my bids for ALI and MBT were not hit because their prices didn't go down that much today. I need to lower down my AEP for ALI. The cash that I was able to raise today, I will used them for purchasing more blue chips that are on my watch list. 

       My head was aching when I woke up this morning, I hope it was not a side effect of letting go my PX. Anyway, I'll just buy some PX shares once it dips back down. I wonder at what PX price I should buy again... Join me while I search from forums, threads and FMS website. The challenge for me now  is to look for stocks that will lead my portfolio into the green zone.

"He who has a bountiful eye will be blessed..." < romer is ayeckanic, ayeckanic is romer > Ayeckanic™

LET THERE BE LIGHT.... PLEASE

       It's been quite some time since I last saw my portfolio in green. When the market correction started, so does my portfolio turned into red. Now, the newbie stock investor is like a man walking in the dark without a lamp to help him follow the right path. I need to do something but I'm a little bit confused right now. I don't know what to do whether I'll buy now, I'll sell now or wait for further correction. 

       I need to ask for an expert opinion that's why I have asked Mr. Gus Cosio for his advice, "sir Gus, It’s been a long time since the market correction started that  made my portfolio stagnant. Could you please advise me here or even just post comment in my small blog on what to do. I’m just a newbie and has been reading your blog ever since I started last June. My portfolio is posted in my blog/diary…"

        I got a short but very nice reply from him and he told me this, "I must reiterate that you need conviction to be in the market. You must also have the humility to take losses whenever you have to. Money management is as important as stock picking." It was further explained to me by my friend Louis ( lead star KFAMserye in our stock investing thread.... just kidding! hello bro Louis!)

       The chicken little inside of me is starting to scare me but I'm not minding it right now as I believe that I have fundamentally sound stocks in my portfolio. I got Ayala Land Inc., Philex Mining, Manila Electric, SMPH etc.. which are cash rich and even most of them I can't sell right now, I'll still earn cash dividends if I decide to hold them for long term.

       Whatever passion that drove me to start investing in stocks several months before, it is still with me. Time really comes that we are confused and don't know what to do but it is up to us how to handle the situation. If you are into stocks like me, don't panic. Relax and think not just once or twice before deciding. Or else you might lost your money (I mean lots of money) if you listen to chicken little who is shouting that the SKY is FALLING.

       So, will I buy or sell now? Let me think. By tomorrow you might see some changes in my portfolio. One thing for sure, I enjoy investing in the stock market! Do you?

"He who has a bountiful eye will be blessed..." < romer is ayeckanic, ayeckanic is romer > Ayeckanic™

I'LL BE INVESTING..... SOON

       How many times have you ever told yourself that one? Have you ever included in your New Year's resolution that you'll start investing this year which was until now you haven't started yet even though that was 2, 4, or even 10 years ago? 

source: http://accounting-financial-tax.com/

       Let me guess what could be the reason why it is being delayed....1) Is it because you don't have cash to invest? 2) Is it because you have no time to invest as you are so busy on your 8 hour - 10 hour job? 3) or you don't know where to invest your hard-earned money? 4) None of the above or all of the above?....

source: http://pwspag.com/

       1) I don't have cash to invest

Yeah right! You don't have cash to invest because you were able to use it the last time going somewhere like Hong Kong, Singapore or Boracay. You were always in Starbucks and malls. You have the latest mobile phone every other month.... Yes, you "really" don't have cash to invest...

       But why do the house helpers and driver of Bro Bo Sanchez have cash for investing in stocks? Does that mean they have more money than you? Have you ever check where did your last month's salary go? 

       2) I don't have time to invest

Ok, you are so busy the whole day in your work... or are you really busy? I bet most of you who have internet access in your work usually check out your favorite social networking site very often. Even me, I sometimes check mine to see if somebody commented on my blog link. 

       Are you the type of guy/gal that after work which is usually around 5 pm off you go with your friends to have a drink of stroll somewhere and you just go home straight to the bed? Gee, you "really" don't have time to invest.

       3) I don't know where to invest

So who is the latest boyfriend of Marian Rivera or Shaina Magdayao? I bet you know them very well. How about the latest intrigue between Sharon Cuneta and Aga Muhlach? Or did somebody made peace already with Toni Gonzaga? Or did this couple get married in India? 

       You know all of these or most of these items I think because you always browse the entertainment section of your favorite newspaper, website or magazine. So how come you don't know where to invest, my friend?

       4) All of the above and a whole lot more!

Ok... So what to do habibi? Maybe you really don't want to invest your money.

      

       If you are serious in your plan to invest then you have to do something. I have some suggestions for you to make your plan to invest become a reality;

       a) You should know the difference between NEED and WANT... Do you really need to go to Singapore now or you just want to go there? Do you really need to buy the new smartphone or you just want it to look cool among your friends? 

source: www.yayeveryday.com       

       Wants are often distinguished from needs. A need is something that is necessary for survival (such as food and shelter), whereas a want is simply something that a person would like to have. 

source: http://en.wikipedia.org/wiki/Want

      A need is something you have to have, something you can't do without. A good example is food. If you don't eat, you won't survive for long. Many people have gone days without eating, but they eventually ate a lot of food. You might not need a whole lot of food, but you do need to eat. 

       A want is something you would like to have. It is not absolutely necessary, but it would be a good thing to have. A good example is music. Now, some people might argue that music is a need because they think they can't do without it. But you don't need music to survive. You do need to eat.

source:  http://www.socialstudiesforkids.com/articles/economics/wantsandneeds1.htm

        

        Now that you know the difference between WANT and NEED, then you will be able to save some extra money for your investing plan. You can decide whether to spend your cash or use it for investing.

        

      b) You have the time to invest. Always remember that. If you have so much time to go to malls, partying with friends, watching soap operas, chatting etc... then why don't you cut some time from those and allocate them to think and plan about investing? 

      c) There are so many ways to invest your money. You may start a business, invest them into mutual funds,  T-bills, bonds or stocks. All you have to do is browse the internet and you can get all the information that will help you decide what investment suits your interest and risk appetite. If you can search the latest intrigues inside showbiz, then why can't you search something for your financial freedom?

source: www.guidetoinvestor.com            

       

       Lastly, for me it will still depend on you whether you invest your money or spend it because it is yours. If you choose to invest it, then be sure where to invest it because there are lots of options for you and risk is always there. Just open your eyes and use your spare time to plan, research and put  your plan into action. 

       So when are you going to start investing.... SOON?

"He who has a bountiful eye will be blessed..." < romer is ayeckanic, ayeckanic is romer > Ayeckanic™

MY CHRISTMAS WISH THIS YEAR: A NOKIA C7

       I'm not a techie guy and never had a hi-tech gadget excluding my laptop (if you consider that a hi-tech) which is already around 4 years old. It's our secret guys, I bought that laptop when I won in a lottery! I don't buy signature clothes or those expensive shoes either because I prefer to be simple ( as I always believe in the motto K.I.S.S - Keep it simple SIMPLE! hahaha! I know what you're thinking). Anyway, whether it's Nike , Adidas or Advan shoes they are just the same. What is more important for me is I have something to wear and I have extra cash for my savings. I am just practical, my first mobile phone was Nokia 3310 which I had to buy using the money my uncle had lent to me almost 10 years ago. For the past 10 years of using a mobile phone, I only use it for calling, sending SMS and taking either photo/video. That's me when it comes to mobile phones.

       This year when I started investing in the stock market, my main goal was not about using my earnings to buy any mobile phone anymore since I have a Nokia 6120 classic already. It is about saving for the future of my family. While working here in the Middle East now, I have to wake up 4 o'clock in the morning just to see how the market is doing and place my buy or sell with my eyes still half-close. It's not very easy to make your trades specially when the previous day, I have to work late in our workshop, as there are tendencies that I may post the wrong selling or buying price just like what happened to my friend in KFAM forum. For now it is not a problem for me doing my trading as we have an internet connection here in our camp. But when my contract expires on July next year, I will be coming back to our place which have no internet connection. We are very far from the city and going back and forth to the city proper to rent a computer for my stock trading is not practical anymore. So I was thinking of buying a smartphone that could be use for browsing news about stocks update and for posting buy or sell of my stocks any where I could be. My problem with buying smartphones is that I could not afford the price since my earnings is just enough for my family and some free cash for buying additional stocks. 

       This morning when I checked out my blog earnings from Nuffnang which is actually 6 pesos as of the moment I saw this post, WHAT’S YOUR CHRISTMAS WISH THIS YEAR?. A NOKIA C7 would be awesome for my online trading when the time comes that I am with my family by next year. It will be perfect for keeping me updated on business news and doing my online trading. Plus added bonus would be those nice photos and videos of our princess, Ayecka, which I could take and easily post in facebook using the new NOKIA C7! Hey Santa, you know I was nice not just this year but all my life... Would you grant my personal wish also? Christmas is not just for kids, YOU KNOW?

       Merry Christmas in advance!

        

"He who has a bountiful eye will be blessed..." < romer is ayeckanic, ayeckanic is romer > Ayeckanic™

MARKET CORRECTION

       Have you ever tried mountain climbing and in the middle of the trek you took a rest or even a nap before continuing to climb? or participated in a cycling race wherein you got tired and you need to slow down a bit to have 2nd wind for the later part of the race? 

       In the stock market, we also have that similar situation wherein the market that is having an uptrend will slow down for a while with stocks prices taking a dip of around 5% to 20% or so. It is just a short period of lowering of prices which can not be considered yet as bear market already. Market correction should be welcomed by stock investors instead of being feared as this is the opportunity to buy more fundamentally sound stocks. And for those who got to purchase stocks at high price, they can lower down their average price during this time. It is also a perfect time to reposition your stocks portfolio as you could sell those who are non-movers and allocate the proceeds for more liquid stocks that are at a bargain. 

source: http://www.meghainvestments.com/

       For the past 2-3 weeks there was a market correction in the Philippine stock market, unfortunately for me who is just a small time stock investor I don't have enough cash to buy. So many blue chip stocks like TEL, ALI, MER, SM, AEV and a whole lot more were on SALE. It was like a little kid entering a chocolate and candy store which have big discounts! All I could do during this correction time was watch on the sideline and study how does the traders and investors behave while prices were going down. Some of my friends were able to sell their stocks and also added more good stocks to their portfolio. Anyway, as a newbie in stock market I learned a thing or two during this market correction. It is advisable to always have extra cash in your funds ready for any correction also just relax and avoid panic selling. And as for me, it is still better to be an investor instead of a trader... 

       How about you, do you also want to try stock investing? Don't waste your time, it is better to start investing while you are young.

"He who has a bountiful eye will be blessed..." < romer is ayeckanic, ayeckanic is romer > Ayeckanic™

STOCKS OR OUR HOUSE FIRST?

       Before I joined my present company, the construction of our small house for my small family ( I, my wife and our first baby) already started. And until now it is not yet fully furnished as I have to allocate also most of my salary for my wife and baby's needs. Whenever we have enough cash for a certain job inside the house like fixing tiles or cabinets or door for the room, I am using all of my free cash. There were times that I am asking myself, we are having a fully furnished house but what if my contract is done? Do I have an investment? Yes, I have some goats and cows for now but we don't know, livestocks is unpredictable. Today is good but what if the goats or cows got sick and die? Gee, I will be having no investment... Good for you people who are starting to invest at a very young age. Don't waste your time, if you see an opportunity to invest grab it at once!

       My savings in the bank which is not earning very good interest will be wiped out if that happens. So I started to invest in stocks this year after learning about online stock trading. At first, it was not easy to convince my wife and my mother as I usually tell them about my plans. There were doubts specially from my mother which I admit was not able to finish her schooling due to financial aspects. My grandfather was a farmer when he was still alive and sometimes a seaman.... Just kidding, my grandfather was also a fisherman...  Sometimes my mother would ask me, what if they take your money? or is that real? She would often try to convince me to just give her the money and use it for lending. Because of that, I have to explain to them point by point on how I could earn in stocks. Until there was a time that I was able to sell my first stocks at a profit, I gave some balato to them and they were finally convinced that it is not a scam or whatever illegal they were thinking.

       Now, our cabinets in the house need to have glasses and the second toilet has to be cemented. I was thinking of using first the money that I have for buying stocks because there is a bargain in the market as of the moment. My problem is my wife as she was already expecting that the other toilet will be finished on my next salary. I'll just try to convince her that it will be better if we invest first the money. In a way, there is already the first toilet which they were using at the moment. Let's see.... I hope she'll agree with my suggestion!

"He who has a bountiful eye will be blessed..." < romer is ayeckanic, ayeckanic is romer > Ayeckanic™

GREEN is RELAXING...

       After several days of seeing "the red flag" in the stock market, finally I saw the "green flag" waving in the PSE index. 

source: https://www.firstmetrosec.com.ph/login.asp

        

       Is this already a sign of the end of market correction for the time being? I'll be glad to welcome that as I don't have free cash anymore for buying. Our salary is still a week from now meaning the new kid in town is just watching at the sidelines while the correction is going on. I also observed like what Bro John316 had noticed in Stock Investing Thread that the casts of the No. 1 KFAMserye were gloomy during this market correction. All free cash were used already, no more "bullets" for everyone probably... Not much posts... 

       Ok guys, I've just read one post in KFAMserye which might make us all smile. Here it goes...

John wrote:

"Anyways good news is we're not in Bear Market. According to Mr. Barredo's Elliot Wave Analysis of the PSEi, we're somewhere between the first and second wave of the three waves before the 2 downtrend waves of the Bear Market. Basically this is a healthy correction in preparation for a bigger Bull Run and after that it's the dreaded Bear Market.

So for the moment, cheer up mga katoto. Something great is ahead."

source: http://www.kerygmafamily.com/forum/viewtopic.php?pid=142711#p142711

       There it goes friends! I really like KFAMserye, the casts are sooooo nice! Sweet!  Thanks Bro John. Have good night everyone! 

      

"He who has a bountiful eye will be blessed..." < romer is ayeckanic, ayeckanic is romer > Ayeckanic™

UNTIL WHEN?

       Until when will this market correction be?.... Some says it will still take around 2 more months, others 1 more month.. Who cares? Do you? If you are an investor, it's a good opportunity for you to accumulate fundamentally sound stocks. As for me, when I have my extra cash once again after my salary I'll be buying probably stocks under the Banking sector. After selling my BPI stocks, I wasn't able to buy again stocks under that sector. Whatever happens most people still save their money in banks rather than investing them, right? So I believe having stocks under banking sector in my portfolio is a good decision.

       Tomorrow will be the last trading day for November, I hope it will be in a good note to have December a very nice start! During this market correction, I still have to figure out how could I earn in my present stocks because I only have one stocks in green. PX, please lead the way for my whole portfolio. Please please please! Good luck to everyone tomorrow...

"He who has a bountiful eye will be blessed..." < romer is ayeckanic, ayeckanic is romer > Ayeckanic™

November 29, 2010 is a NON-TRADING DAY

       In observance of Bonifacio day on November 29, 2010, there will be no trading on Monday. Instead, trading will resume on November 30, 2010 (Tuesday) which will also be the last trading day for this month.

        Will there still be market correction on December or will the bullish trend be back before Christmas? We will see, but I'm hoping that I could sell some stocks so that I could have some cash for buying gifts! God bless everyone!

OT: LIP KFAMserye is getting more exciting! "ang saya-saya"! i love it!

"He who has a bountiful eye will be blessed..." < romer is ayeckanic, ayeckanic is romer > Ayeckanic™

BEAR MARKET

       As  I was making this blog entry, I was also watching the movie, Over the Hedge, which  is about RJ the raccoon who tried to steal the foods and stuffs owned by Vincent the bear. Unfortunately those stuffs were crushed by a truck and he was caught by the bear. What does the movie have anything to do with my topic then? Not that much actually, although it just showed there the fear of RJ being killed by Vincent the bear if he could not replaced the items before Vincent is fully awake from his hibernation. The bear in the movie is portrayed as a fearsome character. Just like in the stock market, bear market is being feared by stock investors. But what actually is a bear market?

       A bear market is a general decline in the stock market over a period of time. It is a transition from high investor optimism to widespread investor fear and pessimism. According to The Vanguard Group, "While there’s no agreed-upon definition of a bear market, one generally accepted measure is a price decline of 20% or more over at least a two-month period."

       A bear market followed the Wall Street Crash of 1929 and erased 89% (from 386 to 40) of the Dow Jones Industrial Average's market capitalization by July 1932, marking the start of the Great Depression. After regaining nearly 50% of its losses, a longer bear market from 1937 to 1942 occurred in which the market was again cut in half. Another long-term bear market occurred from about 1973 to 1982, encompassing the 1970s energy crisis and the high unemployment of the early 1980s. Yet another bear market occurred between March 2000 and October 2002. The most recent example occurred between October 2007 and March 2009.

source: http://en.wikipedia.org/wiki/Bear_market#Bear_market

       So its been some time that my portfolio was in the red zone... Are we already having a bear market at the moment? If we just read the news in the web and browse forums that discuss about stock market, there they were mentioning about market correction going on. What does this mean? There is no need to panic for us investors because it is an opportunity to accumulate more stocks as fundamentally sound stocks are now in a bargain! It is a good time to enter the stock market if you haven't started yet because we are still in a bull market only having a market correction and not in a bear market.

"He who has a bountiful eye will be blessed..." < romer is ayeckanic, ayeckanic is romer > Ayeckanic™

ARE YOU A SPECULATOR?

       Speculating is the assumption of risk in anticipation of gain but recognizing a higher than average possibility of loss. The term speculation implies that a business or investment risk can be analyzed and measured, and its distinction from the term Investment is one of degree of risk. It differs from gambling, which is based on random outcomes. There is nothing in the act of speculating or investing that suggests holding times, have anything to do with the difference in the degree of risk separating speculation from investing.

Source: http://en.wikipedia.org/wiki/Speculation

Source: http://www.greekshares.com/speculator.php

       In the stock market, when you buy stocks with higher risk believing that its price will go up without taking a detailed analysis then you are considered speculator. For example, you are speculating if you buy shares of XYZ mining company without checking its financial statements or even looking for any current activities by them like delivery of gold or copper or whatever they should be mining and waiting for its price to jump up. It is very risky for a newbie in stocks like me to do speculating as you might lost big money in a short time but you might also gain BIG! As what my friends in Stock Investing Thread in KFAM Forum always say,

TRADE AT YOUR OWN RISK! We do not promote speculating there in the thread, instead our good friends always advise to invest instead of speculate specially for newbies because of the great risk.

So Join ME in Investing in Stocks....

"He who has a bountiful eye will be blessed..." < romer is ayeckanic, ayeckanic is romer > Ayeckanic™

EID MUBARAK!

       Eid Mubarak to all our Muslim brothers/sisters! And to all my classmates and friends in the palengke, I'm so sorry I was "absent" for almost a week.What happened was that our modem cannot connect during the holidays here in my location. Poor Ayeckanic, he wasn't able to have new entries in his blog....
       When I checked my portfolio today, there was not much changes since a week ago. And I was reading something about debt fear in Ireland being discussed in LIP thread in KFAM forum.
       Hopefully, there will be no more connection problem in our internet here starting today. I wasn't able to read news, send e-mails, post in forums, buy/sell stocks, update my blog etc. because of connection problem.
       Congrats to Manny Pacquiao by the way for winning his fight against A. Margarito! Manny, balato naman dyan! Pambili ko ng stocks.... 

"He who has a bountiful eye will be blessed..." < romer is ayeckanic, ayeckanic is romer > Ayeckanic™

BULL MARKET

       I got inspired today and also there was a free time for me in the afternoon that's why I was able to write an article about bull market instead of waiting for the 3 day holiday here next week.
       While browsing an online community several days ago, a post by Sir Gus Cosio, "Bull on the Loose", caught my attention at once that I immediately read it. No, he wass not talking about a live bull running around the neighborhood. Ha ha ha! In his post he mentioned about the PSE index surging around 20% over the past 2 months and he mentioned some of the stocks he has been following that gained so much in just that short span. Also, we have been discussing in LIP thread in the KFAM forum about having a bull market at the moment in stocks. But what actually is a bull market?

Bull market

A bull market is associated with increasing investor confidence, and increased investing in anticipation of future price increases (capital gains). A bullish trend in the stock market often begins before the general economy shows clear signs of recovery. It is a win-win situation for the investors.

source: http://en.wikipedia.org/wiki/Bull_market#Bull_market

 Also,

Bull market  

A prolonged period in which investment prices rise faster than their historical average. Bull markets can happen as a result of an economic recovery, an economic boom, or investor psychology. The longest and most famous bull market is the one that began in the early 1990s in which the U.S. equity markets grew at their fastest pace ever. opposite of bear market.  

Source: http://www.investorwords.com/616/bull_market.html

       In Ayeckanic™'s term (as what I have understood from its meaning of course), we have a bull market if the market is "continuously" going up and with the share prices keeps on rising because of some reasons like an economic recovery, an economic boom or investor psychology.
       Example of a well known bull market is in India's Bombay Stock Exchange Index, SENSEX, which had a bull market trend for about five years from April 2003 to January 2008 as it increased from 2,900 points to 21,000 points.

Source: http://en.wikipedia.org/wiki/Market_trend

       You may check this video about bull market:

http://www.youtube.com/watch?v=D7X7_EBYI0I

       Article worth reading about bull market in the Philippine Stock Market:

http://www.usnewslasvegas.com/business/bull-market-driving-rp-stocks-to-historic-highs/
http://www.businessweek.com/news/2010-09-06/philippine-bull-rally-to-be-massive-macquarie-says.html

"He who has a bountiful eye will be blessed..." < romer is aikonic, aikonic is romer > Aikonic™

The ME is Out

       Hello dear friends! Sorry if I could not update my blog for some time. It is because I'm very much occupied with my work right now. Actually I was not also buying any stocks as of the moment because I could not wake up early in the morning to monitor the movement of the market and see which is good for trading. But I promise, I'll be preparing very nice posts during the 3 days holiday next week for you dear readers. For now, I'll just update my portfolio and "One joke a day, keeps the wrinkles away". Have a nice day everyone!

"He who has a bountiful eye will be blessed..." < romer is aikonic, aikonic is romer > Aikonic™

NUTELLA IN LIP

       I got curious about this hot topic in the thread that's why when I saw it in the grocery I bought one. I haven't tried it though. I feel so bored here in my room and can't think of anything to post about the stock market right now because of the long weekend. Just for fun, sis krissy and the KFAM friends! Look I found a nutella!

"He who has a bountiful eye will be blessed..." < romer is aikonic, aikonic is romer >

NOV. 1, 2010 is NON-TRADING DAY

       Today was the last trading day for the month of October! There will be no trading on November 1, 2010 in observance of the All Saints' Day. Happy halloween everyone! TRICK OR TREAT?!
       And as my friend Bro Louis said in the KFAM forum, " Let's pray for all the unknown souls... may their souls rest in peace..." To those going for a "vacation" due to the long weekend, take care. "See" you at the "market" on Nov. 2.

"He who has a bountiful eye will be blessed..." < romer is aikonic, aikonic is romer >

IPO - Initial Public Offering

       Last Tuesday, October 25,2010, "Cebu Pacific was able to raise P23.3B for its IPO or Initial Public Offering by selling 30.66 million primary shares, as well as 155.98 million secondary shares, owned by parent company JG Summit Holdings Inc." (quoted from the Business Mirror). It was the first IPO for this year and will be followed by Nickel Mining Corporation and IP Converge Data Center Inc..  But what is IPO and why do company hold it?

       From Wikipedia,  "An initial public offering (IPO), referred to simply as an "offering" or "flotation", is when a company (called the issuer) issues common stock or shares to the public for the first time. They are often issued by smaller, younger companies seeking capital to expand, but can also be done by large privately-owned companies looking to become publicly traded. An IPO can be a risky investment. For the individual investor it is tough to predict what the stock or shares will do on its initial day of trading and in the near future since there is often little historical data with which to analyze the company. Also, most IPOs are of companies going through a transitory growth period, and they are therefore subject to additional uncertainty regarding their future value."

       As for me being a newbie in the stock market, I did not participate in the IPO of Cebu Pacific last Tuesday because of the  fact that I'm not yet familiar on how will be the reaction of the market after an IPO. I still want to learn how does the price moves after some time. One of my friends who managed to take some CEBU PACIFIC (stock code: CEB) shares immediately sold a little part of his shares one day after the IPO with a gain already! The IPO price for CEB was P125/share and it opened at P132/share before closing at P133/share on its first trading day. Good thing my friend already unloaded some of his shares a day after the first trading day because on the third day CEB closing price was P125.10 already,  1 fluctuation only above its IPO price! See, if I participated in that IPO I could have probably still holding my CEB shares right now at P125.10.

NEXT: BULL OR BEAR MARKET?

     
"He who has a bountiful eye will be blessed..." < romer is aikonic, aikonic is romer >

CONGRATS TO ALL ELECTED BARANGAY OFFICIALS

       Congratulations to all who were elected as barangay officials especially to my mother!  Although we already discussed before that they (my mother and father) will not return to politics anymore after my father will finish his term this year, she still applied her candidacy. What can we do if the people in our place wants my mother to run once more and my mother still wants to serve her barangaymates once more also. But if I were to choose for her, I don't want her to run anymore so that they (my father and mother) can concentrate more and enjoy their 3 grandchildren.

       To all those who were get elected, please work hard for those who voted for you and serve them honestly. And to all those who voted for their candidate who won, congratulations also and i hope you chose the right one!

"He who has a bountiful eye will be blessed..." < romer is aikonic, aikonic is romer >

Market is Close

       I am referring about the Philippine stock market which is close today due to the barangay elections. I hope you were able to vote for the "right candidate" for barangay captain and councilors. Trading will resume tomorrow, October 26, 2010. Will the market sustain its upward momentum? We will see tomorrow. With news of 2 more IPO (initial public offering) coming aside from the Cebu Pacific IPO, I'm very much excited what will be its effect to the whole market since this will be the first one since I started in stocks last June.

"He who has a bountiful eye will be blessed..." < romer is aikonic, aikonic is romer >

DIVIDENDS

       So sorry guys it took me some time before I was able to post my next article which is about DIVIDENDS. It was because I am very much occupied in my work and too much worried about my family during the time that super typhoon Juan (international name Megi) hit the northern part of the Philippines last week. As of now you might probably know what was the effect of the wrath of that typhoon. Many of our countrymen are still in need of help as of this posting so if you can, please donate in cash or in kind to GK or any other organizations that are capable of giving the donations to the affected areas.

       DIVIDENDS... No, it's not the dividend in  the arithmetic operation, division. This is about dividends in the stock market. I have asked this question to my friends in the KFAM forum, "are they (companies) giving dividends yearly?" to which Bro Louis replied, "dividend is a sharing of the company's earnings during the period's performance. It might be yearly or only when the Board of Directors of the company decides. Some company are very generous that they give dividends twice or even thrice a year depending on the performance of the company". He further stated that there were two types of dividend being given; cash dividend and stock dividend (during this time we were talking about stock market). Thanks Bro Louis! Then Bro John316 also added, "as for cash dividends, it is being distributed to share holders even with negative earnings for the year provided there is a sufficient cash available in the company's balance sheet. Dividends are given to encourage shareholders to invest more & the public to know that a company is not keeping the earnings. Dividends also improve the share value of the listed company as investors are buoyed by the attractiveness of the company's dividends". Thanks Bro John316!

       Taking more of its meaning from wikipedia, "dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that money can be put to two uses; it can either be re-invested in the business (called retained earnings), or it can be paid to the shareholders as a dividend".

       In my four months in the stock market, I have only encountered these two types of dividends; cash dividends and stock dividends. Cash dividends are, well, dividends that I have received in cash during the payment period. It was automatically debited into my online broker account. It will be like this, if for example I have 100 shares in XYZ company and they are giving a P0.50/share dividend. Then I will be receiving P50 from my 100 shares during the payment date. While for the stock dividends (I haven't received any stock dividends to date as I sold my PNX which I should have had my first stock dividend), the shareholder will be receiving dividends in the form of additional stock shares of the company. An example would be, if my favorite company XYZ declared a 30% stock dividend and I have a 100 shares of XYZ company, I will be receiving an additional 30 shares during the payment date.

       During my first four months of investing in the stock market, I was able to receive cash dividends already from BPI, PX, MPI and PNX. They were not that big because I only started small in capital but I was able to reinvest them thus letting them earn more profit also for me... But not all listed companies are giving dividends!

       Are you still afraid to try investing in stocks? Are you afraid of taking risk? Any doubts or questions are welcome here, please post them as comments...

NEXT: IPO

"He who has a bountiful eye will be blessed..." < romer is aikonic, aikonic is romer >

TRADING HALT DUE TO BOMB THREAT

       I woke up very early today to see how my offline orders were doing when the trading was suddenly halted at around 10 am (5 am here in my location) due to a bomb threat in PSE Tower One building. I was really upset because my bids were not hit but I knew they were about to be hit due to the momentum. I could have sold my MPI today... sigh... Did somebody made that prank call for fun or what? I don't know but I hope it will not be repeated again so as not to upset our stock investors. The trading was resumed at around 1 pm and closed just after 1 hour.

       The market was finally green today and it was already gaining momentum as per my observation when it was halted due to that "bomb threat". I was able to lower down the average cost for  my FOOD today i(f you will compare my portfolio as of yesterday and today) because I bought some more FOOD (formerly TUNA) @ 1.48... I just hope FOOD will start to go up already. I'm counting on you FOOD! hahaha!

"He who has a bountiful eye will be blessed..." < romer is aikonic, aikonic is romer >

A free, really easy to use and a fun way to learn stock trading - UPDATED

       Do you love to compete? Do you want to learn stock trading? How about competing while learning how to trade stocks? I just found out from the PSE website about the FIRST METRO-PSE-CEAP STOCK X CHALLENGE - an intercollegiate competition open to Catholic schools which are members of CEAP and non-Catholic schools as well which will start on Dec. 1, 2010. Registration already started last Oct. 11, 2010 and will continue up to Nov. 3, 2010. To know more about this event please follow this link, http://www.pse.com.ph/html/NewsRoom/memos/2010/MEMO_2010-0481.pdf

        To download the registration form please follow this link, http://www.pse.com.ph/html/NewsRoom/memos/2010/MEMO_2010-0486.pdf. 

"He who has a bountiful eye will be blessed..." < romer is aikonic, aikonic is romer >

CHOOSING MY FIRST STOCKS

        Last night after finishing my meal, I started browsing again the Stock Investing Thread in the KFAM Forum from page 1. It still makes me smile when I read the part on how I started my stock investing. I was so eager to know how to apply for an account because it has been my plan before to do that unfortunately only this year I learned about online trading in the Philippines. I always read the posts of bro John316 and bro Louis then tried also playing the Stock Trading Game in PSE website. There were nights where I couldn't sleep early due to my excitement of having my first set of stocks. I will even calculate in advance how much will I earn if I buy and sell a particular stock thinking that it will be that easy to earn money in stocks. I was such in hurry to apply for my account that there was 1 funny thing that happened. Instead of applying for an online trading, the application submitted was for manual trading meaning I have to re-submit another application. Grrrr! I couldn't wait for several more days before I could buy my first stocks.

       Fast forward, after my FMS application was approved I finally bought my first set of stocks on June 18, 2010. To quote my post in KFAM forum " i was able to buy bpi and px today @ 44 & 12.25 respectively! yehey! my first set of stocks... go BPI! go PX! up we go!"... SO EXCITED! hahaha!

       Why BPI and PX as my first stocks? At that time I was following bro john316 posts and some of his recommendations were BPI, PX and VLL. I don't know yet about fundamental analysis or technical analysis (only now I'm starting to learn about them by reading books and browsing the web). Anyway, I know BPI is a bank  and PX is a mining company (Philex Mining was one of our clients when I was still working for a fabrication/ machine/ foundry shop in Valenzuela City). There was no other reason for me why I bought those stocks aside from the fact that they were recommended by my friend and I am familiar with the name of the company! After having them, I couldn't sleep well because I was thinking already if their prices would go up the following day and I could sell them soon for a profit. Since I'm in the Middle East, I have to wake up at 4:30 am just to watch how my 2 stocks were doing... I really couldn't sleep! Next stocks I bought were FLI and PNX... Still I was only relying on my friends suggestions though most of his recommended companies if not all have sound fundamentals... If there are speculative stocks, he always reminds me of taking extra caution even from the very beginning. I don't know but even from the start I already trusted his recommendations. There is one thing I noticed from my friend, bro John316, he loves to share what he knows and what he has without expecting anything in return and I admire him for that!
       And then I came across dividends, some of the stocks I bought gave dividends. It makes it more interesting, I could earn more aside from selling my shares at a profit. Some have cash dividends and 1 have stock dividends... What are these DIVIDENDS? 

NEXT: DIVIDENDS

"He who has a bountiful eye will be blessed..." < romer is aikonic, aikonic is romer >

DOING ONLINE STOCK TRADING - SELLING

       This is the continuation of my previous post, DOING ONLINE STOCK TRADING - BUYING, wherein I explained how I buy some shares of a certain stock (XYZ as a sample stock code) with my start-up funds of 5000 pesos. Let's say after buying my 9000 shares of XYZ and it has finally reached my TP (target price) of 1.00, I decided to sell my shares.It will be either I will sell all my shares of 9000 or only a part of it say for example only 3000 shares. Remember that I was "able" to buy my 9000 shares of XYZ at 0.50 and now its price climbed to 1.00 (a gain of almost 100%). I say almost 100% because the price wherein I was able to buy the 9000 shares has some charges (very small) also when I sell my shares, there will be some charges again but also small. You may check what brokers will deduct and by how much in the website of online brokers mentioned in my previous post ONLINE STOCK BROKERS.

       Proceeding to my topic, in my online broker FMS they are showing my stocks "paper gain" in my portfolio already with the commission charges and tax already deducted. So what I will see in the column of Profit is already my clean profit once I sold my shares. Okay, so my final decision at the moment for my XYZ shares is that I will only sell 3000 shares from my original shares of 9000 shares because I "saw" that it's price still has a tendency of going past 1.00.

       Just like in my previous post,DOING ONLINE STOCK TRADING - BUYING, when I want to sell my shares I will just open the same window that I used when I bought my XYZ shares. the only difference is that I will tick the sell button. Of course your selling price should be a reasonable one, not too high so that it could be hit. Once I finish posting my sell, I will just wait for it to be done.

       It is very easy to buy and sell stocks! But WE HAVE TO EXERT MORE EFFORT ON CHECKING AND STUDYING WHICH STOCKS WE HAVE TO BUY FOR OUR INVESTMENT. It will depend on our appetite for RISK. Do you want a low risk but low reward or a high risk but high reward? 

       Always use only your free cash and set aside something for emergency fund....

NEXT: CHOOSING MY FIRST STOCKS

ANNOUNCEMENT!

What: 
Official launching of on-line trading, First Metro Securities Brokers (FMSB)
Where:
Le Pavillon, Metropolitan Park, Diosdado Macapagal Avenue, Pasay City.
When:
14 October 2010 at 6 o’clock in the evening

For more information, Please follow this link
http://guscosio.wordpress.com/2010/10/13/on-line-trading-launch/#comment-4678

My Stocks for Today - 12/10/2010

       RED RED RED! Red was the color of the day in the Philippine stock market today.... Even my portfolio, it was almost painted RED except for MPI and PX! It's the 3rd day of correction which I believe started last Friday... Sigh, how I wish I have more FREE cash to use in my stock investing. I could have bought so many nice stocks at a bargain price. But since I'm just a regular guy with an average salary, I have to content myself for now to just maximize my small fund for my stock investment. It will just depend on how will I choose the right stocks that will give me a good profit when I sell them. As what my friend told me, this is just a healthy correction in the market before another take-off!

My Stocks for Today - 11/10/2010

       What a way to start the trading week... My eyes ache when I saw the color of my portfolio today! hahaha! All are red except for MPI and PX. I thought I was able to buy ALI at a bargain price of 17.94 but it went further down to 17.44. Sigh.... Anyway, I'm now a shareholder of Ayala Land!!!! My other stocks which were in red just went down a little. This is just part of a healthy correction and no need for us, investors, to panic. When the AEP of my stocks becomes higher than their current price, it is a good time to buy for more and lower down their average price! Although my attempt to lower down the AEP of my VLL was not successful because my super barat bid of 3.20 was not hit. It's really a super duper barat...

       As I continue to invest and trade in stock market, I will also try to learn about fundamental and technical analysis which will further help me in choosing my stocks to buy and sell. I will be discussing my progress about it also here in my blog hopefully soon.

       Christmas is fast approaching and I need to have extra money for my love ones' and inaanak's gifts. December, I believe will be a good time for bargain hunting... I'll be ready for that! SALE SALE SALE!!!

DOING ONLINE STOCK TRADING - BUYING

       To become an owner of a banking company, a mining company, a holdings company or your favorite foodchain company might be one of your "dream" but you can not achieve because financially you are "not yet" capable. So why not own first a share of the pie? Take some shares and be one of the "little" owner of your dream company by investing in stocks. After reading some of my previous post, you might be interested now on how I do my transactions (buy/sell stocks) online. I could not explain further here on how to apply for your account on which broker you wanted as I only have one broker at the moment. Anyway, on my previous post I included there the list of online stock brokers which you can just click their photo to reach their website. FAQs and Instructions on how to apply are usually in their main page. Also, you might want to visit our KFAM stock investing thread  as some of our friends there could help or guide you on your application.

       I am not in anyway connected to Firstmetrosec but since they are my online broker, the example that I'll be discussing here would be on how I do transactions thru them.
       Once my application with them was approved,  I can start transferring funds into my portfolio from my Metrobankdirect account (you need to have a bank account first with them,their maintaining balance is 2000 pesos only). Let's say, I transferred only 5000 pesos to my funds and I decided to buy my first stock..
       If I wanted to buy the maximum number of shares of EXAMPLE Company (STOCK CODE: XYZ), I will type the XYZ on the CODE space then tick the buy. If I only have initial cash of 5000 pesos for buying , I need to know first the cost/share and no. of shares/board lot. How would I know how many shares I could buy then? At the bottom of my blog, there is the NTS Board Lots and Price Fluctuations where it is shown there the minimum board lot I could buy at a certain price range. If the price of the stock is within the range of 5 to 9.99 pesos, I could only buy by 100 shares (1 board lot = 100 shares). If the price is within 0.05 to 0.249, then I could buy only by 10 000 shares (1 board lot = 10 000 shares) and so goes with the other price ranges. If I want to use my 5000 pesos cash to buy my XYZ at my Bid of 0.50 (say 0.50 was the price of XYZ at the time I wanted to buy some shares of it), I could buy 10 000 shares right (5000/0.50=10 000)? WRONG! hahaha! Of course I need to reconsider also the charges by my online broker (most probably around 23 pesos only for the maximum number of shares with my budget of 5000 pesos). So, the maximum shares I can buy with my 5000 pesos would be 9 000 shares. Why? It is because 1 board lot  (1000 shares) at the price of 0.50 pesos is worth 500 pesos and 9 000/ 0.50 = 4500 + 23(charges) = 4523 pesos. The balance of 477 is not enough to by 1 more board lot of XYZ. This is only for normal transactions of course.

       After that, just I reconfirm my order and then wait...... IF the transaction is okay and my bid was hit ( It was matched with sellers at my bid price). Presto! I have 9000 shares of XYZ! 

       Before I forget, BUY LOW AND SELL HIGH!

NEXT: DOING ONLINE STOCK TRADING - SELLING

My Stocks for Today - 08/10/2010

       Hello guys! I hope you had a good day today unlike me. I was suppose to write about my next topic, Online Stock Trading, but after what happened this morning I can't concentrate about my next post. So let me just update you about my stocks as of today. The market had a correction today and you know what? Finally! I got my FOOD at my barat bid of 1.52! YES! PATIENCE, PATIENCE, PATIENCE.... But I was not lucky to get additional VLL because my super barat bid of 3.19 was not reached, the lowest price for VLL today was 3.25 only then it went back to its closing price of 3.32. Try and try.... and try and try.... I'll just post some bid a bit higher probably from 3.20 - 3.24 next time to lower down my average price of 3.2877 as of today.

My Stocks for Today - 07/10/2010

       The "balato" I've given has already been used, my baby has a new toy "singing Barney". hahaha! The rest from my princess' balato will be deposited to her kiddie account by her mother. Thanks PX! There is not much movement in my portfolio today. My bid for 1.52 on FOOD and 3.19 on VLL were not hit. They were too much "barat bid", nobody wants to sell their  stocks at that price. I'll try again tomorrow anyway.

       What I'll be doing for today is browse some forums of stock traders, read business news and have some "kulitan" with my friends in KFAM Stock Investing Thread while discussing stocks. Its a fun way to learn and discuss about stocks. You may join us there if you want to learn stock investing, meet friends and join our "tele-serye tele-seryehan, Lovers in PSE" which is just for fun in the thread.

ONLINE STOCK BROKERS

       "Knock, knock"! Somebody is at the gate and you can hear him/her saying "Excuse me sir/ma'am, do you want to buy my XYZ shares in stock market?" Oh my, how stock trading would be so difficult if the buying and selling of stocks would be like that. Or you are in the market passing by their shop where stocks are sold like shirts or fish. Even me, I doubt if i would also do stock trading/investing if that's how it should be done. Thanks to stockbrokers, the buying and selling of stocks is easier.

       By the way, taking its meaning from wikipedia "stock broker or stockbroker is a regulated professional broker who buys and sells shares and other securities through market makers on behalf of investors. A broker may be employed by a brokerage firm. A transaction on a stock exchange must be made between two members of the exchange—an ordinary person may not walk into the New York Stock Exchange (for example), and ask to trade stock. Such an exchange must be done through a broker". Some brokers not just do the buying and selling of stocks for you, their clients. They can also give you advices on which to sell or buy. You may choose between a manual stockbroker who does trading on the exchange trading floor or online stockbroker where transactions are done, well, online.

       At today's computer age, stock trading can be done online already and I chose that one over the manual stockbroker. It is because I can do the transactions anywhere I could be but of course with internet connection. Also the charges is lesser in online stockbrokers than manual stock brokers. At least that's what I have researched for now. The following are the listed online brokers for the Philippine Stock Market;

AB CAPITAL SECURITIES, INC

ACCORD CAPITAL EQUITIES CORPORATION

BPI SECURITIES CORPORATION

CITISECONLINE.COM., INC.

DIVERSIFIED SECURITIES, INC.

F. YAP SECURITIES, INC.

FIRST METRO SECURITIES BROKERAGE CORPORATION

RCBC SECURITIES, INC.

WEALTH SECURITIES, INC.

       

       I chose First Metro Sec as my online broker because I can transfer funds from my Metrobank account to First Metro Sec trading account on the same day! And the maintaining balance for my Metrobank account is only P2000 meaning I can start trading even if I only have P5000 in my savings! And from my experience of doing stock trading for only about 3 months, there has been no major problem that I have encountered. To compare the abovementioned online brokers, you may browse their website to see what they offer for their clients. You may click their FAQs for your questions. And for those who feel more comfortable with manual stockbrokers, you may visit the website of the Philippine Stock Exchange and click the Trading Participants button under the Other Links to get the complete list.

       So, when do you want to have your first set of stocks? Come on, try to spare some time to read more about stock investing. If you are have 10 hours a day browsing your favorite website playing games or chatting, it would be wise if you can spare even just an hour a day for a start to read the PSE website and explore the world of stock market. Good luck!

NEXT: DOING ONLINE STOCK TRADING

My Stocks for Today - 05/10/2010

       Merry Christmas! HO HO HO! I feel GREAT! Did you notice any changes in my portfolio today? Some stocks were not there anymore right? It's because I let go my DMC and RLC shares. I also sold some of my shares of PX to pocket my gains (almost 50% profit) from my favorite stock. The rest of my PX shares will wait until it reaches my TP of 18 - 20. Now I can give balato to my babe and baby!
       One thing I just notice, every time I was able to sell my stocks their price shoots up! Oh well, as my friends always remind me "moderate your greed" and "a profit is a profit"! Some of my profit I will invest them back again, wait for the bargain hunting time... yipeeee! To my super "S" gurus in KFAM Stock Investing Thread aka LIP thread, thanks a lot for being so nice to us newbies! God bless you all.

Stocks Price Movement

       Have you ever experienced a shortage of chicken supply, meat supply or vegetable supply in the wet market? How about over-supply of the same? You will notice that when there is a shortage of supply, their prices tend to go up and when there is over-supply their prices goes down. That is the same in stock market where stock prices change every day as a result of market forces; meaning share prices change because of supply and demand. If more people want to buy a stock (demand) than sell it (supply), then the price moves up. On the other hand, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall. 

       But what makes some people to like a certain stock and dislike the other stock? This comes down to figuring out what news is positive for a company and what news is negative. Are they having a good earnings? Of course if the company has good earnings, they are going to stay in business. Earnings of public companies are being required to be reported because analysts base their future value of a company on their earnings projection. If a company's results are better than expected, the price jumps up. If a company's results are worse than expected), then the price will goes down. 

       Earnings, new products from the company, new projects or any other good news about a certain company affects the appeal of its shares to stock investors. Some just speculate and buy a certain stock or base their decisions from their friends or brokers. Others might be buying the stock of a food chain where he or she always eat or his favorite bank or mall. But whatever your reason of buying your stock, you should always trade at your own risk as what Sis Krissy always says. 

       As for me I always read the business news, browse forums, ask my friends in KFAM (LIP thread aka Stock Investing Thread) and then I buy low then sell high. But in case I was able to buy my stock at a high price, I just lower down the average price during "correction". It is when more people are selling than buying causing some stock prices to go down because of profit taking. Example of that was when I bought my first shares of PX at 12.25, then the next time I bought it was at 10.75. When it still went down to 9.90 and 9.89 i bought again, thus my AEP went down to my current average price of 10.4144. Now the current price of PX is 14.50 meaning my profit is at around 38% if I can sell it at that price. If for example, I invested P10,000 on PX then my profit is P3,800 already. And you can't earn that from the bank even after 1 year! But what if more traders want to buy than sell their PX tomorrow? Aha! Of course the tendency would be its price will go up and I can sell it at a larger profit... We will see, I'll update my portfolio in my blog tomorrow whatever happens. Go PX!

       So do you want to invest in stocks? Think... Who wants to be rich? Hmmmm... ME!!!!

NEXT: ONLINE BROKERS