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Showing posts from 2017

Market Wiz(ar)dom

Source: The New Market Wizards by Jack D Schwager
Jack D. Schwager, after interviewing great traders, summarized his observations regarding success in trading as follows:
1. First Things First - be sure whether you really want to trade or not. 2. Examine Your Motives - examine your motives very carefully for any conflicts. The market is a stem master. You need to do almost everything right to win. If parts of you are pulling in opposite directions, the game is lost before you start. 3. Match The Trading Method To Your Personality - the approach you use must be right for you; it must feel comfortable. 4. It is Absolutely Necessary To Have An Edge - if you don't have an edge, all that money management and discipline will do for you is to guarantee that you will bleed to death. 5. Derive a Method - to have an edge, you must have a method. 6. Developing a Method is Hard Work - developing your own approach requires research, observation and thought. Remember that you are playing agains…

Buying Property? Don’t Get Fooled: 7 Ways to Ensure Your Land Title is Real and Clean

Source: https://www.securitybank.com/blog/7-ways-to-ensure-your-land-title-is-real-and-clean/

There’s nothing worse than going through the tedious process of buying your new home and realize – just as you’re all set to move in – that the title isn’t clean, or worse, is fake. A dirty title might have so many mortgages, liens and encumbrances attached to it that you’ll begin considering the possibility of living with your parents forever. The first step in ensuring a title is what it appears to be is to check for authenticity. A clean title is no good if it isn’t a genuine title in the first place. How do you make sure a title is real?
Check the quality of paper used. The forms used in property titles are exclusively printed by the Banko Sentral ng Pilipinas. The judicial form uses a type of paper which contains various security features. The paper is made out of 50% cotton and 50% chemical wood pulp with colored fibers. If held up against a light, an LRA or Land Registration Association…

Business 101: Are You Prepared?

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Growing a business of your own is the most rewarding experience you'll ever have. It's your baby. However, jumping into self-employment without first understanding the effect it will have on your personal financial situation is a serious mistake. From a personal financial perspective, there are three major questions you need to consider: (1) How much money are you comfortable losing? (2) How long can you go without an income from your business? (3) How will you recover if your business fails? (Picture attached is subject for copyright. From the web)

7 Simple Ways to Become a Millionaire in Your 20s

Source: https://www.securitybank.com/blog/7-simple-ways-to-become-a-millionaire-in-your-20s/
Millionaire— a title you may have imagined while picturing a seven figure bank balance. One can dream, right? Actually, getting there is easier than it sounds. Money is everywhere. You just need to know where to look and, more importantly, know what to do when you find it. Educate yourself Stop checking lottery numbers and start looking at numbers that matter. Super-charge your financial knowledge by reading the Finance section of the newspaper (or by reading blog posts that tell you to do so). Being informed is the first step to making sound financial decisions. Try to monetize everything In the age of the Internet, money can come from unexpected sources. If you’re good at something —whether it’s a hobby, a passion of yours, or basically anything you like to do all day— never do it for free because there might be a way make money from it. From writing essays and blogs, painting, playing video g…

Business 101: What's Your Motivation?

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Starting a business is a test of strategy, stamina, commitment and resilience - a game of survival of the fittest. So its not just enough to have the right motivation for starting a business. Business basics can be learned but not everyone has the personality to flourish on his or her own.

It represents a lifestyle change, a lifestyle for which not everyone is suited. It requires a huge personal and financial commitment and it should not be something you enter into halfheartedly. Successful entrepreneurs are driven and passionate about their business ideas. They derive energy from the excitement of building something to scratch. They see opportunities all around them and they have a strong desire to control their own destiny. They have an inherent go-for-it attitude. They don't just give it a try and hope it will work out. They are confident that they have what it takes to turn their dream into reality.

People give myriad reasons for wanting to start their own business. But not …

BIR on PERA: RMO 42-2016

These are some of the important highlights to take note of regarding PERA: a) A Contributor may create and maintain a maximum of five (5) PERAs at any one time. However, each PERA shall be confined to only one category of PERA Investment Product. Thus, a Contributor can have five (5) PERAs and five (5) categories of PERA Investment Products; b) An employee or self-employed qualified Contributor shall be entitled to a five percent (5%) tax credit of the aggregate qualified PERA contributions made in a calendar year which shall be allowed to be credited only against their income tax liabilities. An Overseas Filipino Contributor with taxable income in the Philippines shall be entitled to a five percent (5%) tax credit to be claimed against any internal revenue tax liabilities, excluding his/her withholding tax liabilities as a withholding agent. However, Overseas Filipino Contributor without taxable income in the Philippines shall also be entitled to a five percent (5%) tax credit but wil…

How To Trade Like A Pro

Bank Deposits & Fees

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The common reasons why people put their money in the banks instead of keeping it in their personal safe are:

1) Security - storing all your money at home isn't safe due to unforeseen events such as robbery, floods or fire. With that in mind, when a bank goes bankrupt, any money you put in the bank is protected by PDIC (Philippine Depository Insurance Corporation) only up to P500,000. So make sure that the bank you will be choosing is insured with PDIC.

2) Convenience - you can access it anywhere - ATM, online, use it for shopping or paying bills etc.

3) Saving & Investing - putting your money in banks allows you to save and invest for your goals. Because the interest offered is minimal, they offer other products that can grow your savings such as time deposit and UITF.

Common requirements in opening an account are:

1) ID Pictures (depends on the bank. Usually passport size or 1x1. Have at least 2)
2) Valid Government ID (passport, driver's license, SSS/GSIS ID, Postal ID,…

The Ghost Month

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One common phenomenon in which superstition affects business judgments would be during the "Ghost Month." It stems from a popular Chinese belief that during the month of August (7th month of the Lunar Calendar), the Gates of Hell open allowing spirits to roam the earth. People avoid making major decisions during this month for fear of inciting bad luck. Regional stock markets, especially those with predominantly Chinese investors, usually weaken and experience relatively lower volume.  Usually it starts from August until September. August is also the month where the second quarter earnings of companies are released. With that, you can decide whether to buy more, hold or sell a portion of your stock. This is a watch-out month and better be cash ready. Tip: For those who are into long-term, I would suggest to wait for this time before adding to your shares rather than buying every month. Depending on the prices, this may not only help you save on fees but also, it will not …

Stock Strategy: Pyramiding

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I came across this term in TAP by TH. At first, I really didn't understand it since I am a newbie (still a newbie until now). However, while test trading and incurring huge losses, I began to grasp what the group wanted to teach despite of all the bashing, blaming and noise. According to TH, formula is Build Bodega Volume + Buy on Breakout or RPP + Add Volume on the Trend + Watch as it goes higher ( for needles or double tops) + use Trailing Stops. Then just watch it as it goes higher and set trailing stops higher. To make money this way, you need sustainable risers for 12 months to 24 months, if not more, depending on the wave before you. You cannot pyramid quickie #bargirl  rides that are volatile because you cannot get volume safely. Meaning:

1) Pyramiding works well in a bull market or in a trending stock.
2) We know that volume is important - the more shares, the better the profit. That's why, as the stock price moves up, we add more shares.
3) However, we have to mak…

Insurance: Null & Void

#Worth Sharing https://web.facebook.com/groups/pinoyinsurancetalk/permalink/381648012031035/?_rdc=1&_rdr To every Filipino who signed their insurance applications and proposals abroad but the place of signing put in the form is Philippines, this is an actual story for you. A client asked for my help. He wants to know the status of his insurance policy. He learned from Pinoy Insurance Talk Facebook group that signing insurance applications and proposals abroad is prohibited and any insurance policy born out of such is void. Also, that when an insurance policy is void, his family may not be able to claim anything. He got anxious and thought:
 1. What will happen if I die during the contestability period? We can never be sure nothing will happen.
2. How about after the 2-year contestability period? Will my family be able to claim this time? He confronted his agent about it. His agent only offered excuses. He contemplated of inquiring about the matter himself, but his agent told him…

Crowdfunding: Is It Legit?

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Crowdfunding as defined by investopedia is the use of small amounts of capital from a large number of individuals to finance a business venture and it is becoming popular nowadays. However, we need to do our due diligence before investing in this type of investment.  Have you heard of fundamental analysis when investing in the stock market? If not, fundamental analysis is a method of evaluating a security in an attempt to measure its intrinsic value, by examining related economic, financial and other qualitative and quantitative factors. In crowdfunding, fundamental analysis is a must since we are investing after all our hard earned money in a business just like in the stock market. So what are the most important things to consider or understand? 1) Management

You have to know who are the people behind the business. Know what are their working experiences, education and/or background. You need to know whether they have the 'business acumen'.

2) Business Model

Understanding the…

When to Buy Stocks

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Source: http://www.investors.com/ibd-university/how-to-buy/when-to-buy/
When we start our journey in the stock market, the most common problem that we will encounter would be on what stock/s to buy. We usually see this question in trading groups or forums and the usual answers would be blue chips and mutual funds. However, once you've found the stock to buy, don't buy right away. Why? Because the market is a like a roller coaster, up and down, up and down. Remember: Buy Low, Sell High so when are we going to buy then. 
There are two indicators you need to review before buying a stock whether its a blue chip or a small-medium cap stock: Check Market Condition  You have to know whether the market is bull (up) or bear (down). Make new buys when the market is an uptrend (BOBO - buy on breakout but you need to have a good base. Check Pyramiding Strategy)If you don't have a base, wait for corrections or pullbacks before buying. How? Review the stock chart.Review the Stock ChartTr…

How To Protect Your Capital?

Palaging naririnig natin yung aral bago invest pero ginagawa ba natin? Yung iba kasi pumapasok sa pag-iinvest na hindi naiintindihan even the basics tapos pag nalulugi, magtatanong sa facebook kung ano ang gagawin. Ano nga ba dapat ang gagawin?
Una sa lahat, bago pasukin ang stock market, dapat alam mo anong purpose mo sa pag-sali. Kung pang-short term lang ba or long term. Sunod, dapat alam mo yung magkano ba ang kaya mong mawala sa pera mo. Eto yung tinatawag na risk/reward ratio. Pag alam mo na ang mga ito, planuhin mo na yung trade mo. Always always plan your trade especially if you bought or have penny "basura" stocks in your portfolio.
Suggestions:
1) Stick to one blue chip or undervalued stock if you have a budget below P10,000. Bakit? The more volume you have, the better if the price goes up. Pag down ang market, makapag-average down ka unlike if ang dami mong hawak na stocks. Hindi mo alam san ka magdadagdag. Huwag mainggit sa ibang stocks kung lumilipad. Just focu…

Dissecting VUL

Some people still ask the question whether VUL is a good investment and I had already written my view about it. Here's a detailed explanation why for me it's not an investment:

1) They say it's a 2-in-1 product (insurance + investment)

Let's review the product. 2-in-1 meaning death benefit plus riders (accidental benefit, critical illness etc.) + investment (mutual funds which can be withdrawn or borrowed so it's a living benefit).

However,the policy will lapse once the fund value (investment) is insufficient to pay for the charges. Yes, you read that right. That's why some people complain about those who have limited pay VULs (5, 10, 20 years to pay) why do they have to pay again for additional premiums.

With that, is it really a 2-in-1 product? Well, I think it depends on what you want to achieve.

2) Fees! Fees! Fees!

Agents/advisors usually don't discuss this matter. Didn't you know that there are 3-4 charges in a VUL.

a) Premium Charge - deducted …

Surviving a Sandwich Generation

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A 'sandwich' is a food where two or more pieces of bread serve as a wrapper for another food type (wikipedia).

So when you hear the word 'sandwich generation', it means that you are a middle-aged individual (30's-40's) who cares or supports not only your children but also your parents. So it looks like this:


There have been debates about this topic whether children are obliged to support their parents. It was even asked in the Bb. Pilipinas Q&A and the contestant herself seemed confused on what to answer. She first said No then changed her answer to Yes without explaining why.

I am in a sandwich generation. It was easy at first when I was single but now that I have a family to take care of, sometimes I do not know anymore what to do especially when the problems are continuous. It's draining me not only financially but also emotionally. However, I am surviving this generation by:

1) Paying Myself First

Since I know how to budget, I make sure that I set…

Market Research

Doing market research before starting your business will allow you to know the demand of your product/service, who will likely buy or use them and whether these buyers will likely affect the location of your business.

Target market. Have you identified the type of people who will likely buy your product or use your service? What will you do to be able to understand their behavior and know them better? How many units of your product do you think can you sell or service jobs can you complete in a month, in a year?

Advertisement. How are you going to reach your customers? How are you going to reach most of them at the least cost?

Price. How much are you going to charge? High side or low side? Will you be able to make profit?

Competitors. Who are your competitors? What is important here is not the competition but your target market in relation to your competitors. It will help you understand your target market further by looking and analyzing as to why the target market buys or might buy from…

Understanding Technical Analysis

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Ang pag-aaral ng technical analysis ay ibang-iba sa fundamental analysis. Ito ay naka-focus sa price action or price movements ng isang stock. Parang sa economics, inaaral nito ang supply and demand para malaman kung ano direction ng stock, kung ito ba ay trending or hindi.
Three assumptions when doing technical analysis: Price discounts everything. Ibig sabihin nyan na kung ano ang current market price ng stock ay naka-reflect na doon ang fundamentals nung company (qualitative and quantitave). Kaya ang mga technical analysts ay naka-focus sa kung ano ang ipriprice ng market sa stock.Price moves in trends. Ibig sabihin nyan kung uso ang isang stock, may tendency na tumaas ang price nito. Ibig sabihin mataas ang demand ng isang stock. Paano ba nagiging uso ang isang stock? Sa mga balita or updates tungkol sa company. Pero kelangan maingat dito kasi mamya nilalaro lang pala yung stock. Kunyari trending pero hindi pala. History repeats itself over time. Alam natin na up and down ang mar…

Understanding Fundamental Analysis

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Nanonood ba kayo ng Shark Tank? Kung kayo ay nanonood, napansin ninyo na palaging tanong ng mga sharks ay numbers. Kung magkano ang sales nila. Ano ang plano etc. Ang fundamental analysis ay ganun din.

Fundamental analysis ay ang pag-aaral tungkol sa value ng isang company at kung may potential ito for future growth. Paano nalalaman? Sa kanilang financial statements or FS. Kaya pansinin ninyo pag pumunta kayo sa website ng isang listed company, my investors section doon kung saan pwede ninyong idownload yung FS nila at mga news or other disclosures na pwedeng maapektuhan ang mga investors. Makikita nyo rin sa pse edge, lahat ng fs and other disclosures ng mga listed companies.

Ang fundamental analysis ay pwedeng quantitave;  meaning ito yung mga kinocompute like eps, debt to equity, book value etc at pwede din itong qualitative meaning ito ay yung bigger picture like company's management, quality and popularity of products or services etc. Para hindi kayo mahirapan sa quantitativ…

Stock Strategy: Peso Cost Averaging

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Nabanggit natin na mataas ang risk sa stock market. Hindi natin alam kung ito ba ay pataas or pababa. Dahil dyan, marami ang natatakot mag-invest sa stock market. Pero kung titignan natin ang history ng PSE, tumaas ito from 2,900++ (September 1994) to 6,500++ (2016). Imagine if you invested way back in the late 90's. Isa sa mga paraan para ma-minimize ang risk ay ang peso cost averaging. Ito ay ang pag-invest buwan buwan sa isang stock regardless of the price. Yung amount at time frame ay depende sa inyong budget. At dahil up and down ang market, tandaan natin na mas madaming shares ang mabibili kung mababa ang price at konting shares naman ang mabibili kapag mataas ang price nito. Halimbawa: P5,000 every month. Stock: MEG

Month 1: P4.25
Month 2: P3.57
Month 3: P4.14
Month 4: P3.77

 Kung titignan ninyo ang example, if the market is down at bumili kayo ng shares, ang average price (AP) ay bumababa. Since ang closing price for Month 4 ay P3.77 versus P3.91851, ikaw ay may paper lo…

Strategic Management in Small Business

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A small business has a choice of two goals: Increase profits but stay small (niche market) or grow into a larger business. How? By managing your company using the elements of strategic planning. Assessment Take a week or two to scrutinize your industry, competition and the general state of business in local economy. Think about how trends have changed over the last couple of years and where they might be headed as you go through your daily tasks. Take note as ideas rise. After that, take time to consider your target customer, what she values, how you can meet her needs. Last, spend time looking at each sector of your enterprise: how it operates, whether it is efficient and how it fulfills the needs of your customers. You will immediately see problems that can be fixed with little effort. And you will already have some ideas about adapting to the competitive environment and satisfying your target customer. Positioning The most important aspect in positioning is that it sets a specific d…

Accountant: What To Look For?

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We all know that understanding the basics of accounting is important especially if we want to become an entrepreneur. However, some of us are really bad at it. With that, we need to hire an accountant or a bookkeeper. If not, we will not be able to see the real financial situation of the business. Nowadays, with the changing business landscape due to technology, we can outsource jobs including accountants and/or bookkeepers for a minimal fee. And we have to make sure that there's quality when doing this. Rob Nixon in his book Remaining Relevant lists an awesome 8 an accountant should have when serving their clients. We can use these as our basis when looking for accountants.
Growth: helps the business increase its revenue and build wealth Profit: helps understand where the profit is coming from and suggests how to improve it Cash flow: helps understand and suggests how to oversee it Tax exposure: helps in managing tax efficiently Asset protection: helps keep hold of what the business …

Be Thankful

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There's always a reason to be grateful to God.

We may see some people "more successful" than us. We sometimes encounter people who are "less fortunate" than us. But no matter what we have achieved or not, there's always something to be thankful of. Be thankful that God wakes us up everyday, giving us another chance to make up for the things that went wrong or a chance to bring smile to other people. Acknowledge the fact that other people love us, whether we like it or not. To be loved is not our choice to make but for those who love us. Thank them for giving you something that you didn't really ask for. Be grateful for the small details in life. For when you realize how blessed you are, "Contentment" follows. -- Khristian Santos

#Thank You!

Putting Your Business Together

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Many of us wants to put up a business but doesn’t know where to start. Here are some tips (reference: Guide to Starting a Small Enterprise): Start by defining your purpose for putting up the business and setting the goals and objectives that will lead you to achieve this purpose. Let these questions guide you: üWhy am I setting up this business? How do I want my business to be five years from now? What should my business achieve on the first year, on the second year, etc.? üWill my business be a single proprietorship, will I get partners, or will I incorporate? What are the advantages and disadvantages of each type? üWhat are the laws and regulations that can affect and influence my business? üWill I need people at the outset? How many will I need? What qualities will I look out for in them? üWhere should I go for information and guidance? Look at your finances. Regardless of the manner that you will start a business (an entirely independent business, an existing one, or a franchise) and typ…

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