Posts

Showing posts from August, 2017

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

Image
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

Image
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

Image
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…

Book Depository