Sunday, 31 August 2014

Pursue your Dreams

I heard this words many times : "PURSUE YOUR DREAMS"
Let me share with you my dreams:
1. I want to become a Famous Chef.
2. I want to own a restaurant business.
3. I want to finish a Masteral Degree.
4. I want to be a best selling author.
5. I want to be financially wealthy.

Those are few dreams that I'm trying to pursue in the past 10 years of my life. Yesterday, I sat down at the Italian Restaurant and reflect of my past. I was once a dishwasher in a small restaurant in Rome, Italy named l'elefantino ristorante, during that time my Mom was suffering from pulmonary bronchitis then I decided to work and help her financially. I and my sister decided to sent her home for medication. I'm having a teary eyes..to be continued...














There are surprises and unexpected events that will bring you to places that you never imagine. I was able to travel and work in different places around Europe while trying different jobs and position to pursue my dreams and discovering my passion.

Looking back to those listed dreams above, they are not achieved yet or I might not pursue them.
We are told that working hard will help you achieved your dreams, but the truth it involves passion. If you love what you do and know the purpose of your life, then even without listing those dreams, one day you will woke up and see them happening. I never dream of being a stock market mentor, investing and trading are hobbies for me, turned out that I have passion for it.

Dreams are blueprints of our journey. The destination that we are chasing everyday.Challenges and hardships will  come during this journey. I don't know what will be the key to achieve those dreams, one thing I know I'm happy where I am right now and doing the things that I love. I remake my list of dreams:

1. I want to have 2 kids and a healthy family.
2. I want to launch 2 or 3 books until year 2015.
3. I want PAM Academy to grow.
4. I want to have a PAM free kindergarten.
5. I want to be a CFO.

The focus of first set of dreams are money, fame and achievements. The second set focus on relationships, personal development, helping and sharing with others.

This quote will motivates you:


P.S. After I ate the pasta, I said to myself "Life is a daring adventure", now I don't need to wash the restaurant plates.

If you are reading this blog, share with us your journey in achieving your dreams.


Thursday, 28 August 2014

Make it













At this moment,  I know that you are overwhelm with information on what to do with your money or I should say excess money. After the establishment of your emergency funds and understanding how to earn passive income from investing in the stock market.

The fifth level on the money skills is MAKE IT. You have the money to invest, it's time to make money from your money. I'm trying to figure out what will be the suitable strategy to recommend for newbies on this field. The way to make money is to study the strategy that you will implement or pick your own PAM payamang strategy.

Newbie should start with value investing or long term strategy. The popularized strategy by our beloved mentor Sir Warren Buffet, the buy and hold strategy.I will give you 5 characteristics that you might look as the criteria in picking your winning stocks:

1. Unique products / Competitive advantage.
2. Board of Management.
3. Expansion plans.
4. Increasing Earnings or Company's valuation.
5. Consistent distribution of dividends.

I'm giving you the assignment to research the stocks that you are planning to buy this coming month and apply the 5 criteria above.

Congratulations to PCOR and PGOLD holders.

I hope you followed my recommendations in my previous posts.
If you are learning from this blog, please do not hesitate to share it with your families and friends.
Let them join in our journey to Financial Freedom.

Sincerely yours,

NEWBIE Mentor

P.S. I'm planning to reenter again on PCKH, I already earned from this stock and sold it at 82 level.



Wednesday, 27 August 2014

Invest It

After our lesson with the first three foundation of money skills. Let's move to the next level of the foundation of financial freedom which is INVEST.

After you established the emergency funds, then save at least the 20% of your income to financial instruments that could give you high potential return  higher than the inflation rate and interest rates from the banks. You can choose from stocks, bonds, mutual funds and certificate of deposits. For the purpose of this blog, our main focus is the stock market.

Why invest in the stock market?
There is only one reason "Our country is moving to a development stage in which potential growth in the long run can be seen" (GPD growth at 6.4% in 2Q14. ). Let's appropriate the opportunities to be rich thru stock market investing. I don't want to exaggerate it but to be rich in this field will take time and effort. The process will be painful and not a smooth road. Mistakes and failures in choosing the right stock will happen but the learnings along the journey will not be paid by the amount of potential money loss.

2 ways to earn from the stock market:
1. Capital Appreciation or Price Appreciation.
2. Dividends (Cash, Stocks, Property).

Capital Appreciation or widely known as price appreciation, the stocks increased in value or market price or exceeding the initial cost of investment or buy price. Many are buying the stocks believing that  there is a potential growth and expected return, you are investing on the trusted board of management and expansion plans of your chosen companies.

Dividends are the company's portion of earnings to be distributed to shareholders, dividends can be in the form of cash, stocks and property. Blu chip companies usually distribute yearly dividends. If you are a value investor, you should choose companies with high dividend yields.

Stock market can give you a passive income thru dividends and capital appreciation but it is not guaranteed. The burden of earning passive income on this field is at your hand. The first thing to do is research your chosen stocks and invest only to those companies that you understand or you have a knowledge on that specific field.

Sincerely yours,

NEWBIE Mentor

Monday, 25 August 2014

Money Skills

I would like to share with you the foundation of financial success. According to Multiple Streams of Income book, we need to understand the building of financial stage of financial freedom.
If you will find a 5 peso cents on the floor, are you going to pick it?
Most of you will answer "No", because the value will not help you buy a dream house, a dream car or not even a candy.The first foundation in the triangle of money skills is value. You need to value "Money",whether small or large amount.  If you can manage the pennies in your life,then you’ll be ready to manage the millions that will soon be flowing into your life. If you can’t manage the pennies, even though millions may come, you won’t be able to hang onto them.

A good example are those lottery winners, many of them went bankrupt after few years of continuous spending. According to study almost 95% of them went bankrupt. The main reason is because they don't know how to value and control it. Learn to value money.

If you will learn how to value  money, then you will think twice where you going to spend it. Sometimes we treat money as the root of all evil, so our mindset is to spend them and there is no reason to have more of it.Why not twist that mindset "Money is the root of goodness", it can help pay your bills, you can support charities, you can help those family members in need, you can help build a church or a free school, etc. If you will understand the value of money ,  it could give you a secure and brighter future of your family.

Control is the next foundation. Don't let money control your life. You are the one that will control the money not the opposite. Think about where you spend your last salary pay? Did you went out with your friends in an expensive restaurant or bar? Did you pay yourself with a new Iphone 6?

If you are controlled by the money, then the possibility is becoming  materialistic and spend the money to worldly ambitions. At the end of the day, you will be in debt because of overspending.

Save it. A very popular word in financial world. If I will ask you how much is your savings? Is that amount equivalent to more than 20% of your total salary in year 2013? If the answer is YES, then you are in a right track but if NO, time for you to retrack and study your saving habits. Another question is, what if  you will be terminated today in your current employment, will you survive for the next 6 months without working? Let me answer it, since I received my dismissal letter today from my current job and my answer to the question is "Yes". The first thing to do before we move to the next foundation is to establish your emergency funds.

I will discuss the other three levels on my next post,  but first check your own financial standing and money skills. In addition,  reflect with this famous quote of Sir Warren Buffet:

Sincerely yours,

NEWBIE Mentor



Wednesday, 20 August 2014

Emergency Funds

Ms. Lynnda Anido Gomez’s story of how she survived Typhoon Yolanda/Haiyan)

As Yolanda became stronger, the hospital got some of its wrath.....ceilings were falling, some wings flooded and the Generator was shut off for safety precautionary measures. Later, the hospital became a Center for evacuees. We were transferred to another safer wing. I could hardly stand coz I had no sleep and dextrose was just my maintenance and Inhalers. This hospital is a quasi-government hospital.   I was planning to get money from the ATM at the hospital but it was off line and some frantic people forcibly opened the other one.
I didn't know the gravity of the raging storm and the situation outside until the husband of Rona, Calvin, together with her 2 boys (2 and 4 years old) arrived. Their house which they just finished was blown away, also her aunt's appliances and everything else. Even their clothes were gone. It's a good thing they left some at my home when I asked the husband and kids to stay over earlier. Rice could not be bought, the stores and groceries were closed. So rich and poor couldn't buy staple food. I went to the groceries before my confinement but since we live near the market I preferred fresh everything.
The husband's report of what was happening outside, was shocking! There were many dead people lying on the streets and houses reduced to fragments and cars destroyed. I learned later on of my fallen trees and debris all over and my badly damaged ancestral home. It's like you got an eraser and erased a big part of Tacloban.
Source: Commission on Filipino Overseas
Let's try to define Emergency Funds. Many Filipino kababayans suffered from Typhoon Yolanda and many lives taken away including livelihood of survivors. The importance of emergency funds can be emphasized in this  situation,  especially if the relief goods are not enough to cover the needs of every victims.
Emergency fund is the amount to be set aside for unexpected events and surprises that will affect your financial standing such as job loss, illnesses or any major expenses. This should be available any time but at a safe account. It could be put on six month deposits or saving passbook account. Don't put on your cabinet or alkansya because someone could steal it or risk exposure to fire. I highly recommend to put it on a passbook account not link to  ATM card.
If you don't have an emergency fund, this is the time to start building it. A monthly amount set aside for this fund will give you peace of mind. No one knows when the storm will strike again. Be prepared all the time.

Tuesday, 19 August 2014

PGOLD vs PCOR

Newbies, my only dream is for all of us to learn and achieve financial freedom thru investing and trading in the stock market. Most of the brokers are giving their predictions that we could hit 7800 - 8000 range in 2015 which could give us a pretty good amount of expected gains of 14% minimum. This is prediction of experts but you are the one who will pick your stock bet for 2015.

No one will press the buy button for you. Better to make your PAM move, meaning Planning, Actions and Mindset. Make your plans for 2015 or the strategy to be apply tomorrow when the market starts to tick. I believed that 2015 can bring richness of 14% but the truth it could happen this year 2014. A good example is PCKH, last week I earned a pretty good amount with this stock. I collected gains when hit my target of 82 last Friday, then bought back few shares today and sold it for 7% gains. Swing with the movement of stocks, if you are good in technical analysis then you will understand the safe entry point.

PGOLD and PCOR are stocks that could be consider for longterm due to the consumer consumption next year.

Reason why PCOR went down:

Petron Corporation Employees’ Retirement Plan ("PCERP"), a shareholder of Petron Corporation (the "Company"), has agreed to sell 380,000,000 common shares of the Company at a price of P11.50 per share through the facilities of the Philippine Stock Exchange for settlement on August 26, 2014

For PGOLD:

Declined in earnings and the operational cost in their store opening. A good news struck this morning,   Lucio Co's move to become the controlling shareholder in the Philippine Bank of Communications (PBCom) will likely boost the operations of Puregold as well as Co's other consumer businesses, an analyst from Maybank ATR Kim Eng said.

I positioned yesterday believing that I have a good future with these 2 companies.

PCOR

Recommendation:  HOLD
Entry Price:   Safe Entry 10.78 below






PGOLD




Recommendation: Buy
Entry Price: Safe Entry Below 31





DISCLAIMER : YOU HAVE THE BUY AND SELL BUTTON. ANY POTENTIAL GAINS AND LOSS WILL BE SHOULDER BY THE READERS.

SINCERELY YOURS,

NEWBIE MENTOR



Friday, 15 August 2014

Different Stock Market Strategies

Our topic is to discuss the different stock market strategies in the stock battlefield:
1. Short term strategy
2. Mid term strategy
3. Long term strategy

It's your responsibility to pick PAMpayamang strategy. Let's define and give the time line for those strategies.

1. Short term strategy is a day trading or buying and selling of stocks or securities within a day or in a week.This strategy is used by the trader, those that could manage and monitor their portfolios every day and use methods or techniques to profits from the highs and lows of stock price. Day traders used high amount of capital to take advantage of higher gains in value. This strategy needs a lot of time to study the technical concepts and different methods such as Candlesticks, SEPA, ARC, PAM Support and Resistance etc.
This is not recommended for those working full time in their jobs or businesses.

2. Mid term strategy is the positioning strategy. For the purpose of this blog, mid term is ranging from 2 weeks to 1 year. The strategy is buying at a possible bottom of the stock and selling at a pretty good amount of gains or percentage. Mid term strategy are used by position traders. GTC -Good Til Cancelled order are used in this strategy and usually preparing a buying power on the sides in case the stock goes down or setting a cut loss point and target gains. PAMers used this strategy. There is no need to monitor the stocks everyday because the target price is already set thru GTC. PAM PSE Tracker is highly recommended for monitoring the stocks especially  to avoid temptation of selling stocks at a small gains or at a loss.

Here is the link for PAM PSE Tracker: https://play.google.com/store/apps/details?id=com.athanruiz.pam&hl=en

3. Long term strategy is a value investing strategy. The strategy popularized by Sir Warren Buffet, the holding period is for a longer period of time. For the purpose of this blog, 10 years and more should be the time frame. Buy and hold strategy in which the investor is not concern with the short term fluctuations of price. The task of the investor is to buy a company below intrinsic value with sound fundamentals. The company has a competitive advantage in the industry and with an expansion or growth plans.

There are strategies not mentioned on the list such as PCA, PAM,SAM etc. I will discuss those in the following blog posts.

P.S. I would like to express my feelings to the readers of my blog especially those reading the http://pamrichfriends.com/ . I know how to accept mistakes and criticisms. One reason that I'm blogging is because I would like to share my knowledge in this field but there are times that my English grammar is not pleasing to the eye.My goal is to share my stand and  knowledge. It will be easy for you to judge my way of blogging but DID YOU ASK YOURSELF WHAT HAVE YOU CONTRIBUTED TO THIS FIELD?
I'm not angry or mad,  but I have friends and families around the forum and they could easily get hurt if I will be attacked personally. Anyways, I lived in Europe half of my life and exposed in different languages Italian, Portuguese, but I was n't able to practice the English language. I will not change my approach or improved myself because I was dictated by my audience or readers but I can guarantee that what I'm sharing is coming from my own understanding and values. In line with this post, if you don't like my blog. Please feel free to shut up or closed your eyes, it will be my pleasure.

Thank you.

Sincerely yours,

NEWBIE Mentor

Wednesday, 13 August 2014

Choose the right Stock Broker

Last time we defined what is stock?
Let's move to the next step and probably one of the important decisions to make is to choose the right broker for you. The criteria are the following:
1. Customer Service should be friendly and promptly reply to your inquiries.
2. Systems working properly/ Online trading platform user friendly.
3. Easy transfer of funds.
4. Brokers Research and Analysis are credible.
5. Proven track record.

Try to check the list of brokers in the PSE website. You can open an account with a minimum of 5000PHP. If you are an OFW, download the forms on their website and send it thru DHL or post office. They will acknowledge your forms and give you the account number. BINGO. Fund your account.

List of my recommended brokers:
1.COL
2.PHILSTOCKS
3.FIRST METRO SEC
4. BPI SEC

I found them convenient because of the online banking transfer thru those stock brokers. In terms of customer service, COL and Philstocks are accomodating. BPI system is always down. First Metro have a good app but I'm using PAM PSE Tracker.

For Fundamental Analysis, COL is one of the best because of the financial forecasting method.
For Technical Analysis, Philstock is preferable.

Sample of COL Investment Guide:

















Sample of Technical Analysis of Philstocks:













Another consideration is transaction fees, as per checking COL has a lower fees from the list of brokers on the table below:










I will let you pick your Stock Broker.Don't forget to secure your TIN number.

Sincerely yours,

NEWBIE Mentor

P.S. The good thing with COL Investment guide buy below price and Target Price are same with those stocks chosen by our SAMers Friends.

Monday, 11 August 2014

How to invest in the Philippine Stock Exchange?


  • Did you hear about investing on the stock market?
  • Is stock market only for the rich?
  • Do I need to graduate as Finance or Accountancy major?
  • Is stock market only for the risk takers?
  • How can I start?
Those questions above are the frequently ask by NEWBIE investor. I decided to blog for newbies and guide them on how to invest on the stock market. The feeling of lost and afraid to jump into a boiling water or the sea of sharks. The myth that stock market are only for the rich and educated individuals.

In this blog, I will separate my character as a hardline trader and start again together with those newbies on the stock market. There are many works to do and knowledge to share. I will try my best to deliver what is required by the newbies. 

Many successful stories like the maid of brother BO and the janitor of BDO. I would like to hear many Pinoys achieving financial freedom thru stock market. They don't have any degree on Accounting and Finance but were able to succeed. They are not rich but were able to fund and grow their capital. How about the risk? Risk exists in everyday lives but we could take a calculated risks. They started their adventures in this field because of their mentors.

I will be one of your mentor and you can asks me newbie questions. Let's start working.

What is stock ?
Stock is a piece of ownership that represents a claim or part of a corporations assets and earnings. Stock is also called shares or equity.

What do you call the stock owner?
Stockholder or shareholder which is an owner of a company determined by the number of shares owned.

Can you compare the stock market to wet market?
Yes, in a wet market for example: you (buyer)want to buy a fresh fish (product) from a vendor(seller) while in a stock market there is a buyer and seller in which the product is stock. The main difference is brokers transact in behalf of the buyers and sellers.

In a business point of view, if I want to open a bank but I don't have enough capital then I would rather invest on stock market thru a brokerage firm and start accumulating shares of Metrobank, I will be in good hands.

Next step, open an account on a brokerage firms. The process of selection of brokers depend on your research on which stock brokers could deliver a valuable service. You can open an account as small as 5000 pesos.

Save the 5000 pesos. I will give you my review of different brokers on the next blog post. This is a right time for you to open an account especially that this month is an Aughost month, low trading volume and stocks can go bargain as low as -5%. The only problem is to pick the fresh fish on the market not by recommendations of market gurus.

Sincerely yours,

NEWBIE Mentor







Sunday, 10 August 2014

NEWBIE

As FB forums increasing number of members, it is a good sign
that many locals or kababayans started investing in the stock market.
A sign that many Pinoy are looking for financial freedom and financial richness.
A very important thing to know is “there is no magic formula”, you will pass trials and challenges.
If someone told you that they earned a lot of money in stocks, they incurred losses as well.
I always recommend you not to follow anyone.You need to study and do your own research. If you want to stay in this field, then learning from your own mistakes will give you knowledge that will be useful in future trades. Stock market is for the risks taker, there are few successful people because few are willing to take a risks.
If you achieved your dreams even a little dream, finished your degree, started a small business,
you went abroad, and started investing. Consider yourself already an achiever and used the same technique developed in your past achievements.
Be proud of yourself, because if not who will do?
Don’t let anyone look down on you
Always look for the possible opportunities of learning.
While the red blooded market hitting your portfolio, you cannot avoid it as this part of
stocks investing/trading. What you can do is watch and learn?
We have recommended books , the Intelligent Investor by Benjamin Graham and Buffetology  by Mary Buffet for long term investors and Trading for a living by Alexander Elder  and  Stock Market Strategies that work by Jake and Elliot Bernstein for Traders.
I have red a lot of rich stories in the past and many asks for my advise.If you are one of them, I’m hoping that you are holding to those lessons. I might not be able to buzz  or pm you with your situation right now but I will be always here on your side dreaming that many Filipinos will achieve their dreams.
Take care of your port,  it should be a reflection of yourself.
OMG! I have blu chip stocks that turned into red stocks.
Better to study first and make your own strategy as PAMpayamang strategy.
Samahan Mo Kami Patungo Sa Financial Freedom..

Savings Plan for Financial Freedom

I’m reading the book of Robert Kiyosaki, Guide to investing and his elaborating the goals of every individuals accordingly in this order: ...