My First Days in the Philippine Stock Market.. and why I liked it

I have noticed my previous blogs all revolve around encouraging people to try entering the stock market.

I expressed statements like “money working harder for you”, “do not be slave of money” and “create your money machines”.

But I realize that experience is not only the best teacher.

I have recognized that it’s also the most credible salesperson.

Aside from it speaks by itself without those false marketing tactics,its results also set the records straight, putting everything in black and white,  leaving no gray areas.

So let me disclose here a snapshot of what I have experienced out of this when I was just starting back year 2010.

But first, let me say that I was really ignorant financially before, let alone on investing in the stock market.

I just considered thinking about the stock market few months after I had read Bro Bo’s book which started my financial freedom expedition. Then it was followed by an unsolicited invitation from one of our lecturers during our board exam review.

Up to now, I could still clearly remember how that kind professor said his regret on his late entry to the market. That it took him many long years before he and the stock market met along the road.

So when I finally decided to give it a try, I went the next day to an online brokerage firm and deposited 10,000 pesos.  From that day on, I faithfully made  monthly deposits to add to  my trading account.

Now what happened months after venturing into a previously unknown and seemingly intimidating world?

Shown is the summary of all my transactions for the year 2010.

My first transaction was buying 2,000 shares of Megaworld (MEG) (Related post - My First Purchase in the Philippine Stock Market). 

I was actually totally clueless on what to buy for the first time, and I simply got that idea from one of my lecturers during my review.  I honestly didn’t know much on the ins and outs of stock market, but out of my curiosity I managed to move on and do my first transaction.

Three days after, I was shocked when I saw its price jumped from 1.87 to 2.05. That’s more than 9% gain, whee!

I was thrilled!  How can multiplying money be that easy, I thought!

Feeling all the excitement, I decided to sell it right away at that price. Paper profits( meaning profits that’s still virtual until actually sold)  became actual realized gains!

Okay.  

Now I had cash again in my hand. Back to deciding and looking four what to pick up next. 

I couldn’t  remember where I got the inspiration of buying Pangilinan-owned  MPI as my next move, (I guess from some rumors), but elated by price appreciation I had in MEG in just three days, I purchased 2000 shares of  it the next trading day. After just one week and one day, seeing another good return, I immediately put in a sell order, and broom, that’s instantly more than 7% gain!

The next was even more fantastic and ecstatic.

I still remember when my Math reviewer said “Mahina nako pag di umabot ng dose [yung price] ang SMDC”. He appeared to me as experienced enough to give such a prediction.

So innocently and experimentally relying again on that advise alone and trusting his instincts, (without knowing yet about fundamental and technical analysis), I entered a buy order for 1000 shares of SMDC. Seeing it was executed, I went back to my job, and waited what would happen next.

But lo and behold, in only just two weeks, its price went up high to 10.36. Super amazed by the profits in a very short period of time, I immediately grabbed the chance, and reaped that whopping 21% gain. Waaah!!!

 

BEGINNER’S LUCK

Now I m not sure if those three consecutive gains is just what they call beginner’s luck, but that great performance really caught my interest towards the stock market as a vehicle to achieving some of my goals.

As you can see from the list, the profits was even followed by other buckets coming from MEG and FLI.

I bought 3000 shares of FLI and another 3000 shares of MEG at 2.49 at the same day. The 3000 shares of FLI though took a longer time to appreciate, that I needed to average down by buying another 3000 shares at 1.27 per share until I finally sold it all at 1.35 per share  a  gain of  almost 2% ,still bigger than the interest rate of banks .

But the 3000 MEG shares I sold immediately when made it way up to 2.78 per share at an enormous 13% gain in just three weeks.

Now digest all those math and start your imagination.

Henry Sy’s BDO and Ayala’s BPI will never ever offer such interest rate in your savings accounts.

What they would skillfully try to do instead is to attract every individual employee to deposit their hard-earned money in the form of savings, time-deposit accounts, checking accounts or any other fancy name, invest them wisely to buy shares just like what I did, obtain that 10%-20% gain in a matter of DAYS, and as a sign of respect  and thanksgiving after  leveraging on your money, give you a 0.5-2.5% ANNUAL  interest as consolation and solace. Now you know how they can afford to build and maintain those large air-conditioned buildings and pay all their bankers and managers.

But don’t get mad baby.

Here’s a suggestion -Do a resbak!

I’ve found out that just like MEG, MPI, SMDC and FLI, these profitable big banks are also listed in the PSE – meaning its shares are open for public purchasing.

Go buy them and grab your chance to make more than those super-tiny interests that have been fooling you for so long.

Update me when you’re done.

For your financial freedom! :)

Have fun investing!
Omeng \_(",)/

PS: For beginners, download your free copy of Bo Sanchez' My Maid Invests in the Stock Market... And Why You Should Too [PDF]. Click here to download! 

If you're just starting to invest, download this FREE practical ebook to guide you in every step of the way - Investing in Philippines Stock Market for Beginners!

PS2: Here comes the more interesting part.
Check the prices of the stocks mentioned above and you'll find out how stock market could be a GREAT OPTION when it comes to growing one's wealth for the LONG TERM.

Example: 
As of market closing yesterday May 14 2014, MEG's price is 4.68. FLI is 1.65 while MPI is 5.23.  SMDC had been delisted though while JFC is now 176. 

Stock	Price when I bought at 2010	Closing Price as of May 14 2014	% Gain assuming I totally forgot about it	Comment
MEG	1.87	4.68	150.3	whoa, more than double!
MPI	3.55	5.23	47.3	pwede na
FLI	1.38	1.65	19.6	small ito actually
JFC	93.5	176	88.2	bida ang saya!
MER	200	275.4	37.7	this could also be better

This does not include yet the dividends that they've given for the last three years. 


This gives us one insight as to the common observation that the rich gets richer. The truth is that there are vehicles available to ride on that actually make wealth building more possible. And investing in stock market is just one of it.



PS: I actually did one mistake when I was starting - and that is failing to come up with personal financial plan before actually investing.

As I've learned now, it's critical that I have my financial plan in place before putting my first peso in the stock market.
Don't make that same mistake.

Join us this June 28 to help you make your own roadmap in achieving your life goals.



Note: The topic is not just about WINNING in the stock market. It will also touch on having a financial plan grounded on a solid foundation for the REST of your life.

Deadline of super early bird discounted fee of 2997 2497 1997 is this May 24 na so reserve your seat now.  Limited seats only so email pinoyinvesting@gmail.com for reservation.

Invest in YOURSELF this time. And reap the rewards in a lifetime. Click here for more details. 

Limited seats only so email pinoyinvesting@gmail.com for reservation.