Smart Pinoy Investor

What is a blue chip in stock market?

Here’s an interesting account from what Sir Gus Cosio has to say about blue chip in the stock market.

"The term "blue chip" as I recall, arises from the white, red and blue chips that poker players use instead of cash. White chips are the smallest denominations and are normally used for ante. The red chips have the second largest denomination while the blue chips are the largest. The logic of poker players is to be able to stay in the game as long as they can because the chances of being dealt a very high hand would increase as the game progresses. For this reason, poker players keep the blue chips for high probability winning hands. Hence, the term blue chips in stock investing implies the high probability of profit or the sure thing. Technically, traditional fund managers define blue chips as stocks that have proven earnings model, regular dividend payout and steady growth prospects. Blue chips do not remain blue chips all the time. Some examples in the US are General Motors and Ford. Harsh economic conditions can alter the fortunes of even the strongest companies. AAPL, for one was a NASDAQ company for a long time, now it is the largest market capitalization in the world at 600 billion. In short, the term blue chip should be appreciated in both the intrinsic and extrinsic conditions of companies. This should tell you that there is no substitute for a regular review of investments in your portfolio. Blue chips may turn it's color."

A bit of info for you!

Have fun investing!

PS: You have question? Get them answered in our growing facebook group!
Find your support group there!

Free Financial Literacy Program for Pinoys in SG!

Are you a Pinoy in Singapore? Then this is for you!

Read details below and start being a manager of your financial life!

Seats are limited so better sign-up and reserve for a slot now.

If you’ve been in this blog for some time, you’ve probably known that my heart belongs to our dear OFWs. So if you also know someone in SG who you think needs this, spread this and help them start build their wealth and go back to the Philippines with much more financial peace.

By the way, its speaker Randell Tiongson is one of our mentors in the recently concluded RFP (Registered Financial Planners) Program. I was part of its batch 28 run (which the organizers say is the most vibrant batch so far HAHA) and am just so fortunate to meet this great guy in person.

I personally love his emphasis on research, values and integrity which I think are the things that greatly differentiate him from the rest of financial coaches out there.

I am excited to make a review on his approach to financial planning in my future blog, but in the meantime, enjoy learning from him in his personal blog. He also has another seminar offering - the NO NONSENSE SEMINAR on FINANCE:How to invest for the future! with details you can find here.

That's it!
Happy Monday!
Enjoy this free gift!

Have fun investing

PS: A group of Pinoys in Singapore is also cooking another gathering that can serve as a regular venue for financial literacy discussions. This is also a good chance for you to network with other Pinoys in Singapore as you go along your financial freedom journey. Discussions about the event is going on right now so join our Facebook group and just look for the thread dedicated to that.

PS2: This is important. Hang around for the next blog where you can get a chance to have a personal finance plan, still for FREE.

What is a personal finance plan?

It’s a plan that will help you achieve your life’s goals focusing on its financial aspect. Yes, we’re talking about life’s goals so this must be big.

In a nutshell, a financial plan will help you have a gauge on where you are right now, where you want to be, and detailed action plans you can possibly take.

This is rather serious as we’ll meet personally a few times to gather data and discuss things.

No any sort of selling, just serious planning that can be of help towards your dream life.

Comment below if you need more details.

What’s the minimum amount you can deposit to your COL Trading Account?

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There are basically two options for you to fund your COL Trading Account.

Online Banking via Merchant Payment
Over-the-Counter via Merchant Payment

Note that these are only applicable to the three banks: Bank of the Philippine Islands (BPI), Banco de Oro (BDO) and Metrobank.

But what’s the minimum amount you can deposit to your COL Trading Account?

The fact is that you can add to your COL trading account any amount you want, but I just found out below new regulation of COLFinancial.com Inc regarding funding that we as clients should be aware of.

*Service Fee for deposits less than Php500.00
     Please be advised that effective July 16, 2012, deposit/merchant payments of less than P500 per transaction made through our partner banks will be      required to settle the service fee charged by respective banks. The service fee varies depending upon which bank you choose:

     Over the Counter (via bank's merchant payment system)

     Banco de Oro - Php15.00
     Bank of the Philippine Islands - Php20.00
     Metrobank - Php25.00

     Online Banking

     Banco de Oro - Php10.00
     Bank of the Philippine Islands - Php10.00
     Metrobank - Php4.00

     (The above rates may change depending on the charges rendered by the bank)
     Please be guided accordingly.

That means if you’re thinking of adding small amounts less than 500, you better hold it first and add it up to your next funding activity until it reaches the minimum 500.

As investors, we should also find ways on protecting our money and not just finding ways to grow it; and this reminder is one way of our asset protection.

There you go! Be guided! Happy Monday!

Have fun investing (and funding with at least Php500)!

The Three Steps of Placing Orders in Philippines Stock Market with COL Financial (Citiseconline) Online Stockbroker

Placing a buy/sell order in Philippines is super easy with online stockbrokers. With just a few clicks, you can already buy your first stock.

With COL Financial online stockbroker, you are guided in their three-step wizard process in placing your buy and sell orders. Other online stockbrokers like BPI Trade, Philstocks and FirstMetroSec may have different screen but the concept is the same.

Simply log-on to COL Financial site and click on TRADE, then ENTER ORDER.

You will then be brought to a blank order screen.

In COL Financial, a green screen means you’re making a buy order. If you select the sell indicator, the color converts to RED.

Three Steps How to Place Buy/Sell Orders in COL Financial Online Stockbroker

How to put buy and sell orders in the Philippine Stock Market with an Online Stockbroker

Opening your online trading account to start investing in the Philippine stock market requires a minimal value. Many online brokers allow you to start with as low as 5k pesos. In fact, if you have an existing bank account with BPI and Metrobank, you can open a trading account even with zero capital.

But opening a trading account under your chosen stockbroker is just the first step towards becoming an investor. For you to buy your first share of your first company, you should know how to place an order and in so doing, make your voice in the stock market world. It’s actually very easy. If you’re at ease with reading this blog or facebooking, it will be that simple.

Below discussion tackles how to place your orders in the stock market through an online stockbroker. Unlike having a traditional broker where you communicate your order through a phone call or text message, online trading allows you to place your order directly through the internet. That means you can practically put you order from anywhere in the world, as long as you have any device (PC, laptop, mobile phone, etc) that can connect to the world-wide-web.

Here are the prerequisites:

1. You should already have your chosen stockbroker.

2. You should already have your log-on details.

Once you have above, log-on to your stockbroker’s site. Just look around the site and you can easily spot where you can put your orders.

PLACING YOUR ORDERS

Below image depicts a typical online window when making an order entry (with BPI Trade online stockbroker):

Free Downloads for those without facebook account

In my last blog I urged you to get your free resources that will nourish your life and mind from our facebook group.

But I realized not everyone has facebook account.

So if you don’t have a facebook account and don’t want to create one either, we can use dropbox instead.

What is a dropbox? Here’s what its creator said:

Dropbox is a free service that lets you bring all your photos, docs, and videos anywhere. Any file you save to your Dropbox will also automatically save to all your computers, phones, and even the Dropbox website. This means that you can start working on your computer at school or the office, and finish on your home computer. Never email yourself a file again!

Install one in your computer and it will only be few clicks before you can have those useful ebooks saved right in your computer. Though you can still download without the installation of dropbox, installing it is actually much easier since no need to download for yourself as your computer does it for you. You simply wait for your dropbox folders to synchronize the files in your computer (or any device) from my computer. Besides, I might also use dropbox for other future files I’d share.

Click here to install. I’ll share the link of all the downloads in the next blog.

Have fun investing!

Happy National Heroes’ Day!

PS: If you know of better means of big-files-sharing, leave me a note below!

The Best Formula to Nourish Your Life

This will be short.

I continue to be impressed by the generosity and kindness of the members of our facebook group - Investing in the Philippines Stock Market - Tips and Tricks.

I admire their sharing and helping mindset.

Many have shared helpful ebooks that tackle not only investing but practical self-help books as well. If you think of it, it’s still all about investing – in the stock market and in oneself. Below are the recent additions to our nourish-your-mind vault.

Maligayang Pag-uukol ng Biyaya!

Pamilihang Sapi ng Pilipinas kung tawagin

Tambakan ng bawat yaman natin

Pag angat nito’y ating dalangin

Nang sa pagtanda’y may huhugutin

Simulan nang mas maaga

Mag-impok sa tuwina

Sa konting disiplina

Tiyak yayaman ka.

Munti man at maliit

Basta’t gawing malimit

Hinaharap ay isaisip

Mithiin mo’y makakamit

Kaya Pinoy simulan na

Sakay na, sakay na

O anong kaysaya

Pangarap mo’y abot-kamay na!

Maligayang Buwan ng Wika! At Maligayang Pag-uukol ng Biyaya!

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How to Open an Online Stock Trading Account in Philippines with Zero Capital

Do you know that you can open your online stock trading account for Philippine stock market with zero capital?

In case you still don’t have your online broker in the Philippines because you say you don’t have enough capital to start with, this is the answer to your dilemma.

If you remember, COL Financial(formerly Citiseconline) lets you open an account with just 5000 pesos. It’s the same with online broker Philstocks by Accord Capital, my first online broker. But hey, they’re not the only online brokers in the Philippines.

You can read here a review of the most popular online stockbrokers in the Philippines.

Stocks Investing Ebooks for Free

This week seems so long, doesn’t it?

Philippines was devastated by Habagat. Classes were suspended, including some public and private offices.

Students might have become happy for this, but for workers affected, that means their work load had to be concentrated in fewer days. I raise my hand. HAHA.

Thank God, the sun comes back in the Metro, and now is Sabado.

Free Ebooks for Investing/Trading in Stock Market

By the way, our private group has files section where you can download helpful materials, ebooks and links, that will surely help you widen your knowledge about investing and trading in a stock market. Members have been generous sharing what they have. See the list below.

Go grab it now! Better yet, share your own ebooks as well.I'm pretty sure this list will continue to grow.

Here’s the FB group page – Investing in the Philippines Stock Market - Tips & Tricks.

Why read them? Because investment in education can be one of your greatest investments.

Agree? Get your downloads here!

Have your fun-filled weekends!

Have fun investing(in education)!

Four Investment Lessons A Monsoon can Teach Us

Habagat has certainly devastated Metro Manila. I for one who resides in Quezon City have witnessed the continuous torrential rain that caused massive floods in NCR and surrounding provinces. Classes were suspended, even some government and private offices. PSE was also forced to suspend its one trading day. In fact, until now, rain is falling at the rhythm of loud kidlat and kulog, something not present in the previous days.

But is this really new? History has shown us that this has been one of our problems. The sad fact is that the condition simply gets worse through time.

But we can also take this as a learning opportunity rather than as a mere uncontrollable disaster.

It can teach us some lessons on investments.

Invest for your protection. You don’t know when these events will strike you. A safety net help you feel more at peace in times like this.

Invest when it seems not needed – Invest for your emergency fund. This should be always replenished and increased after every emergency.

Invest in what really matters – Times like this make us think about the things that really matter to us.

Lastly, invest in others. We Filipinos can still prove that our very own bayanihan spirit is still alive until now.

Photo by: Marianne Bermudez / Philippine Daily Inquirer

It’s very difficult to impart positive vibes when all you see are people stranded, homes vanished and livelihood taken, but there must be some reason why God tells us to rejoice always.

After all, when all the rain has been poured down, the sun will surely shine and give us a clear sky once again, a new faith and a new hope, with a new perspective in life.

How to increase your cash flow – The Phases of Financial Life

How to increase your cash flow – The Phases of Financial Life

Investors know that the first requirement to investing in Philippine stock market is cash flow.

Have you ever heard yourself saying “If I only had some cash now, I’d surely take this buying opportunity!”

If your answer is a resounding echoing yes, then it probably only means two things – you do not use this first tip & trick in investing or you’re really lacking in your cash flow.

To solve the latter, it’s important to assess at which phase of financial life you’re in now and take the appropriate course of actions. If you remember, in the last blog I shared some life investments you can take that will give you the best returns. This time, we’ll take a look at the phases of life under a financial magnifying glass.

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Phases of Life

There are two phases of one’s life familiar to many.

Phase 1 is when people is working for you.

Phase 2 is when you are working for money.

Should bonds be part of my portfolio?

Below is a good read article from Inquirer Business authored Efren Cruz.

It was Sir Efren who conducted the first two days of the finance program I’m currently attending now.

With TDY having risen ceiling in two consecutive trading days (do you think it’ll rise the third time tomorrow?), let’s sit back for a while, sip your coffee (HAHA) and welcome bonds into our investments.

Have fun investing!

PS1: Make sure you’re part of our private Facebook group – Investing in the Philippine Stock Market – Tips and Tricks!

PS2: Grab your chance to have the full version of Investing in the Philippine Stock Market for beginners! Get your copy here!

PS3: If you want to be an affiliate of Bo Sanchez’ Truly Rich Club, giving you an opportunity of a passive income, you can check it here! Join the club here!