The Philippine economy is performing. The Philippine Stock Market is booming. Gigantic companies are even more growing.
Are you riding with the waves? Or are you left behind?
Ride on! You can do this by being a part owner of giant companies. Be a stockholder.
“Hey, Chris! Isn’t that for millionaires only?”
That was what I thought before, too, but I was wrong.
In this post, you will be guided to start and eventually succeed in the stock market.
Let me give you seven simple steps.
1. Believe that small players can enter and succeed in the stock market.
My mentor says that most money problems are mind problems. I agree. I see a lot of people that believe they cannot do something without even trying. You have to drive out this wrong belief.
Believe that you can. Small as you and me, we can join the stock market. We can ride the waves. We can be part of this seemingly elite group of the business and investing community.
Jenny is a clerk in a small company. All the while she thought that the stock market is just for millionaires until she attended a seminar and learned about the fundamentals. She came to know the shocking yet liberating truth that even “small-time players” like her can make millions in the stock market.
Wait until my mentor tells you about his maids and driver.
Since you can never proceed until you believe, you have to choose to believe.
2. Understand the difference between trader and investor.
May I describe a trader – they buy now and sell tomorrow, literally. They buy low and sell high. They buy on Monday and sell on Friday. The buy this month and sell next month. They are called active investors because, well, they are active.
Nothing bad with being a trader as long as you do the needed technical analysis. Time, learning, and skill is needed to succeed as a trader. You can do trading as long as you become a skilled trader.
Don’t join the 85% people who enters the stock market and lose their money. They do trading but they don’t know how. They are the untrained traders.
They base their “buys and sells” on rumor, gossips, or wild instincts. They try to pick super, mega, hyper erratically moving stocks thinking that they can double, triple, and quadruple their money in just a blink of an eye because the stock dips and flies in a minute. They try to time the market with their wrist watch.
Please, don’t be an untrained trader. Be a trained trader if you have the time and skill, but not if you are like me.
I consider myself as a long-term investor. I think long term. I agree with my wise mentor. I use a strategy that he teaches for long-term investors.
Long term investors use the strategy called SIP or SAM. You’ll get to know them in point number 4.
Before that, here’s number 3.
3. Decide what type of player you are to be.
I urge you to be a long-term investor. If you think you can become like Edward Lee, the CEO of COL Financial, then be a trained trader.
I would say that trading is a full-time profession. If you cannot be a full-time trader, please don’t do it.
Choose to be a long-term investor.
4. Learn about SIP and SAM. Then choose your type.
SIP is Simple Investment Program. I just changed the EIP term of COL Financial because with them, E means Easy. I don’t think the program they devised is easy. I think it’s rather simple but not easy because it requires discipline, consistency, and again discipline. But of course if you have the discipline, it’s easy. That’s pretty simple.
SIP is buying giant companies at regular intervals with the projection that in 15-20 years, your money will grow into millions. If you have more, then into billions. This can happen. You just have to pick the right companies and they are out there. (How to pick the right companies is a separate discussion.)
This strategy leverages on the concept of peso-cost averaging. If you would ask my college dean, he would say, it is the concept wherein the cost is being averaged through time leading you to a minimal cost but at a potentially high earning based on the current market price.
(Let’s discuss this separately in detail.)
SIP is passive investing. SIP is like this: buy, buy, buy, buy, buy, buy, buy…….n……sell!
On the other hand, SAM is a combination. You may call it semi-passive investing. It’s like this: buy, buy, buy, buy, sell, buy, sell, buy, buy, buy, buy, buy, sell, buy, buy, sell!
SAM, Strategic Averaging Method, in the same way picks only the giants and also leverages on peso-cost averaging. The difference is that there are target and buy-below prices.
When the target price is reached, you may sell. And buy only when the stock price is below the buy-below price. Even if the company is a giant, you still won’t buy above the buy-below price because for some reasons, the stock seems currently overpriced.
You can learn more about SAM by being part of the Truly Rich Club.
(Let’s have a separate discussion on SIP and SAM.)
5. Open an account with a stock broker.
You cannot trade directly in the Philippine Stock Exchange. You have to open an account with a stock broker who in turn will carry your transactions because they participate directly in the stock exchange.
Personally, my stock broker is COL Financial (formerly Citiseconline), the largest online stock broker in the country. With it, I just fund my account in the bank and carry out my orders online using their portal. You can also monitor the prices, do some analysis, make use of data reports, and monitor the growth of your portfolio in the same portal.
Opening an account with them is easy. Just fill up the form which can be downloaded from their website (www.colfinancial.com) and then submit it or rather call for them to pick it up from your home or office (around Metro Manila).
Once they registered your credentials, you will be notified of your account and log-in details to their online system. That’s the time you can fund your account.
You can start at P5,000 only. Or if you are like the other manager in our office, he registered with the trading account of P25,000.
I started at P5,000 and it is the lowest that I know of so far.
6. Pursue your type.
I’m talking about SIP and SAM.
Now that you have the tool and the permission to use the tool, it’s time to start tilling the soil. Pick now your stocks. And being guided by the strategy, grow your stocks and watch them multiply.
So carry out the strategy. This is the action part. This is the application of the learning you had in the previous steps.
I recommend you attend the seminar conducted by Bo Sanchez and his team, How to Make Millions in the Stock Market. The last time I attended, it’s only for P497 and they teaches both about SIP and SAM. Again, they call my SIP as EIP. COL Financial also conducts free seminars. You can attend one. Check their website.
SAM is the strategy I use, similar with other Truly Rich Club members. SAM Starter Guide is also one of the first blessings you receive once you join Bo Sanchez’s Truly Rich Club. (Check out www.chrisdaoanis.trulyrichclub.com.)
With this, you will be better informed. And an informed mind carries out the action intelligently well.
7. Stay shiny.
With stay shiny, I mean, keep your head shiny. Yup! Keep on learning.
Read books. Attend seminars – free or with fee. Invest in your financial literacy. It’s the way to be financially free.
Aside from the seminars and virtual club I mentioned above, I urge you to read the following books: My Maids Invest In the Stock Market and Why You Should Too, and The Turtle Always Wins by Bo Sanchez. (I don’t receive any commission by recommending these, just believe that these help.)
I also suggest that you join the Truly Rich Club. I’m a member of which and I am guided with my stock investment. I started small just last year and my portfolio is growing. Hey, this club is not just about the stock market. There’s more. In totality, it’s focused on helping you gain financial wealth and spiritual abundance at the same time. It won’t cost you much but the blessings in return is overflowing. (I receive a little commission if you register using my affiliate link. Don’t worry, this does not add any extra cost from you. I recommend this not because of the little commission but because it is helping me and I want that you’ll be helped also – directly by my mentor and his circle of mentors. Yes, he has mentors, too. Having a mentor, the right mentor, yields great results. Visit www.chrisdaoanis.trulyrichclub.com now. You can also get a free digital copy of Bo’s book My Maids Invest in the Stock Market in that same site. Don’t forget to watch the video in that site, too.)
You can grow your investments by growing your knowledge.
So keep on learning.
There goes the seven simple steps. I hope this will help you get started today.
Remember that time is your greatest ally in investments.
Don’t delay! Start today!
Live your life, young mind!
PS: Learn more about the Truly Rich Club now. Visit www.chrisdaoanis.trulyrichclub.com.