Stock Markets - A New Subject for HS Students

This is indeed a pleasant news for today. Department of Education approved stock market lessons for public and private high school students. 

The modules were designed to teach basics of stocks exchange and capital markets, and to promote financial literacy and investment consciousness among the youth. It is likely to be included in Technology and Livelihood Education or Makabayan subjects for first to fourth year.

  

Students will also be taught basic concepts of investing, including the benefits, risks and rewards of investing in the stock market and capital market, as well as the objectives of the PSE as regulator of the country’s stock market.

  

As stated in the DepEd website, the lessons will be integrated in Economics, 

which is part of the fourth year curriculum of high school students in the beginning of academic year 2009-2010. Source: Yahoo News and Sun.Star

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I personally think this is beneficial for both students and the Philippine economy since financial literacy is starting to be taught among the youth.

Like what I say in my previous posts, financial education is important in order to build one's wealth.  

These students are very lucky to have been given the opportunity to learn at a young age so don't be surprised if you meet teenagers who are already stock market investors.

The future of the Philippine Stock Market looks very bright with this new development.  So cheers to DepEd and PSE! :)

Is The Bull Market Over?

For those who have been investing in the Philippine stock market, you know by now that prices have gone down for the past 3 weeks after a “bull run.”

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I have witnessed my stock portfolio go downwards from as high as 20% return last Sept to 11% as of yesterday.  My FGEN shares reached as high as 33% and now, it is only at 19% 

Did I panic?  Is it time to sell my shares? 

I definitely panicked while seeing my profits go slimmer and slimmer.  Thank God, I did not join the bandwagon and tried getting profits now.

 

Looking back, here are the factors that kept my sanity and pulled me back from selling my shares.

• Bo Sanchez’s Stocks Update Newsletter

Since I am a member of The Truly Rich Club, I instantly received a Stocks Update on the week the prices have started to go down.  It reminded me that prices will likely to go down in the next few weeks. The market is going through a consolidation phase.

• Citiseconline’s seminar -  “Intro to Technical Analysis”

The most important lesson that I got from the seminar was to “manage my emotions.”  Always stick to my financial objective.

• Rampver Strategic Advisors’ (RSA) Market Outlook and Update

RSA’s latest market update just reiterated what Bo Sanchez and Citiseconline have been telling investors.  All of them are actually telling investors to keep on buying because stock prices are “on sale.”

Now is the time to take advantage of low prices before the bull run comes again by the end of the year. 

“Let us not wait for some fantastic news or when prices move up before getting involved and jumping in because as the veterans say when there is blood in the streets, that is the best time to buy and invest.” – RSA

“History repeats itself, people never learn. After being down and getting distracted with many issues for the past 2 weeks, market was up again 49.18 points yesterday and 146 points today (02 Dec 2010). Risk is not having invested and then market drops. True risk is when market flies and one looks at it as a mere spectator.” – Rex Mendoza

How about you?  How did you handle this "downward phase"?

Stock Market: Suggested Websites and Other Resources

I encourage you to visit the following websites and resources to begin your own journey:

1. Stock Option as employee benefit.  Big corporations usually offer this.
• Ask your Human Resources department. This is a  very affordable and convenient investment scheme since payment is done through salary deductions.

2. Through Citisec (Online Broker)
• Visit their website at Citiseconline. They offer free demo trading for 7 days before you actually start investing. So grab this free trial!

3. Through traditional  brokers
• Visit the official website of the Philippine Stock Exchange (PSE) Website for a comprehensive guide to the local stock market.

There are also many websites and blogs that offer valuable information on stock market investing.  Just google stock market and you will find hundreds of suggested sites! 

Journey to Financial Freedom Via The Stock Market

The first words that come to mind whenever people hear about the stock market are risky, complicated, right timing, for the rich only….Well, those were my thoughts before. 

Let me share with you how I got into the stock market  just to prove that any person can invest in it. 

Here are, in my opinion, ways on how you can get into stock market investing:

1. Stock Option as employee benefit.  Major corporations usually offer this.
2. Through Citisec (online broker)
3. Through traditional  brokers

Let me discuss them further.

Stock Option

I worked with San Miguel Corporation for 8 years and every so often (quarterly), the Stock Transfer Service Corporation (the department that handles stock transactions) would release a notice that they are selling SMC stocks to regular employees at certain prices.

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When I worked there, they were offering 2 types of stocks, SMC-A and SMC–B.  But now, San Miguel Corp has more than 2 listed companies in the Philippine Stock Exchange (PSE).  Like many first-time investors, I bought SMC stocks because my officemates told  me that they were good investments.  So I bought shares and paid them through salary deduction. 

During those days, I don’t monitor or research any of my stocks.  I just know that I bought them at a lower price because my office mates told me so.  I never sold my shares even if I was already fully-paid.  In fact, I bought more shares whenever there were good deals.

I only sold my stocks when it was time for me to leave SMC and moved to another company in 2008. I invested for a total of 5 years.  My net profit?  A cool 150%!

Through Citisec (Online Investing) 

I learned about Citisec through Bo Sanchez’s Truly Rich Financial Coaching Seminar which I attended last Sept. 2009.  You would be surprised to know that I didn’t invest immediately after the seminar.  I went into mutual funds first.  More on mutual funds in my future posts. 

Why didn’t I invest?  Two things: I was lazy to learn about the stock market because it was totally new to me. Secondly, I was not open to understand what stock market investing was about.  I had a mindset before  that it was  risky.

Six months passed and I decided to subscribe to the Truly Rich Club and read the ebook “My Maid Invests in the Stock Market and Why You Should Too!”  After reading the book, I finally  opened my account with Citisec last March 2010.

Within months of investing in the stock market, I realized that it was risky for those who are not willing to learn, those who do not have a financial planner training.  Often times, we seek advice from people who are as “illiterate” as we are. These are the common mistakes many people commit, including myself.

I bought shares of growth companies as suggested by the Truly Rich Club and Citisec.  They are FGEN, FPH & MWC.  As of today, Sept. 30, all my stocks grew to 32%, 22% and 24% respectively.

I will sell my shares if those stocks are near my target prices.  Yes, I am willing to wait since I’m a long-term trader.  I monitor my stocks daily and attend seminars by Citisec to learn more.  It may sound boring and a lot of work but it isn’t.  It actually takes me less than 5 minutes to check the prices for the day and the seminars are voluntary and free! 

My independent financial advice is to check this website, Citiseconline. What suits me may be different from yours.  So discover your own path to stock market investing! I’m sure it’ll be worth your time and effort! 

Through traditional brokers 

I am personally not familiar with this since I have not invested through a broker.  

According to the book, “Building Wealth With Stocks: A Basic Guide To Investing In the Philippine Stock Market,” traditional brokers are those who assign a licensed salesman to handle your account and take orders via a written instruction or through a phone call.  Settlement of all transactions, either buying or selling is usually done after three (3) working days from the transaction date or T+3.  

 

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This means that the buyer must pay for the costs of the transaction to his stockbroker within 3 working days after the trade was done.  Similarly, the seller will receive the proceeds of the sales from the broker after the 3^rd day from the transaction date.

Today,  local stocks are soaring!  The PSEi climbs to a new record high last September 9, 2010.  It gained 2.57% or 97.83 points at 3,902.56 – its highest since October 8, 2007. Wow!  Ain't that great?!

My journey to stock market investing is still in its infancy stage. I still have a long way to go!  I have yet to see longer trends since I came into the market during the recovery stage of the global economic crisis.  But now, my eyes and mind are open to this new world of  investment. Each day becoming less complicated and less emotional by doing my own homework through more research and knowledge.  In due time, my rich financial harvest will be a reality. 

 P.S.  How about you, how did you start your stock market journey?