Posts Tagged ‘buying stocks’

How To Invest Stock Market?

To invest stock market one is not qualify when he can have faint of heart.

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2nd Google Adsense Earnings

On the first week of November, I was able to liquidate my 2nd Google Adsense earnings after 2 months. It seems that I have a long way to go. Hope it’s a continuous earning for moi.

I will be resigning at the end of the 4th quarter. Thus, I need money! An income that would help me pay my bills and other basic needs to come. Oh, working in a call center job is really stressful in spite of the big pay that you’ll be receiving every month. I’ve been in the industry for 2 yrs and I just decided to put an end to it this December. I just can’t take it to be drooling around with changing shift schedules, hard metrics, and unstable client specifications.

With this plan, I was able to save an ample of money or rather invested my earnings already in stocks, tangible businesses, mutual funds, health care and life insurance (Kaiser) and lately, FOREX trading. It seems, I have already secured my life in the long run with those investments plan.

Blogging has been a big help to me with this passive income introduced by Google. Definitely, Google Adsense’ success in internet marketing really makes many people a happy.
Again, wishing here for more and bigger Google Adsense Earning in the next months to come.

Trading Band Exemptions for Some Stocks

The Philippine Stock Exchange (PSE) approved in August 2009 rules to exempt certain stocks from the price trading band or the limit in the increases or decreases of stock prices within the day.

Trading band: Max 50% price increase; max 40% price decrease

Stocks traded on the PSE currently have a limit of 50% in terms of price increases (price ceiling) and 40% in price decreases (price floor). This trading band is supposedly installed to protect investors from price volatility.

With the August 26 memorandum, the PSE agreed to lift the trading band in the following scenarios:

1. When trading resumes for securities that have been suspended for a period of one year or more;
2. When the Exchange determines that: (a) there has been an event or occurrence that may cause the price of the security to change drastically; or (b) the application of the trading band on the price may render impractical the trading of the security upon prior notice by the Exchange as may be warranted under the circumstances.

Stockbrokers see a benefit to the trading band exemption primarily with regard to the first scenario because, according to them, a stock suspended for more than a year will have to catch up with its fair market value upon resumption of trading.

Read more at pinoymoneytalk.com

Stock Picks: Take advantage of GMA7 or ABSP shares

September 01, 2009-The 2010 Presidential Election in the Philippines in near and one of the most profitable and attractive stocks to invest as of this moment as in NOW are the shares from two  of our largest TV networks, GMA7 and ABS-CBN (ABSP).

According to bworldonline.com, political ads of aspiring presidentiables for the 2010 elections help boosts profits for these networks especially GMA7 that expects to exceed target of P2.8-billion of net income by the end of the year. GMA7 shares is selling at P7.70 apiece last Friday. It’s a good buy right now while the price is still ranging from P7.20 to P7.70. Target to get more shares and earn dividends! If you plan to sell it, make sure it will be a few days from the day of the election itself. Target to sell it P12 or P15! That is like 40% profit-taking (soon in 2010).

Grab this opportunity now to buy GMA7 shares at P7.60 or ABSP shares at P31.50.

GMA7 shares:

30-day is P8.0, 30-day low is P6.1

Board lot is 1000 shares

ABSP shares :

30-day high is P32.50, 30-day low is P21.0

Board lot is 100 shares

Happy Trading!

-Bullish Trader

Stock Picks: Time to buy LC stocks!

August 27, 2009-We are looking forward in buying some shares of Lepanto Consolidated Mining Co. (LC) as the price is ranging from  0.27 to  0 .29 this week! It will be a buy signal if it’ll go down to .26 or even at .27. The highest price LC has reached in a 30-day period is 0.32 and it’s lowest is at 0.175.

Buy LC shares now! Board lot is 10,000 shares. Target to sell LC shares at 0.40!

BUSINESS PROFILE

Lepanto Consolidated Mining Company (LC) was incorporated in 1936 and operated an enargite copper mine until 1997, after which, LC shifted to gold bullion production through its Victoria Project. LC also operated a copper flotation plant from August 2000 to December 2001, and restarted it in late 2006. LC sells its gold and silver bullion production to Heraeus Ltd. (Hong Kong) while its copper concentrate production are sold through Trafigura Beheer B.V. Amsterdam and Shanghang County Jinshen Trading Co., which are metals traders based in New Jersey, USA, and Fujian, China, respectively.

LC and its subsidiaries are involved in other businesses such as hauling, diamond drilling services, insurance, and manufacture of diamond tools. LC has two Mineral Production and Sharing Agreements for areas located in Mankayan, Benguet. The company’s subsidiaries are Shipside, Inc., Diamond Drilling Corporation of the Philippines, Lepanto Investment and Development Corporation, Diamant Boart Philippines, Inc., and Far Southeast Gold Resources, Inc.

Source: SEC Form 17-A (2008)

Happy Trading!

-Bullish Trader

Secrets of Millionaire Traders

My own take on the ebook as described by Netfutures.com and the-way-to-trade.com

Would really like to thank, Intelinvest Co. for sharing the ebook on Secrets of Millionaire Traders. For those who have no access to the ebook file, let me share to you what I’ve read and hope it will help those newbie traders! This source is a big help to me. I will be summarizing it into vital keypoints.

Introduction:

Only a few traders are successful yet some are earning a million of profits from stock trading!

There are rules that are already familiar to several millionaire traders and these are generated from interviews from them.

Let’s uncover these.

Rule 1 Use Money You Can Afford To Lose

- It must be the money we are willing to lose.
- We can’t use the money reserve for our family’s budget.
- Mental freedom or independence is important.

Rule 2 Know Yourself

- You must have the attitude of being unemotional or able to control emotions
- Must have an objective temperament as the market keeps on changing.
- Successful traders suggest that people who can’t control emotions look elsewhere for profits.

Rule 3 Start Small

- Begin to trade at a small amount
- Learn the mechanics of trading before going in for volatile contracts
- Note, big things start from small things

Rule 4 Don’t Over Commit

- Keep three times the money in your margin account than what is needed in your particular position
- It means if you trade P30, you must have P90 savings as your margin account.
- Don’t go beyond that rule.

Rule 5 Isolate Your Trading From Your Desire For Profit

- A successful trader is able to isolate his trading from his emotion.
- Hope is a great virtue in other areas of life but it can be a hindrance for traders.

Rule 6 Don’t Form New Opinions During Trading Hours

- Decisions during the trading day based on price change and news is disastrous for many
- Formulating your own opinion before trading opens is advised by successful traders.
- Sometimes, the ups and downs of the trading game might upset traders.

Rule 7 Take A Trading Break

- It’s good to take a break sometimes to give yourself a fresh look at the market when you get back.
- To see a better perspective in your trading lifestyle may be achieve after taking a break
- Everyday trading  makes you dull in judgment

Rule 8 Don’t Follow The Crowd

- Don’t go with what everyone is up to. You need a breathing room.
- If 85% of the analysts are bullish, this indicates an overbought situation. If less than 25% are bullish, this indicates an oversold condition
- Periodic government reports on the position of traders of various sizes provide “overcrowding” clues. Another clue is “contrary opinion”

Rule 9 Block Out Other Opinions

- Don’t get easily influenced by what someone says, it may change what’s on your mind
- Find someone who could give you logical reasons for a change in view
- Form your own basic opinion of the market

Rule 10 When You’re Not Sure, Stand Aside

- Don’t feel to trade everyday, it might be costly
- Develop discipline and patience to wait for an opportunity

Rule 11 Try To Avoid Market Orders

- Put specific price limit when buying or selling.
- Minimize the use of market orders

Rule 12 Trade The Most Active Month

- If you’re trading emini contracts, trade it on the nearest months. Like some are expiring on March, June, September, November, December. Most active a few days before expiry.
- For trading commodities like soybeans, trade at the highest volume and open interest. March, July and November are active months.
- Trade on high volume commodities so you could easily liquidate your position.

Rule 13 Trade Divergence With Related Commodities

- Watch the families of the commodities. Ex: soybeans, related to it might be grains, meat and metals,
- If all grains except soybeans were moving higher, the millionaire traders would look for an opportunity to sell soybeans as soon as the grains in general appeared to be weakening. The reverse of this is true also. The traders would buy the strongest commodity in the group during periods of weakness.
- Be detailed on the related products you are trading.

Rule 14 Don’t Trade Many Markets At Once

- Know your limitations and trade within your limits
- Listen to yourself and your capability

Rule 15 Trade The Opening Range Breakout

- If there’s a major break out with the price in a day, it will signal you the next price-decision making the next day or days to come

Rule 16 Trade The Breakout Of The Previous Day’s Range

- Buy if the price is below the previous day’s closing price
- Sell if the price is above the previous day’s closing price
- Just wait for a breakout of the market.

Rule 17 Trade A Weekly Breakout

- It’s similar to the daily rule but this one in on weekly basis
- Basing on the week’s high and low closing.

Rule 18 Take A Breakout On A Monthly Range

- Monthly basis in making decision gives you’re a broader view of the market
- Same rule applies to days and weeks

Rule 19 Build A Trading Pyramid

- Don’t add more stocks beyond your money capacity
- If you’re trading on 3 Bank Securities, you may add 2 then 1 after the other.
- Avoid “inverted pyramiding”, it will make you vulnerable!

Rule 20 Never Enter Your Position At One Price

- The important key is Market Action
- Never put your entire investment in only 1 stocks position not unless you’re sure with it
- Wait for the market to be in favor with you.

Rule 21 Never Add To A Losing Position

- Some traders don’t agree on this rule as they believe in “Price Averaging”
- It will Lead you to Rule No. 5 “Hoping”
- Don’t add or buy if it continues to give you losses.

Rule 22 Cut Your Losses Short

- Liquidate your position when the market is against you.
- Don’t hope for the market to turn in the favor to you

Rule 23 Let Profits Run

- Never take a profit just for a profit. It should be reasonable profit-taking.
- Some technical rules on reversals and formats may help
- Don’t cut profits short

Rule 24 Be Impatient With Losing Positions

- Never carry a losing position more than 2 or more days or over a week
- Force discipline on yourself

Rule 25 Learn To Like Losses

- Be a good trader, never fear losses
- Losses are part of the business
- Having the right attitude in accepting losses helps you gain emotional stability

These 25 Rules of Secrets Of The Millionaires may be a big help to you. You might agree or disagree on some keypoints, but here’s what I learn the most, DISCIPLINE.

Happy Trading!
-Bullish Trader

Links

netfutures.com
the-way-to-trade.com

Today’s Stock Buzz- August 20, 2009

Bargain hunting ensues after downturn

SHARE PRICES closed 1.07% higher yesterday due to bargain hunting following a three-day downturn, dealers said.

The Philippine Stock Exchange index closed 29.34 points higher at 2,760.89. The all shares index rose by 1.07% or 18.79 points to 1,765.63.

A total of 2.89 billion shares worth P3 billion changed hands.

Advancers led losers 89 to 22, while 47 issues closed unchanged.

“Tomorrow, we expect the market to continue its reversal,” Ron Rodrigo of DBP-Daiwa Securities told Dow Jones Newswires.

Analysts also pointed out that the market’s rebound yesterday resulted from the US market’s recovery on Tuesday night.

“As expected, the market turned green due to the Dow’s recovery due to better-than-expected results of some retail companies and positive news about Germany’s economy,” said Daniel C. Picache of Papa Securities.

“This was inspired by recovery of the Dow in the US. It was just a relief rally from the profit taking in the past two days,” said Astro C. del Castillo of First Grade Holdings, Inc.

He added that speculation on some stocks because of rumored interest by specific parties also pushed the rebound.

The Dow Jones industrial average finished 82.60 points or 0.90% higher at 9,217.94 after a sell-off on Monday night.

The Standard & Poor’s 500 and the Nasdaq composite index similarly rose, each moving up a percent to 989.67 and 1,955.92, respectively.

Mr. Picache said late trading on Tuesday already gave signs of a rebound since there were already signs of bargain hunting especially on Lopez-led companies.

“But with a long holiday coming, it may lead investors to trim their positions. They may adopt a sell-on rally stance today, which may result in consolidation,” he said.

Mr. Picache placed the support level at 2,693 and the resistance at 2,984.

“The two-day correction already gave investors enough room to reenter the market… Buyers won’t be as aggressive as before though],” he said.

Mr. Picache noted there is still money on the sidelines since some investors were not able to get in when the market staged its run-up from the 1,800 level.

Mr. del Castillo said the market would probably hover at the 2,700 level as investors continue to digest numbers and look overseas for direction.

Mining and oil companies climbed the sharpest, going up by 3.47% or 274.52 points to 8,176.29, followed by property shares that rose by 2.39% or 22.79 points to 976.75.

Shares of service firms finished 20.15 points higher at 1,414.84, while holding companies inched up by 1.08% or 16.31 points to 1,531,77.

Industrial companies improved by 0.59% or 23.98 points to 4,035.48, while financial firms closed at 593.48, up 0.29% or 1.75 points.

Lopez holding firm Benpres Holdings Corp. climbed by 7.04% or 25 centavos to P3.80, while the Manila Electric Co. was flat at P207.

Market heavyweight Philippine Long Distance Co. closed 1.24% higher or P30 up to P2,445.

Banco de Oro Unibank, Inc., the country’s largest bank, went up 1.47% or 50 centavos to P34.50, while Ayala Corp. was steady at P297.50.

Harry G. Liu of Summit Securities, Inc. said that with the market having reached its targets, its direction would be dictated by market movements abroad.

“[What’s happening is] base building for the medium term so that the long term would catch up in anticipation that the global slide is improving,” he said. — AFP and Don Gil K. Carreon
Entry Credit: http://www.bworldonline.com

TAKE PROFITS!- Absolutetraders.com

“Take profits” is what stock mavericks of absolutetraders.com is recommending! Although the PSEi is on a short correction mode, there is a positive way that it will be bullish on the next days to come!

The nearest level of resistance for PSEi is at 2890. The MACD (below) indicates a short sell for traders. Weeeh!

So, if you find a perfect time to sell you shares, go on before the final day of the ghost month will change your portfolios.

Rule: Buy low, Sell high!

Links:

www.absolutetraders.com

Happy Trading! – Bullish Trader

Profit-taking for the Local Stock Market

Since many are taking advantage with most of their investments due to profit-taking in the past week, we are expecting that the local stock market to pull lower. This is what we see from our point of view. Check the article below and say your piece:

LOCAL STOCKS ARE SEEN becoming increasingly vulnerable to profit-taking despite the rosy economic backdrop here and abroad, analysts said.

The main-share Philippine Stock Exchange index rose 2.41 percent last week to 2,850.01 after the Federal Reserve said the recession gripping the United States was easing.

“There are two bright spots in the fundamentalists’ glasses today. First, inflation is at record lows. Second, this has pulled policy interest rates to similar levels as well. Furthermore, there are other bright spots developing. Most recently, although exports were reported to continue to slow, the pace at which it does has dissipated. Concerns on the budget gap for this year has largely been addressed with the successful bond float,” said Justino Calaycay Jr., a dealer at Accord Capital Equities.

He said corporate earnings did not look too bad as listed firms remained generally profitable and profit levels were “a lot more hope-inducing” in the second quarter compared to the first.

“Yet, the charts suggests caution. Technicians are singing the correction chorus. Indeed, we are currently enjoying a 50-percent year-to-date gain, give or take. While such is evidence of the magnitude of the positive sentiment, it alternatively raises the flag with ‘beware’ boldly written on it. A decline of a big magnitude is not entirely discounted,” Calaycay said.

Calaycay added that the market could go either way but noted that the bias would be toward a downside in the near-term but over the medium- to long-term, the momentum was still favorable.

Banco de Oro Unibank chief strategist Jonathan Ravelas said last week’s close suggested a test of the 2,875 to 2,900 levels.

“However, trading volume shows the current rally is waning. This is supportive of a topping out market,” Ravelas said.

A clear break of 2,780 would suggest that a reversal was in place, Ravelas said. Doris C. Dumlao

Entry Credit: http://business.inquirer.net

Will Philex Mining (PX) follow Meralco (MER) trend?

Big time stock market veterans might be on the verge of bid war in acquiring shares of ownership with Philex Mining (PX). Be expecting the two big group who are suspected to be responsible on Meralco’s (MER) sudden boom in price value for the past months will continue to do some bidding business!

To quote a post from pinoymoneytalk.com”

In just one week, the price of PX has ballooned by 36%, closing today (August 11) at P10.75.

Look at the recent 3 trading days’ price increase of PX:

* August 7: Closed at P9.00; up 13.9% from previous trading day
* August 10: Closed at P9.90; up 10.0%
* August 11: Closed at P10.75; up 8.6%

Are you interested in buying PX now? Buy at 10.50 or below. Target to sell at 12. But hold to buy at 9 just in case it goes south. Note, PX is quite into the bullish trend and our current market is not yet so BULLISH yet. So how much more if it is? Profit! This is just my view, if you take it, it’s up to you. Happy trading!

Online Stock Trading Steps

Are you interested in how to participate in the stock market in the Philippines but don’t know how to start? Do you have a hard time contacting brokers? Well, you could always do stock trading and investing online! Let me give you some baby steps to the local Stock Market i.e., the Philippine Stocks Exchange.

How to Start In Online Stock Trading:

1. 1. Open an online account thru CITISEC or BPI Trade. In my case, I have BPI Trade but it’s good to have both. Simply fill-up the online registration form (BPI Trade) and PRINT it after. Please double check your information that they are correct before printing.
   2. The instructions are stated in their site but for your convenience, you have to photocopy 2 Valid IDs (front and back). Example: GSIS, SSS, Passport, Voter’s ID, Driver’s License, Company ID, PRC ID, etc.
   3. You must have an existing BPI Account whether ATM/Savings. If you don’t have yet, open one at your nearest BPI bank in your area.
   4. Submit the photocopied IDs and the printed BPI TRADE registration form to the BPI branch where you opened your ATM/Savings account and tell the Customer Rep that you want to submit the requirements for BPI TRADE (online stock).
   5. You will have to wait for about 5 to 7 business days for your BPI Trade account processing. They will also send you an email on the progress of your account processing within the duration. So, please check you email regularly.

Voila! That’s how you get started in online stock trading thru BPI Trade.

Now, you have the account set-up already, what to do next?

1. Once you have the username and password initially given to you by BPI Trade, you will be given a simple instruction to change your password but not your username. So please do remember the username and password when you registered to avoid such mess.
2. First time to view the BPI Trade page? No worry, there’s an online tour HERE.
3. Let me elaborate the tabs:

• * Market Info- it displays the real-time market condition and that you could also refer it to PSE.
  * Stock Info- it is where you check the current real-time information of the stock of your choice. Just fill-in the stock symbol in the tab. It will display the current price and all necessary information.
  * Quote Page- it displays your ten favorite stocks with their real-time information.
  * Time & Sales- it displays the real time buying and selling transactions of your stock choice.
  * Most Active- it displays the most active stocks in the Philippine Stock Exchange.
  * Top Gain/Lose- it displays the top gainer/loser stocks real-time.

4. At the side tab:

* Stocks (under trading)- this is where you buy and sell a particular stock of your choice. Just fill in the stock symbol, the number of shares you want to buy or sell (if you have bought some shares already) and of course the price you are willing to buy or sell.

Note: You have to make sure to put funds to your BPI trade account before you could make any transaction.

* You could deposit your money for your BPI Trade account thru over-the-counter to any BPI Branch or you may do an online transfer from your online BPI ATM/Savings account direct to your BPI Trade account for convenience.
* In case you sold your stocks, proceeds/sales will be credited to your BPI Trade account but you have to transfer it to your BPI ATM/Savings account thru online transfer only so you could withdraw it. You can’t withdraw the funds in your BPI Trade account. It has to be transferred.

Hope this helps!!! Good Luck to your online stock trading experience!

Today’s Stock Buzz- August 8, 2009

Prices dive as investors continue pocketing gains

Without any leads to spur buying, investors again pocketed profits on Friday, sending share prices down.

The benchmark Philippine Stock Exchange index slipped by 2.04% or 58.23 points to 2,782.98, while the all-shares index declined by 1.56% or 28.17 points to 1,771.12.

A total of 5.22 billion shares worth P2.84 billion were traded, with net foreign buying at P89 million. Decliners led advancers 80 to 40 while 46 stocks did not move.

“The market experienced a major correction after rallying so much in the past. But this should be seen as something healthy since this would give investors a chance to enter,” Jeng T. Calma of A&A Securities, Inc. said.

She said stocks might rally again but it is hard to say when considering now is the “ghost” month of August, when stocks normally slump. She advised investors not to do heavy buying but to instead accumulate stocks slowly.

Ms. Calma, however, said it is unlikely the market would go below 2,700 since there is a strong support at this level as shown by the market’s past behavior.

US stocks, meanwhile, closed lower on Thursday night — giving no clues to investors — ahead of the release of employment data for July.

The Dow Jones industrial average lost 0.27% or 24.71 points to 9,256.26, while the Standard & Poor’s 500 index declined by 0.56% or 5.64 points to 997.08. The Nasdaq composite index slid by 1% or 19.89 points to 1,973.16.

At home, the service sector dipped by 3.18% or 46 points to 1,400.45, while holding firms declined by 2.39% or 36.79 points to 1,497.28.

Industrial shares lost 2.37% or 102.40 points to 4,212.52, while financial shares was down by 1.87% or 11.43 points to 599.02.

Property stocks slipped by 0.13% or 1.28 points to 975.56.

Mining and oil stocks, on the other hand, climbed by 6.72% or 480.89 points to 7,630.86.

Blue chips closed mixed, with the Manila Electric Co. tumbling by 4.47% or P11 to P235 and index heavyweight Philippine Long Distance Telephone Co. dipping by 4.11% or P105 to P2,445.

The Bank of the Philippine Islands lost 2.17% or a peso to P45.

Metropolitan Bank & Trust Co. and Andrew Tan-led Megaworld Corp. did not move at P39 and P1.34 per share, respectively.

Read more…

Stock Trading Tips

Once you already got familiarized with the stock market and started doing stock trading, here are some of the useful tips that I learned from my stock trading experience:

Stock Trading Tip No. 1: First of all, I’ve seen a study conducted by ATR-Kim Eng Securities comparing the monthly stock returns on election years as against any other “normal” year. As seen from the graph, the month of August, historically is considered as the “ghost month” in stock trading since it is in this month that registered the lowest yield as against other months whether election year or not. You can also see from the graph that historically, the month of December gives the most yield and so it “may” be good to buy stocks on the month of August when stocks are low and later sell it on December when stocks prices are picking up.

Stock Trading Tip No. 2: Don’t buy in smaller volumes. If you have enough capital to spend in stocks, then try to buy huge volumes of your favorite stocks because if you buy in smaller volumes, then chances are you will incur higher stock trading fees such as broker’s commission, VAT, etc.

Stock Trading Tip No. 3: Transaction costs in buying vs. selling stocks. Each time you make a transaction, whether buying or selling stocks, you will incur transaction fees. Based on the transaction costs that I learned, it is “more expensive” for you to sell stocks than to buying it because selling stocks incurs a much higher transaction costs.

Read more…

Playing with the Stock Market

First and foremost, what is

the stock market? A stock market is an avenue for companies and corporations to offer their shares in the public. Once a company listed their shares in the stock market, then the public is free to buy and sell those

stocks. So what’s the pros and cons of

a company in listing their

stocks publicly?

Pros:

1. To raise capital. Companies hire an advisor called underwriter to formulate the Initial Public Offering (IPO) price of the company’s stock depending on several factors. Then executives of these companies will conduct a roadshow usually out of the country to entice foreign investors to buy these shares. The IPO price is the starting price of the company’s stock in

the stock market when it first traded publicly. An oversold stock mean that it did well in its

initial public offering. It means that a lot of investors bought the stock. It can be twice or thrice oversold depending on the turn out of the IPO.

Cons:

Since the company’s stock is now open for public, it can be subject to several external factors. Investors can now play its stocks. It can now be a subject for scrutiny by investors and analysts. Also, it can be a subject for manipulation. A company that did well, meaning, it beats analysts estimates on its earnings and profits will probably go higher as investors buy these shares. In contrast, those that did not meet or has some problems in liquidity, credit, labor, compliance, etc. will be dumped by the investors that will lead to the so-called ‘equity dry up’. This led to the recent bankruptcy of Lehman Brothers.

Read more…