Category: Education

Should You Borrow Money To Invest in Stocks?

Borrowing money to be used for paper investment is simply a gamble.

Investing in the stock market or mutual fund has risk associated to it – past performance does not and cannot be a guarantee of future returns. What more if you borrow and use it to invest/trade? What if you lose your job next month?

There are new investors who feel great these days because their portfolios are showing fantastic numbers in less than a year of investing. Ironically, some of these people have actually borrowed money to invest in stocks and mutual funds.

How did I know that they borrowed? Because they’re the ones who asked me that question. Continue reading Should You Borrow Money To Invest in Stocks?

How GTC Ordering Can Benefit Busy SAM Investors

SAM is the acronym for locally-known bourse jargon called strategic averaging method. It is a semi-active trading and medium-term approach of investing. Most traders and investors using this strategy are members of Bro. Bo Sanchez’ Truly Rich Club (TRC), a global community that aims to “help good people become rich”.

SAM is a modified version of cost averaging strategy where you buy below prices and continue to buy until target price is hit, in which you sell everything. Most SAM advocates have COL Financial as their stockbroker but there are some non-Truly Rich Club (TRC) member traders who follow this strategy by looking at COL’s investment guides.

COL Financial supports TRC in applying SAM through their EIP ordering method. But apart from the EIP, DAY or ATO (Off-Hours Order), some online stock trading platforms have special ordering features such as Good This Week (GTW), Good This Month (GTM), Good Till Cancelled (GTC), or At-The-Close (ATC).

In the case of COL Financial, they have the GTC and ATC ordering options. Continue reading How GTC Ordering Can Benefit Busy SAM Investors

What Happens To Your Shares When the Company Gets Delisted?

I had an opportunity to coach a relatively small group of OFW’s in Al Khobar, Saudi Arabia last Thursday, April 11, 2013 that included mostly of couples and their young children. It was an interesting session as questions thrown in were very challenging.

One of the questions asked by a participant was, “what happens to our shares when a company we’re buying becomes delisted from the PSEi”?

And then this morning, I read another similar question asked by a forum member to COL Financial advisor, Mike Viñas who was worried as to what will happen to her shares in a company that has been delisted by the PSE. She was not aware that the delisting has already happened. Continue reading What Happens To Your Shares When the Company Gets Delisted?