Be a Better Trader! Increase your knowledge!
Absolute Traders’ Chart Analysis Forum is the event where both the experienced and beginning investors exchange notes and learn more by applying the tools of Technical Analysis in this case, specifically, to the Stock Market.

This August’s CAF will feature (not in order):

• Ghost Months – What is it?
• Why are traders afraid of ghosts?
• What to expect and how to deal with it.
• Featured AT Batch: Batch 12
• Guest: Department of Finance Representation
• Chart Analysis Forum Proper

Non-Absolute Trader members should be sponsored by a member.

• VenueJade Valley, Timog Ave., Quezon City
• Number of Participants:: 50
• Fees
  • Early Bird: P250 (until August 3)
  • Regular: P325 (On-site)
  • To register:
    Bank deposit: BDO SA# 310051150 (Bonner Dytoc) and fax deposit slip to number 2425541 or scan then email to bonner.dytoc [at] absolutetraders.com.
    Globe Gcash to mobile no: 09178040060 and send an SMS with your name and email address.

Organizers
Absolute Traders
Bonner: 0918.9354716 ym/skype (bonnerdytoc)
Gwen: 0917.8040060 ym/skype (gwenpnava)

I now only use credit card for gas purchases and debit cards for online purchases. All other expenses are paid in cash.

The simplest way to describe a debit card is that it’s a prepaid credit card. You can use it to pay online or at the mall (the shop has to have a smart terminal – anyway, just ask the store). You can even use it as a remittance account.
Debit cards available in the Philippines are

• EON from Unionbank- VISA Electron with CVV (P300 annual fee)
• MTV Card from Equitable PCIB – MasterCard Electron
• SCB Visa Electron from Standard Chartered – VISA Electron
• Smart Money – Mastercard Electronic

To buy online
I currently have Unionbank EON debit card now and it serves my needs just fine. You deposit into your account over-the-counter and that’s the maximum you can spend!
I don’t know about the others but the EON card from Unionbank certainly allows you to purchase online, same as if you used a credit card.

The CVV is a 3-digit card at the back of your card which is required when making secure online purchases.

Using a debit card helps you curb your spending habit while taking advantage of the convenience of credit cards.

To create an account, you can sign up at the EON website.

To receive remittances
You can use your debit card as a means to receive remittances from your friends, relatives, or customers, and withdraw from that account by opening a Smart MONEY or EON account at YesPinoy.com (Tell them I referred you – my member number is 37849.)

Why not use a secured credit card? 

Well, isn’t a secured credit card… still a credit card? A secured credit card allows you to borrow only up to 80% of your outstanding savings account balance with the same bank.
This requires you to maintain your bank account balance up so you can enjoy your credit limit. This also means you’re money is stuck there and you can’t move it to higher-yielding investments.
You, of course, have to add checking it and paying it to your to-do list (you do check your credit card statement if all the charges are correct — right?).

It’s also better to keep accounting for debt (if any, that includes credit cards, loans) separate from assets (which include your bank account and investments).

I’m sharing with you today simple yet potentially powerful financial concept that can make a difference for you today.

Watch and learn.

Admit it. You think money is bad. Didn’t we all hear that money is the root of all evil? In movies, we see the rich Dons and hacienderos owning big lots of land and mistreating their poor tenants who work hard in the fields. It’s the rich guys who have power and are bad! But then we’re told to work hard in school, get good grades, graduate so we can find a nice 9-6 job, kill ourselves with overtime and maybe work abroad for dollars. We can work and make a living but we seem to believe we’re not supposed to have lots of money like the hacienderos or the Ayalas or the Taipans. You know, just enough! Because greed is a deadly sin!

I swear, Filipino children grow up with twisted financial outlooks. We don’t have sound a sound national financial literacy program nor is explicitly seeking abundance and wealth through unconventional means (read: not employment) accepted.

There are many rants and raves on the topic of Filipinos and money. For now, let’s first dispel your fear of money.

Let’s get the basics out of the way, shall we? I tell you where money comes from, how it flows in the “economy”, its importance, and how to get over your fear of money and move on.

How money flows and its history

Where does money come from? In a literal and historical sense, you can pay a visit to the Money Museum at Bangko Sentral ng Pilipinas. The Museum showcases old coins and bills from the pre-Hispanic era to the present. In economic terms, (you’re not going to believe this) money flows from the sources (households and individuals) to the banks or financial intermediaries. The banks in turn lend the money to those who use/spend it and earn interest for the bank and for the source (lenders include other individuals, corporations, and investors). Sometimes, the spenders can source directly from the sources through IPOs or bond issues. This is the true story my friend – so read well. The big companies grow big by borrowing from the bank where you keep your savings accounts with lousy interest rates. Let’s delve into this irony another time, so let’s move on.

The short story is that a long time ago, for you (let’s say you’re an auditor) to get something you want or need (for example, a dinner of fried chicken), you needed to find a poultry owner who will receive your goods or services in return (so he’d need an audit opinion). Now, what are the odds that you’ll find a poultry owner, who’s probably a sole proprietor anyway, who needs his statements done? Come on. You’d probably too weak with hunger and fatigue knocking on every poultry, um, door, before you manage to find one willing to provide you with your dinner (that you still have to cook!) This is a somewhat drastic scenario of the old barter economy, so man was inspired to create a medium of exchange – tada! Money! (It evolved from jewels, stones, precious metals, et cetera but eventually paper currencies and coins came out. Now, there’s even e-gold.) But you get it, we came up with money so that you can just pay that poultry owner with money because he knows he can use that money to get something else that he needs (because, duh, he doesn’t need your audit opinion).

So, yes, you know money gets you what you want and need – food, clothes, pretty girls, gas, cars, houses, books. If you have a lot, you get really nice food, really nice clothes, really pretty girls, really big houses in really nice locations (maybe even an island) and so forth. If you don’t have a lot, well you’re just poor – which could of course drive you to work harder and be more entrepreneurial in making money consciously.

Value of Money

Is money important to your life? Yes, to an extent. Having money now means you’re able to provide for yourself and for your family. Of course, you don’t want to die right after college graduation – you want to live till your in your 100s maybe so you can play with your grandchildren’s grandchildren (What a sweet thought!) From now till then, money will be very important – you’ll have tuition expenses, an auto and house mortgage, living expenses, country club memberships, meals and grocery expenses, cable tv subscriptions, and so on.

Unless you plan to be a monk, money in the form of income (having it or lacking it) will be very important to your life. Face it.

Now this may seem silly and you may have heard this before – but it really does work. So just give it a shot.

Close your eyes and ask yourself:
If money and time were no object, what would you be doing right now? Where would you be? Who would you be with?
Picture yourself in that situation. Paint it with color, add sounds, add people and conversation. Describe it in your mind as if you’re writing a book, as if you’re describing it to me.
What do you see? What is it that you desire?
Live in your daydream for as long as you like then just finish this post, okay? It’s fun, right?

So, yes, I asked you if money and time were no object, what would you do? We grow up thinking that money and time limits what we can do. We have to dispel this way of thinking and empower ourselves – because God gave man freedom of choice. He wants us to live well so that we can give well (contribute more to Church and community!) and do well. Come on, God doesn’t want us to be poor and depending on others (borrowing money from credit unions, banks, relatives and friends)

I’m not saying to buy all you want, but do buy what are necessary and what would make you comfortable. Don’t fall into over-consumption and excesses (because, now, that’s greed).

Give it a shot. Become financially independent. Be able to manage money so that you can live well, live the life you want and like without borrowing or depending on anyone else.
(So if you plan on being a financially independent housewife, you’ll have to not depend on your husband to live the life you like.)

This is pretty heavy stuff. But that’s why money (specifically, income from assets) is important. It empowers, enables you to be financially independent.

Life you want = Life you like = Life you have

That’s just beautiful.

Luckily, you’re only required to be 18 years old to trade stocks at the Philippine Stock Exchange. They don’t ask for a college diploma, an MBA, or years of experience.

Some local brokerages provide seminars (some free!) for beginner and more experienced investors. Take advantage of an investing seminar or training which suits you.

Stock Trading for Beginners

How to Invest in Stock Market & Advantages of Philstocks.PH Online Trading

Topics: Primer on stock market investment, role of investors, manner of buying/selling stocks, computation of charges, basic analysis on technical aspect of stock market, and overview of Philstocks.ph online trading platform
Cost: FREE (Open to non-customers)
Provider: Accord Capital Equities Corp. (Philstocks.ph)
Schedule: Thursdays, 6 -8pm
Venue: G/ F Unit EC-05B East Tower, Philippine Stock Exchange Center, Exchange Road, Ortigas Center, Pasig City, Philippines 1605
To reserve a slot: Call +632 687 5071or email info@philstocks.ph

Investing in the Stock Market Today

Topics: Philippine Stock Exchange (PSE), role of financial markets, goal of capital buildup, understanding price, fundamental and technical view, the market today
Cost: FREE (Open to non-customers)
Provider: CitiSecOnline
Schedule: Tuesdays and/or Thursdays, 2-5pm
Venue: 2701-A Philippine Stock Exchange Center Exchange Road, Ortigas Center, Pasig City Philippines
To reserve a slot: Call +632 6-3333-777, email helpdesk@citiseconline.com, or register online

For intermediate investors

How do you decide which stocks to buy? You can try to find trends from the past to predict the future OR you can guess how much it’s worth right now based on the market.

The first style of thinking is in the school of Technical Analysis, which predicts future values by studying historical patterns of stocks and markets. Meanwhile, the second style falls under Fundamental Analysis, which derives an asset’s intrinsic value versus its current value by studying macroeconomic, industry, and company data.
Introduction to Technical Analysis

Topics: Technical analysis, trend analysis, consolidation periods, momentum indicators, implementation
Cost: FREE (For customers only)
Provider: CitiSecOnline
Schedule: Tuesdays and/or Thursdays, 2-5pm
Venue: 2701-A Philippine Stock Exchange Center Exchange Road, Ortigas Center, Pasig City Philippines
To reserve a slot: Call +632 6-3333-777, email helpdesk@citiseconline.com, or register online

Basic Technical Analysis for the Financial Market

Topics: psychology of technical analysis, determining the trend, spotting area patterns, technical indicators, trading tactics
Cost: P5,000
Provider: Absolute Traders
Schedule: 6 sessions in 1-month period
Venue: Avalon Condominium, Xavier corner Washington Streets, Greenhills – near Madison area)
To reserve a slot: Email seminar@absolutetraders.com

Advanced Technical Analysis Seminar

Topics: pattern recognition, candlestick, trend following indicators, basic elliott wave, and more
Cost: To be verified
Provider: Absolute Traders
Schedule: 6 sessions in 1-month period
Venue: Avalon Condominium, Xavier corner Washington Streets, Greenhills – near Madison area)
To reserve a slot: Email seminar@absolutetraders.com

Are you aware of another training or seminar that’s not listed here? Would you like to promote your event? Leave a comment.
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I mean, what kind of income do you get every month? We know from Rich Dad, Poor Dad and Investopedia that there are 3 kinds of income.

Effort need not be equal to income. Come on, you know the really wealthy can go to the mall or play golf or sleep in anytime they like. Break free and learn the truth about income.

The first type is what most of our hardworking parents push us to attain. It’s what we’ve seen them get – and it’s utterly ironic that it’s not going to bring you financial independence.

Active income/Earned income/Compensation income

Earned income comes from service you render. It comes in the forms of salaries, wages, tips, fees, commissions, income from your business (where you’re the janitor, operator, manager, accountant, salesman, etc). If you don’t go to work, you get NOTHING.Employees, freelancers/self-employed, professionals, work for compensation income.

“But hey! I get benefits! I have a special medical card and I have vacation leaves…” Don’t you sometimes wish that they would convert those extra benefits to cash instead – then again that would mean higher tax. Those benefits can be substantial indeed – so surely, you don’t think you don’t have to earn them? You have to show up at work anyway to earn your salary and to get that free doctor’s check-up (which you can’t find time for!). Doesn’t the sack of rice make it harder for you to quit (easier for them to have you stay)?

Do you have a plan B?
A lot of the people I know (yes, friends) say they’re too busy or they’re too tired from work or school. It’s TERRIBLE that they don’t want to open their eyes to the 2 other types of income. They say they want to start a business someday but aren’t doing anything about it now. They won’t accept the fact that they need a Plan B.

Now we’ve started hearing about the other 2 types of income but most don’t know how to get started. (Congratulations for wanting to! That gets you near the first step!) These next 2 types are what will make you wealthy and financially independent – not your slaving away 60-80 hours a week at your job.

Portfolio income

Income from investments, including dividends, interest, royalties, capital gains.

How can you participate? Savings, trading in stocks, bonds, high-yield investment programs, playing in real estate, and any form of buy low-sell high are some ways.

Nicola says downline income in network marketing falls under portfolio income.

Larry Gamboa, author of “Think Rich, Pinoy”, buys foreclosed properties and repackages them as rent-to-own units. This mode would still be portfolio income for the real estate investor who also acts as property manager, while it’s passive for the investor who just sits and has the money come in with zero effort.

Software or web applications where you personally have to provide technical support or any after-sales or ongoing service is still portfolio income. When you’re able to let someone else do this and the cash flow still streams into your pockets, you’ve just created some passive income for yourself!

I’m very interested in this because I know the terms in theory and it’s usually where you get enough money for #3.

Finally, the income that will set you free!

********* Drumroll please **********

Passive income

Income from rental property, limited partnership, or other businesses where you don’t have to do anything! You earn doing nothing! You’re on the fast track baby!

This deserves a separate post so come back, okay? In the meantime, you may want to start generating portfolio income by trading in stocks or network marketing.

Portfolio and passive income are generated by assets – NOT EFFORT. Isn’t it funny how we were brought up and how we are expected to slave everyday when it doesn’t guarantee #2 and #3.

Want to get started on #2 and #3? Very briefly: visit my site often, start saving, read Rich Dad, Poor Dad, play Cashflow 101, and drop me a line.

If you’re already getting income streams from #2 and #3, please drop me a line at or leave a comment. I would very much like to learn from you and have my readers learn as well.

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