Have you lost money like Steve Jobs?

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source: http://www.blogworld.com

“I’m the only person I know that’s lost a quarter of a billion dollars in one year…. It’s very character-building.”

- Steve Jobs

Have you lost already in your stock investments like Steve Jobs? Probably not or probably you might have. And as the great man of marketing and innovation said "It's character-building."

I have two online stock brokerage accounts. Ask me now how is my portfolio on both accounts? Answer is: Both are at negative after the sudden stung the stock market took from recent economic woes. How much? About 1/5 of my total investment. 

It is sad to hear when people ask me about my stock investment and how much I already earned expecting me to say that I already earned one million in just 6 months but in reality I only earned about 1/4 from my original investment(which is not yet a million by the way). And when they learned about it they would say "oh I thought I can be a millionaire in the stock market."

Here is the truth: The stock market is a risky place to invest but along with risk comes returns.

source:http://wilderdom.com

That is why we have what we call calculated risk. We place our investments in stocks that will generate an acceptable future earnings at the same time buying such stocks when they are at their bottom prices. We only put free cash in stocks. We are investors not gamblers. 

From time to time we might do short trades on our stocks to seize the moment and pocket gains to further buy stocks of great value that will give us at least two bagger returns within the next 3-5 years.

So should we stop investing in stocks because we made a bad stock investment decision and lost money? 

We should rather be good students who learn from such mistake and use that learning experience to avoid the same mistake and develop a better way of doing stock investing.

Yes as Jobs said it is humbling; accept your mistakes and learn how to  turn your mistake into your point of achieving your goals.

source: http://www.triathlontrainingisfun.com

My new segments in my blog: The online stockbrokers that I use

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                                source: http://www.yourbrokerguide.com/
If you remember I introduced you to the online stockbrokers... if you haven't read that yet click here.

Okay so let me make some introductions first. One might ask me why online stockbrokers? What are the benefits?

Here are my reasons why I opted for online stockbrokers:

1. Online stockbrokers are cheap. Most only charge a commission of

    0.25% to 0.50% per all transaction. Most have no maintaining
    fee, and only charge a small fee for call trading assistance.

2. Online stockbroker's platform are easily accessible online and 

    they are secure. That is why they have to be accredited by both

    SEC and PSE.

3. Online stockbroker's web page are full of information and guides 

    to help you make that buy or trade

4. And lately after the PSE upgraded most have brought back the

   off-hours facility. No more early morning waking up for our stock 

   investors abroad to place their stock trades

Those are the benefits to name a few.

Now as promise I will be posting a series on how to navigate and use the two online stockbrokers I am currently using. I am using Citiseconline and First Metro Securities Brokerage Corp. to know more about these two click on them to go to their website.

Here is a story on how I ended up with these two online stockbroker.

                                     source: www.citiseconline.com
Citiseconline was the first online stockbroker I applied to. I learned about them through Bo Sanchez's book 8 Secrets of the Truly Rich. Long before I have always wanted to enter the stock market. I remember the days when my professor and dean in PSBA-QC would tell us about his masteral class challenging them to buy stock in the Philippine Stock Market and their grade in his class will be based on the performance of their stock investment. It scared me to take an MBA class because back then I really have no idea even how to buy a stock. Is it done just like going to the "sari sari" store asking the "tindera" to sell you stocks? I know it wasn't.

But in the end while working abroad and after mustering my courage to dive in an unknown territory I checked out Citiseconline's website and tried there 15 day or so free pass which I didn't even use because I really have no idea how to do the action in the stock market.  After nearly 6 months I inquired via email and a reply from Jenny Senining gave me hope of opening an account. I planned and I inquired like a little child so afraid to bring and placed my tiny money in to a strange place called "online stockbroker" but finally when I had a chance to get a vacation from my overseas work I made sure it is my first order in my list. Went Tektite to looked for the Citiseconline office and luckily Ms. Senining was there to assist me and that afternoon I funded my account and got may access after a day..that was late November last year.

And then ecstatic that I was I went to my account check this and that and place my first order. After the day nothing happened. After a week nothing happened. After a month still nothing happen. So I asked myself what's wrong with my bid? Then a new thread in the forum where I accustomed to share my ideas and advices opened. It was about stock investing. And from there on my knowledge grew leaps and bounds due to friends who share the same passion for stock investing. My humble thanks to our OFW friend who started that thread, "maraming salamat rich dad ninong :) "
 
I made my first buy on March 2010 and from their on I have been buying, then waiting till it profits around 5-10% net of cost before selling and sometimes when times are good I profit up to 40%

    source: www.firstmetrosec.com.ph

The reason why I opened another online stockbroker account is funds accessibility.

Being the online brokerage arm of Metrobank fund transfer from your Metrobank account to your First Metro Securities account is a breeze through Metrodirect. I am in the process of familiarizing myself about FMSB's online platform and will soon share here my experience in navigating and making the most of their platform.

Also the well known stock analyst Gus Cosio is in FMSB and his blog is linked to their website. With the latest announcement that FMSB can now accept off-hours trading I guess more and more Pinoys can benefit from it. Also to open an account you just need a minimum of Php 5,000.00, of which Php 2,00.00 is for your maintaining  balance for your Metrobank account and the Php 3,000.00  cash is available for stock investment.

Who are Stockbrokers?

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First things first. One cannot directly invest in the stock market. One has to have a stockbroker accredited by SEC and PSE. The stockbroker's role is more like a middle man between the seller and buyer of a stock or other debt or equity investment. These persons or corporations need to be accredited by regulatory bodies like SEC and PSE to ensure that the trading of stocks are not fraudulent and in accordance to the rules set by laws.

Stock broking is a matter of trust and financial responsibility. The qualities and credentials of the broker needs to be investigated properly due to the fact that you, the investor, would be handing over hard earned money at the hands of the stockbroker. An ideal stockbroker should provide a clear schedule of investment and the know-how to the investor to build an investment portfolio gradually.

A good stockbroker has a definite plan and does research carefully. To take appropriate decisions about stock market investing is not for the chicken- hearted.(odd phrase) An ideal trader does not feel nervous about the losses. He is the master in money-management techniques. As they say you can be a millionaire in a second and a poor man as well. A good stockbroker do two analysis of stocks, Fundamental and Technical Analysis. The first is an analysis of the company's financial standing and performance based on financial statements and reports. This includes various ratio analysis and turnover analysis that measures the company's stability and profitability in the long run.

Technical analysis on the other hand deals more on the trend analysis of the stock. The market changes due to changing forces and also based on demand and supply. A company might have a good financial standing but the buying market has different feel about it thus the trend on this particular company's stock might be on the upside or the downside. Stock values changes rapidly depending on how many are interested to buy or how many are selling. Knowing the trend gives a stockbroker knowledge when to buy and when to sell stocks to get the best out of it.

The advent of technology has made investing simple. Online stockbrokers who are accredited by the PSE can execute one's order upon keying it online. Security wise these online brokers wont be granted license without showing their ability to secure the investors information. Click here to know some of PSE's online stock brokers.