Note: These are just mere compilations of simple/plain strategies intended to share for the newbies as an initial guide,

which I have
posted also in our little group in FB (Filipino Financial Freedom Forum).
And while I share these strategies which I have learned and acquired too from the seminars and reading books and materials, please
take note that this is not an absolute strategy and neither have I claimed flawlessness to its effectiveness and accuracy. Feel free to
bend or combine some rules fitting to your own taste, goal and strategy, until such time you find the one that works for you.
Good Luck To All and Happy Investing!!!

Investing Strategies For The Newbies (Part 1)

Peso Cost Averaging (PCA)

As a Newbie Investors, we are prone in committing mistakes. We are not even sure when the perfect
time to invest is.
Whats worst is, after you take sometimes studying about investing and finally decided to start and open
an account or buy your first investment with all excitement, hopes and determinations you hear your
friend or someone from the bank tells (or better term 'discourage') you. Because according to him/her
its not the RIGHT TIME to invest since the market have gone up or high already. (Sob! High hope gone!
Goodbye life!)

The question now is... when is THE RIGHT/PERFECT TIME?

Guess, what??? YOU'LL NEVER KNOW WHEN!

Don't wait for the Perfect/Right time! That's a recipe of not starting. You'll never know if its right or not
until you've tried it yourself and see a better outcome than what you had hope for.
Don't lose hope, there are Investing strategies that can help you realizing your dreams (and eventually,
you will discover a much effective strategy on your own).
One of which I would like to share with you guys is what we called "Peso Cost Averaging (PCA)" or
Simply "Cost Averaging".
PCA is a strategy where you buy a fix amount of stocks at a regular interval regardless the price.
Note: You can buy on a Fix Amount or Fix Number of shares. Its up to you.

You really don't need to buy a stock/s that continuously moving up. Or persistently trying to time the
market.
What you need is a Good Stock/s, Discipline, a Considerable (enough or longer) Time Frame and a lot
of Patience!

Below is a sample illustration how it works.

Note: There are no perfect or flawless strategies. There are just strategies that work for each one of us.
Discover what works for you.

Good Luck and Happy Investing!

Investing Strategies For The Newbies (Part 2)

Strategic Averaging Method (SAM)

SAM or Strategic Averaging Method is a modified version of PCA (Peso Cost Averaging Method) and is
popularized by the local Stock Market Group TRC (Truly Rich Club) led by Bro. Bo Sanchez.

It is somewhere in between of "Passive Investing" and "Active Trading". Hence, they call it Semi-Passive
Investing.

There are 5 important rules though on this method that you should consider.
Rule 1: Invest monthly for 20 years or more.
Rule 2: Invest even when there's a crisis.
Rule 3: Invest only in Giants.
Rule 4: Invest in many Giants.
Rule 5: Buy/Accumulate when price is beneath "Buy Below Price" and sell near or at the "Target Price"

But to a non TRC member (btw, it has a subscription fee), so how do we implement/apply SAM on our
own?
You need to follow 3 instructions (all other rules still applies).

1. Pick a Giant Company.

Ito yung mga kumpanya na sa tingin mo ay magtatagal at kikita pa rin kahit lumipas ang mahabang
panahon. Hhmm, may Jollibee pa kaya after 10 years? May SM o Robinsons pa kaya? Ang mga banko
kaya na gaya ng Metro Bank, BDO, BPI magsasara na kaya pagkatapos ng isang dekada?

2. Compute its Fair Value (FV) or your Target Price (TP).

Computing FV requires an intermediate skill. So paano kukunin yun newbie nga ako eh?

Madali lang! Pwedeng Hulaan! Joke!

Pero this is somehow true.
We all know that the default trajectories of this Giant Company are going UP right?
Bakit? Because of Inflation and our Growing Economy! Kailangan nilang sumabay! I dont think, the
Ayalas, Henry Sy, MVP, Gokongwei, or Lucio Tan are there for no reasons. :)
On the more serious note, FV or TP is actually provided by most of our brokers researchers and
fundamentalists. And we may all agree that they are much better than us right? Thats their Job. Its the
skill where they excel and hone over time.

3. Set your Greed Level.

Why do we need to turn on our greed meter??? So we can compute our own BBP and TP! Just in case
you dont want to follow your brokers guide, or they dont provide such.

How it works?
Example 1:
Current Price of Metro Bank is 90php/share.
Your greed level/meter is 15% or simply .15
TP = Current Price x (1 + Greed Level)
TP = 90 x (1 + .15)
TP = 103.5php

Hence, you buy below 90php and you sell at 103.5php (estimate growth around 15% or simply your
greed meter)

Or if you simply want to follow your Brokers FV but set your own BBP.
Example 2:
Brokers FV = 112php
Your greed level/meter is 15% or simply .15

BBP = Brokers FV x (1 - Greed Level)

BBP = 112 x (1 - .15)
BBP = 95.2php
Hence, you Buy below 95.2 PHP and you sell near or above 112php (with an upside of 15% and above).
There's just 1 rule in setting up your own BBP or TP!
And that is to never set your greed level/meter too high! Control your Greed! :)
Note: Tandaan na ang bawat Strategy/Method ay may kahinaan din. At walang Strategy/Method na
applicable para sa lahat. Kalakip po ng mga kahinaan nito ay ang responsibilidad ng isang investor na
gampanan ang kanyang tungkulin nang naayon at kinakailangan
Good Luck and Happy Investing!

Investing Strategies For The Newbies (Part3)

Basic Fundamental Analysis (FA)

Madalas mo bang marinig yung tanong na:

"ano pong magandang stocks na bilhin?"

At madalas ang marinig na tamang sagot:

URC, JFC, SM, TEL, GLO, MER, SMPH, DNL, etc?

At madalang pero mas tamang sagot sa tanong: Pag aralan ang Fundamentals! Fundamental Analysis
(FA)!

Honestly, FA is the most complicated strategy (for me, a non-business, financial or economic related
course) to discuss.
Even a 1-2 days workshop is not sufficient to fully comprehend/discuss everything about it.

But the good thing is... there is actually a Fundamental Hack!

And most of the hacks are surprisingly available and ready in public viewing. (PSE website, your stock
broker, Bloomberg, etc., has it!)

Now how do we do/interpret it on our own little way?

"Investopedia defines Fundamental Analysis as a method of evaluating a security that entails

attempting to measure its intrinsic value by examining related economic, financial and other qualitative
and quantitative factors.

In short, FA or Fundamental Analysis is a method that attempts to answer the question of "WHAT
stocks to buy?" (using a QUANTITATIVE and QUALITATIVE approach).

QUALITATIVE (refers to intangible aspects)

Lets use the COL guidelines of 5 P's for this one.

1. People - yung tipong kapag narinig mo ang pangalan nila Henry Sy, Gokongwei, MVP, Andrew Tan,
Tony Tan Caktiong, Injap Sia, etc.
Alam mo kaagad na magandang kumpanya. Mayaman sila eh, kumikita at maganda magpalakad ng
kumpanya!

2. Product - yung tipong kapag narinig mo ang produkto nila familiar ka. Bakit pag sinabing toothpaste
"colgate" agad ang naiisip. "Pabili nga po ng colgate, yung close up!" (hindi ba dapat, pabili nga ng
toothpaste yung close up?)
eh kapag sinabing pinoy fastfood, jollibee agad?

3. Predictability - isa sa magandang basehan na maganda ang isang kumpanya ay base sa nakaraang
performance nito. kung kumita sya dati gamit ang kasalukuyang model na meron sya, most likely kikita
ulit sya sa susunod.

4. Potential - if you see a company introduces a very brilliant idea or product or projects.

5. P/E Valuation - this is actually a little more of a quantitative approach.

QUANTITATIVE (refers tangible or numeric aspects)

de numero ika nga!

1. Recurring Income - check if the company is continuously and increasing its earning.

2. PE (Price To Earning Ratio) it will somehow tell you whether the stock is cheap or expensive.
Example: Buying a lot in an ordinary subdivision is cheaper than buying a lot in an exclusive subdivision.

3. EPS (Earning Per Share) - it will tell you how much is your investments valued. Tipid-Sulit ba?
Example: It is true that buying a lot in an ordinary subdivision is cheaper than buying a lot in an exclusive
subdivision. But, what if I tell you that that you'll earn more if you buy a lot in an exclusive area than
buying a lot in an ordinary area?
Hence, just because ALI is trading at around 40php doesnt necessarily mean that it is more expensive
than MEG whose trading at around 5-6php. Ang tanong sino ang mas sulit? EPS will answer that
question.

Therefore, Low PE is better! But a company that trades with higher EPS growth deserves to trade at
higher P/E.

4. Cash Flow - you'd prefer of course a company with a healthy cash flow.

5. Book Value Per Share BV refers to the real amount of assets once the company decided to liquidate
the company. It is also a nice hack to verify if a stock is over or under valued. If BV is greater than the
current trading price, then it is under-valued.

Note 1: In comparing the above valuations. Do not attempt to compare one stock to another stock on a
different sector.
Compare Banks To Banks, Property To Property, Conglomerates To Conglomerates, and so on.
Note 2: If you want a more advance FA approach, i-research kung paano mag compute ng FV or Fair
Value using DCF, NAV at RVM at ano ang pinagkaiba nito.
Note 3: Kung nakukuha mo ngang mag research bago bumili ng cellphone. Anong specs or katangian nito
ang gusto mo. bakit hindi ka rin mag research kung anong stocks ang maganda? Kung merong
GSMArena para sa mga cellphone, meron ding STOCKSArena para sa stocks. :)
Note 4: Again, be reminded that there are no perfect and flawless strategies. Every strategy has its own
weakness. Counter that weakness by educating yourself by learning how to handle such.
The best strategy is the one that works for you. Find yours!
Good Luck and Happy Investing!

Investing Strategies For The Newbies (Part4)

Basic Technical Analysis (TA)
They said that the world is composing of numbers. And these numbers comprises an event that actually
follows a specific or unique pattern.

One of which of these events are the emotions of Traders in the Stock Market. Hence, TA or Technical
Analysis was introduced. They believed that a certain target price can be projected by drawing some
patterns. And sample of these patterns are animalistic in nature such as BAT, CRAB or even CATS.
Which makes it somehow sound absurd and unfathomable in a way. Imagine how can those animals
predict the future, neh?

Investopedia Defines Technical Analysis as: A method of evaluating securities by analyzing statistics
generated by market activity, such as past prices and volume. Technical analysts do not attempt to
measure a security's intrinsic value, but instead use charts and other tools to identify patterns that can
suggest future activity.

Most of the starting investors for sure received the warning that Technical Analysis (TA) is not for
newbies. And that you actually need to have a deep understanding of the market before diving into such
strategy.

But do you know that there is actually a simple and profitable way how to do it? ;)

Here's how you do it:

1. List a Fundamentally sound companies (using Fundamental Analysis see part3).
2. Look for a stock with an upward trajectory (about 1'oclock or 2'clock orientation).
3. Draw an invisible line connecting all low value (see chart below with green line). This will also serve as
your support (or a 'Buy Zone').
4. Draw an invisible line connecting all high value (see chart below with red dashed line). This will also
serve as your resistance (or could be a 'Sell Zone').

Here's how it works:

1. Buy, every time stock price BOUNCE from the trend (1-2 o'clock) green line.
2. After your first buy (1st orange circle), wait until 2 lows bounce again from the trend (2 succeeding
grey circle). This will serve as your buffer for a risk-reward ratio of at least 3:1.
3. Buy every time price bounces from the green line (you can also add some indicators like Volume,
MACD, RSI, etc. to validate the trend).
4. If the trend gets broken, SELL! No matter what! And no questions asked! Avoid emotion! (Some
people sell on the red dashed line. Its up to you!)

Technical Notes:
Volume (V): Trend Line must have a good (high) volume supporting/validating the rally or trends.
Relative Strength Index (RSI): Simply an illustration of the "Law of Supply and Demand".
Generally, a value of 30 RSI means oversold and a value of 70 RSI mean overbought.
The usual case is that, if it is oversold stock price tends to go up, and when it is overbought prices tends
to go down (though this is not absolute).
Moving Average Convergence Divergence (MACD): Basically measures divergence of Fast and Slow MA
(Exponential/Simple Moving Average).
-If MACD and Signal Line is above 0 it is bullish, if below it is bearish.
-If MACD crosses over above the signal line it is bullish, if it crosses below the signal line, bearish.
-MACD is more useful on a trending (1-2 o'clock) stock. RSI is more useful on Sideways Trend.

Note: There are no perfect strategies. There are only strategies that work for each one of us. Every
strategy has its own weak and strong points. Find what works for you!

Good Luck and Happy Investing! I mean Happy Trading! Cheers!