Retiring at 40

source: http://exoticpetstore.blogspot.com/

While the market is still down deep(yup don't lose hope it will go up anytime now) lets talk about what you and I wanted to do in life.

Back then I have told myself that I will retire at 40. By that, to clarify, I mean to retire from being an employee and be the boss of my own. Kinda big job to accomplish but as they say unless you have a specific goal you want to achieve you will be always reckless and find yourself from where you have always been, that is the beginning.

So make a bold statement. Tell the world what you wanted in the next few years(and for me its about 10 more years to go). Tell yourself, yup of all you have to make yourself aware of what you have been asking or else after starting such journey you might give up).

I have started this blog primarily to document my journey to financial freedom. Many people think "FINANCIAL FREEDOM" is when one has a lot of money. That means you have money enough so that you can just sit down and relax in the comfort of one of your 200 40 hectare vacation houses in the world. Probably this is how you picture yourself being financially free but even though you are filthy rich(as most of us term it) Financial Freedom actually is not measured in the quantity of money you have. Rather one is said to be financially free once one has achieve mastery of how money works for oneself and not the other way around. Probably you may have all those vacation houses I just mentioned but you are still unhappy in spite of what you already have then I guess you are not financially free. Your accumulated wealth has just become an escape or a facade of your unhappiness.

A lot of people also say that to be selfless is the way to happiness. Yeah you did it. You join a charity group once in a while you do give donations and join in activities which are good. But in the middle of it you are still unhappy. Probably you cant put such activity to your schedule any more or maybe financially you are incapable yourself. Instead of feeling the happiness and self fulfilment it seems that your joining a group is choking you. And that is an unhappy situation.

So how should we be able to achieve our goals?

source: http://www.speaklifeyouthministries.com

2 Corinthians 9:7

Each one must give as he has decided in his heart, not reluctantly or under compulsion, for God loves a cheerful giver. 

We have to strike a balance. As the verse from the Bible says, we must be decided, not reluctant, and not under compulsion. When we make decisions and set our goals we must give our 100% and not just a partial of it. When we give we must not have any hesitation. So if you are hesitant please don't give. Let that opportunity pass. Maybe you are not ready because at the back of your mind there are needs of your own or your family that you have to care of. 

So as early as possible decide what you really want(for me that is retiring at 40). Set a date for that and as you do your day to day living ideas or opportunities will open up for you to take action. Yes you may grab that opportunity but again if such opportunity is paired with hesitation or reluctance let go. It simple means you are not ready. 

If you are still undecided why don't you take a walk in your village or a nearby park where it is quite. Just walk. They say walking clears the mind. 

source: http://tripwow.tripadvisor.com

Will you join me in my walk? Yes in awhile I will be walking in the lovely sunset here in Tumon, Guam(I hope the dark clouds will be fully blown away) the stock market is probably in its bottom and I am thinking which stocks to buy next week.

The Stock market explained in simple terms

Many have already asked me about the Stock Market, Stock trading, and stock investments. And many really is confused about it. Some say it is only for the rich and affluent people or thus who are learned men and women in the business district of Makati City.

But your wrong. Stock investing or trading is for everyone. In the Philippines one can open a stock brokerage account with the nine accredited brokers allowed to carry on online stock trading. Of the nine 2 which are also the stock investing arms of a bank, First Metro Securities of Metrobank (have no maintaining balance) and BPITrade of BPI(requires a 500 pesos maintaining balance) according to my friend Jerry who has both accounts to maximize the potential of stock trading in the Philippines.

So how will a layman or a normal Juan or Maria understand the stock market and stock investment so that the Filipino population will not be afraid to try investing in stock in the Philippines?

 source: feudart.com

 IS LIKE

 source: aileenapolo.blogspot.com

I have two analogies that I always use. The first one is the one I use  to explain to a friend what is a stock market in general. As the name says it is a market. So I want you to imagine yourself in the middle of a wet market or probably imagine yourself walking in Divisoria. What would you normally see? I guess you would see at least two types of people there. One are the buyers like you and second are the sellers who keep on doing all sorts of ways to get your attention. Why are you in Divisoria? You are in Divisoria to buy something at a bargain. You might be able to buy the same item in SM Department stores or in Cubao but at a higher price so you go to the market like Divisoria. 

You went to Divisoria to buy, same as you going to the Philippine stock market to buy. The only difference though is that instead of you buying stuffs, in a stock market or bourse you buy shares of stock of a company. And you buy it only at a bargain. Who in the world would buy a kilo of mango for 10,000 pesos that would be insane right. On the other hand you also sell stocks so you take the place of the sellers. You will always be on the look out for potential buyers by making your voice heard by giving a buyer a good price on your stock.

Now one more thing, in the wet market sellers and buyers interact directly but in the stock market a buyer or a seller interact through a broker which is accredited and certified by regulatory bodies. In a way it is a safeguard to protect the interest of participants in the stock market.

Another analogy I use is the bouncing ball. The stock market is like a bouncing ball. It goes up and down. It is never steady. This analogy explains the theory of Supply and Demand. When demand for a stock rises a rise in price is also seen. As a ball is given force, the force given to it reflects by the height it goes. When the ball is way way up the tendency is for it to go down  losing the upward force. The ball's weight becomes the indicator that the market is overbought making the ball heavy thus gravity pulls it down. When all the stocks are bought it is normal for those who bought it to sell at again so as the price go down they try as much as possible to take profits by selling their stock holdings before it reaches their cost.

And as the ball touches the ground it bounces again thus continuing the cycle. So when stock prices are on the rise investors like you and me try to buy it while it is still low to profit when it peaks and before it goes below our cost. When stock prices starts to go down after enjoying a high price we wait for it to reach the bottom and buy stocks when it is about to rise again.

The Stock market explained in simple terms

Many have already asked me about the Stock Market, Stock trading, and stock investments. And many really is confused about it. Some say it is only for the rich and affluent people or thus who are learned men and women in the business district of Makati City.

But your wrong. Stock investing or trading is for everyone. In the Philippines one can open a stock brokerage account with the nine accredited brokers allowed to carry on online stock trading. Of the nine 2 which are also the stock investing arms of a bank, First Metro Securities of Metrobank (have no maintaining balance) and BPITrade of BPI(requires a 500 pesos maintaining balance) according to my friend Jerry who has both accounts to maximize the potential of stock trading in the Philippines.

So how will a layman or a normal Juan or Maria understand the stock market and stock investment so that the Filipino population will not be afraid to try investing in stock in the Philippines?

 source: feudart.com

 IS LIKE

 source: aileenapolo.blogspot.com

I have two analogies that I always use. The first one is the one I use  to explain to a friend what is a stock market in general. As the name says it is a market. So I want you to imagine yourself in the middle of a wet market or probably imagine yourself walking in Divisoria. What would you normally see? I guess you would see at least two types of people there. One are the buyers like you and second are the sellers who keep on doing all sorts of ways to get your attention. Why are you in Divisoria? You are in Divisoria to buy something at a bargain. You might be able to buy the same item in SM Department stores or in Cubao but at a higher price so you go to the market like Divisoria. 

You went to Divisoria to buy, same as you going to the Philippine stock market to buy. The only difference though is that instead of you buying stuffs, in a stock market or bourse you buy shares of stock of a company. And you buy it only at a bargain. Who in the world would buy a kilo of mango for 10,000 pesos that would be insane right. On the other hand you also sell stocks so you take the place of the sellers. You will always be on the look out for potential buyers by making your voice heard by giving a buyer a good price on your stock.

Now one more thing, in the wet market sellers and buyers interact directly but in the stock market a buyer or a seller interact through a broker which is accredited and certified by regulatory bodies. In a way it is a safeguard to protect the interest of participants in the stock market.

Another analogy I use is the bouncing ball. The stock market is like a bouncing ball. It goes up and down. It is never steady. This analogy explains the theory of Supply and Demand. When demand for a stock rises a rise in price is also seen. As a ball is given force, the force given to it reflects by the height it goes. When the ball is way way up the tendency is for it to go down  losing the upward force. The ball's weight becomes the indicator that the market is overbought making the ball heavy thus gravity pulls it down. When all the stocks are bought it is normal for those who bought it to sell at again so as the price go down they try as much as possible to take profits by selling their stock holdings before it reaches their cost.

And as the ball touches the ground it bounces again thus continuing the cycle. So when stock prices are on the rise investors like you and me try to buy it while it is still low to profit when it peaks and before it goes below our cost. When stock prices starts to go down after enjoying a high price we wait for it to reach the bottom and buy stocks when it is about to rise again.

The Stock market explained in simple terms

Many have already asked me about the Stock Market, Stock trading, and stock investments. And many really is confused about it. Some say it is only for the rich and affluent people or thus who are learned men and women in the business district of Makati City.

But your wrong. Stock investing or trading is for everyone. In the Philippines one can open a stock brokerage account with the nine accredited brokers allowed to carry on online stock trading. Of the nine 2 which are also the stock investing arms of a bank, First Metro Securities of Metrobank (have no maintaining balance) and BPITrade of BPI(requires a 500 pesos maintaining balance) according to my friend Jerry who has both accounts to maximize the potential of stock trading in the Philippines.

So how will a layman or a normal Juan or Maria understand the stock market and stock investment so that the Filipino population will not be afraid to try investing in stock in the Philippines?

 source: feudart.com

 IS LIKE

 source: aileenapolo.blogspot.com

I have two analogies that I always use. The first one is the one I use  to explain to a friend what is a stock market in general. As the name says it is a market. So I want you to imagine yourself in the middle of a wet market or probably imagine yourself walking in Divisoria. What would you normally see? I guess you would see at least two types of people there. One are the buyers like you and second are the sellers who keep on doing all sorts of ways to get your attention. Why are you in Divisoria? You are in Divisoria to buy something at a bargain. You might be able to buy the same item in SM Department stores or in Cubao but at a higher price so you go to the market like Divisoria. 

You went to Divisoria to buy, same as you going to the Philippine stock market to buy. The only difference though is that instead of you buying stuffs, in a stock market or bourse you buy shares of stock of a company. And you buy it only at a bargain. Who in the world would buy a kilo of mango for 10,000 pesos that would be insane right. On the other hand you also sell stocks so you take the place of the sellers. You will always be on the look out for potential buyers by making your voice heard by giving a buyer a good price on your stock.

Now one more thing, in the wet market sellers and buyers interact directly but in the stock market a buyer or a seller interact through a broker which is accredited and certified by regulatory bodies. In a way it is a safeguard to protect the interest of participants in the stock market.

Another analogy I use is the bouncing ball. The stock market is like a bouncing ball. It goes up and down. It is never steady. This analogy explains the theory of Supply and Demand. When demand for a stock rises a rise in price is also seen. As a ball is given force, the force given to it reflects by the height it goes. When the ball is way way up the tendency is for it to go down  losing the upward force. The ball's weight becomes the indicator that the market is overbought making the ball heavy thus gravity pulls it down. When all the stocks are bought it is normal for those who bought it to sell at again so as the price go down they try as much as possible to take profits by selling their stock holdings before it reaches their cost.

And as the ball touches the ground it bounces again thus continuing the cycle. So when stock prices are on the rise investors like you and me try to buy it while it is still low to profit when it peaks and before it goes below our cost. When stock prices starts to go down after enjoying a high price we wait for it to reach the bottom and buy stocks when it is about to rise again.

Investing word of the day: Correction

source: http://seekingalpha.com

We have seen this lately in the local stock market after the DOW went to the red. Also due to the three or four days that the PSE defied DOW thus this week it is expected to slow down after a great uptrend for the past days, so what then is correction or market correction?

As usual I got this definition from Investopedia.com:

"A decrease in the market price of an asset or entire market after extensive price increases. A technical correction occurs even when there is no evidence that the increasing price trend should cease. It is often caused when investors temporarily slow down their purchases of securities, which commonly leads to a pullback toward a short-term support level."

Layman's explanation:

It is a decrease of the market after a extended uptrend.  Generally when the market has enjoyed a continuous increase in price it will come to the point where it is at its highest point thus it will start to pull back. An analogy used by most is the bouncing ball analogy. Just like the bouncing ball, stock market is not always in an uptrend mode at any point it will go down and it will bounce back again.  

That is why it is important to learn how to time the market. When prices are down it is the best to buy because sooner or later it will bounce back or it may even surpass the previous highs. In relation to the Law of supply and demand when the stock market becomes saturated meaning either the buys or sells is more than the other it will surely create a change. When prices are rising sellers dominate the market because everyone wants to profit and when it is a downtrend buyers dominates it because it is a bargain market. 

The stock market is any ordinary market that we know. It is always buy low sell high. You don't sell at below cost if you are in your sane mind, you are trading for profit. Correction is that time when as Investopedia.com says there is no apparent reason for prices to go down its just that prices are to high and in order to sell prices should be lowered to attract buyers.

So bargain hunters lets go shopping!

Links worth checking:

http://uk.reuters.com/article/idUKLNE63F01120100416

http://www.ctv.ca/generic/generated/static/business/article1582086.html

Investing word of the day: Correction

source: http://seekingalpha.com

We have seen this lately in the local stock market after the DOW went to the red. Also due to the three or four days that the PSE defied DOW thus this week it is expected to slow down after a great uptrend for the past days, so what then is correction or market correction?

As usual I got this definition from Investopedia.com:

"A decrease in the market price of an asset or entire market after extensive price increases. A technical correction occurs even when there is no evidence that the increasing price trend should cease. It is often caused when investors temporarily slow down their purchases of securities, which commonly leads to a pullback toward a short-term support level."

Layman's explanation:

It is a decrease of the market after a extended uptrend.  Generally when the market has enjoyed a continuous increase in price it will come to the point where it is at its highest point thus it will start to pull back. An analogy used by most is the bouncing ball analogy. Just like the bouncing ball, stock market is not always in an uptrend mode at any point it will go down and it will bounce back again.  

That is why it is important to learn how to time the market. When prices are down it is the best to buy because sooner or later it will bounce back or it may even surpass the previous highs. In relation to the Law of supply and demand when the stock market becomes saturated meaning either the buys or sells is more than the other it will surely create a change. When prices are rising sellers dominate the market because everyone wants to profit and when it is a downtrend buyers dominates it because it is a bargain market. 

The stock market is any ordinary market that we know. It is always buy low sell high. You don't sell at below cost if you are in your sane mind, you are trading for profit. Correction is that time when as Investopedia.com says there is no apparent reason for prices to go down its just that prices are to high and in order to sell prices should be lowered to attract buyers.

So bargain hunters lets go shopping!

Links worth checking:

http://uk.reuters.com/article/idUKLNE63F01120100416

http://www.ctv.ca/generic/generated/static/business/article1582086.html

Investing word of the day: Correction

source: http://seekingalpha.com

We have seen this lately in the local stock market after the DOW went to the red. Also due to the three or four days that the PSE defied DOW thus this week it is expected to slow down after a great uptrend for the past days, so what then is correction or market correction?

As usual I got this definition from Investopedia.com:

"A decrease in the market price of an asset or entire market after extensive price increases. A technical correction occurs even when there is no evidence that the increasing price trend should cease. It is often caused when investors temporarily slow down their purchases of securities, which commonly leads to a pullback toward a short-term support level."

Layman's explanation:

It is a decrease of the market after a extended uptrend.  Generally when the market has enjoyed a continuous increase in price it will come to the point where it is at its highest point thus it will start to pull back. An analogy used by most is the bouncing ball analogy. Just like the bouncing ball, stock market is not always in an uptrend mode at any point it will go down and it will bounce back again.  

That is why it is important to learn how to time the market. When prices are down it is the best to buy because sooner or later it will bounce back or it may even surpass the previous highs. In relation to the Law of supply and demand when the stock market becomes saturated meaning either the buys or sells is more than the other it will surely create a change. When prices are rising sellers dominate the market because everyone wants to profit and when it is a downtrend buyers dominates it because it is a bargain market. 

The stock market is any ordinary market that we know. It is always buy low sell high. You don't sell at below cost if you are in your sane mind, you are trading for profit. Correction is that time when as Investopedia.com says there is no apparent reason for prices to go down its just that prices are to high and in order to sell prices should be lowered to attract buyers.

So bargain hunters lets go shopping!

Links worth checking:

http://uk.reuters.com/article/idUKLNE63F01120100416

http://www.ctv.ca/generic/generated/static/business/article1582086.html