Project Freedom (3): Why and How Successful Traders CAN Keep Making Profits from the Market

Let's start by reviewing an old fable: “The Mathematician and the King”

Once upon a time there was a mathematician invented a chess game for a king.  The king was so happy about it and told the mathematician to name his reward.

“I don’t ask for much,” said the clever mathematician. “A single grain of wheat on the first square on the chess board, two grains of wheat on the second square, and double the number of wheat in every subsequent square….”

“So it shall be done,” said the king, who was not having any idea about the concept of exponential growth.

After the King got his men to work out the numbers, he was shocked that before reaching half of the complete chess board, the number had become bigger than total annual wheat production in his whole Kingdom.

The moral of the story is: TWO CONDITIONS are required to grow Rich. It takes both the “TIME” and “EDGE” to increase the number through exponential growth.

Now, let's see how these concept apply to trading:

* TIME: Every move to the subsequent square represents the “Time” required in the game. Adding all the individual step, short term, together become a long term. 


* EDGE: In the story, it has an “Edge” in doubling every next step. Similar to say that as long as there is a CONSISTENT edge, it would grow over time. The stronger the edge (Percentage growth over a fixed period of time) the faster the number grow, and Back Testing the system would help to identify which "Edge" is better.


Just like the house of any Casinos, as long as there are enough customers keep playing the game, they can keep making money because there are “Edges” built into all games by designed, though these edges may be very small in percentage in terms of winning probability bias towards the house.

(-> Here is a good article illustrating the Edage of a casino.  <-)

So...

When one can workout a consistent "EDGE" and keep himself continuously participate in the market... It is like, he is operating an online Casino by himself.

Of course, the "edge" must be much stronger than many other devaluation factors to be meaningful edge, such as "Inflation","currency devaluation","Tax", etc.This link has a picture to show how serious inflation could be over time:

http://blessedfool.blogspot.sg/2012/01/personal-finance-8-where-have-all-money.html

The moment when a trader is able to change from the state

of "understand the principle of probability" to the

state of "thinking in probability mind set",

he changes his world.
- Mark Douglas - "Trading in the Zone"

Pesos and Sense Video Episode 12 - Social Cost of Investing

Pesos and Sense Video Episode 12 - Social Cost of Investing

Pesos And Sense

Pesos and Sense Video Episode 12 Part 1 

Small ways to save! 

Pesos and Sense Video Episode 12 Part 2

Advantage of Saving Early.

Pesos and Sense Video Episode 12 Part 3

What is a Quote Board in the Stock Market? Price Ticker?

Pesos and Sense Video Episode 12 Part 4

Aya's Question and Answer Portion

Happy viewing.. Pesos and Sense... 

You may also Watch....

Pesos and Sense Video Episode 1

Pesos and Sense Video Episode 2

Pesos and Sense Video Episode 3

Pesos and Sense Video Episode 4

Pesos and Sense Video Episode 5
Pesos and Sense Video Episode 6
Pesos and Sense Video Episode 7
Pesos and Sense Video Episode 8
Pesos and Sense Video Episode 9 
Pesos and Sense Video Episode 10
 

Understanding ISA

ISAs are a popular type of savings account that is used by millions of people in the UK. However, if you have never had one before, you may not be entirely familiar with what ISAs are and what they do. Read on to find out more about understanding ISAs.

What are they?

‘ISA’ stands for individual savings account, and the aim of ISAs is to allow everyone to save a certain amount of money every year tax-free. This means that while you normally have to pay tax on the interest you earn on your savings with other types of savings account, this isn’t the case with an ISA.

What are the main types?

There are two main types of ISAs: the cash ISA and the investment ISA.

Cash ISAs allow you to save less than other types of ISA but all of the money you save in the account is guaranteed and you can access it whenever you need it, which makes these accounts very popular with a lot of people.

Investment ISAs commonly take the form of a stocks and shares ISA. This type of ISA allows you to save more money every year, which can be appealing for anyone looking to maximise their tax-free savings. Most shares ISAs are linked to the stock market – often carefully-selected FTSE 100 companies, but other high performing listed companies can also be chosen, such as those that have a good track record on the environment.

How much can you save?

There is an annual limit on ISAs, which changes every year so it is worth keeping an eye on this to make sure you are getting the most out of your ISA allowance. For the current tax year (2011/2012), you can save up to £5340 in a cash ISA.

For a share ISA, you can save up to £10680. There are two options related to investment ISAs in terms of how you save your money. One option is to save the total amount in the form of stocks and shares investments. Your other option is to save half in the form of shares and half as cash.

What are the risks?

It is important that you are aware that there are some risks attached to investment ISAs. This is because their performance is dependent on the market and so, while there is very good potential for you to receive very good dividends, your investment can also go down as well as up. However, if you look around for the best stocks and shares ISA, it should be well-managed and so risks should be kept to a minimum.

Also, it is advised that you plan to save in your stocks and shares ISA for the long term to give it the best possible chance of performing well. You could also consider a gilts and bonds ISA if you prefer, which has less of a risk attached but can still offer good returns.

Overall, make sure you do your research to make sure you choose the investment ISA you think would be best for your needs.

The Stock Market Is Soaring… But You Can Still Catch Up If You Act Quickly

The Stock Market Is Soaring… But You Can Still Catch Up If You Act Quickly

           

TrulyRichClub

Just sharing Soulfood from TrulyRichClub..

Our favorite Stocks have soared these past two weeks. My TrulyRichClub Members love me more than ever. (It’s mutual. I love them too.) And they’ve been thanking me for “pestering” them last year to invest in the Stock Market every month. I was like a broken record, telling them to “invest, invest, invest!” when no one wanted to invest because the economy was bad.

In the process, my TrulyRichClub Members were able to buy cheap Stocks every month.

Oh believe me, I was their big “nuisance” last year.   Because every other week, through my Members-Only Stocks Update eReports, I kept badgering, cajoling, and begging them to invest their small amounts in my recommended list of Stocks. In Tagalog, I was very “makulit”.

But it paid off. My TrulyRichClub Members are now seeing all the money they invested growing beautifully.

Just to give you an idea…

One of our Stocks has already gained 16.09% since December.

Another Stock gained 13.53%. Now you know one reason why my TrulyRichClub Members love me. (The other reason is that I’m cool.)

But here’s the big question people have been asking me: “Bo, can I still catch up?”

My answer: Yes, you can.

I believe that this Rocket (called the Philippine Stock Market) is getting ready to take off to greater heights. Our fearless projection: It’ll move up for the next 3 years. The Philippines will experience a Stock Market boom; It’ll be one of the best performing Stock Markets in the world. And I believe that many will become richer because of this Rocket.

But here’s a brutal fact:  It will go up with or without you.

I really hope you join the ride.

Don’t wait. Don’t delay. Don’t postpone.

To ride this Rocket, click the link below:

Yes Bo, I Want ToJoin This Rocket;

Tell Me How To JoinThe TrulyRichClub..

May your dreams come true,

Bo Sanchez

PS. Yes, there are still a couple of Stocks that haven’t gone up.   They’ll be fantastic Stocks to buy this year. In fact, my TrulyRichClub members have been buying these 2 Stocks since May 2011—and they’ve not yet gone up.  Which is fantastic. That means there’s more time to buy more shares before they finally shoot up.

To ride this Rocket, click the link below:

Yes Bo, I Want ToJoin This Rocket;

Tell Me How To JoinThe TrulyRichClub...

Personal Finance (8): Where Have All the Moneys Gone?!

(Click on the chart to Zoom-in)

In the above diagram:
1) The upper pane is the price chart shows a long term monthly chart of S&P500 ETF (SPY) for the past 19 years. 

2) The middle pane  shows that DEVALUATION of currency due to INFLATION. The Back/Blue/Green/Red color are representing 0,-3,-5 and -10 percent per year respectively.

3)  The lower pane shows the inflation adjusted value of the S&P500 Index.  Now, when factor in devaluation rate of  0,-3,-5 and -10 percent per year due to inflation, the number is more realistic in reflecting the "actual value" after all these years of investment.

Consider the annual inflation rate as of today, and think about how this FACT would affect your retirement plan (if you already have one).
For those people who simply look at their bank account balance without factor in the devaluation due to inflation could be having a shock at a later date.


So, after many decades of world peace since the end of WWII... 
After chopping down so many forests...
After using up about half of the total crude oil on earth...
After polluting so much rivers/air/environment under the name of development...
At the end: Where have all the moneys gone??!!

May be this song will give you some inspiration to find out.

Where have all the Moneys gone?
Long time passing
Where have all the Moneys gone?
Long time ago
Where have all the Money gone?
Gone to ????? every cent
When will we ever learn?
When will we ever learn?

->Home<-

4 Steps to help you to stick your budget

4 Steps to help you to stick your budget

4 steps stick budget Personal Finance

Many of us really know how to make a budget. We make a list of category from most to least priority things need to pay every month so that we can adjust our income allocation to each category. But unfortunately, many of us find difficulties to follow and stick to the budget. This is the hard part after the budgets have been set up. To make sure that spending of our money is according to our budget. Here are the 4 steps that can help to stick to your budget.

1. Write down all of your expenses

For me, this is the hardest part of all. Since, it is not our habit to ask a receipt for every item we purchase. It is hard to track every month where our money goes. So it’s better to write down every peso we’ve spend on. To become more effective our budget, we need discipline to really keep tracking our spending.

2. Check during the month to see how we are doing

Review the budget. Make sure that we have enough allocated money in each category we listed and that money can last for the entire month. Do something. Cut back if you’re spending too quickly or relax a little if you are starting the month too tight with your money.

3. Total all the expenses

At the end of the month, total all the expenses. Compare it to your allocated budget in each category. And then compare your over all spending with your income and savings plan. Check out the results if it’s fit to your lifestyle or not.

4. Make Adjustments

When we already know how and where our money goes. We can now decide whether we need to adjust our budget so that our budget matches to our spending habits or otherwise decide to adjust our spending habit to fit in our budget.

After doing all this, you have now some valuable information that can help us in planning our finances. Remember that in order to gain more knowledge on making a budget and make our budget more effective we must discipline ourselves and do the hard part living by a budget. That is, records all every peso we spend.

Break even misconception in Stock Market

Break even misconception in Stock Market

Investing Break even misconception

Last time I post an article about first thing to know before investing in the Philippines Stock Market. I cite the rule of Warren Buffet to be considered and follow before going into stock market because I know and I'm sure many people losses money in there. Despite the fact that this rule is not easy to be follow and apply in real life sometimes wrong decision can lead and result of losing money so it is much better to determine how much money are we willing to loss in the stock market. If we can't avoid of losing our money then we must manage to minimize the loses.

Why many people losses their money in the stock market? I believe the causes are lack of knowledge in investing in the stock market, short term plan investing or no plan/strategy at all and the worse is the breakeven misconception creating confusion to many investor in the stock market.

Many people often believe that if their shares of stocks turn into negative many don't even react or do something or most of all don't have plan/strategy on how to lessen their losses because of hoping their returns will come back soon while waiting. They believe that if their stocks loss 10% within one year it takes 10% also to break even while patiently waiting and do nothing which isn't true.

In my example last time if you have Php. 10,000.00 place in the stock market and loss 20% in first year become Php. 8,000.00, it loss Php. 2,000.00. In order to gain back the loss of Php. 2,000.00 or to breakeven to Php. 10,000.00 without doing and just patiently waiting the market to go up again, it needs 25% gain not 20% to recover the losses. 5% higher compare to recent loss of 20%. This is the misconception of many people in the stock market that's why they end up losing their money. Often they don't have plan/strategy to what to do in order to protect their money and to avoid losing. 

For me to avoid this if it happen, we must have a plan/strategy either sell the stocks and take/cut the losses or buy more stocks and do peso cost averaging. From other blogs I read they suggest, set a plan of what percentage of drop/losses to reach before make an action either take/cut the losses or buy more stocks.

The reason we should take/cut losses quickly if our stock drops even more is the ability to recover from losses. If a stock drops 10% from the purchase price, we can make it back with an 11% gain. If it drops 20% we can make it back with a 25% gain. But if it drops 50%, our stock must gain 100% just to breakeven and recover which is takes time to make it happen! Check out the table below for the sobering numbers.

Amount of Stock Drops / losses	Gain needed to Break Even and recover
5%	5.26%
10%	11.1%
20%	25.0%
30%	42.86%
40%	66.67%
50%	100%
60%	150%
70%	233.33%
80%	400%
90%	900%

From the table we can clearly see what percentage of drops are we willing to accept depends on our time horizon. For short term plan it is better set a lower percentage of drop so that we can quickly do necessary action to recover the losses in time. The higher the losses you accept, the higher the gain to break even therefore the longer time horizon we must have to recover from losses.

Now, if you have done your plan/strategy on how you going to follow the rule of Mr. Warren Buffet. I think you are ready to go now in the Philippines Stock Market. Good Luck. Happy Investing.

Work From Home: 5 Ways to Earn Extra Money

Times today are tough, so whether you’re a student, a stay at home mom, or an employee whose hours got just reduced, the chance to make money would be a blessing. Blessings don’t always have to be God sent; they can also be man made. Effort and initiative goes a long way, so if you want to make extra money from home, here are 5 ways to generate additional income:

1. One effortless way to make money from home is by the sales of items you have around the house. Aside from holding a garage sale, you can also post household items you want to sell on online sites such as EBay. Using an online site promotes your sale to a wider audience than just your neighborhood. Due to the tough economy, you don’t want to just get rid of unnecessary or unused clothes, furniture, books, or household appliances. By auctioning off your items, people who’re looking to spend less will also stand to gain. Check out Cash4Books.net; it pays well for newer hardcover books or textbooks.

2. Online writing is the right direction if you want to earn extra money from home, or even if you want to work full-time as a home based writer. Several sites such as eHow, Bukisa, and Hub Pages welcome well-written articles from contributors. Blogging is also a great way to make money; you can launch your own blog. In order to do so, you would require a good topic, research, and dedication to pull it off.

3. A lot of work can be done online, even if you aren’t a writer. If you’re a teacher, you can earn money tutoring people online at such sites as Tutor and ETutor. You also don’t have to be a teacher per se, just an expert in a certain field.

4. In line with online work, several sites also offer professionals from different industries (from web and software development to customer service) a chance to earn extra income. Check out Craigslist for job postings or register with oDesk to find part-time or full-time work.

5. Make a business from your skills and hobbies. If you like to bake or cook, you can sell these to neighbors, friends, and even your co-workers, thereby making a tidy profit. If you’re good with your hands and like to make crafts like handmade jewelry, decorations, or even personalized t-shirts or mugs, you can post these for sale online in Facebook or take orders in person.

There are many opportunities to make extra money from home, especially if you know where to look for opportunities online. Networking is also a very important skill to utilize; this enables you to market whatever products or skills you may offer to others in order to earn additional income.

One word of caution, especially when working from home: there are many scams that take advantage of the popularity of working from home, so check the companies or sites you are thinking of working for. Nothing ventured is nothing gained, but also be wise about where you put your time and effort.

Project Freedom(2): In Search of the Heaven Sword and Dragon Sabre Indicators

“武林至尊，宝刀屠龙，号令天下，莫敢不从，

倚天不出，谁与争锋。” 
-- 金庸小说《倚天屠龙记》

Above is a phrase from Jin Yong's famous novel The Heaven Sword and Dragon Sabre.

It may be translated as follows: "The precioius Dragon Slaying Sabre is the most Honourable Weapon in the Martial Art Community.  It commands the world and no one dares to disobey!  Who else dare to challenge it unless the re-appearance of the Heaven Reliant Sword?"

The story background was set in the late Yuan Dynasty, and it revolves around a pair of extremely powerful weapons as named by the novel.  Of course, one can imagine that all the people want to own one of these weapons, and some went to the extreme, by hook or by crook, in order to get it.   Almost all Chinese spoken people know more or less about this story as it been flimed into movies and TV series for about ten times since the last 3 decades.

Dragon Sabre


There is a saying, "人生如戏 戏如人生", "A Life is just like a Movie, A Movie is just like a Life."  So True!
From personal experience and what I read from the trading forums...  Most system developers are in their journey in search of such powerful indicator(s), and the west call it the Holy Grail Indicator.

Many people in the forums claimed that they don't believe that there is such thing, yet keep on discussing and debating about it... Having told some stories...
The following are some good reasearch sites for indicators/systems, and some indicators used to be sold for  a couple of hundred USD (bought a couple before ) and are now for free:

1) MetaStock Zone

2) EasyLanguge Zone

3) WealthLab Public Chart Scripts

4) Amibroker AFL in WiseStock Trader

5) Trader Tips from TASC

My engineering view point is this: there is definitely no Holy Grail indicator, but there are Holy Grail systems which consist of multiple indicators working in harmony at the background.  In such system, each individual indicator would cover the shortcomings for other individual indicator , like a Master Mind Team, and make it works great.   Everyone has blind spots.  Cannot see it don't mean it is not there.

"Nothing great was ever achieved

without enthusiasm."

- Ralph Waldo Emerson

...  to be continue ...

Personal finance habits that can keep debt out of your door

This is a Guest Post from Steven Robart. 

Personal finance habits that can keep debt out of your door

Personal Finance Habits

Personal finance is one of the most important parts of your financial life. When you hear about personal finance, you should think of it as a discussion about your personal financial habits. This is a very important criterion in deciding whether or not you can stay out of debt. If you fall in debt you have to seek debt help in order to get out of your debt woes. Most of the times, these debt help are professional.
 
However, you can come out of debt on your own if you manage your finances well and practice proper personal finance habits. Here are some personal finance habits you can follow.

Draw out a monthly budget - It is very important to keep a track of how much you are spending on what. Thus drawing out a weekly budget is very important. You should list down the items that are necessary for you. If you have money left after jotting down the necessary items, you can allocate some amount to other luxuries.

Make a list while going for shopping - Grabbing everything that is within the reach of your hand and looks mildly attractive is not the way to shop. When you are out for shopping, especially groceries or for a number of things together, you should make a list of the items you want to buy. In this way you will not miss out on things that you need and stay focused.

Use fewer credit cards - Credit cards are the culprit behind most debt related problems. Using credit cards to purchase items can often get you swayed from your track and you lose account of how much you are spending. This is especially true when you have many cards. Thus you should have lesser number of cards to know how much you are spending per month.

Pay bills on time - A very important personal finance habit is paying your bills on time. If you fail to pay your bills on time interest charge is started to be levied and you have to pay more than what you had originally borrowed to get out of your debt. This is the main reason why so many people fall into credit card debts.

Thus you can see how the above personal finance habits are a guide to health financial condition and debt free life.

Trader Vs Investor

Trader Vs Investor

Trader Vs Investor in the Philippines Stock Market

By the help of internet, many people now can make a blog and post an article about personal finances or share their personal knowledge and experiences using social networking site like Facebook, twitter etc. From those site we can get free information that teach us particularly on how to properly handle, manage personal finances and sometimes how to grow more our money  by placing in different investment vehicle. Some people are can easily follow those tips that they learned from those website or blog like spend less, earn more. And some are not.

Like me as an example. I learned to handle and manage my finances not from the school or within my family but from those personal finances blog that I’m always reading. After saving of money become my habit. Its flow naturally in me the idea that it is not enough to save only but I need to do something in order to grow more my savings thus I look for an investment that can help to grow my savings.

Some advices I’ve got are to place in mutual funds, unit investment trust fund (UTIF), time deposit and Philippines stock market. An aggressive advice is if you’re risk taker then place your money in the Philippines stock market and buy shares of stock of a good company since investing in Philippines stock market can give a higher return compare to other investment vehicle.

This is exactly what I’m doing now. I place my money in the Philippines stock market. One time, my brother told me that placing my money in the stock market is very risky and there’s a higher possibility that I might loss my money in there. He said, did you know that most people participate in buying or selling of stocks totally loss their money and never can recover? Why are you bringing your money there?

Yes, you’re correct. 

I said to my brother, participating in stock market is very risky if you didn’t know what you’re doing. Very risky if you don’t have goal and purpose why are you participating in the stock market. Of course, before I place my money in stock market. The first thing I work on is gain knowledge anything about on how to participate in the Philippines stock market. And that is why internet has a big rule on my personal finances. 

Also I explained to him that there are two kind of people (I believe and from Truly Rich Club point of view were I’m a member) participating in the stock market. First is Trader and second is Investor. Those two participants are common in nature but different in characteristic. Both are buying and selling shares of stock but the difference are the time they holding the stock and the time they spend in buying and selling of stocks.

Traders buy and sell share of stocks often on shortest time while investor’s buy shares of stocks but sell seldom and has a long term plan in holding their shares of stock before selling. Traders mostly place their money in lump sum in particular stocks while investor’s do also lump sum but I think most of them place their money in interval like monthly, quarterly basis or they do peso cost averaging strategy. In Truly Rich Club they use called Strategic Average Method (SAM). 

Traders must closely watch, monitor and need more time to research and analyses the price ups and down in the stock market or in short they time the market when to buy and sell the shares of stock. Investor’s since planning to hold the stocks in long term, all they have to do is patiently buying the stocks of a good company  not bothering the ups and down of the price in the stock market.

Then who among the two participant has a highest risk to loss their money? I think the traders because their money actively flowing in and out the market. It needs more time to research and monitor the market. Wrong decision can lead and result of losing their money.

If you’re asking me who am I in the Philippines stock market. I have less time to watch and monitor the price in the stock market due to the nature of my work. I can’t buy and sell shares of stock often. I have small amount of money to buy stocks so what I always doing is buying every month to accumulate more stocks of a good company and sell later on. My plan is long term so I will sell my accumulated stocks perhaps after 5 to 10 years from now. In my situation I can say I am an investor in the stock market.

I believe becoming an investor and not as a trader can help me to achieve my goal and to become financially free. And one thing that I have to do and hoping that can lead to achieve my goal is by learning more about in personal finances and by investing in the stock market as investor. 

Through the help of internet, reading many personal finances blog out there and also by joining Truly Rich Club as for my guide it is a good start in my part to help me gaining more knowledge about investing in stock market. It is not impossible to become financially free though it’s not easy but it is clearly achievable. We can't deny that it is already done and achieve by other people so for me I can do it also.

How about you? Are you a trader or an investor in the stock market?

When Buying the Expensive Version Can Save You Money

Usually buying the expensive version of a product or service would seem counterintuitive to saving money. In fact, being frugal doesn't seem to have any link whatsoever with indulging on expensive things. Let me explain why there is a connection and why it's not as tenuous as you may think. No, I'm not leading you down the path to selling your house and moving all your stuff into StorageMart. What you're about to hear are actual ways in which buying the expensive version of something can save you money:

Buy a fuel-efficient electric or hybrid vehicle: While the upfront cost of a hybrid is comparable or a bit more than a new gasoline powered car, the money you save on fuel and emissions updates will even out the costs. Depending on the year and model of the hybrid you buy, you many even wind up saving more money in the long haul. Also, you'll be helping the human race save money on cleaning up the environment.

Buy high-quality coffee beans: Stopping by your favorite coffee shop every morning can easily lead to a monthly tab of $100 - and that's assuming you don't also need a caffeinated pick-me-up throughout the day. By buying high quality coffee beans, which run about $15 a pound, you will be able to reduce your monthly coffee bill to about $30 by bringing your own coffee from home. Another reason to buy high-quality beans is that they will keep you riding a more potent, smooth wave of caffeine exuberance, making you need less coffee throughout the day. So invest some of your scratch into top-notch fair trade beans and save yourself money.

Buy appropriate car insurance: Sometimes opting for the more inexpensive option can not only be risky, but downright financially life threatening, and buying car insurance is one of those instances. Getting inferior coverage in order to save $10 a month is not a smart move. If the worst case scenario happens, in which you and the other drivers' cars are totaled and people are injured, you're going to wish you had full coverage on injury and collision for all parties. It could be the difference between a few hundred dollars on a deductible vs. tens or even hundreds of thousands on repairs and surgery costs.

These are just a few of the instances in which buying the expensive version of something can save you money in the long run. Spending more upfront on a product or service is not always prudent, but in some cases it's the right move.

People In Their 30’s And 40’s Fear Growing Old

People In Their 30’s And 40’s Fear Growing Old Without Money But The Solution Is So Simple

A soulfood letter from Bo Sanchez.

Truly Rich Club

Greg is a 63-year old man.

The salt and pepper hair fit him nicely. Makes him look elegant. Greg also wears cool clothes that make him look like a rich gentleman. But his eyes can’t hide the bone-chilling terror inside.

Yes, Greg has a cushy job.  But he knows he will retire at 65. That is just two years away.   And he’s scared.   Very scared. Because on that day, he won’t have a monthly paycheck anymore. “I’m sure you have savings, right?” I asked Greg.

He looked down, shaking his head. “Not more than P200,000 in the bank. I’ve never been very good with the savings bit. I just spent my money. And there were many emergencies along the way. I know I should have saved more. But I didn’t.”

I asked, “But you’ll get a nice retirement package from your company?”

“To pay my debts,” he sighed. “I just borrowed to buy a car last year. And did some house repairs this year. We also travelled as a family last summer, paid for by another loan. So whatever I’ll get from my retirement will erase my debt. But nothing will be left. Absolutely nothing.”

I couldn’t help but groan.  Greg was staring at the perfect storm.  A financial calamity that was coming in two years. I pitied him so much…

My Two Boys Have More Investments Than Greg. My sons, ages 11 and 6, are investors. It’s never too young to start your investments. My boys Benedict and Francis each have P300T+ in their Stock Market investments. Benedict would invest money from his odd jobs, his small business, and both of them would invest their Christmas cash gifts from Ninangs and Ninongs (godparents).

And let me repeat: Their money is in the Stock Market. Not in the Bank. Did you know that money in the Bank slowly “evaporates” under the heat of inflation? Your money shrinks over time, just like how water dries up under the heat of the sun.

Let me explain: Inflation—or how the purchasing power of your money decreases—is at 4% to 6% a year. The interest you earn in a bank is less than 1% a year. So each year, your money in the bank shrinks by 3% to 5%.

In the Stock Market, if you follow my simple investment method (NOT trading!) which I call Strategic Averaging Method, you’ll grow your money at 12% to 20% a year over time. You Don’t Have To Make The Mistake Of Greg

Some people think that as you grow older, you’ll have to grow poorer. It’s not true for everyone. You don’t have to make the mistake Greg made.

I can help you avoid growing poor by teaching you how to invest. You don’t have to be afraid of growing old. Because you can grow older and richer at the same time.

Thousands of people have already joined my TrulyRichClub, and following my guidance, have started investing in the Stock Market.  And they’re very happy.

TrulyRichClub Members who joined me 2 years ago—and who invested in the Stock Market with my guidance—have enjoyed wonderful profits. Here are the Top 10 Stock Recommendations we made in 2010 and 2011…

STOCKS	STOCK  SYMBOL	TIME  RECOMMENDED	TIME HELD	PRICE RANGE	YOUR  RETURN
Lepanto	LC	Dec 2010 to May 2011	5 Months	P0.34 to P0.85	150%
Jollibee	JFC	Mar 2010 to May 2011	14 Months	P47.50 to P94.45	98%
Security Bank	SECB	Mar 2010 to May 2011	14 Months	P53.00 to P96.20	81%
DMCI	DMC	Sep 2010 to May 2011	8 Months	P27.25 to P44.80	64%
Int’l Container	ICT	Sep 2010 to May 2011	8 Months	P32.40 to P48.70	50%
First Gen Co.	FGEN	Mar 2010 to May 2011	14 Months	P9.80 to P14.78	50%
Megaworld	MEG	Jul 2010 to May 2011	10 Months	P1.54 to P2.30	49%
Nickel Asia	NKL	Oct 2010 to May 2011	8 Months	P15.00 to P22.40	49%
Ayala Land	ALI	Mar 2010 to May 2011	14 Months	P11.25 to P16.64	47%
Energy Dev’t Co.	EDC	Mar 2010 to May 2011	14 Months	P4.85 to P6.49	33%

What does this show you?

That quiet, boring, monotonous investing small amounts of money each month in carefully chosen stocks can build your wealth!

(By the way, we no longer recommend some of these companies for next year…)

What’s Will Happen In 2012

Since May of 2011, I’ve been telling TrulyRichClub Members to “accumulate” our stock recommendations at very cheap prices. Out of our 6 stock picks, 5 are still negative. That means we’ve NOT earned anything in the past 8 months.

And we like it that way. (This is one of the crazy views we hold: We love it when our Stocks are down for a long time!)

Why? So we can buy our companies at very cheap prices every month. Because we’re long-term investors. The important thing is that you start investing right now.

I repeat: Don’t be like Greg. You don’t have to be afraid growing old and poor. Stop postponing! You’re missing out on these earnings. Most importantly, you’re missing out on gaining financial freedom.

Change your financial life in 2012. Learn how to invest in the Stock Market today.

How? Join my TrulyRichClub and change your financial future this 2012.

To join, click the link below:

YesBo, I’d like to change my finances in 2012;

Tellme more about the TrulyRichClub.

      

May your dreams come true,

Bo Sanchez

PS. Start this new year right! To gain financial freedom for your future and join the TrulyRichClub, click the link below:

YesBo, I’d like to change my finances in 2012;

Tellme more about the TrulyRichClub.