Stock Market Investment Tutorial eBook ( Last Chapter)

Chapter 6

Open an Online Account

     

I don’t work for Citiseconline.

But I highly recommend that you use it as your way into

the market.

I’m recommending it to you because they’re the best

online trading platform in the country today. They’re also the

biggest. (And to be upfront about it, I also bought Citiseconline

stocks. Yes, they’re a publicly listed company too. I believe in

the team that owns and runs it.)

Do you want to invest using a traditional stock broker?

My mother used to do that.

She’d pick up the phone and give instructions. “Please

buy for me…”

Just for fun, I dare you try doing that with your P5000.

See what will happen.

At least, you’ll give someone a good laugh and de-stress

his day.

You see, traditional stock brokers will never handle the

accounts of my house helpers. I can’t blame them. Manpower

is very expensive.

But Citiseconline will handle the accounts of my house

helpers.

Precisely because everything is done online.

It’s Really Easy

Citiseconline has made it very simple for small investors.

They created the Easy Investment Program or EIP.

If you have P5000 or more, you can start investing. P5000

is the initial minimum amount. It’s up to you how much you’ll

invest after that. After that, Citiseconline won’t remind you to

deposit your monthly investments.

But at the TrulyRichClub, I’ll do that.

That’ll be my service to you.

I’ll bug you every month to invest. I’ll email you my Stocks

Update to remind you to follow your investment plan. (More on

this later.)

For the Easy Investment Program, Citiseconline suggests

the great companies you can invest in—companies that they

believe will be around for the next 10 years or more.

Blow the trumpets please!

Here they are…

Company Name                                  Stock Symbol

Ayala Land Inc.                                              ALI

Bank of the Phil. Islands                               BPI

Jollibee Food Corp.                                       JFC

Manila Water Co. Inc.                                   MWC

SM Prime Holdings, Inc.                              SMPH

Phil. Long Distance Tel Co.                           TEL

Every month, you can deposit P5000 (or whatever amount

you want to put in) into your Citiseconline account. No need to

go to their office to do this. You can do it through a bank deposit

via any branch of BDO, BPI, Security Bank, and HSBC.

From the comfort of your home, you can open your

computer, log onto the website, and buy the stocks from the list

above that you like. You’re doing it. You’re in control.

Very Important Note: All companies require a minimum

number of shares or what they call “Board Lot” every time you

want to buy shares. So if you only have P5000, you won’t be

able to buy shares from PLDT, Jollibee, and SM Prime Holdings.

Because their prices are higher.

Example: As I write this piece, Jollibee is selling at P58 and

they require a minimum of 100 shares. So that means you’ll

need at least P5800 to buy shares from Jollibee.) So if you only

have P5000 to invest, choose between Ayala Land, Manila Water,

and Bank of the Phil. Islands. Those are solid, great companies

that will make you wealthy in 20 years.

So every month, buy.

When will you sell?

Oh, in about twenty years.

I’m not kidding.

Make the stock market your big piggy bank.

Important Note: In the off chance that there’ll be a grave

reason to sell, I’ll tell you about it through my monthly Stocks

Update. (More on this later.)

Now let me speak to those who have more money…

If You Have P1M or More,

You Can Also Do a Variation of EIP

As I write this, Citiseconline has yet to launch this

program.

If you have more money—say P1M or more—and you

want to invest in the stock market, you can do a variation of

their Easy Investment Program (EIP).

From what I hear, they may call it Accumulator Plus. (You

know how they like sophisticated names.)

I just call it EIP with caffeine. Or EIP with boosters. Or

Super EIP.

Or EIP Plus.

Hey, these terms are just between you and me, okay?

Don’t call up Citiseconline and ask for Super EIP. They won’t

understand what you’re talking about.

This is what this EIP with caffeine is all about: There’s

another list of great companies whose share prices are really

low—and who are about to go up within these next six

months.

So if you have P1M, don’t invest it all in one plop.

If the market crashes, you’ll have a heart attack.

Even if you know that it’ll go up again in thefuture, it’s

still depressing.

So why not divide your P1M into five parts—and invest

P200,000 every month? That way, if the price goes down, yourP200,000 will be buying more shares in the next few months

If the price goes up, you’re still earning very well from yourfirst investments. The important thing is that you can sleep at night..  So select two, three, or four companies from the magic list of growth companies below. According to Citiseconline, these are the companies that are undervalued today (meaning: share prices are cheap compared to their real value):

Company Name                        Stock Symbol                    Target Price

Energy Dev. Corp.                                EDC                                     P6.50

First Gen Corp.                                    FGEN                                  P15.50

First Philippines Holdings                  FPH                                     P75.00

Security Bank                                      SECB                                   P63.50

Engineering Equip.                               EEI                                       P3.40

Manila Water Co. Inc.                        MWC                                  P20.75

Note: I’m writing this in March 2010. This list will change!

So when will you sell?

Unlike the original EIP where you don’t sell, the EIP Plus

has a specific price you’re waiting for. Do you see the target

price above? If the price of the share goes very near that target,

sell your shares. Keep your earnings and wait for another

opportunity to invest again.

You may ask, “But Bo, what if it goes higher than the

target price?”

Don’t be greedy. Better to be safe. Unless Citiseconline

analysts set a higher target price for the company, I’ll sell. I’ll

be happy with the profits. I won’t be greedy. I’ll wait for other

undervalued companies.

What Stocks Have I Bought

My house helpers are doing an EIP.

So they’ve bought shares of Ayala Land (ALI) and Manila

Water (MWC). But two of my helpers also bought First Gen

(FGEN) and Energy Dev (EDC), two companies that aren’t

listed in the EIP—but in the EIP Plus. But since I’m monitoring

their accounts, they’re safe. Once these two companies reach

the target price, they’ll sell.

Personally, I’m doing an EIP Plus. (Remember, this is

just our term. Citiseconline will most likely call it Accumulator

Plus.)

I’ve bought First Gen (FGEN), First Phil Holdings (FPH),

and Engineering Equipment (EEI). So far, I’m very happy with

my earnings.

I also have other stocks that don’t fall into these lists. I have

Universal Robina (URC) but I’ll sell this soon when it reaches its

target price of P25. I also have Citiseconline (COL), but I think

this is more of an emotional purchase than anything else. I just

love this company and the people behind it.

Okay, it’s time to open your account.

Log on to www.citiseconline.com now.

4-Step Application Process

1. Go to www.citiseconline.com

On their website, click on their Easy Investment Program or

EIP.

You’ll read stuff that you read in this book, but you’ll

understand it more.

Repetition is the mother of all skill.

So keep reading!

2. Submit an Application Form & Other Documents

From their website, you can download an Application

Form. Simply print it out, fill in the information, and mail

all required documents to their office. And then call up

for any questions. Their phone number is Tel. 6333-777. Or

better yet, visit their office and talk to someone face to face.

Their office is 2403-B East Tower, Philippine Stock Exchange

Centre Exchange Road, Ortigas Center Pasig City. Just walk

right in and say, “I want to open an account.” Someone will

walk you through the application process.

3. Deposit Your Money

If you visit the office, you can bring your cash or a check.

Not going to their office? You can deposit your money to

Citiseconline using any branch of BPI, BDO, Security Bank,

and HSBC. Again, their website will tell you how to do

that.

Epilogue

See You at My Next

Stocks Update

As my TrulyRichClub member, I’ll send you a Stocks Update

every month.

In one single page, I’ll tell you everything you need to know

about your stock investments. Here are the other things I’ll do for you

through my Stocks Update.

I’ll remind you to invest each month. I’ll urge you, push you,

beg you to be faithful to your monthly investments.

I’ll tell you when it’s time to sell the stocks I wrote about here.

I’ll tell you the new undervalued stocks that you can buy.

I’ll tell you what I’m doing with my own stocks.

I promise: In plain, simple English. No financial jargon you

won’t understand

In the meantime, keep learning.

May your dreams come true,

Bo Sanchez

PS. Did a friend pass this Ebook to you? For those who are not

yet members of the TrulyRichClub, I’m personally inviting you

to join me and invest in your spiritual and financial education.

You won’t regret it. Receive my Stocks Update every month,

plus a mountain load of material for your financial and spiritual

growth. To try it out, click at the link below.

www.TrulyRichClub.com