Nov 29

Stock Position (Start of day)
RCB 1,300 shares at 23.75 = 30,875.00
MEG 9,000 shareas at 3.80 = 34,200.00
AC 60 shares at 565.00 = 33,900.00
TOTAL PORTFOLIO = 98,975.00
TOTAL CASH = 2,510.00
TOTAL EQUITY = 101,485.00

Transactions for the day
Sold MEG 9,000 shareas at 3.95 = 35,550.00

Stock Position (End of day)
RCB 1,300 shares at 24.25 = 31,525.00
AC 60 shares at 560.00 = 33,600.00
TOTAL PORTFOLIO = 65,125.00
TOTAL CASH = 38,060.00
TOTAL EQUITY = 103,185.00
Gain/Loss = P 3,185.00
%age Gain/Loss = 3.18%
PSEi Gain/Loss = 2.39%

My stock hot picks for Dec 3
1. I-REMIT, INC. (I) - 4.80
2. SM INVESTMENTS CORP. (SM) - 327.50
3. TKC STEEL CORPORATION (T) - 8.80

Nov 28

Stock Position (Start of day)
RCB 1,300 shares at 23.50 = 30,550.00
MER 500 shares at 69.50 = 34,750.00
MEG 9,000 shareas at 3.85 = 34,650.00
TOTAL PORTFOLIO = 99,950.00
TOTAL CASH = 1,410.00
TOTAL EQUITY = 101,360.00

Transactions for the day
Sold MER 500 shares at 70.00 = 35,000.00

Stock Position (End of day)
RCB 1,300 shares at 23.75 = 30,875.00
MEG 9,000 shareas at 3.80 = 34,200.00
TOTAL PORTFOLIO = 65,075.00
TOTAL CASH = 36,410.00
TOTAL EQUITY = 101,485.00
Gain/Loss = P 1,485.00
%age Gain/Loss = 1.48%
PSEi Gain/Loss = 1.22%

My stock hot picks for Nov 29
1. AYALA CORPORATION (AC) - 550.00
BN AC 60 shares at 550.00

Nov 27

Stock Position (Start of day)
RCB 1,300 shares at 24.25 = 31,525.00
MER 500 shares at 68.50 = 34,250.00
MEG 9,000 shareas at 3.85 = 34,650.00
TOTAL PORTFOLIO = 100,425.00
TOTAL CASH = 1,410.00
TOTAL EQUITY = 101,835.00

Stock Position (End of day)
RCB 1,300 shares at 23.50 = 30,550.00
MER 500 shares at 69.50 = 34,750.00
MEG 9,000 shareas at 3.85 = 34,650.00
TOTAL PORTFOLIO = 99,950.00
TOTAL CASH = 1,410.00
TOTAL EQUITY = 101,360.00
Gain/Loss = P 1,360.00
%age Gain/Loss = 1.36%
PSEi Gain/Loss = 0.86%

Transactions for Nov 28
SN MER 500 shares at 70.00
SN MEG 9,000 shareas at 3.95
SN RCB 1,300 shares at 25.00

My stock hot picks for Nov 28
1. FILINVEST LAND, INC. (FLI) - 1.50
2. RIZAL COMM. BANKING CORP. (RCB) - 23.50

Nov 26

Stock Position (Start of day)
PA 150,000 shares at 0.22 = 33,000.00
GEO 19,000 shares at 1.82 = 34,580.00
RCB 1,300 shares at 24.00 = 31,200.00
TOTAL PORTFOLIO = 98,780.00
TOTAL CASH = 1.220.00
TOTAL EQUITY = 100,000.00

Transactions for the day
Sold PA 150,000 shares at .225 = 33,750.00
Sold GEO 19,000 shareas at 1.86 = 35,340.00

Stock Position (End of day)
RCB 1,300 shares at 24.25 = 31,525.00
TOTAL PORTFOLIO = 31,525.00
TOTAL CASH = 70,310.00
TOTAL EQUITY = 101,835.00
Gain/Loss = P 1,835.00
%age Gain/Loss = 1.84%
PSEi Gain/Loss = 1.23%

My stock hot picks for Nov 27
1. MANILA ELECTRIC COMPANY (MER) - 70.00
2. MEGAWORLD CORPORATION (MEG) - 3.85

Transactions for Nov 27
BN MER 500 shares at 70.00
BN MEG 9,000 shareas at 3.85
SN RCB 1,300 shares at 25.00

Cartoon

What is Day Trading?

Day trading (and trading in general) is the buying and selling of various financial instruments, such as futures, options, currencies , and stocks, with the goal of making a profit from the difference between the buying price and the selling price. Day trading differs slightly from other styles of trading in that positions are rarely (if ever) held overnight or when the market being traded is closed.

Day trading was originally only available to financial companies (such as banks), because only they had access to the exchanges and market data, but with recent technology such as the Internet, individual traders now have direct access to the same exchanges and market data, and can make the same trades at very low cost.

Trading Styles

There are several different styles of day trading, suited to different day trader personalities.

The styles range from short term scalping where positions are only held for a few seconds or minutes, to longer term swing and position trading where a position may be held throughout the trading day. Most day trading systems have a lot of flexibility, and can have open positions for anywhere from a few minutes to a few hours, depending upon how the trade is doing (whether it is in profit). Some day traders will trade multiple styles, but most traders will choose a single style and only take that type of trade.

Day trading also has different types of trade, such as trend trades, counter-trend trades, and ranging trades. Trend trades are trades in the direction of the current price movement (i.e. buying if the price is moving up), and counter-trend trades are trades against the direction of the current price movement (i.e. selling if the price is moving up). Ranging trades are trades that go back and forth between two prices, and are used when the market is moving sideways. Most day traders will choose a single type of trade, but some traders will take different types, and choose which one to trade depending upon the current condition of the market.

In addition to the style and type of day trading, there are other variances between day traders. Some day traders like to make many trades throughout the trading day, while others prefer to wait for what they consider the best conditions for their trade, and perhaps only make one trade per day. However many trades are made, the trading process that is used, and the desired goal of making a profit, are the same.

http://daytrading.about.com/od/daytradingbasics/a/WhatIsDayTradin.htm

Nov 23

How my hot picks performed:
1. 1. SM INVESTMENTS CORP. (SM) - 330.00
Open - 327.50
High - 332.50
Close - 330.00
%age gain - 1.53%

2. GLOBE TELECOM, INC. (GLO) - 1,405.00
Open - 1,405.00
High - 1,425.00
Close - 1,420.00
%age gain - 1.42%

3. FIRST PHIL HLDGS CORP (FPH) - 61.00
Open - 61.50
High - 61.50
Close - 60.00

4. VISTA LAND & LIFESCAPES (VLL) - 4.75
Open - 4.75
High - 4.90
Close - 4.90
%age gain - 3.15%

Stock Position (Start of day)
FPH 400 shares at 61.00 = 24,400.00
GEO 19,000 shares at 1.80 = 34,200.00
SM 110 shares at 327.50 = 36,025.00
TOTAL PORTFOLIO = 94,625.00
TOTAL CASH = 2,515.00
TOTAL EQUITY = 97,140.00

Transactions for the day
Sold GEO 19,000 shares at 1.80 = 35,340.00

Stock Position (End of day)
FPH 400 shares at 60.00 = 24,000.00
SM 110 shares at 330.00 = 36,300.00
TOTAL PORTFOLIO = 60,300.00
TOTAL CASH = 37,855.00
TOTAL EQUITY = 98,155.00
Gain/Loss = (1,8450.00) - (1.85%)
PSEi Gain/Loss = (4.14%)

My stock hot picks for Nov 26
1. PACIFICA (PA) - 0.215
2. GEOGRACE RES. PHIL., INC. (GEO) - 1.76
3. RIZAL COMM. BANKING CORP. (RCB) - 23.50

Transactions for Nov 26
BN PA 150,000 shares at 0.215 = 32,250.00
BN GEO 19,000 shares at 1.76 = 33,440.00
BN RCB 1,400 shares at 23.50 = 32,900.00

Nov 22

How my hot picks performed:
1. GEOGRACE RES. PHIL., INC. (GEO)- 1.68
Open - 1.64
High - 1.80
Close - 1.80
%age gain - 9.75%

2. PNOC ENERGY DEV. CORP. (EDC) - 6.30
Open - 7.10
High - 7.30
Close - 6.90
%age gain - 2.80%

Stock Position (Start of day)
FPH 400 shares at 63.00 = 25,200.00
GEO 19,000 shares at 1.68 = 31,920.00
EDC 5,000 shares at 7.10 = 35,500.00
TOTAL PORTFOLIO = 92,620.00
TOTAL CASH = 2,040.00
TOTAL EQUITY = 94,660.00

Transactions for the day
Sold EDC 5,000 shares at 7.30 = 36,500.00

Stock Position (End of day)
FPH 400 shares at 61.00 = 24,400.00
GEO 19,000 shares at 1.80 = 34,200.00
TOTAL PORTFOLIO = 58,600.00
TOTAL CASH = 38,540.00
TOTAL EQUITY = 97,140.00
Gain/Loss = (2,860.00) - (2.86%)
PSEi Gain/Loss = (4.56%)

My stock hot picks for Nov. 23
1. SM INVESTMENTS CORP. (SM) - 330.00
2. GLOBE TELECOM, INC. (GLO) - 1,405.00
3. FIRST PHIL HLDGS CORP (FPH) - 61.00
4. VISTA LAND & LIFESCAPES (VLL) - 4.75

Transactions for Nov 23
SN FPH 400 shares at 73.50
SN GEO 19,000 shares at 1.86
BN SM 110 shares at 330.00 = 36,00.00

Nov 21

How my hot picks performed:
1. BANK OF THE PHIL. ISLANDS (BPI) - 61.00
Open - 61.50
High - 62.50
Close - 61.00

2. PHILEX MINING CORPORATION (PX) - 9.50
Open - 9.60
High - 9.70
Close - 9.50

Transactions for the day
Sold NI 1,800 shares at 18.75 = 33,750

Stock Position (End of day)
FPH 400 shares at 63.00 = 25,200.00
GEO 19,000 shares at 1.68 = 31,920.00
TOTAL PORTFOLIO = 57,120.00
TOTAL CASH = 37,540.00
TOTAL EQUITY = 94,660.00
Gain/Loss = (5,340.00) - (5.34%)

My stock hot picks for Nov. 22
1. GEOGRACE RES. PHIL., INC. (GEO)- 1.68

2. PNOC ENERGY DEV. CORP. (EDC) - 6.30

Transactions for Nov 22
SN FPH 400 shares at 73.50
SN GEO 19,000 shares at 1.86
BN EDC 5,000 shares at 6.30 = 31,500.00

Nov 20

How my hot picks performed:
1. NIHAO MINERAL RESOURCES (NI) - 19.75
Open - 19.00
High - 19.00
Close - 18.25

2. GEOGRACE RES. PHIL., INC. (GEO) - 1.94
Open - 1.84
High - 1.86
Close - 1.82

Stock Position (Start of day)
FPH 400 shares at 69.50 = 27,800.00
NI 1,800 shares at 19.00 = 34,200.00
GEO 19,000 shares at 1.84 = 34,960.00
TOTAL PORTFOLIO = 96,960.00
TOTAL CASH = 3,790.00
TOTAL EQUITY = 100,750.00

Stock Position (End of day)
FPH 400 shares at 65.00 = 26,000.00
NI 1,800 shares at 18.25 = 32,850.00
GEO 19,000 shares at 1.82 = 34,580.00
TOTAL PORTFOLIO = 93,430.00
TOTAL CASH = 3,790.00
TOTAL EQUITY = 97,220.00
Gain/Loss = (2,780.00) - (2.78%)

My stock hot picks for Nov. 21
1. BANK OF THE PHIL. ISLANDS (BPI) - 61.00

2. PHILEX MINING CORPORATION (PX) - 9.50

Transactions for Nov 21
SN FPH 400 shares at 73.50
SN NI 1,800 shares at 18.75
SN GEO 19,000 shares at 1.86

Nov 19

How my hot picks performed:
1. AJO.NET HOLDINGS, INC. (AJO) - .135
Open - 0.140
High - 0.145
Close - 0.135

2. BANK OF THE PHIL. ISLANDS (BPI) - 62.00
Open - 63.50
High - 64.50
Close - 64.50

3. FIRST PHIL HLDGS CORP (FPH) - 70.50
Open - 72.00
High - 72.00
Close - 69.50

Stock position (Start of Day)
250,000 shares of AJO at 0.14 = 35,000.00
500 shares of BPI at 63.50 = 31,750.00
400 shares of FPH at 72.00 = 28,800.00
TOTAL PORTFOLIO = 95,500.00
TOTAL CASH = 4,450.00
TOTAL EQUITY = 100,000.00

Transactions
Sold AJO 250000 share at .145 = 36,250.00
Sold BPI 500 shares at 64.50 = 32,250.00

Stock Position (end of day)
FPH 400 shares at 69.50 = 27,800.00
TOTAL PORTFOLIO = 27,800.00
TOTAL CASH = 72,950.00
TOTAL EQUITY = 100,750.00
Gain/Loss = 750.00 - 0.75%

My stock hot picks for Nov. 20
1. NIHAO MINERAL RESOURCES (NI) - 19.75
- BN 1,800 shares of NI = 35,550.00

2. GEOGRACE RES. PHIL., INC. (GEO) - 1.94
- BN 19,000 shares of GEO = 36,860.00

Nov 16

The PSE index closed 104.70 points or 2.83% lower this week from 3,703.66 points last Nov 9 to 3,598.96 pts this week. A declining market is not so conducive for day trading especially if you are doing margin trading.

For my daily stock forecast next week, I plan to make it more convincing and realistic by assuming to invest real cash value to it. This are the following assumptions i'll be following:
1. I'll be investing 100,000 at the start of the week.
2. I'll buy the 3 different stocks that i recommend for that day.
3. i'll buy the stocks at the opening price.
4. i'll sell the stocks if it hits 2% gain. i'll hold on w the stock if it won't and sell it the next few days until it hits 2%.
5. Brokers fee and taxes are not applied.

My stock hot picks for Nov. 19
1. AJO.NET HOLDINGS, INC. (AJO) - .135

2. BANK OF THE PHIL. ISLANDS (BPI) - 62.00

3. FIRST PHIL HLDGS CORP (FPH) - 70.50

Stock position
BN 250,000 shares of AJO at 0.135 = 33,750.00
BN 500 shares of BPI at 62.00 = 31,000.00
BN 500 shares of FPH at 70.50 = 35,250.00
TOTAL EQUITY = 100,000.00

Stock Market Jokes

A long term investment is a short term investment that failed.
Bull Market is a random market movement causing an investor to mistake himself for a financial genius.

Bear Market is a 6 to 18 month period when the kids get no allowance, the wife gets no jewelry and the husband gets no sex.

A stockbroker is someone who invests your money till it's all gone!

A market analyst is an expert who will know tomorrow why the things he predicted yesterday didn't happen today!

Momentum Investing: The fine art of buying high and selling low.
Value Investing: The art of buying low and selling lower

Q: Why did God create stock analysts ?
A: In order to make weather forecasters look good.

Nov 13

How my hot picks performed:
1. NIHAO MINERAL RESOURCES (NI) - 22.00
Closing price - 21.00

2. GEOGRACE RES. PHIL., INC. (GEO) - 2.08
Closing price - 2.00
Even if the stock prices of GEO decreases, you could have made atleast 1.96% if you purchase the stock during opening at 2.04 and selling it when it hit its peak at 2.08 per share.

3. PACIFICA (PA) - 0.195
Closing price - 0.205
You could make a 5.13% gain if you purchased PA stock at its opening price of 0.195 per share and sell it off before closing at 0.205.

Forecast for Nov 13:
1. NIHAO MINERAL RESOURCES (NI) - 22.00

2. GEOGRACE RES. PHIL., INC. (GEO) - 2.08

3. PHILEX MINING CORPORATION (PX) - 9.60

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Bottom Line on Margin Trading

Here's the bottom line on margin trading:

• You are more likely to lose lots of money (or make lots of money) when you invest on margin.
• Buying on margin is borrowing money from a broker to purchase stock.
• Margin increases your buying power.
• An initial investment of at least P 200,000 is required (minimum margin).
• You can borrow up to 50% of the purchase price of a stock (initial margin).
• You are required to keep a minimum amount of equity in your margin account that can range from 25% - 40% (maintenance margin).
• Marginable securities act as collateral for the loan.
• Like any loan, you have to pay interest on the amount you borrow.
• Not all stocks qualify to be bought on margin.
• You must read the margin agreement and understand its implications.
• If the equity in your account falls below the maintenance margin, the brokerage will issue a margin call.
• Margin calls can result in you having to liquidate stocks or add more cash to the account.
• Brokers may be able to sell your securities without consulting you.
• Margin means leverage.
• The advantage of margin is that if you pick right, you win big.
• The downside of margin is that you can lose more money than you originally invested.
• Buying on margin is definitely not for everybody.
• Margin trading is extremely risky.

http://www.investopedia.com/university/margin/margin5.asp

Nov 12

How my hot picks performed:
Since the market closes 85.29 points or 2.30% lower, most of the stocks closes lower.
1. FIRST PHIL HLDGS CORP. (FPH) - 80.00
Closing price - 77.00

2. SM PRIME HOLDINGS, INC. (SMPH) - 11.00
Closing price - 10.75

3. PACIFICA (PA) - 0.205
Closing price - 0.195
Price of SMPH shares opens at 0.200 and reach 0.205 during midday giving you a 2.5% gain.

Forecast for Nov 13:
1. NIHAO MINERAL RESOURCES (NI) - 22.00

2. GEOGRACE RES. PHIL., INC. (GEO) - 2.08

3. PACIFICA (PA) - 0.195

Nov 9

How my hot picks performed:
1. RIZAL COMM. BANKING CORP. (RCB) - 26.00
Closing price - 26.00

2. GEOGRACE RES. PHIL., INC. (GEO) - 2.34
Closing price - 2.30
You could have made atleast 2.56% if you purchased SMCB shares at its opening price of 2.34 and sold it at its highest price during midday at 2.40 per share.

3. MEGAWORLD CORPORATION (MEG) - 4.20
Closing price - 4.10

Forecast for Nov 12:
1. FIRST PHIL HLDGS CORP. (FPH) - 80.00

2. SM PRIME HOLDINGS, INC. (SMPH) - 11.00

3. PACIFICA (PA) - 0.205

Nov 8

How my hot picks performed:
Since the market closes 96.16 points or 2.54% lower, most of the stocks closes lower.
1. RIZAL COMM. BANKING CORP. (RCB) - 27.00
Closing price - 26.00

2. FILINVEST LAND, INC. (FLI) - 1.76
Closing price - 1.72

3. SM PRIME HOLDINGS, INC. (SMPH) - 11.50
Closing price - 11.25
Price of SMPH shares opens at 11.25 and reach 11.50 during midday giving you a 2.22% gain.

Forecast for Nov 8:
1. RIZAL COMM. BANKING CORP. (RCB) - 26.00

2. GEOGRACE RES. PHIL., INC. (GEO) - 2.34

3. MEGAWORLD CORPORATION (MEG) - 4.20

Nov 7

How my hot picks performed:

1. PAXYS, INC. (PAX) - 9.80
Closing price - 9.70

2. SAN MIGUEL CORP. B (SMCB) - 58.00
Closing price - 58.00
You could have made atleast 3.44% if you purchased SMCB shares at its opening price of 58.00 and sold it at its highest price during midday at 60.00 per share.

3. VISTA LAND & LIFESCAPES (VLL) - 5.20
Closing price - 5.20


Forecast for Nov 8:
1. RIZAL COMM. BANKING CORP. (RCB) - 27.00

2. FILINVEST LAND, INC. (FLI) - 1.76

3. SM PRIME HOLDINGS, INC. (SMPH) - 11.50

Nov 6

How my hot picks performed:
1. GEOGRACE RES. PHIL., INC. (GEO) - 2.46.
Closing price - 2.42

2. NIHAO MINERAL RESOURCES (NI) - 23.75
Closing price - 24.00
You could have made atleast 2.08% if you purchased NI shares at its opening price of 24.00 and sold it at its highest price during midday at 24.50 per share.

3. GMA HOLDINGS, INC. -PDR (GMAP) - 8.30
Closing price - 8.40
GMAP shares gain 1.20%. It opens at 8.30 and closes at 8.40 per share.


Forecast for Nov 7:

1. PAXYS, INC. (PAX) - 9.80

2. SAN MIGUEL CORP. B (SMCB) - 58.00

3. VISTA LAND & LIFESCAPES (VLL) - 5.20

Forecast - Nov 6

Forecast for Nov. 6

1. GEOGRACE RES. PHIL., INC. (GEO) - 2.46

2. NIHAO MINERAL RESOURCES (NI) - 23.75

3. GMA HOLDINGS, INC. -PDR (GMAP) - 8.30

Today's Trade - Nov 5

How my hot picks performed:

1. AYALA LAND INC. (ALI) - 15.00
Closing Price - 15.00
ALI opened at 14.75 per share and drops to 14.25 during midday and finally closing at 15.00/share. This gives u a return of 1.69% if u purchased the stocks when the market opens and selling it off before closing.

2. TRANS-ASIA OIL AND ENERGY (TA) - 1.96
Closing Price - 1.86
TA stocks didn't performed that well today even closing 5% lower than its previous price.

3. BANK OF THE PHIL. ISLANDS (BPI) - 65.50
Closing Price - 68.00
BPI stocks gain 3.8% higher. It opens at 65.50 and closes at 68 per share.

Forecast - Nov 5

I wasn't able to update my blog for about a month already since I'm occupied with other stuffs. But I still do my daily online stock trading thru www.citiseconline.com. I'm back and i'm updating my blog with the daily forecast of my hot picks for the next trading day. Since I'm doing margin trading, I usualy go for stocks which are the top losers of the previous day but which are also actively traded. I usualy buy these stocks at its opening price and since it started low, it usualy rises 2 to 3 fluctuations up within the day and later sell it off when it hits my target price. As much as possible, I'm gonna post it daily together with how my forecast (for the previous day) have performed. Happy trading..

Forecast for Nov. 5
1. AYALA LAND INC. (ALI) - 15.00
2. TRANS-ASIA OIL AND ENERGY (TA) - 1.96
3. BANK OF THE PHIL. ISLANDS (BPI) - 65.50

Advantages of Margin Trading

Why use margin? It's all about leverage. Just as companies borrow money to invest in projects, investors can borrow money and leverage the cash they invest. Leverage amplifies every point that a stock goes up. If you pick the right investment, margin can dramatically increase your profit.

A 50% initial margin allows you to buy up to twice as much stock as you could with just the cash in your account. It's easy to see how you could make significantly more money by using a margin account than by trading from a pure cash position. What really matters is whether your stock rises or not. The investing world will always debate whether it's possible to consistently pick winning stocks. We won't weigh in on that debate here, but simply say that margin does offer the opportunity to amplify your returns.

The best way to demonstrate the power of leverage is with an example. Let's imagine a situation that we'd all love to be in - one that results in hugely exaggerated profits:

We'll keep with the numbers of $20,000 worth of securities bought using $10,000 of margin and $10,000 of cash. Cory's Tequila Co. is trading at $100 and you feel that it will rise dramatically. Normally, you'd only be able to buy 100 shares (100 x $100 = $10,000). Since you're investing on margin, you have the ability to buy 200 shares (200 x $100 = $20,000).

Cory's Tequila Co. then locks in Jennifer Lopez as a spokeswoman and the price of shares skyrockets 25%. Your investment is now worth $25,000 (200 shares x $125) and you decide to cash out. After paying back your broker the $10,000 you originally borrowed, you get $15,000, $5,000 of which is profit. That's a 50% return even though the stock only went up 25%. Keep in mind that to simplify this transaction, we didn't take into account commissions and interest. Otherwise, these costs would be deducted from you profit.

http://www.investopedia.com/university/margin/margin3.asp

Stock Market Cartoon

Weekly Summary - Sep 24 - 28

PSE Index
Sept 21 - 3,423.73
Sept 28 - 3,572.90
Change - 149.17 pts
%age gain/loss - 4.35%

Stocks on Hand
COL - 11.2500
MER - 83.0000
PNB - 48.5000
VLL - 5.1000

Transactions for the week
Sold CMT 41,000 shares at 1.18
Sold AC 190 shares at 510.00
Sold FLI 43,000 shares at 1.62
Sold NRCP 21,000 shares at 3.65
Sold MBT 900 shares at 56.50
Sold AP 17,000 shares at 5.40

Percentage Earning/Loss for the Week - 4.11%

My Hot Picks for Sept 24-28. How they perform
1. MER -82.5
2. PNB - 47
3. MBT - 52.5
4. BPC - 4

What Is Buying On Margin?

Buying on margin is borrowing money from a broker to purchase stock. You can think of it as a loan from your brokerage. Margin trading allows you to buy more stock than you'd be able to normally. To trade on margin, you need a margin account. This is different from a regular cash account, in which you trade using the money in the account. By law, your broker is required to obtain your signature to open a margin account. The margin account may be part of your standard account opening agreement or may be a completely separate agreement. An initial investment of at least $2,000 is required for a margin account, though some brokerages require more. This deposit is known as the minimum margin. Once the account is opened and operational, you can borrow up to 50% of the purchase price of a stock. This portion of the purchase price that you deposit is known as the initial margin. It's essential to know that you don't have to margin all the way up to 50%. You can borrow less, say 10% or 25%. Be aware that some brokerages require you to deposit more than 50% of the purchase price.

You can keep your loan as long as you want, provided you fulfill your obligations. First, when you sell the stock in a margin account, the proceeds go to your broker against the repayment of the loan until it is fully paid. Second, there is also a restriction called the maintenance margin, which is the minimum account balance you must maintain before your broker will force you to deposit more funds or sell stock to pay down your loan. When this happens, it's known as a margin call. We'll talk about this in detail in the next section.

Borrowing money isn't without its costs. Regrettably, marginable securities in the account are collateral. You'll also have to pay the interest on your loan. The interest charges are applied to your account unless you decide to make payments. Over time, your debt level increases as interest charges accrue against you. As debt increases, the interest charges increase, and so on.

Therefore, buying on margin is mainly used for short-term investments. The longer you hold an investment, the greater the return that is needed to break even. If you hold an investment on margin for a long period of time, the odds that you will make a profit are stacked against you.

Not all stocks qualify to be bought on margin. The Federal Reserve Board regulates which stocks are marginable. As a rule of thumb, brokers will not allow customers to purchase penny stocks, over-the-counter Bulletin Board (OTCBB) securities or initial public offerings (IPOs) on margin because of the day-to-day risks involved with these types of stocks. Individual brokerages can also decide not to margin certain stocks, so check with them to see what restrictions exist on your margin account.

http://www.investopedia.com/university/margin/margin1.asp

Weekly Summary - Sep 17-21

PSE Index
Sept 14 - 3,294.55
Sept 21 - 3,423.73
Change - 129.18 pts
%age gain/loss - 3.92%

Stocks on Hand
AC - 510.0000
AP - 5.0000
CMT - 1.1200
COL - 10.7500
FLI - 1.4600
MBT - 52.5000
MER - 82.5000
NRCP - 3.5000
PNB - 47.0000
VLL - 5.0000

Transactions for the week
Sold ALI 5,400 shares at 14.7500
Sold CMT 1,000 shares at 1.1800
Sold BPC 13,000 shares at 3.9000

Percentage Earning/Loss for the Week - 1.89%

My Hot Picks for Sept 24-28
1. MER
2. PNB
3. MBT
4. BPC

HKEx

I wasn't able to update my blog last week since i had a short vacation to Hong Kong. Took the chance to drop by the HK Stock Exchange while i'm there. (attached picture of HKEx building in Central, Hong Kong).

I made some changes with my postings also. Instead of posting the daily summary of the stock prices, i planned to make it on a weekly basis. I'l stil post my forecasts and hot picks also.

cartoon

Margin Trading

Imagine this: you're sitting at the blackjack table and the dealer throws you an ace. You'd love to increase your bet, but you're a little short on cash. Luckily, your friend offers to spot you $50 and says you can pay him back later. Tempting, isn't it? If the cards are dealt right, you can win big and pay your buddy back his $50 with profits to spare. But what if you lose? Not only will you be down your original bet, but you'll still owe your friend $50. Borrowing money at the casino is like gambling-on-steroids: the stakes are high and your potential for profit is dramatically increased. Conversely, your risk is also increased.

Investing on margin isn't necessarily gambling. But you can draw some parallels between margin trading and the casino. Margin is a high-risk strategy that can yield a huge profit if executed correctly. The dark side of margin is that you can lose your shirt and any other assets you're wearing. One of the only things riskier than investing on margin is investing on margin without understanding what you're doing.

Daily Summary/Forecast - Sep 7

September 7, 2007

PSE Index - 3332.97
Change - 6.44 pts.
%age CHG - 1.32%

Stocks on Hand
AC - 472.5000
ALI - 14.2500
AP - 5.2000
BPC - 3.7000
CMT - 1.1400
COL - 11.7500
FLI - 1.4600
MBT - 55.0000
MER - 81.5000
NRCP - 3.3500
PNB - 46.0000
VLL - 5.0000

Transactions for the Day
Sold MIC 10,000 shares @ 4.75
Sold TBGI 27,000 shares @ 2.85
Bought MBT 900 shares @ 55.00

Percentage Earning/Loss for the day - 1.32%

My hot picks for Sept 10
1. MBT - 55.00
2. BPC - 3.70
3. GLO - 1320.00

Yesterday's pick (Sept 7) - How they perform?
1. FLI - 1.48
- Opened at 1.48/share and rise up to 1.50 before closing at 1.46, which gives u 1.35% gain
2. BPC - 3.80
3. MWC - 14.00

Daily Summary/Forecast - Sep 6

September 6, 2007

PSE Index - 3,326.53
Change - (15.82) pts.
%age CHG - (0.47%)

Stocks on Hand
AC - 465.000
ALI - 14.000
AP - 5.3000
BPC - 3.8000
CMT - 1.1400
COL - 11.7500
FLI - 1.4800
MER - 81.0000
MIC - 4.6000
NRCP - 3.3500
PNB - 46.5000
TBGI - 2.500
VLL - 5.000

Transactions for the Day
Sold CMT 1,000 shares @ 1.18
Bought BPC 13,000 shares @ 3.80

Percentage Earning/Loss for the day - (1.12%)

My hot picks for Sept 7
1. FLI - 1.48
2. BPC - 3.80
3. MWC - 14.00

Daily Summary/Forecast - Sep 5

September 5, 2007

PSE Index - 3342.35
Change - 30.05 pts.
%age CHG - 0.91%

Stocks on Hand
AC - 467.500
ALI - 14.2500
AP - 5.3000
CMT - 1.1400
COL - 12.000
FLI - 1.5600
MER - 83.0000
MIC - 4.5500
NRCP - 3.400
PNB - 46.5000
TBGI - 2.4200
VLL - 5.000

Transactions for the Day
Sold BPC 12,000 shares @ 4.10
Bought CMT 43,000 shares @ 1.14

Percentage Earning/Loss for the day - 1.45%

My hot picks for Sept 6
1. BSC - 0.34
2. MER - 83.00

Yesterday's pick (Sept 5) - How they perform?
1. CMT - 1.16
- Opened at 1.20/share and rise up to 1.24 before closing at 6.50, which gives u 3.33% gain
2. MER - 85.00
- Opened at 80.00/share and rise up to 83.00, which gives u 3.75% gain

Daily Summary/Forecast - Sep 4

September 4, 2007

PSE Index - 3,312.30
Change - (56.84) pts.
%age CHG - (1.69%)

Stocks on Hand
AC - 470.000
ALI - 14.0000
AP - 5.1000
BPC - 4.0000
COL - 12.000
FLI - 1.5400
MER - 85.0000
MIC - 4.4500
NRCP - 3.300
PNB - 45.0000
TBGI - 2.3600
VLL - 5.100

Transactions for the Day
Bought BPC 12,000 shares @ 4.00
Bought MIC 10,000 shares @ 4.60

Percentage Earning/Loss for the day - (3.99%)

My hot picks for Sept 5
1. CMT - 1.16
2. MER - 85.00

Yesterday's pick (Sept 4) - How they perform?
1. MER - 90.00
2. BPC - 4.05
3. MIC - 4.65
Since the market was down today, most of the prices of stocks (including my hot picks) have dropped. But I expect the stocks to increase anytime this wk.

Daily Summary/Forecast - Sep 3

August 30, 2007

PSE Index - 3,369.14
Change - 3.85 pts.
%age CHG - 0.11%

Stocks on Hand
AC - 495.000
ALI - 14.2500
AP - 5.2000
COL - 12.2500
FLI - 1.5800
MER - 90.0000
NRCP - 3.400
PNB - 47.0000
TBGI - 2.5000
VLL - 5.100

Transactions for the Day
Sold BSC 140,000 shares @ 0.36
Bought BPC 12,000 shares @ 4.05
Sold BPC 12,000 shares @ 4.15

Percentage Earning/Loss for the day - (1.24%)

My hot picks for Sept 4
1. MER - 90.00
2. BPC - 4.05
3. MIC - 4.65

Yesterday's pick (Sept 3) - How they perform?
AEV - 6.50
- Opened at 6.60/share and rise up to 6.70 before closing at 6.50, which gives u 1.5% gain
WIN - 0.33
PAX - 14.75
- Opened at 15.00/share and rise up to 15.25 before closing at 15.00, which gives u 1.66% gain

cartoons

The Daily Summary (What's in it?)

I'm posting in this blog the daily summary of how the market and how my investment performs during the trading day. The daily summary includes the following:

• Trading Date
• PSE index - the price index of the stock market for the day and also the change in price and percentage point. A green price indicates an increase in the price and a red price indicates a decrease from the price of the previous day
• Stocks on Hand - these are the stocks which is in my portfolio and its corresponding prices. Green font indicates increase and red font indicates decrease in price from previous day
• Transactions for the Day - shows the buy and sell transactions i made during the day.
• Percentage Earning/Loss for the day - this indicates how my investment performs during the day. it shows the percentage points of the increase/decrease of my total account equity from the previous day
• Hot picks - this are my suggested buy for the next trading day based on my personal research. Disclaimer - There is no assurance that the stocks listed in my hot picks would increase the next trading day.
• Yesterday's pick - i would evaluate the increase (or decrease) in prices of the stocks hot picks i made the previous day. i would also indicate the percentage gain of the stocks assuming u purchased it at the opening hour and sold it during its peak price.

Daily Summary/Forecast - Aug 31

August 30, 2007

PSE Index - 3,365.29
Change - 44.95 pts.
%age CHG - 1.35%

Stocks on Hand
AC - 492.5000
ALI - 14.5000
AP - 5.4000
BSC - 0.3400
COL - 11.0000
FLI - 1.5800
MERB - 104.0000
NRCP - 3.3500
PNB - 48.0000
TBGI - 2.5000
VLL - 5.000

Percentage Earning/Loss for the day - 2.68%

My hot picks for Sept 1

1. AEV - 6.50
2. WIN - 0.33
3. PAX - 14.75

Forecast - Aug 31

My hot picks for Aug 31

1. VLL - 5

Yesterday's pick (Aug 30) - How they perform?

1. GEO - 1.36 - Opened at 1.48/share and rise up to 1.52, which gives u 2.7% gain
2. CMT - 1.02 - Opened at 1.08/share and rise up to 1.22, which gives u 12.9% gain
3. BPC - 4 - Opened at 4.25/share and rise up to 4.3, which gives u 1.1% gain

Daily Summary - Aug 30

August 30, 2007

PSE Index - 3,320.34
Change - 110.81
%age CHG - 3.45%

Stocks on Hand
AC - 475.000
ALI - 14.2500
AP - 5.2000
BSC - 0.3500
COL - 10.500
FLI - 1.5800
MERB - 101.000
NRCP - 3.2500
PNB - 46.5000
TBGI - 2.4800
VLL - 5.000

Transactions for the Day
-

Percentage Earning/Loss for the day - 5.68%

Forecast -Aug 30

My hot picks for Aug 30

1. GEO - 1.36
2. CMT - 1.02
3. BPC - 4

Today's pick (Aug 29)
1. BSC - .36
2. NI - 11
- NI stocks opened at 10/share and rise up to 10.50, which gives u 5% gain
3. MIC - 4.65
- MIC stocks opened at 4.35/share and rise up to 4.50, which gives u 3.4% gain
4. GEO - 1.52
- GEO stocks opened at 1.40/share and rise up to 1.44, which gives u 2.8% gain

Daily Summary - Aug 29

August 29, 2007

PSE Index - 3,209.53
Change - (42.43)
%age CHG - (1.3%)

Stocks on Hand
AC - 465.0000
ALI - 13.2500
AP - 4.7500
BSC - 0.3300
COL - 10.000
FLI - 1.4600
MERB - 94.0000
NRCP - 3.1000
PNB - 45.5000
TBGI - 2.5000
VLL - 5.1000

Transactions for the Day
-

Percentage Earning/Loss for the day - (3.92%)

Forecast - Aug 29

My hot picks for Aug 29

1. BSC - .36
2. NI - 11
3. MIC - 4.65
4. GEO - 1.52

Daily Summary - Aug 28

August 28, 2007
PSE Index - 3,251.77
Change - 44.83
%age CHG - 1.38%

Stocks on Hand
AC - 465.0000
ALI - 13.7500
AP - 4.9500
BSC - 0.3600
COL - 10.5000
FLI - 1.5000
MERB - 97.0000
NRCP - 3.3000
PNB - 46.5000
TBGI - 2.5000
VLL - 5.2000

Transactions for the Day
Purchase BSC 140,000 shares @ 0.35

Percentage Earning for the day - 1.82%

Margin Trading

• What is Margin Trading? It is the trading of stocks thru margin buying. As defined in wikipedia, margin buying is when the trader borrows money (at interest) to buy a stock and hopes for it to rise (http://en.wikipedia.org/wiki/Stock_market#Margin_buying).
• How do you do Margin Trading? Since you'l be using other people's money in margin trading, you need to invest in stocks with erratic prices. You buy the stocks when it is in its low(est) prices and immediatly sell it off when it gives you a little gain rather than wait for it to hit high prices. In my case, I usually sell my stocks immediately when it makes a 2% gain or when it hit 2 to 3 fluctuations higher. In the end of the month, you could make enough gain to pay off your monthly loan amortization.
• How do you start Margin Trading? As a start, you could use your own savings to invest in the stock market. You search for a reliable online stock broker and deposit your funds with them. Now you could start trading by purchasing stocks (As an advice, its better to start with low-cap speculative stocks). When you'll get a feel of the game, you could start to borrow funds from friends and relatives to increase your equity. You could also take advantage of margin facilities offered by your stock brokers. Or you could even make personal loans from bank offering as low as .88% per month.

How it all started

I enrolled in the elective subject, Investment and Portfolio Management for my MBA-Regis degree in Ateneo Graduate School of Business (http://www.gsb.ateneo.edu/index.php?p=367). As a course requirement, our Professor, Mr. Lito Biacora, instructed our class to invest in any stocks from the PSE. (I attached the picture of our class taken during our culmination lunch.)

After doing some research of the different online stock brokers, i decided to invest with Citiseconline (http://www.citiseconline.com/) because of the comprehensiveness its site. I bought shares from EPCI (now BDO) prior to the announcement of the acquisition of Banco de Oro. I immediately made a return of almost 10% in less than a month after the merger announcement. This encouraged me to get into stock market investment until it made me decide to borrow more funds to add to my investment. Thats how I started margin trading.

My Blog

I long want to set up my own blog spot to share my little knowledge about trading in the Philippines stock market. I have been trading stocks online (with http://www.citiseconline.com/) for the pass 10 months. and i'm doing margin trading by borrowing funds from friends and relatives (and also with the stock broker's margin facility) and making use of my earnings from trading to pay off the monthly loan amortization. I develop some techniques of analyzing stocks and I'm sharing my two-cents worth of knowledge in my margin trading experience thru this blog. I also plan to give out some of my "good buy" stocks suggestions for the day. Happy trading.