Tuesday, November 30, 2010

The market is up!....now what?

This November, The International Marketing Group (IMG) was so privileged to have Ayala Land’s VP and Rampver Strategic Advisors (RSA) owner, Mr. Rex Mendoza. As we all know that the stock market right now is very much bullish, Mr Rex Mendoza talked about the skills needed to ride on a bullish stock market.

Mr Mendoza used the same tips for aspiring bull riders as given by Cody Tapp, only he compared it to the stock market. Here are the six tips in riding the bull market as mentioned by Mr Medoza in his talk:

1.     Seek the local rodeo/cowboy association

This can be associated to what Napoleon Hill mentioned in his book “Think and Grow Rich”, create a mastermind group. The best thing that an association can do to you is that it gives you the push to do what you really want to do or what you believe in as you meet with people who have the same belief as you.

Sometimes, you also benchmark yourself with people who are doing well in the association, hence, creating a “positive” external pressure on your part to strive harder to do well just like those people that you benchmark with in the group. When people with you do well, you aspire to do well also.

Some of these associations are even paid memberships, best example is the gym membership. There is a price to pay to become part of these groups. Sometimes you have to pay for that discipline. When it’s free, there is high probability that you will never do it. Sometimes, we tend to give value when there is a price to pay.

2.     Find a riding buddy

In the stock market, this means that you have to find an investor buddy. In our previous example, gym membership, you need to have a gym buddy. If we want to succeed, much more, if we want to be big, we need partner/s. Just like in an organization, our buddy will give us a push as we always mirror ourselves with our partner/buddy. Have a cooperative relationship with your buddy to ensure that you are heading towards the direction of your goals.

3.     Expose yourself to the rodeos

Watch and talk to experienced riders. These are the persons who are doing well or the experts in the industry that we want to do well, in this case, the stock market. Look for your mentors and shorten your learning curve. Talk and be with them as often as you can to imbibe the way they think and how they behave. Being with them often will surely have a great impact on the way we think and behave.

4.     Get the right gear

Now that you know what you want to do and where you want to go, it is important to get the right gear. The gear that we are talking about are the “tools” needed to be ready for action. Use the resources wisely and for the right purpose for you to become successful in riding the bull market in stocks. The best gear for us right now is “technology”. In a fast paced world that we are currently in, technology could be our greatest ally or worst enemy, depending on how we use them. Use the web to know the current trends or even the predictions. Research is just a click away. Know the numbers and know your market.

5.     Handle fear

Fear is normal. Everybody fears but what sets others apart is they try to overcome their fear. How? Through exercise. Control your fear by doing what you fear most! Visualize yourself successful when doing what you fear the most. It is through trying and doing what we fear most that we realize that we can actually do it after all. Fear as they define is “False Expectations Appearing Real”.

6.     Ride one for as long as you can

It is through persistence that we become focus on getting what we want. We do not stop until we reach our goals. You become an expert when you ride the market for as long as you can. As the saying goes, “Tough times do not last but tough people do”.

In the end, our emotions always cloud our vision. Greed and fear always get in the way. What is important is to map out our financial goals. Invest to achieve your financial goals and not to earn profit as it will always be a matter of perspective and attitude.

"Nothing can stop the man with the right mental attitude from achieving his goal; nothing on earth can help the man with the wrong mental attitude." - Thomas Jefferson

Friday, October 22, 2010

Confessions of a Shopaholic

When I decided to start blogging on personal finance, investing and business (which are my interests and passion by the way, as more than being a Certified Public Accountant by profession, I am actually an entrepreneur at heart), I was thrilled by the fact that somehow…I was like Becky Bloomwood! Do you know her? She is the famous character of Sophie Kinsella’s Shopaholic series. Becky is a financial journalist who, ironically, cannot manage her own finances. It’s not because I cannot manage my own finances but because, I feel like I was reinventing myself and I am now a certified financial e-journalist?! Wow!

Kidding aside, more than the hype that it gives me of making myself a brand new financial blogger, I am actually thrilled of reaching out to as many people as I can to give enlightenment, as much as I can, when it comes to dealing with their own finances. I am not an expert, not yet, but one doesn’t have to be an expert first before imparting knowledge to someone. You just got to have a little knowledge and a big heart to share what you know that would benefit someone. Do you agree?

Let me start my blog having Becky Bloomwood of Shopaholic series as my topic. Is there a lady in the world who cannot relate to this novel/movie’s heroine? Well, yeah…probably there are a few, but I bet, there is a lot who do. Okay, I’ll be the first to confess, just like Becky, there was a very very short time  in my life that I was also into shoes, clothes, shopping….I guess it is but natural for us that when we start to earn a bit more than we need, we tend to reward ourselves, instant gratification! I was just so thankful that I was in control. After a few months of shopping galore, I told myself, ooopppss….this is enough, I already had fun, I treated myself much already…now it’s time to build my wealth. I praise God for giving me that kind of mindset, that I know when is enough. However, the sad part is that, not everybody else thinks the same way.

How can we help someone who has the same dilemma as Becky Bloomwood? By the way, she is actually now Becky Brandon as she is already married to his multi-millionaire husband Luke. Should we advise them to marry a multi-millionaire too to solve their financial problems? This is the easiest way to become a millionaire right? The answer is NO. Marrying a millionaire will not solve someone’s financial problems. In fact, you would only drag another person into the problem. The answer is to change your lifestyle and live within your means. If, on the other hand, you want to keep the lifestyle that you currently have, then, increase your cashflow! Find some ways where you could increase your earnings so you may afford the lifestyle that you want.

This, my friends, INCREASING YOUR CASHFLOW, is the first step of building the right financial foundation.