Author: Investa

You have been dreaming of owning your own business. Imagine being able to control your work hours and how much you can earn; imagine being your own boss; imagine the freedom. However, you do not know where to start. So you researched and found out that investing in a franchise is good for newbie investors like you. You can have a business of your own without starting from zero. Now, you are convinced. You are excited to get a franchise of your favorite brand and are already dreaming about earning a lot while being on an island somewhere.

Wait. Come back to your senses for a while. Before you write that check and put that investment up, are you really sure with what you are getting into? Before you franchise and continue your daydreaming, know these things first!

What is Franchising?

If you’ve always wanted to run your own business but the thought of having to start from scratch might be intimidating, then franchising may be the right path for you. By definition, franchising allows you to acquire the proprietary knowledge, trademarks, and processes of proven successful business and run it as your own. Basically, you are paying a fee to own a proven brand name.

Key Advantages of Owning a Franchise

The biggest advantage franchising offers, especially if you don’t want to go through the process of building your business from the ground up, is you gain access to a proven system and process that has helped the business become successful. New franchisees can avoid a lot of the mistakes startup entrepreneurs make since there’s already a laid out business and operations plan done by the franchisor.

Not only that, if you choose the right brand to franchise you will also benefit from its reputation and customer loyalty. This means you don’t need to spend a good amount of resources to get your name and product out to your customers. Choosing the right franchisor will also help boost your confidence as they will help you differentiate yourself from the competition.

Franchising also requires little investor involvement during the day-to-day operations, so if your goal is to find an alternative stream of passive income this is definitely a great option. As the franchisee, aside from choosing the right brand to franchise, the other important business decisions you will need to make will revolve around the location of your business, the proper training of your staff, and the quality of the product or service you provide.

Where You Can Learn More About Franchising

However, all of these things may sound easier said than done, which is true, but with the help from the right people, you will be able to successfully franchise yourself. That’s why for this year’s Investa Online Summit we invited RJ Ledesma, the co-founder of Easy Franchise, to help solve the common problems of first-time franchisees. With their online platform, they match the right franchise to the needs of the franchisee.

RJ Ledesma, a well-known jack of all trades, is an accomplished entrepreneur and a notable personality in show business. He currently hosts the Bright Ideas on Bloomberg Philippines/One News, a show that focuses on the local tech startup scene, and Philippine Realty TV on CNN Philippines. Also, he is the co-founder of both EnterPH (a market entry consulting firm) and Easy Franchise (a franchise marketplace that connects franchisors & franchisees).

Want to learn more about franchising and hear from one of the best in the industry?

Then reserve your slot to the first-ever Investa Online Summit this June 27, 2020.

For more details, www.investagrams.com/investasummit.

For the past couple of weeks not only has our local market crashed, but markets globally have also experienced the same fate as well. Trading opportunities have been hard to come by recently.

The best thing to do during times of extreme volatility and uncertainty is to sit tight and remain in cash until the opportunities arrive. Usually, the first set of trading opportunities will arise once the index hits major support levels. This happened when the $PSEi made its largest down day in HISTORY hitting back-to-back circuit breakers.

When the halt ended, names like $ALI, $AC, $BDO, $SM, and $SMPH began to show signs of recovery. Trying to pick the bottom of a market crash is no easy task, and it has resulted in countless traders losing money. However, it can be very rewarding if you’re able to accomplish it. We’re not saying that we’ve reached the bottom, but the relief rally from 4k levels towards 5,400 has definitely shown us a ton of opportunities to profit from despite the bearish environment.

The question many traders ask is what stocks should they keep an eye on during times like these?

The best way to spot potential reversals and outliers is through an objective process, we should separate our personal biases when going through the process of stock selection. Using the InvestaPRO, we have a set of algo-based generated watchlists you can take a look at while trying to spot potential opportunities in the midst of the current market environment.

If you’re looking for trading opportunities in cheap names that show value, you can take a look at these watchlists:

However, not everyone may be comfortable trying to pick the bottom or positioning in down-trending stocks. We understand that a lot of traders would rather wait for the reversal pattern to form and latch on to the market leaders in the first leg up of the next bull market. Here are some of the watchlists from the InvestaPRO that you should keep an eye on to spot the next potential market leaders:

We also took the initiative to ask a few users how their experience with the InvestaPRO has been so far. Our goal with this new feature is to make the entire process of stock screening much easier, effective, and efficient for our users. Here’s what they had to say about the InvestaPRO:

“Bago palang kasi ako sa market and hindi ko rin talaga alam kung ano nga ba dapat yun hinahanap ko. Pero salamat sa InvestaPRO, binibigyan ako nito ng solid watchlist sa mga stocks na potentially kumita. Laki ng tulong nito sa oras, performance, at lalo na sa learning ko!”

“Decided to go for the premium version of the InvestaPro so I can have access to more watchlists to be better prepared for each and every trading day. The premium watchlists filter out stocks even more which gives me the ability of choosing from only the best names based on the rankings shown. I am very grateful to the entire Investagrams team for their continuous efforts in creating products like these.”

In times like these, the worst thing you can do aside from not managing your risk is over-trading. Overtrading usually stems from allowing yourself to take low-quality trades due to the fact that you lowered the standards in your stock selection process. If you want to trade during market crashes, the thing you need to do is be ultra-selective. With the InvestaPRO and our algo-based generated smart-watchlists, choosing the right stock should not be a problem.

Once we take our first step into the world of the financial markets, the information we usually seek is what’s the best stock or asset to buy as of today. We immediately search for buy recommendations or strategies focused on buying a stock. Many traders come into the market with the mindset of buying the best-performing stocks in the hopes of rapidly compounding their capital. There’s nothing wrong with this, but the problem is many newcomers to the market forget that there’s also the potential for financial ruin in any market. Most of the time risk management is forgotten about.

We discover the stock market either through something we saw online, a seminar we attended, or a friend who made some money in the market. However, what we usually see or hear is all the upside we can get if we begin our investing journey. What’s failed to be given the emphasis on are the potential catastrophic losses that can occur if done the wrong way.

It’s true that the stock market is the ultimate equalizer of wealth that has the potential to exponentially compound your capital. However, besides focusing on the amount of money we can make, we need to understand the risks involved as well. Most importantly, we need to ingrain in our minds that LOSSES will always be part of the game. Countless traders try to avoid getting losses, but the problem is losses are UNAVOIDABLE.

What’s important is managing your losses effectively and cutting them while they’re small. There’s a proverbial saying in the world of trading, “Keep your losses small and let your winners run.” This is something that has been followed by some of the best traders in history, but it’s easier said than done. In the words of renowned market wizard Ed Seykota, “The elements of good trading are 1. Cutting your losses | 2. Cutting your losses | 3. Cutting your losses. If you can follow these three rules, you may have a chance.”

You may be wondering, why does Ed Seykota have to be so redundant? Couldn’t he have said cut your losses just once?” Well, the reason why he puts the utmost emphasis on cutting your losses and not finding the best buying strategy is if you fail to cut your losses even once, it could mean the end of your career as a trader. If you miss out on a stock that goes up 100%, it may hurt but there’ll always be other opportunities. However, if you fail to cut a loss while it’s still small, sooner or later you’ll be taking the mother of all losses. All it takes is one big loss to ruin years’ worth of profitability.

Whenever we close a position, we want to see only three kinds of results. Either a big win, a small win, or a small loss. There should be absolutely no room for a BIG LOSS in this equation. As mentioned above, all it takes is one undisciplined day that you don’t cut a loss while it’s small to ruin everything you worked hard for. Remember, you’re dealing with your hard-earned money here.

Do you want to see what can potentially happen when you don’t practice risk management?

These are just some of the many names in the Philippine Stock Market that have gone down -70% and more in recent memory. This doesn’t even mention the numerous stocks that have suffered the same fate in previous years. This is also something that happens in ALL financial markets: Equities, Currency, Commodities, Cryptocurrency, you name it!

You will always take losses in trading, but the best way to treat it is the cost of doing business since it’s unavoidable. If you’ve read a good amount of trading books there’s always one theme that’s present; the importance of managing your risks. The examples above should be enough justification to encourage everyone to also give enough emphasis on handling the downside and protecting your capital.

Mga ka-Investa, this article was written in the midst of the market crash due to the Covid-19. We don’t know when the dust will settle and when the market will finally reverse, but what’s important for now is to practice risk management at the highest level. Until we’ve seen a confirmed bottom, we’ll never know how much further the global markets may drop. Risk management is what will keep you alive in the markets in times like these.

Godspeed, everyone!

Veteran and newbie alike, no one is spared during a market crash. Well, not unless you have a stop loss and have the discipline to execute on it. If you’re someone who just came across the world of trading or investing, you may be asking yourself “What did I just sign up for?” That’s a good question, but what you need to understand is that the market always goes through these cycles. To keep it simple; the market goes through both good and bad times, it just so happens we’re in BAD times as of now.

What’s worse is in the Philippine stock market, you can only make money when prices go HIGHER. However, given the current market conditions, prices of most stocks are sinking faster as the days go by. This is unlike in global markets where you can make money while the price of the asset goes down, this is called SHORTING but will not be part of this article.

So you may be wondering, “What now?” “Is it the end of the stock market as we know it?” That’s another good question! For the benefit of the newbies out there, this is not the first or even the second time a market crash happened. There have been several crashes that have happened outside our lifetime, but the most recent one is the 2008 financial crisis.

Now the most important thing we need to know now is not when the bottom will happen, but rather what to do while waiting for the bottom to appear. In trading, you will never be able to call tops or bottoms. You may be able to do it a couple of times, but never on a consistent basis over a long period of time. However, you still need to be in sync with the market to spot potential opportunities once the reversal does come.

As Warren Buffet said, “Be fearful when others are greedy, be greedy when others are fearful.” But as we wait for the best time to get back in the market, what do we do now?

WHAT TO DO DURING A MARKET CRASH

1. CONTINUOUS LEARNING

There’s never a bad time to increase your knowledge, but now it is probably one of the better times to put even more effort into it. Instead of forcing trades while the market crashes, why not just take this time to find ways to improve your overall trading? Instead of forcefully trying to find low probability setups, it’s much better to use this time to sharpen your axe.

Your continuous learning process during this bear market can be in any form. You can consume quality content through books, online articles, videos, podcasts, and the like. Always remember, there is no one right way of learning. Everyone learns in their own ways, so find yours and go all-in! (Wag po all-in sa isang stock dedo po tayo diyan)

2. STAY IN CASH IN A MARKET CRASH

Again, in the Philippine stock market, we can only make money if prices go up. So the last thing you want to be in this dangerous market environment is fully invested. The best thing to do right now is to be patient and be at least 80% to 90% in cash. This also applies to those who trade global markets. Even if you can make money shorting assets during the crash you will need to remember that the volatility during crashes is on a whole other level.

Some people might think that staying in cash isn’t the best option since it’s basically like keeping your money in the bank with no interest. The whole reason you got into the stock market is to make your money work for you right? There’s a valid point in that argument, but what everyone needs to understand is cash is also a POSITION. Just because you’re not holding any stocks doesn’t mean you’re not doing anything.

Think about the cheetah, probably one of the fastest predators on the planet, doesn’t go for the kill unless the conditions are absolutely in its favor. So as we wait for the market to bottom, you will need to have the patience to deploy your capital once the odds are finally in your favor.

3. FOCUS ON THE OUTLIERS

Yes, it’s best to stay in cash during market downturns. However, that doesn’t mean there aren’t any opportunities at all. There will be a few stocks that may reverse much earlier than the general index, but note that it requires high-level precision to catch these plays. Also, the reason why you don’t want to totally not look at the market during deep corrections is that you want to keep an eye on the potential market leaders once the market bottoms out.

This is one of the most important lessons Mark Minervini, one of the best investors of our lifetime, shared in one of his bestselling books. The market leaders in the next bull market will be those who bottom out BEFORE the general index. Even better, those who are making NEW HIGHS or breaking out of consolidations while the index continues on its downturn. So once you see these characteristics in a stock, keep a close eye on it.

To those feeling disheartened by the difficulties in today’s market, do not give up. All of the best traders of all time went through these periods. If you lost a ton of money during this market downturn, you’re not alone. However, what matters most is how you bounce back from your losses. Even market wizards have gone through points in their trading journey when they got wiped out. What will define you as a trader will be how to persevere during the difficult times in the cycle, not the good times.

Godspeed, mga ka-Investa!

The InvestaPRO is our latest feature that does the screening and thinking for you! Using Investa’s Proprietary Ranking System, the InvestaPro makes your life easier by simplifying the stock screening process by ranking stocks based on Investa’s proprietary formulas which will allow to zero-in on stocks of your choosing. Through our algo-generated watchlists, you can now objectively create a trading plan for the top stocks that are part of the list.

In this article, we’ll be going through a quick overview of the InvestaPRO to show you guys how to maximize our new prominent feature!

How to use InvestaPRO

To access InvestaPRO, you will first need an Investagrams account. As of today, the InvestaPRO is only accessible on mobile devices so you will need to download the Investagrams app on your phone if you haven’t downloaded it yet. If you have Investagrams app on your phone, simply update the app to access the InvestaPRO.

You may visit these links to get the latest version:
Android ➡ http://invs.st/AndroidInvestagrams
iOS ➡ http://invs.st/AppleInvestagrams

Once you open your Investagrams app on your mobile device, simply click the “APPS” tab on the lower right side of your screen then click INVESTAPRO.

On the home tab of the InvestaPRO you’ll see all the popular watchlists you can follow. We’ve made five algo-generated watchlists absolutely FREE for all users! The other premium watchlists are available for a small fee.

The “Tags” you see at the bottom of the watchlists are simply so you can choose which parameter matters most in your trading, so you can click that parameter then you will be redirected to specific watchlists that use the tag.

Once you click on a watchlist, you will see the stocks in order of importance based on Investa’s Proprietary Ranking System. Now you can easily see which names to highly prioritize based on the rankings. Simply click the name of the stock you would like to focus on then you can automatically check out its details, chart, or add it to your watchlist.

The following tab focuses all the watchlists you’ve chosen to follow. The top three stocks per watchlist are also highlighted for quick and easy viewing.

The search tabs show all the available watchlists on the InvestaPRO, you can easily find any watchlist you would like to follow here.

So what’s the difference between the free and premium watchlists? To keep it simple, the premium watchlists use much more ADVANCED parameters that filter out the best stocks to keep an eye on objectively. However, whether free or premium, all of these watchlists are ALGO GENERATED. This helps avoids any personal and subjective biases when screening for stocks.

Just like we mentioned in our previous article release, our team created the InvestaPRO to make your trading much more easier and to add convenience to your trading. We understand that not everyone has the time screen for stocks in the evening or has the knowledge on how to use different screeners. Hopefully the InvestaPRO will not only create an impact on your trading, but also on the time you spend in front of a monitor.

Visit this page to find out more about InvestaPRO: www.investagrams.com/pro

Being a consistently successful trader is not a simple task, especially considering we’re playing in a zero-sum game. At first glance, many may imagine that being a trader means staying isolated in a room staring at a screen for the whole day. Well, that isn’t a lie. There are some who choose to become lone wolves, and there isn’t anything wrong with that. However, one thing we have to remember is being a human means we were biologically social animals. Sometimes, finding a community can be the right move to progress as a trader.

The life of a trader, especially here in the Philippines, can get lonely since not a lot of people can relate to our challenges and struggles. Given that there’s approximately around 1% of our total population investing in the stock market, and the majority of those people are most likely long term investors, we tend to just keep all our trading problems to ourselves. Again, there’s nothing wrong with that, until everything starts to pile up.

As social animals, we operate at our best when it’s with other fellow human beings. Now that doesn’t mean we need to begin trading as a group, but it wouldn’t hurt to find a trading buddy or two to share your experiences with. Or even better, try to find a community of traders who can help speed up your growth. We’re pretty sure you’ve heard this quote before, but we just want to reiterate it: “If you want to go fast, go alone. If you want to go far, go together.”

So do we recommend finding a community? Absolutely!

However, just as choosing who will be part of your inner circle, you will have to choose your community wisely. You become who you spend most of your time with, so being with a community that embodies bad habits and disempowering beliefs will only derail your growth as a trader. So now the question is, how do you find the right community?

FINDING A COMMUNITY

1. ASK

Now before we focus on how to find the RIGHT community, let’s begin on how to actually find or form a community of traders. This one might be obvious, but it’s something people tend to avoid doing. If you want to try and find a community of traders all you have to do is ask. Post on Investagrams that you’re trying to find or form a group or traders who will help each other on the road towards profitability. You can also chat traders you follow using the InvestaChat to see if they’re near your area and willing to meet up for coffee or even join any traders’ community related to your interest/preference.

2. ATTEND EVENTS

Another great way to meet new people and potentially join a community is by attending investing/trading related events. It doesn’t need to be a big event that only happens once a year, you can find great people even in smaller seminars. Not only do you learn more about trading by attending events, but also gain the opportunity to build relationships with like-minded people.

FINDING THE RIGHT COMMUNITY

1. VALUES

When finding or even creating a community, one of the key considerations needs to be the values the people emulate. This may differ from person to person, but it’s important that the people within the group share the same values. Some great characteristics or values members should have could be honesty, integrity, passion, perseverance, dedication, accountability, openness, and the like.

2. VISION DRIVEN

You want to be with people who have a vision of the future. You want to be surrounded by GOAL-DRIVEN individuals who not only have goals for themselves but who also set out goals for the group as well. When you’re spending time with people who have a vision of what their future will become, you also strive to do the same especially if you’re conservative when it comes to setting big and audacious goals.

3. SURROUND YOURSELF WITH PEOPLE AT HIGHER LEVELS

One of the best ways to improve is to learn from the direct experiences of someone who has been where you currently are. When you surround yourself with like-minded people you guys talk about the same things. However, when you surround yourself with people who have put in the 10,000 hours in the craft you want to master, that’s when things get tremendously great.