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IS CASH STILL KING?

Most people nowadays are considering cash as king. Is it a buying power for most stocks, and investments or just money for something to hold on to sitting in the savings accounts in our banks? According to PESOLAB, Interest rates in savings accounts in the Philippines ranged from 0.6% to 4.0% in which Equicom ATM Savings account held the lowest, and ING Savings account held the highest.  On the other hand, inflation keeps on soaring. Furthermore, goods and basic commodities are soaring as well due to inflation. For example, 500 PHP worth of diesel is equivalent to 10.63 liters – 10.80 liters in 2012 according to the Department of Energy. Further to that, if 500 PHP is up to date, it would be only 6.0-6.2 liters. A big difference compared from 2012 to the year 2022.

Financial literacy is very important as it will play a big role throughout the years. Cash; a lot of people are wondering and aiming to hold a huge amount of cash without planning on what to do with that certain amount of cash. For example, when a certain person wins the lottery with a huge amount of money, they usually end up poor again. All the cash that he/she had were distributed to different wants such as cars, houses, his/her family, and so on. However, these things are only outflows in which there is no income occurring. With that, they end up being poor again.

Do you think that cash is king? This will depend on the perspective you have whether you’re a trader, investor, an employee, or a citizen who wants to have cash in a savings account or on hand. There are advantages and disadvantages to having cash. It would differ based on the perspective that you have.

Here are the advantages of having cash:

1.      You have more buying power (Liquidity)

Having more buying power means having more options. For example, you can buy things at a discounted price if you’re buying in bulk. You are also more capable of planning and executing as you won’t have any money restrictions.

Here are the disadvantages of having cash:

1.      Inflation

The value of your money is being affected by inflation – meaning, your cash is shrinking in terms of buying basic goods and commodities since inflation exists.

2.      The time value of money

There are various ways that money can be used. Some examples are buying investments, creating businesses, and other activities that can provide you with another source of income.

Some people say cash is king, some say it isn’t. This will depend on the scenario, your goal, and the use of money or cash. For example, having a huge amount of money when the pandemic occurred made the financially literate people winners as the stock market gave huge discounts. So if you were an investor, that was the perfect time to accumulate stocks as they were discounted and very cheap. On the flipside, as inflation keeps soaring, having cash sitting in the bank with no concrete plans will cause your money to lose value.

So the question is, do you think that cash is still king? For some people, yes. For some, no. What matters the most is the PURPOSE of stockpiling money. If you have plans that require you to hold a certain amount of money, then cash is king. On the other hand, holding cash for no reason at all will cost you a lot of wasted opportunities along with experiencing the full effects of inflation.

REFERENCES:

Browser check. (2012). Retrieved from https://www.doe.gov.ph/oil-monitor-4-june-2012?withshield=1

Peso lab – money guide for Filipinos. pesolab.com. (2022, May 25). Retrieved from https://pesolab.com/the-best-savings-accounts-in-the-philippines/ 

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Featured Trader of the Week: @tobi_

Let’s give a round of applause to @tobi_ for being this week’s Featured Trader! 

@tobi_ has been a member of the Investagrams community since Oct 2021 and has been very active as he has already posted a couple of times, always sharing his thoughts on views on some of his trades.

A few days ago, our featured trader posted his technical analysis in WEB. A hot stock in the local market recently, WEB has been on an uptrend and recently making new 52-wk highs! 

As the stock was going up in uptrend, @Tobi_ looked for its support, as well as predicting ascending triangles on the chart that were bound for the breakout. @Tobi_ felt that this was a momentum stock for him to play. With that being said, he also considered the RSI pattern.

TECHNICALS OF THE TRADE

Technically speaking, WEB has proven to be a strong outlier in the Philippine Stock market. While others are falling and, on a consolidation, WEB has shown strength as it continues to move upwards strongly. It came from a breakout at 2.37 area before it surges to 4 level. Recently, there was a surge in the volume as WEB became more attractive to consumers. The stock recently reached its 52-week high at 4.74. 

@Tobi_ is confident that prices will continue to rise as he predicted it is a good entry for a momentum play. Furthermore, there is great demand from the locals and foreigners.

FUNDAMENTAL CATALYST

PhilWeb Corporation is one of the leading gaming technology providers in the Asia Pacific Region as well being known for its diverse businesses. Despite the low net income, WEB has been speculative to the traders and investors. WEB is still unstable whether it will continue its trend or a speculative stock that is bound for another surge or dump. Further to that, it is best to observe the WEB and with consideration of the PSEi and the global market as it will rely on these stocks. 

WHAT SHOULD BE MY NEXT MOVE

As the move has already happened, it would be wiser to observe and wait for what WEB might do next before buying in or riding-in with the wave of the stock. It is still unsure whether WEB will continue to rise or to follow its trend, so it’s best to wait for a consolidation or wait for a good entry near its support. Further to that, it would be advisable to trade lightly and in tranches in order to be cautious about your trades especially that the market is unstable and PSE is still relying on the global market, as well as news. 

Once again, KUDOS to @tobi_ for being this week’s featured trader! Enjoy your 14-day InvestaPrime Access and continue to be an inspiration to the trading community.

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See how Whales Move Using the Investa Stock Jockey

If you have even just a little bit of experience trading any market, you would know that the bigger funds or individuals with a big portfolio are the ones that tend to cause major movements. Often called whales, they are able to push markets higher if they aggressively buy a stock and can cause selloffs if they dump their shares. We don’t need to be whales to be successful traders, but it pays to know what the big money is doing in the market.

With the Investa Stock Jockey, you can precisely track who is pushing the stock up, what their average price is, and you can also see when they start selling!

Let’s take a look at one of the strong moves in the Philippine stock market back in 2019 – ABA.

As you can see from the chart, ABA made a double bottom before going on a strong rally. Just by using technical analysis, we know where we should’ve bought and would most likely have plans to sell. However, using the Investa Stock Jockey, we can gain more insights that could help us be prepared for even more situations. Here’s one of the ways you can use it:

  1. Pick the stock and select the date

Once you launch the Investa Stock Jockey tool, you would just need to input the stock and set the filter to custom.

Set the dates to the trading days that you want to check for broker activities, and apply the filter. It should show who bought the most and what their average price was. 

  1. Use the filters to get a better view of what’s happening in the stock

You can use the different filters within Investa Stock Jockey should you want to organize your data if there is specific information that you want to get.

For example, you can use the net value filter to see who the biggest shareholder is. Also, you can filter by broker just to see what a specific broker has been doing for the specified dates. There are many ways you can tinker with the filters, you just need to be creative should you want to get a better view of the stock’s transactions.

  1. Deduce what happened and make your plans

Since you would see the big transactions that came in, you can easily figure out what happened during that time span.

For ABA back in 2019, it is noticeable that JP Morgan was the main shareholder that pushed prices upward. Hence, it would make sense that you would be warry with what they do. For example, if they started selling their shares, it might be safer to switch to a tighter stop since JP Morgan was the one that bought up the majority of the shares that caused ABA to rally.

Although JP Morgan wasn’t the main seller during the selldown for ABA back then, you would see that there was a significant drop in volume. When JP Morgan stopped aggressively buying, there wasn’t enough demand from other buyers to even just sustain share prices. The takeaway here could possibly be that for short-term trading, aside from big shareholders dumping their shares, you also need volume to come in and participants to hold net positive amounts of shares in order to sustain rallies. 

There are a lot of things you can learn by just learning how to read broker transactions. When paired with technical analysis, you can gain helpful insights into what others are thinking about the stock. You just need to take the time to gain experience and to know how different situations can play out.

Aside from having access to the Investa Stock Jockey, having an InvestaPrime subscription lets you gain access to a lot of other powerful tools and educational material that can help you progress no matter your current skill level. Want to know more about what we offer? Head on over to the InvestaPrime landing page to look at all the features that we provide to our subscribers!

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How to Earn InvestaGems and win PRIZES

It’s finally here! As our newest innovation, InvestaGems is our in-app currency that will reward active Investagrams users. Basically with InvestaGems will be our virtual currency that you can use to purchase items from our store. For those who are curious, InvestaGems will replace InvestaPoints. For those who have previously accumulated InvestaPoints, refer to this post to find out where your points went.

Accumulating InvestaGems will let you claim prizes like our popular Investa Shirt and our newly released Investa Cap for FREE! For those who’d rather have access to some of our premium content, you can spend your InvestaGems instead on Prime Elite trials or VODs of past events. Some lucky winners can even win prizes like a smartphone and wireless earbuds!

So, how do you earn? It’s super simple – all you need is to be consistent. 

Just login everyday to Investagrams and claim your gems either on the pop-up screen or on the InvestaGems tab below your profile on the left – that easy! The more consistent you are, the faster you’ll be able to earn gems. You’ll only get 5 gems per day, but for every 7th and 30th day, you’ll receive 45 and 155 respectively. 

Of course, you have to be consistent as the counter will reset if you miss a day.

Once you have accumulated your gems, you can head on over to InvestaGems Rewards to see what prizes you can claim, or how much more you would need to be able to claim something you like. 

Gotta keep grinding for that Investa Cap!

’

Feeling lucky? Every day, you’ll also get 1 chance to spin the InvestaGems Daily Roulette. Here, you can win rewards like the smartphone and wireless earbuds mentioned, extra gems, and other cool prizes.

We only got 10 InvestaGems today, but maybe you’ll be luckier than us. 😅 Of course, expect more rewards in the future as well. Wen lambo sir.

This is only the start of InvestaGems. Our goal here is to reward loyal members who are very active in the community and serve as role models for others to follow. We’ll make sure to keep you on your toes as we make the Investagrams platform a better place for everyone to reach financial freedom. 

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Featured Trader of the Week: buMalo

Let’s give a round of applause to buMalo for being this week’s Featured Trader! 

buMalo is an active trader who has been with the Investagrams community since 2018. He is very active in the community and frequently shares his trades.

A few days ago, our featured trader posted his re-entry trade in ABA. A hot stock in the local market recently, ABA has been providing investors handsome returns as it has been making new 52-week highs. 

As the stock was going up, buMalo looked for a place to re-enter his position and found a small pocket as a chance to make a momentum play. He re-entered on the break of 1.42 as he felt that momentum was still strong for the stock. With RSI still being above 70, this is a good sign for momentum plays as it means there is still strong demand for the stock. 

TECHNICALS OF THE TRADE

Technically speaking, ABA has proven to be a strong outlier in the Philippine Stock market. While others are falling, it has shown strength as it continues to move upwards strongly. It came from its bottom near the 0.85 area and went into a frenzy once the long-term downtrend line was broken. Most of the consolidations were short-lived and rarely experienced strong downward volatility. The stock is currently looking to break the 1.56 and 1.88 levels, the next major resistances it has to take out in order to reach new all-time highs. 

buMalo is confident that prices will continue to rise as different momentum indicators are still pointing upwards, in addition to Net Foreign Buying still going strong.

FUNDAMENTAL CATALYSTS

AbaCore is a holdings company that owns subsidiaries involved in Finance, Real Estate, Gold mining operations, and Coal mining operations. Despite earnings still not yet near pre-pandemic levels, investors are eager that the company is going to turn its situation around as the company itself has announced that it will be distributing dividends again, and will even add in shares from one of its subsidiaries – PRIDE. The market has taken this as a good sign, and demand has picked up for the stock pushing it to higher prices. 

WHAT SHOULD BE MY NEXT MOVE?

As the move has already happened, it would be wiser to wait for what ABA might do next before buying into the stock. It is still unknown whether the stock will continue to rise to higher levels or not, so it’s best to wait for a consolidation in order to look for a better risk to reward trade. As the local equities market is still facing the same major problems, it would be advisable to trade lightly should you ever want to participate in ABA, especially if you haven’t established a base at lower levels. 

Once again, KUDOS to Bibam for being this week’s Featured Trader! Enjoy your 14-day InvestaPrime Access and continue to be an inspiration to the trading community.

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InvestaU and Chill

No matter the field that we’re in, everyone needs some time off to relax and unwind. The weekends are the perfect time to do so since we don’t have to worry about work. It is fine and recommended to just enjoy ourselves. However, it doesn’t hurt to be a little bit productive for the weekend as well. So, why not do both – a relaxing activity that still lets us be productive. 

Just head on over to Investa University to go over our selection! We offer free videos, but subscribing to InvestaPrime lets you have access to a wider range of content. You’ll be able to browse through all of our premium learning videos and will have access to all of them once you’re subscribed. 

Watching webinars and masterclasses might not be the first thing you think about when you want to have fun. But, they can still be relaxing if you’re open to the idea!

  1. How to look for content that’s right for you

Once you’re at Investa University, you can browse through different catalogs to find the topics you’re interested in.

But, if you don’t have a specific topic in mind yet, you can scroll down over and view some of the featured lessons! You’ll see featured videos that were the most popular, the most recently uploaded, and other differentiations that help you find something to watch.

  1. Friday date nights

Technically not a weekend, people still consider Friday nights part of “the weekend” as it’s the start of our weekly mini-vacation from work. Those who are lucky to have a significant other often treat the end of Fridays as a special time they can spend on dates. If ever you’re sick of drinking out, spending a lot of money at restaurants, or just want to stay home and do something together, watching Investa University Premium content together can be something you can put on your list of date ideas!

You both don’t need to be traders to enjoy these videos. There is a wide variety of topics, from trading and investing to businesses! The speakers are really fun to watch and listen to, really making it a fun activity to do. 

  1. Weekend reading substitute

People who want to become better versions of themselves often like to read books. Although it should be a daily habit, the majority tend to do most of their reading on the weekends as it lets them have more time to do so. If you’re not in the mood to read, but still want to learn, you can head on over to our learning platform!

From trading lessons

Personal Finance

Even business lessons and more!

We still recommend everyone to get into the habit of reading, but we also made the Investa University Premium content as learning supplements for everyone who would also like to consume educational content in video format. 

  1. Access to exclusive webinars

Aside from recordings, having access to Investa University Premium content through an InvestaPrime subscription will also let you join in our exclusive live webinars with well-renowned traders from around the world!

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More than just watching their presentations, you can join in as well and ask them your questions during the live event!

Again, we offer free videos that everyone can access. However, subscribing to InvestaPrime will let you gain access to premium learnings from Investa University along with future live events. If you’re looking for a platform to learn more about trading, finance, business, and even personal development, check ​​Investa University out!

Aside from premium Investa University content, having an InvestaPrime subscription lets you gain access to a lot of other powerful tools and educational material that can help you progress no matter your current skill level. Want to know more about what we offer? Head on over to the InvestaPrime landing page to look at all the features that we provide to our subscribers!

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Featured Trader of the Week: Bibam

Let’s give a round of applause to Bibam for being this week’s Featured Trader! 

Bibam is an active trader who constantly shares his trading plans to the community. No matter if it’s in the morning, afternoon, or very late in the evening, our featured trader constantly scouts the markets for quality trades that he can take.

A few days ago, our featured trader posted an awesome trade in SOL futures. SOLUSDTPERP is the ticker for the futures contracts of SOL. This asset precisely tracks the movement of SOL and allows you to trade with higher amounts of leverage. However, be warned that leverage is a powerful tool only in the right hands. Using leverage should be done with caution as it can be disastrous for traders who are not yet capable of handling the added risk.

TECHNICALS OF THE TRADE

Technically speaking, the majority of cryptocurrencies are in a downtrend right now. Thus, it would make more sense to look for shorting opportunities as the probability of a downward move is higher. Bibam was able to distinguish this and saw the rally from SOL into resistance as an opportunity to look for a short. Through the use of wave counting, Bibam pinpointed where to start looking for an entry signal. Once a reversal candle formed, it became the chance to enter. The stop loss was then based on the same reversal candle and the profit targets were based on the retracement levels of the previous rally. 

THOUGHTS ON DAY TRADING

Trading the intraday charts of cryptocurrencies is a common endeavor among more intermediate to advanced traders. The same set-ups used in daily charts can also be used as technical analysis is applicable on any timeframe. However, you would still need to adjust when switching to trading smaller timeframes as there are some characteristics that you would need to study and take note of. One example is the time of the day you are day trading in. Since a bigger portion of the market’s liquidity will come from western regions, it would make sense that more liquidity is available during the day in their time zone. Day trading isn’t impossible to learn, but you still need to put in the time and effort in order to become successful at it. 

WHAT CAN I LEARN FROM THIS

For those who are not yet as experienced, but are serious about becoming great traders, posts like the one from Bibam can often let you learn a lot. Even if you don’t want to day trade, there are still some key takeaways that you can apply to bigger time frames. One of them is the understanding of trends. Prices often don’t move in straight lines. Thus, we need to learn how to take advantage of retracements and pullbacks. In the post featured, the retracement was taken advantage of in order to establish a short position once the counter-trend movement started to revert back to the main trend. 

You can learn a lot by simply looking over someone else’s trades and asking yourself “what can I take and apply to my own trading system?”

Once again, KUDOS to Bibam for being this week’s Featured Trader! Enjoy your 14-day InvestaPrime Access and continue to be an inspiration to the trading community.

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