InvestaDaily

From left to right: Ms. Patricia Tan, SVP, Customer Segmentation Head, Security Bank; Mr. Rahul Rasal, EVP, Retail Banking Segment Head, Security Bank, Mr. Airwyn Tin, Co-CEO, CTO, and Co-Founder, Investa, and Ms. Joanne Marquez, Head of Marketing, Investa

[Manila, Philippines] – Security Bank Corporation and Investagrams Inc. mark a significant milestone for the Philippine financial landscape as it announces a strategic partnership on November 29, 2023 aimed towards financial empowerment and the creation of innovative solutions for our valued customers.

This initial collaboration brings together the strength and reliability of Security Bank, a leading financial institution focused on customer-centric service, and  Investagrams Inc., a social financial platform dedicated to empowering Filipinos in starting their investment journey.

Security Bank is one the leading universal banks in the country serving clients from commercial, retail, corporate, business (MSME) and institutional industries. Receiving various awards through the years for being one of the most stable banks in the industry, Security Bank continues to pursue excellence in providing solutions for every client’s needs. 

Meanwhile, Investagrams is the leading social financial platform in the Philippines geared towards helping Filipinos start their investing journey with the right tools, education, and technology. They provide users with advanced analytic tools, educational content, market research, trade and investing ideas, and an exclusive social network platform for traders and market enthusiasts. 

Key Features of the Partnership

The integration of Security Bank’s flagship credit card offerings on the Investagrams Inc. platform is one of the key highlights of this partnership. This will enable users to seamlessly explore and apply for Security Bank’s credit cards directly on Investagrams’ platform offering a streamlined and user-friendly experience.

Security Bank’s credit cards are renowned for their convenience and suite of benefits designed to cater to the diverse financial needs of consumers. By featuring these credit card options on Investagrams, both companies hope to give their users a comprehensive financial toolkit, combining the convenience of digital banking with powerful investment tools.

As part of this partnership, both Security Bank and Investagrams Inc. had their contract signing at Security Bank’s Head Office to show their commitment to the ongoing collaboration and leveraging their respective strengths to enhance the overall financial well-being of users of both platforms.

This strategic alliance represents a powerful synergy between traditional banking and modern financial technology, underlining a shared commitment to innovation, accessibility, and customer-centric solutions. Security Bank and Investagrams Inc. look forward to a successful partnership that will redefine the landscape of financial services and empower individuals on their journey to financial success. 

You can view the products featured here.

Paper trading is a practice of simulating trading activities without risking real money. It is also known as virtual trading, demo trading, or backtesting. It can be done manually, using a spreadsheet or a journal, or electronically, using a platform or a software program.

Paper trading can be useful for beginners who want to learn the basics of trading

It teaches you how to place orders, read charts, use indicators, and apply strategies. It can also be helpful for experienced traders who want to test new ideas, refine their skills, or evaluate their performance.

However,it is not without its limitations and drawbacks. In this article, we will discuss some of the pros and cons of paper trading, and whether you should try it or not.

Pros of Paper Trading

No risk of losing money

The most obvious benefit of paper trading is that you can trade without risking any of your hard-earned money. This can reduce the stress and emotions that often affect trading decisions, such as fear, greed, overconfidence, or regret. It can also allow you to trade with larger amounts or higher leverage than you would normally do, which can boost your confidence and learning curve.

Learning opportunity

Paper trading can be a great way to learn the mechanics and dynamics of trading, especially if you are new to the market. You can familiarize yourself with the trading platform, the order types, the market conditions, the technical analysis tools, and the trading strategies. You can also learn from your mistakes and improve your trading plan without losing money.

Testing ground

Paper trading can be a useful tool for testing and validating your ideas, systems, or strategies. You can backtest your strategies using historical data, or forward test them using live data. You can also compare different strategies, parameters, or markets, and see which ones perform better. It can help you optimize your performance and find your edge in the market.

Cons of Paper Trading

Lack of realism

Paper trading can never fully replicate the real environment, as there are many factors that affect trading outcomes that cannot be simulated. For example, it does not account for slippage, commissions, spreads, liquidity, execution speed, or market impact. Paper trading also does not reflect the psychological and emotional aspects of trading, such as stress, anxiety, excitement, or boredom. It can create a false sense of security or success, which can lead to overconfidence or complacency when switching to real trading.

Different results

Paper trading can produce different results than real trading, due to the factors mentioned above. It can also be influenced by hindsight bias, confirmation bias, or survivorship bias, which can skew your perception and evaluation of your trading performance. Paper trading can also be affected by data mining, curve fitting, or overfitting, which can make your strategies look good on paper, but fail in reality.

Limited feedback

Paper trading can provide limited feedback on your performance, as you do not experience the consequences of your actions. It can also make you less accountable and disciplined, as you do not have to follow your rules or risk management. It can also make you less motivated and committed, as you do not have any skin in the game.

Should You Try Paper Trading?

Paper trading can be a valuable tool for learning and testing trading, but it should not be the only or the final tool. It can help you develop your trading skills and knowledge, but it cannot replace the real trading experience. It can also help you prepare for real trading, but it cannot guarantee your success or profitability.

If you want to try it, try to remember these considerations:

• Set realistic goals and expectations: Paper trading should not be used as a way to make money, but as a way to learn and improve. You should set realistic and measurable goals for your paper trading, such as learning a new strategy, improving your win rate, or reducing your drawdown. You should also be aware of the limitations and differences, and not expect the same results in real trading.
• Treat it as real trading: Paper trading should be treated as seriously and professionally as real trading. You should follow your trading plan, rules, and risk management, as if you were trading with real money. You should also record and review your paper trades, and analyze your performance and feedback. You should also avoid changing your strategies or parameters too often, or jumping from one market to another, as this can reduce your consistency and reliability.
• Transition to real trading: It should not be done indefinitely, but as a stepping stone to real trading. You should have a clear and specific criteria for when to switch from paper trading to real trading, such as reaching a certain level of profitability, confidence, or competence. You should also start with small amounts or low leverage when transitioning to real trading, and gradually increase them as you gain more experience and comfort.
• Paper trading can be a helpful and effective way to learn and practice trading, but it should not be the end goal. Itg can help you develop your trading skills and knowledge, but it cannot replace the real trading experience. It can also help you prepare for real trading, but it cannot guarantee your success or profitability.

As with any endeavor

Practice is an important aspect towards becoming better. For trading, there are many ways to improve. While some might find paper trading boring, it wouldn’t hurt to try it out. You could test some of your strategies, or even just try to look for inspiration for new ones. If you’re looking for a place to do so, check out vTrade.

Additionally, if you really want to test out your skills you can check out the upcoming Trading Cup 2024! Details will be posted on the Investa pages soon, so stay tuned!

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The new year is a great time to set new goals and make positive changes in your life. One of the most important areas to focus on is your financial health. Having good financial habits can help you achieve your dreams, reduce stress, and improve your well-being.

But how do you develop good financial habits? It may seem daunting, but it is not impossible. Here are five simple and effective habits that you can start next year to improve your financial situation.

1. Track your income and expenses

The first step to managing your money is to know where it comes from and where it goes. Tracking your income and expenses can help you understand your cash flow, identify your spending patterns, and find opportunities to save more.

You can use a budgeting app, a spreadsheet, or a notebook to record your income and expenses. Try to do this every day, or at least once a week, to keep track of your finances. You can also review your bank statements and credit card bills to see your transactions.

2. Set SMART financial goals

Having financial goals can motivate you to save more, spend less, and invest wisely. But not all goals are created equal. To make your goals more effective, you should follow the SMART criteria:

Specific

Your goal should be clear and well-defined. For example, instead of saying “I want to save money”, say “I want to save $10,000 for a down payment on a house”.

Measurable

Your goal should have a way to track your progress and measure your success. For example, you can use a savings account or an app to see how much you have saved so far and how much more you need to save.

Achievable

Your goal should be realistic and attainable. For example, if you earn $3,000 a month, saving $10,000 in a month is not achievable. You should set a more reasonable goal, such as saving $500 a month.

Relevant

Your goal should be aligned with your values and priorities. For example, if you value travel and adventure, saving for a vacation may be more relevant than saving for a car.

Time-bound

Your goal should have a deadline or a timeframe. For example, instead of saying “I want to save $10,000 for a down payment on a house”, say “I want to save $10,000 for a down payment on a house by December 2024”.

3. Pay yourself first

One of the financial habits you should develop is to save more money is to pay yourself first. This means that you should set aside a portion of your income for your savings and investments before you pay your bills and expenses. This way, you can ensure that you are saving for your future and not spending all your money on your present needs and wants.

You can use the 50/30/20 rule as a guide to allocate your income. According to this rule, you should spend 50% of your income on your needs, such as rent, utilities, food, and transportation; 30% on your wants, such as entertainment, hobbies, and shopping; and 20% on your savings and investments, such as retirement, emergency fund, and education.

You can also use the pay yourself first method to automate your savings and investments. You can set up a direct deposit or a recurring transfer from your checking account to your savings account or your investment account. This way, you can save money without thinking about it.

4. Reduce your debt

Debt can be a major obstacle to achieving your financial goals. Debt can eat up your income, limit your cash flow, and damage your credit score. Therefore, you should try to reduce your debt as much as possible and avoid taking on new debt.

You can use the debt snowball method or the debt avalanche method to pay off your debt faster. The debt snowball method involves paying off your smallest debt first, then moving on to the next smallest debt, and so on. This can help you build momentum and motivation as you see your debts disappear. The debt avalanche method involves paying off your highest-interest debt first, then moving on to the next highest-interest debt, and so on. This can help you save money on interest and pay off your debt sooner.

You can also use the balance transfer method to consolidate your debt and lower your interest rate. This involves transferring your existing debt to a new credit card that offers a low or zero interest rate for a limited period of time. This can help you pay off your debt faster and save money on interest. However, you should be careful not to use your old credit cards again or miss any payments, as this can hurt your credit score and incur fees.

5. Learn more about personal finance

The last habit that you can start next year is to learn more about personal finance. Personal finance is not taught in most schools, but it is a vital skill that can help you improve your financial situation and achieve your goals. Learning more about personal finance can help you make better decisions, avoid common mistakes, and take advantage of opportunities.

You can learn more about personal finance by reading books, blogs, podcasts, and magazines on the topic. You can also take online courses, watch videos, or join webinars and workshops. You can also seek advice from experts, such as financial planners, advisors, or coaches. However, you should always do your own research and verify the credibility and qualifications of the sources.

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Economics is the study of how people make choices under scarcity. It affects many aspects of our lives, such as how we work, spend, save, invest, and trade. Understanding some basic economic concepts can help us make better decisions and improve our well-being.

Here are five economic concepts that everyone needs to know:

1. Opportunity Cost

Opportunity cost is the value of the next best alternative that is forgone as a result of making a decision. For example, if you decide to watch a movie instead of studying, the opportunity cost is the grade that you could have earned if you had studied.

Opportunity cost helps us evaluate the trade-offs and costs of our choices. By comparing the benefits and costs of different options, we can make more rational and efficient decisions.

2. Supply and Demand

They are the forces that determine the price and quantity of goods and services in a market. Supply is the amount of a product that producers are willing and able to sell at a given price. Demand is the amount of a product that consumers are willing and able to buy at a given price.

Supply and demand interact to create an equilibrium price and quantity, where the quantity supplied equals the quantity demanded. When there is a change in supply or demand, the equilibrium price and quantity will change accordingly.

For example, if there is an increase in demand for a product, the demand curve will shift to the right, resulting in a higher equilibrium price and quantity. This will incentivize producers to increase their supply to meet the higher demand.

3. Inflation and Deflation

Inflation is the general increase in the prices of goods and services over time. Deflation is the general decrease in the prices of goods and services over time. Both inflation and deflation have implications for the purchasing power of money, the cost of living, and the economic growth.

A moderate and stable rate of inflation is considered desirable for a healthy economy. It reflects an increase in the demand for goods and services and encourages investment and consumption. However, a high and volatile rate of inflation can erode the value of money, distort the price signals, and reduce the confidence and certainty in the economy.

Deflation, on the other hand, is usually associated with a weak and stagnant economy. It reflects a decrease in the demand for goods and services and discourages investment and consumption. Deflation can also create a downward spiral of falling prices, lower profits, lower wages, and lower output.

4. Gross Domestic Product (GDP)

Gross domestic product (GDP) is the total value of all the final goods and services produced within a country in a given period of time. It is a common measure of the size and performance of an economy.

GDP can be calculated using three approaches: the expenditure approach, the income approach, and the value-added approach. The expenditure approach sums up the total spending on final goods and services in the economy. The income approach sums up the total income earned by the factors of production in the economy. The value-added approach sums up the value added by each sector of the economy.

GDP can be used to compare the economic output and growth of different countries, regions, or periods. However, GDP has some limitations, such as not accounting for the quality of life, the distribution of income, the environmental impact, and the informal and illegal activities.

5. Comparative Advantage

Comparative advantage is the ability of an individual, a firm, or a country to produce a good or service at a lower opportunity cost than another. It is the basis for trade and specialization.

For example, if country A can produce 10 units of wheat or 5 units of rice with the same amount of resources, and country B can produce 8 units of wheat or 4 units of rice with the same amount of resources, then country A has a comparative advantage in producing wheat, and country B has a comparative advantage in producing rice.

By specializing in their comparative advantage and trading with each other, both countries can increase their total output and consumption of both goods.

Final Thoughts

Economic concepts can be observed in everyday life. This is why it could be useful too know some of the most common theories that can help you make better financial decisions. You don’t need to know all of the advanced concepts – even just the basics can vastly improve your knowledge.

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Investing in mutual funds is a popular way to diversify your portfolio without having to buy individual stocks or bonds. But how exactly do they work? This article will explain the basics, their benefits, and how they operate.

What are Mutual Funds?

Mutual funds are investment vehicles that pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities. Each investor owns shares, which represent a portion of the holdings of the fund.

The Benefits of Investing in Mutual Funds

• Diversification: One of the primary advantages of mutual funds is diversification. By investing in a range of assets, they can help reduce the risk of loss if one investment performs poorly.
• Professional Management: They are managed by professional fund managers who make investment decisions on behalf of shareholders.
• Affordability: They also allow investors to participate in a diversified portfolio with a relatively small amount of money.
• Liquidity: Mutual fund investors can easily redeem their shares at the current net asset value (NAV) on any business day.

How Mutual Funds Operate

As mentioned, investors buy shares in a mutual fund. The money is pooled together to form a substantial capital base. Each mutual fund has a specific investment strategy outlined in its prospectus. This strategy guides the fund manager’s decisions.

The fund manager then uses the pooled money to buy and sell stocks, bonds, or other securities according to the fund’s investment objective. When investments in the fund’s portfolio earn income through dividends or interest, or when securities are sold at a profit, the fund distributes these earnings to shareholders as dividends.

Net Asset Value (NAV)

The NAV is the total value of the fund’s assets minus its liabilities. It is calculated daily and determines the price at which shares can be bought or sold.

Types of Mutual Funds

There are different kinds of mutual funds. Here are some of them:

• Equity Funds: These funds invest primarily in stocks and aim for growth over time.

• Fixed-Income Funds: These funds focus on investments that pay a set rate of return, like government bonds.

• Index Funds: These funds aim to replicate the performance of a specific index, like the S&P 500.

• Balanced Funds: These funds invest in a mix of equities and fixed-income securities.

Risks and Considerations

While mutual funds offer many benefits, they also come with risks. The value of mutual fund shares can go up and down, and there is no guarantee of returns. Additionally, they charge fees that can affect your investment returns.

Conclusion

Mutual funds are a practical option for investors looking to diversify their investments and benefit from professional management. By understanding how they work, you can make informed decisions about whether they are the right investment choice for you.

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