Merry Christmas everyone! It has been a very busy month for me and I hardly had a chance to update my blog. The year is almost over and all I can say is that I am so much blessed this year, Thank GOD.

Bo Sanchez SAM Stock Update COL Financial

Last June, Bo Sanchez opened up my mind into the potentials of making money in Philippine Stocks. This happened when I stumbled upon his old book “My Maid Invests in the Stock Market…and Why You Should, Too! “. In fact, this is the 2nd book that has made a real impact to my life (The 1st one was from Robert Kyosaki – Rich DaD, Poor Dad).   Secondly, last September, my beautiful wife gave birth to my new “bogoy” in the house named “Zandr Eron”.

Anyway, as we recall, my journey for the past 6 months investing in Philippine Stocks was a semi-roller coaster type. At first, I followed what BO Sanchez recommend in his book – EIP (Long Term Averaging Method) but after a few months of trial, boredom struck me and I decided to go for swing trading method and to be honest, it’s more fun doing swing trading in the Philippines (been doing it for 4 months now :D).

Probably, someone would ask if is it worth to defy Bo Sanchez’s SAM method and indulge in Swing Trading? Hmmm… it depends how you look at it. In terms of earnings gain, EIP method is probably better but in terms of fun & knowledge learnt, I would definitely say Swing Method is the best.

In my case, I had a total of 31 swing trades for the past 4-6 months and 4-out-31 trades, I take loss. This is because it feels like I am waiting for so long already. Well…this is ME – sometimes I get so impatient that I wanted to see results asap. 😀

As a summary, I only earn 11% average (actual) out of these trades whereas if I could have followed Bo Sanchez right from the start I can probably get more out of it. Lets take an example, the price of BPI in June was only P70.5 per share and now its P95.45. It’s a 35.4% increase. But of course, you wont really get this exact gains in EIP and in fact, I find it misleading in the first place. Why?

First, you wont always buy the lowest price per month. Second, in EIP, you would only invest a certain percentage of your $$$ per month else, it wouldn’t be averaging. So, I did the math and it only come up 17% average (actual) earnings gain. Well, at least we can say we can gain more in EIP but let us not also forgot that I am still a novice in doing swing trading during those period. The main advantage of swing is getting your money compounded every time you earn and as a result, you can also buy more shares.

To further prove which method will works best, I shall try doing both EIP and Swing Trading next year. So sit tight and keep posted. Follow me once again on this journey to become millionaires. hahaha!

Bo Sanchez SAM Stock MPI

Update: I’ve decided to start early on EIP method based on BO’s SAM chosen stocks – Metro Pacific Investment (MPI) dated Dec 4, 2012 so my data wont be biased. The simple plan is to buy below P5.08 and sell when it hits the target P6.35. On my first buy, I waited for the stocks to go down a bit and it does… Bought stocks @ P4.41/share  😆

MPI SAM Stocks by Bo Sanchez Colfinancial