Advice Ni Tita Lits: Take It or Leave It!

ADVICE NI TITA LITS

Isabelita Manalastas-Watanabe

Dear Tita Lits:

I read about your explanation on the Retail Peso Bond and the pros and cons of investing in this non-traditional investment instrument which can earn better as compared to interests on ordinary bank savings or time deposit accounts. Good for me to learn other alternatives on how my money can earn better.

I wonder if you can give me practical information regarding investing in the stock market? I am thinking of going into this, but I do not know anybody who has experience in investing in stocks. I am hoping na may experience kayo dito, para mai-share naman ninyo sa aming mga bagito, any useful tips. I am in Japan and have been here for several years now, working with a company that gives me good pay. I have saved a decent amount of money which I hope to use to play the stock market.

How do I start? How do I choose which company to invest to? I hope to earn the most, at the shortest time possible.

Jun, Tokyo

Dear Jun:

I used to play the stock market both in Japan and in the Philippines years ago. I did well in Japan, kasi siguro dahil madali kong ma-monitor ang movements ng prices of the stocks I bought. In fact, I was able to take my mother and my sister to Europe for a tour, from my earnings then from the stock market. As regards my venture into Philippine stocks – palpak ako! I really lost money there. Hindi ko kasi natutukan at hindi ko na-monitor maigi.

So hayan, at least alam mo na, na parang sugal ang paglalaro sa stock market. Pwedeng kumita; pwedeng malugi. Kahit nakatutok, mayroon ding element of luck. Kasi, sa dami-dami ng mga kumpanyang pwedeng pagpiliin, swerte ka kapag napili mo ay tumaas ang presyo ng stock nila, so tubo ka na, kapag ibinenta mo higher than your purchase price. Tandaan mo lang, na bawat galaw mo – buy, or sell, may komisyon ang iyong broker. So i-compute mo what price you should sell para tumubo net of the charges (and income tax).

I have recently come back to playing stocks in Japan. I chose a well-known, and reputable securities company to be my broker. But you will have many choices of securities companies. You can even just go on-line, and register, and submit the required docs. Once confirmed na OK ka, then you can start trading on-line. Ako, I chose the more conventional route. I went directly to the Tokyo HO of Nomura Shoken so I can ask someone in charge there, about some questions I have. Afterwards, I filled up in person, the necessary forms, and submitted all their requirements. I waited for almost two (2) weeks before I got the approval and received my Nomura (trading settlement) Card. Maybe the approver had difficulty reading my grade 1 section 10 Kanji – all information had to be written in Japanese! That card is where I am supposed to deposit funds and where Nomura will also debit funds when my stock order is done. It is also where they can credit sales proceeds from my done sell order. I can choose to also let them transfer funds (debit my Nomura Card), and credit my pre-registered ordinary Japanese bank A/C. I have also made arrangements that they do the withholding of taxes for and on my behalf, so that I do not have to do the filing myself.

Another conventional thing I do – I call the Eigyobu (Business Section) of Nomura to do my buy/sell orders. You don’t have to always deal with the same person – anyone who answers the dedicated telephone number can help. You are allowed to place a buy or sell order at a specific price for a certain number of days. Doing buying and selling, on-line, will be much cheaper (less commission to your broker). Unfortunately for me, my reading of Japanese has rusted a lot since I was a student here in Japan (I used to read Samuelson’s economics 101 textbook in Japanese!). Baka magkamali pa ako, at mag-buy ako, instead of mag-sell, or vice-versa! Better that I just call (of course, in Japanese). Since I still need to use my spoken Japanese in daily life, I am able to manage fairly well answering their KYC (know your customer) questions, etc., before they will entertain your buy/sell orders. Of course, they also make sure you will be able to do the settlement (payment) in timely manner (they can check your balance in that card). When you sell naman, credit is normally made to that card within 3 working days.

I choose to buy stocks of companies where I believe in their mission/vision. I am holding right now, stocks of a Japanese company which deals in water purification. I bought stocks of another company which does work for the handicapped (and earned good money in less than a month). Another one I still hold is one that manufactures, among others, solar panels, and space saving and labor-saving equipment. At least, kung hindi man ako kumita kaagad, I can wait, and be satisfied in the thought that I am helping this company by buying their stocks.

In your intelligent phone, you can search under Information & Reading, that app dedicated to stocks. You can input the name of your preferred company, and then see its stock number, and a graph of the price movement during the past (normally) six months. Of course, you should try to buy when the graph is going south and may have reached its farthest. Check also the highest the price went, for the past 6 months. Normally, bumabalik ang price. Up, down, up, down. Parang roller coaster – does not normally remain down for ages, but when it moves up and continues to move up, monitor closely kung pwede na mag-sell order and have net earnings.

Remember that some stocks require a minimum number to purchase. Normally, hindi pwedeng one stock lang. You can ask your broker how much is the minimum number.

Another advice – do not gamble more than 20% of your savings. Kahit matalo ka, hindi ka maba-bankrupt. And another thing – don’t be too greedy.

Good luck, Jun! (and to me, as well).

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ATTENTION: All alumni of the UP School of Economics now living/working in Japan. Would you like to be part of our community viber (called Pusong UPSE Community Viber) and connect with UPSE alumni all over the world? Please check out below link and register. PUSONG UPSE Membership Form link. https://bit.ly/PusongUPSEmember

Isabelita Manalastas-Watanabe

Jeepney Press