I received the following in e-mail:

PRINT AND KEEP A COPY IN YOUR CAR:

  • No window hours: Makati , Malabon and Las Pinas. Number Coding is in effect from 7am to 7pm!
  • No number coding: Taguig, Marikina and Paranaque . So, feel free to roam around these cities anytime.
  • Pasig City has window hours of 9am to 4pm (note the 1 hour additional to the normal 10-3pm window).
  • San Juan has window hours now according to MMDA website.
  • Pasay City is implementing Number Coding except on the following roads: Ninoy Aquino Avenue, MIA Road , Domestic Road , Portions of Airport Road , Sales Road , Tramo.
  • EDSA, C5, Pres. Diosdado Macapagal Avenue , Roxas Blvd ( Pasay ) have window hours regardless of the city (meaning one can drive via EDSA in Makati any day).
  • For the rest of Metro Manila (Caloocan, Mandaluyong, Manila, Muntinlupa, Navotas, parts of Pasay, Pateros, Quezon City, Taguig, and Valenzuela) number coding is in effect (window hours of 10am-3pm is also observed).
  • TOOLS AGAINST MMDA OFFICERS

    I just reached my limit last weekend, and decided to take action against the abusive MMDA enforcers. I basically called up the MMDA head office and inquired from the Personnel Officer, Antonio Pagulayan, to clarify their policies. Here is what I got.

    If any of these abuses seem familiar to you, Mr. Antonio Pagulayan (Personnel Officer) has asked that you call either the MMDA hotline (136) or call the METRO BASE at 0920 9389861 0920 9389861 or 0920 9389875 0920 9389875 and ask for an Inspectorate. They will send inspectors to the place where these MMDA officers are extorting, even while you are arguing out of your apprehension.

  • MMDA officers are not allowed to group together in order to apprehend. They are not even allowed to stand together in groups of 2 or more. The only time they are allowed to work together is for special operations (probably when they apprehend groups of buses for smoke belching)
  • Swerving IS NOT a traffic violation. Moving one lane to the left or right is not swerving, no matter where on the road you do it. And it is even less of a violation when you do it with a signal. Swerving is defined as shifting 2 or more lanes very quickly. So you can argue your way out of this, and call the Metro Base for help.
  • Sadly, using the yellow lane is a traffic violation and will get you a ticket. However, buses are really not allowed to go out of the yellow lane, so if you see selective apprehension of private cars only, you may complain.
  • MMDA has confirmed that your license MAY NOT BE CONFISCATED at a traffic apprehension. The only time they can do so is if you are part of an accident, or it is your third violation and you have not settled your fines yet. They are only allowed to give you a ticket, which you can contest. He recommends actually receiving the ticket in some instances, so that you can report the officer who did it.
  • Also, you are free to ask any of these officers for their “mission order”, which is written by their supervisor. If they apprehend you for a violation that is not in their mission order for the day, you can report them and they will receive disciplinary action.
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When shopping for NIKKOR lenses, one might get confused with the acronyms used in them. I decided to do some research and come up with a quick list for each reference.

IF (Internal Focusing)

Imagine being able to focus a lens without it changing in size. Nikon’s IF technology enables just that. All internal optical movement is limited to the interior of the nonextending lens barrel. This allows for a more compact, lightweight construction as well as a closer focusing distance. In addition, a smaller and lighter focusing lens group is employed to ensure faster focusing. The IF system is featured in most NIKKOR telephoto and selected NIKKOR zoom lenses.

VR (Vibration Reduction)

This innovative VR system minimizes image blur caused by camera shake, and offers the equivalent of shooting at a shutter speed three stops (eight times) faster.* It allows handheld shooting at dusk, at night, and even in poorly lit interiors. The lens’ VR system also detects automatically when the photographer pans — no special mode is required.

* As determined by Nikon performance tests.

ED (Extra-low Dispersion)

An essential element of NIKKOR telephoto lenses, Nikon developed ED (Extra-low Dispersion) glass to enable the production of lenses that offer superior sharpness and color correction by minimizing chromatic aberration.

Put simply, chromatic aberration is a type of image and color dispersion that occurs when light rays of varying wavelengths pass through optical glass. In the past, correcting this problem for telephoto lenses required special optical elements that offer anomalous dispersion characteristics — specifically calcium fluoride crystals. However, fluorite easily cracks and is sensitive to temperature changes that can adversely affect focusing by altering the lens’ refractive index.

So Nikon designers and engineers put their heads together and came up with ED glass, which offers all the benefits, yet none of the drawbacks of calcium fluorite-based glass. With this innovation, Nikon developed several types of ED glass suitable for various They deliver stunning sharpness and contrast even at their largest apertures. In this way, NIKKOR’s ED-series lenses exemplify Nikon’s preeminence in lens innovation and performance.

RF (Rear Focusing)

With Nikon’s Rear Focusing (RF) system, all the lens elements are divided into specific lens groups, with only the rear lens group moving for focusing. This makes autofocusing operation smoother and faster.

D (Distance)

D-type and G-type NIKKOR lenses relay subject-to-camera distance information to AF Nikon camera bodies. This then makes possible advances like 3D Matrix Metering and 3D Multi-Sensor Balanced Fill-Flash.

Note: D-type and G-type NIKKOR lenses provide distance information to the following cameras: Auto exposure; F6, F5, F100, F90X, F80, F75, F70, F65, F60, F55, F50, PRONEA S, PRONEA 600i, D2 series, D1 series, D100 and D70s/D70.

Flash control; F6, F5, F100, F90X, F80, F75, F70, D2 series, D1 series, D100 and D70s/D70.

G (Gelded)

The G-type NIKKOR has no aperture ring; aperture should be selected from camera body.

DC (Defocus Control)

Unique NIKKOR lenses for unique portraits, AF DC-NIKKOR lenses feature exclusive Nikon Defocus-image Control technology. This allows photographers to control the degree of spherical aberration in the foreground or background by rotating the lens’ DC ring. This will create a rounded out-of-focus blur that is ideal for portrait photography. No other lenses in the world offer this special technique.

Automatic Indexing (AI)

AI became standard on Nikon cameras and Nikkor lenses in 1977. Non-AI lenses coupled to the camera’s meter through a system that required a pin on the camera to be mated to a slotted prong on the lens before the lens was mounted, then the aperture ring on the lens had to be turned from one extreme to the other to index the meter to the maximum aperture of the lens. AI eliminates this entire procedure because meter coupling and indexing occur automatically when the lens is mounted on the camera. Most AI lenses made until a few years ago were also supplied with the coupling prong so they would be compatible with either metering system.

Manual / Auto (M/A)

AF-S NIKKOR lenses feature Nikon’s exclusive M/A mode, that allows switching from autofocus to manual operation with virtually no time lag — even during AF servo operation and regardless of AF mode in use.

Digital Exclusive (DX)

The lens is specifically designed for use on Nikon digital SLR cameras. It produces a smaller image circle for more efficient coverage of the imaging sensor in these cameras, which is smaller than the 35mm film frame.

Reference:

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It’s amazing what modern day telephoto lenses can do.

Lindsay Lohan may sob and plead not to be thrown in jail, but photographers using telephoto lenses were able to capture photos of her fingernail, which reveals a less desirable message. Cleverly etched in her multicolored manicure were the words “f*ck u”, as can be seen in the photo below.

lindsay lohan fingernail manicure judge

According to news sources, the 24 year-old Hollywood actress was ordered to spend 90 days in jail for violating probation in two 2007 drunken driving cases. In addition she was ordered to take part in a 90-day in-patient substance abuse program.

Lohan was ordered not to drink alcohol, drive a vehicle with any drugs or alcohol in her system, drive without a valid driver’s license and insurance, or deny any field sobriety tests.

The judge ordered Lohan to begin serving her jail term July 20.

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eclipse wallpaper

I have always been a fan of Robert Frost’s poetry. I was really delighted to find the poem Fire and Ice featured at the the opening of the book “Eclipse”, the third installment in the Twilight series of novels by Stephanie Meyer. Its does a very good job of setting the mood and tone of the book. I am at about halfway through the novel, yet still I could not keep my mind off the poem. Below is a copy of the poem in its entirety.

Fire And Ice
by Robert Frost

Some say the world will end in fire,
Some say in ice.
From what I’ve tasted of desire
I hold with those who favor fire.
But if it had to perish twice,
I think I know enough of hate
To know that for destruction ice
Is also great
And would suffice.

Personally, I like to think that “fire” is an allusion to Jacob Black, the hot-blooded werewolf, while “ice” represents Edward Cullen, the cold-blooded vampire. What do you think?

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Source: AFP PHOTO/TED ALJIBE

Benigno “Noynoy” Aquino III delivered his inauguration speech addressing over 92 million Filipinos on the historic day of July 30, 2010. He was sworn in as the 15th Philippine President by Supreme Court Justice Conchita Carpio-Morales at Quirino Grandstand in Manila.

After securing a landsline win in the 2010 Philippine elections. This was all amid speculations that his victory was brought about by sympathy for the recent death of his mother, former Philippine President Corazon “Cory” Aquino.

I couldn’t help but compare it to United States President Barrack Obama’s speech. There are similarities in the way they both advocated for change. For better or for worse, change definitely starts today.

Refreshing. For once, we have a president delivering speeches in our native language, something that I have always longed for. Stay strong brother. Mabuhay ka!

The Inaugural Address of Benigno S. Aquino III
(Official English translation provided by Aquino media bureau)

His Excellency Jose Ramos Horta, Former President Fidel V. Ramos, Former President Joseph Estrada, Senate President Juan Ponce Enrile and members of the Senate, House Speaker Prospero Nograles and members of the House, justices of the Supreme Court, members of the foreign delegations,Your Excellencies of the diplomatic corps, fellow colleagues in government, aking mga kababayan.
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willie1

In light of the controversy surrounding his most recent outburst which involved “commanding” ABS-CBN management to fire Jobert Sucaldito, Willie Revillame has submitted his resignation letter.

Somehow I doubt he wrote the entire thing himself. With his million-peso salary he can afford the best copywriters to write something like this. Nonetheless, it is definitely a well written resignation letter.

I wonder if he is “resigning” in order to save face before he actually gets fired? Another possibility is ABS-CBN management could have informed him verbally that he was being released, and that they would be expecting his resignation letter.

One other thing, will Willie qualify for severance pay, benefits, and all that? In other words, is ABS-CBN obligated to pay him a few months or years’ worth of income upon his release?

Like him or not, Willie is and always will be Wowowee. The show will never be the same without him, which means they may have to come up with a new show to replace it. Personally, I think they should give Pokwang her own show. Oh and the giling giling girls go with her.

Then again, Wowowee has been a long time running, so it might be just about time for the show to go to rest.

The resignation letter was published in Philstar columnist Ricky Lo’s article entitled “Willie: Please release me!”. The source, of course, has not been revealed.

It is interesting how something like this, which should be treated as company confidential, gets leaked to the public.
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With only a few days left until May 10, more than 50 million voting Filipinos need to educate themselves on the upcoming elections. For the first time the country will be having automated elections, which makes being informed doubly important. Below are information gathered from various sources on this topic.

Key facts about Philippine elections on May 10

  • A total of 50,723,734 registered voters as of April are eligible to vote using 76,340 automated voting machines in 80 provinces across the archipelago. The country has a population of about 92 million, with nearly a third classified as poor.
  • Voters will elect a president, vice president, 12 senators, 230 representatives and 57 party-list positions in the lower house of Congress, 80 governors, 80 vice governors, 766 members of provincial legislative boards, 137 city mayors, 137 vice mayors, 1,524 city councillors, 1,497 municipal mayors, 1,497 vice mayors and 11,980 municipal legislative positions. There are about 50,000 candidates for the nearly 18,000 positions.
  • Current terms for elected officials expire on June 30.
  • Voters will use a special pen to shade blank ovals beside the names of the candidates instead of writing down candidates’ names as before.
  • An ordinary ballot, about 8 inches (20 cm) wide and 25 inches (64 cm) long, would include an average 600 names for local and national positions, printed back to back.
  • Ballots with erasures and extra markings will not be accepted by the counting machines. The election agency is not printing extra ballots for voters who make mistakes in casting their votes. It is making provision for a manual count of 30 percent of the vote in case of technical or logistical problems.
  • The counting machines will automatically generate a tally of votes, which will be transmitted to servers at municipal, city, provincial and national election offices.
  • Printed copies of the returns will be shared with the two major political parties, an election watchdog headed by a church-based group and the broadcast industry association. The Commission on Elections (Comelec) also plans to make available online the raw results from precincts.
  • The election returns from polling precincts, transmitted electronically, will be tallied by a board at the municipal, city, provincial and national levels. Results are expected within two hours at a local level and 72 hours at the national level, although results will not be officially proclaimed then.
  • Comelec will officially proclaim winners of local and provincial contests and winners in the lower house of Congress over the next 5 to 10 days.
  • Comelec in Manila will proclaim winners in the senatorial and party list election. A joint session of the outgoing Congress, expected to convene on May 30, will officially announce winners in the presidential and vice-presidential elections.
  • Comelec estimates the entire election process will end on June 9. In past exercises, it took up to the fourth week of June before a president was proclaimed due to delays in tallying all the votes.
  • Delays are expected in the proclamation of winners if large number of machines break down and electronic transmission fails.
  • Elections are usually marred by vote-buying, cheating, threats and intimidation by political groups.
  • In previous elections, authorities have received hundreds of complaints about discrepancies in the list of voters, such as missing names, double registrants and the illegal transfer of voters to other polling precincts. There were also reports that names of dead people remain on the voters’ list.

Source: Reuters

What to do on election day?

  • During voting hours, bear in mind that you are allowed to vote only from 7:00 AM to 6:00 PM in the afternoon.
  • Don’t wait until the last minute to cast your vote, as unforeseeable forces (i.e. you’ve inadvertently mixed up your precincts) and by then it might be too late.
  • Bring a form of identification with you, in case an election official asks.
  • Bring your candidates list. Sample ballots are usually found in newspapers and online before election day, which you can cut out and practice filling up.(We have a sample in our Resources page).
  • You can also make your own list with your candidates written out and find that voting turns out to be a breeze.
  • Leave your children and pets at home. Voting precincts are mostly held in parks, covered courts, and schools, and while children and pets may be allowed in some of those places, on election day either you or they may just get overwhelmed.
  • Respect the precinct officers. Remember voting officials and volunteers are performing a duty to their country, therefore, you should respect the job they’re doing. They’ll need your cooperation.
  • As a voter, make sure you conduct yourself in an orderly manner, don’t cause unnecessary attention to yourself or others, and treat other voters with respect. Don’t loiter and once done with your task, leave and make way for other voters to enter the precinct.

Source: Yahoo! News
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The Floyd Mayweather Jr. vs Shane Mosley event was one hell of a fight! It’s rather interesting to see that many people are now saying Mayweather can beat Manny Pacquiao, or that Mayweather is a better fighter than Pacquiao.

Let’s look at things objectively.

Mayweather’s win against Mosley, whilst arguably spectacular, does not prove that he is the best boxer in the world. It does not prove that he is better than Muhammad Ali. Nor does it prove that he is better than Pacquiao. The one thing this fight did prove is that Mayweather is better than Mosley.

One thing that needs to be considered is the fact that Pacquiao beat Miguel Cotto in a 12-round TKO, while Cotto beat Mosley in a 12-round split decision. In other words, Pacquiao beat Cotto, who beat Mosley.

Because Mayweather beat Mosley on a 12-round unanimous decision, that technically places him somewhere between Cotto and Pacquiao, but not above Pacquiao!

Putting things into perspective, it is as if Pacquiao and Mayweather fought the same person, with Pacquiao winning via TKO and Mayweather via decision. In boxing, Pacquiao beat the man who beat the man, while Mayweather only beat the guy at the bottom – that still places Pacquiao above Mayweather.

Mayweather is definitely a gifted and talented fighter — a “natural” boxer, so to speak. He came from a family of boxers, his dad and his uncle being his inspiration. Compared to many, his boxing career has been a breeze and he has yet to loose a single fight.

Pacquiao on the other hand learned everything through hard work. He came from a poor family with no background in contact sport. He made money through boxing and got pretty good at it. He had many rough times, having lost to the best fighters.

It would definitely be interesting to see Pacquiao and Mayweather fight. The sad thing is that it might not happen. Pacquiao is not going to give in to Mayweather’s demands to do these tests and Mayweather will not want the test to be done after the fight.

Personally, I am for neither Pacquiao nor Mayweather. I should smash their heads together for snowballing and not fighting each other. I hope they are only doing this to build tension. No matter, my decision is reserved for when they actually fight one another.

Until this dream fight materializes all boxing fans can do is speculate and debate.

For now, kudos to “Pretty Boy” Floyd “The Money” Mayweather Jr. for a job well done!

Images and videos after the jump.
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Communication

23 Apr
2010

This is inspired by a (private) post over at Antoinette’s blog.

Unfortunately communication, the road to that golden bridge “compromise” is often blocked by pride and indifference.

Communication is but a doorway that leads to compromise. Humility is the key.

- Dennison Uy 2010.04.22

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Reposting this article with the permission of Mr. Ron Nathan, whose generosity, experience and insights are a continuous source of inspiration to many investors. I believe this is also very timely, given that the country is currently undergoing a change in governance. It is may be a good time to invest in the Philippine Stock Market.

It was taken from Ron Nathan’s thread over at TradersPizza. It span over several posts which made it difficult to read and review. I hope having everything in one post will be helpful to some.

TIPS ON HOW TO BECOME A BETTER INVESTOR
By Ron Nathan

ORIGINALLY, when I wrote this article 6 years ago, it was entitled the Ten Commandments. However, this time, there are only nine, as I decided to omit the one about adultery. When Moses went up Mount Cyanide, he came down with two heavy tablets made of stone, engraved in Hebrew. Unfortunately, I am much older than he was, so I took the cable car up Mount Mayon and instead of bringing down two large tablets, I brought down two capsules. I had them translated from Mayonaise to English and here they are.

Despite the humorous introduction, the rest of this article will completely change your investment psychology and you will be a far better investor in the future. What follows is based on 59 year’s experience in London and Manila. You can profit from my observations and mistakes. It will be particularly useful for beginners whose knowledge of investing is limited. Good luck, and if you find it useful, cut out the articles and paste them on your bedroom or office wall, in between your pin-ups of Beyonce and Jessica Alba.

Commandment No. 1: Do Not Trade Against The Trend

You will be shocked to learn that almost 90% of investors in the Philippines, U.S., UK and Japan lose money in the stock market. This is because they ignore the first commandments and jump in only after the market has already had a big rise. Let us examine the Phisix first.

On January 9, 1997, the index stood at 3,420. Since then, it has been changed many times, with the worst performers weeded out and replaced by better companies. Despite this, the Phisix is still below the level it was 13 years ago. So, in theory, you have lost about 20 percent of your money but this does not take into account inflation, which in earlier years was very high. Adjusting for the depreciation of the peso, you have lost 40 percent. During this period, you would have received hardly any dividends whereas you could have earned 10 percent plus on bonds before. Allowing for the loss of 13 years interest, your real loss is around 60 percent.

It was the same story in Japan, where the NIKKEI plunged from, almost 40,000 down to 8,000, and is still only a fraction what it was in 1990. It would have been far better to have bought gold, property or an oil tanker. The value of super tankers had tripled.

So why invest in the stock market at all? The short and honest answer is that you should not, unless you follow the rules, which I will set out in the next few pages. The prime requirement is patience. There is no such thing as long-term investment. Ask the Japanese, whom after 20 years are still losing much of their capital.

You only BUY when the market has fallen and the technical indicators say that it is about to turn up. There are many indicators and I will deal with some in due course. Conversely, you SELL when that index has had a big rise and the indicators show that momentum is slowing down or is about to decline.

Players do not use their head, they trade on their emotions, and this is nearly always wrong. I will tell you where to get the necessary fundamental and technical data, but in the meantime, you can use a 20-day moving average of the index or any stock, which you hold. If you have a computer program, you have a big advantage over the average investor.

You will be shocked to learn that almost 90% of investors in the Philippines, U.S., UK and Japan lose money in the stock market. This is because they ignore the first commandments and jump in only after the market has already had a big rise. Let us examine the Phisix first.

On January 9, 1997, the index stood at 3,420. Since then, it has been changed many times, with the worst performers weeded out and replaced by better companies. Despite this, the Phisix is still below the level it was 13 years ago. So, in theory, you have lost about 20 percent of your money but this does not take into account inflation, which in earlier years was very high. Adjusting for the depreciation of the peso, you have lost 40 percent. During this period, you would have received hardly any dividends whereas you could have earned 10 percent plus on bonds before. Allowing for the loss of 13 years interest, your real loss is around 60 percent.

It was the same story in Japan, where the NIKKEI plunged from, almost 40,000 down to 8,000, and is still only a fraction what it was in 1990. It would have been far better to have bought gold, property or an oil tanker. The value of super tankers had tripled.

So why invest in the stock market at all? The short and honest answer is that you should not, unless you follow the rules, which I will set out in the next few pages. The prime requirement is patience. There is no such thing as long-term investment. Ask the Japanese, whom after 20 years are still losing much of their capital.

You only BUY when the market has fallen and the technical indicators say that it is about to turn up. There are many indicators and I will deal with some in due course. Conversely, you SELL when that index has had a big rise and the indicators show that momentum is slowing down or is about to decline.

Players do not use their head, they trade on their emotions, and this is nearly always wrong. I will tell you where to get the necessary fundamental and technical data, but in the meantime, you can use a 20-day moving average of the index or any stock, which you hold. If you have a computer program, you have a big advantage over the average investor.

Commandment No. 2: Cut Your Losses Quickly

Years ago, before the 9/11 attack, a financial journalist wrote two books called Market Wizards, in which he interviewed about 50 fund managers who had outstanding records over a five-to-10-years period. Obviously, this could not be just attributed to luck so he interviewed them in great detail, hoping to find the connecting link. They traded commodities, currencies, options, futures and stocks.

They came in all shapes and sizes, short, tall, fat, thin, and it took him a long time to find the connection. Some were pure fundamental analysts who never looked at charts; others were technical analysts who did not know one side of a balance sheet from the other. Some studied economics and neural networks while others preferred tarot cards or feng shui. Some had master’s degrees or doctorates while others came from the street where they ran the jueteng or sold drugs. Some were extremely serious and studied DESCARTES while others made terrible puns, were covered in tattoos and wore nose rings. It took him a long time before he hit on the solution. As the first four groups were highly leveraged, about 10 to 1, they followed the principles of POP COLA.

Prolong Our Profits, Cut Our Losses Aggressively

Incredible as it may seem, although they took great care in their entry points, 63 percent of their transactions resulted in small losses. About 30 percent made small gains while the remaining seven percent scored huge gains, doubling, tripling, quadrupling or even becoming 10-baggers, because of the leverage.

So, when you get it right, let your profits run until momentum stops rising. But when you get it wrong put a stop loss below your buying price, dependent upon your risk tolerance. Sometimes, this will be a mistake but it protects you against disaster. After all, you don’t complain about paying fire insurance because your house didn’t burn down. You can afford to cut small losses. It is the big ones that ruin you.

Commandment No. 3: Do Not Average Down

Under normal circumstances, I am against the death penalty, but not for those who break this commandment. They should be barbecued slowly over a fire while concentrated hydrochloric acid is dropped upon them. All the people I know who went bankrupt averaged down.

One client bought 20 million shares at 54 centavos on the advice of his neighbor who was a director of the company. I was acutely unhappy because the shares had risen from their par value of 1 centavo. Not only would he not sell at 50 centavos as I suggested, but also he averaged down at 40 cents, 30 cents, 20 cents and 10 cents. He had to sell his house and his business to raise the money. Finally, the shares stabilized at 1 centavo, before going bankrupt.

If you follow the second commandment, such disasters cannot happen to you. so you will never be faced with the decision of whether to average down.

Commandment No. 4: Do Not Overtrade

If you are trading every day, the only person making money is your broker. The expense involved is too high. You have to pay two commissions and a 0.5 percent sales tax. In addition, there is the difference between the bid and offer price, usually about 1 to 2 per cent. So you have to make four per cent just to break even. This is fine, so long as you BUY just as the stock is turning up, but if you deal constantly, the expense will ultimately cripple you.

That small percentage is enough to make all the incredibly costly casinos in Las Vegas profitable. They can afford to give free rooms, free food and drink, and free shows to high rollers because they know that a percentage advantage of 3.6% is enough to guarantee the house a sure profit over the long run. Trade only when the technical indicators tell you to. For the remainder of the time, do nothing. Patience is a virtue.

Commandment No. 5: Do Not Trade On Tips

In England, we say, “Where there’s a tip, there’s a tap.”

I am sure you all remember BW. The shares were run up deliberately by a consortium that, by tips and cross trading, created enormous volume and sent the shares from P0.40 (under a different name) to P108. Almost everyone except me got sucked in, mostly at the higher levels, and those speculators, who did not use stop losses, saw their shares go all the way down to P0.40 and below. One old lady wrote to me that her broker had recommended it at P104. Would she ever see her money back? I replied, somewhat unkindly, “Only if you believe in reincarnation.” These days, fewer people follow tips.

Commandment No. 6: Do Not Chase Prices

If the price runs away from you, don’t chase it. Most of the time, it will correct.

Commandment No. 7: Be Wary Of Inactive Stocks

The documentary stamp, which made trading in shares well below their par value prohibitive, has been removed. As a result, trading has increased greatly and numerically third-liners comfortably exceed leaders.

I have a computer program that tells me when a stock increases in price by a certain percent and its volume is 50 percent above its 50-day moving average. This alerts me to inactive stocks that suddenly become active. Often, the spread between bid and offer is too great or the number of shares available is too small to be of any interest but occasionally, it throws up something interesting.

Commandment No. 8: Buy Low Priced Stocks

By this, I don’t mean stocks quoted at a fraction of a centavo. I mean decent stocks standing around at P1 to P5. Obviously, it is easier to double your money on a low-priced stock than on a high-priced bank or insurance company. TEL, my most successful recommendation at P226 and now over P2600, is not likely to double from this level.

The Last Commandment, No. 9: LEARN TECHNICAL ANALYSIS and I will tell you where to get information.

If you desire to become a really competent investor, you must also learn global economics and fundamental analysis. By global, I do not mean that you have to study every country, but you must at least know what is happening in the United States. Wherever the American stock market is heading, the rest of the world will follow. After the 9/11 attack, the US market got battered for a few months and every other stock market followed the downtrend. When the US market finally got back on its feet, every other market recovered.

How do you learn about the American stock market? First, listen every night to Bloomberg, assuming that you have cable TV, and tune into CNN. Listen to Chairman BERNANKE when he addresses the Senate or Congress. If you cannot do this, then read his speeches in the newspaper or go to the Internet and check on CNN Money.com or Bloomberg.com and also read the commentaries. When Wall Street sneezes, the rest of the world catches pneumonia.

Basic Knowledge

For the local market, the business section should give you all the necessary information. But if you want more details, to the web sites of the National Economic and Development Authority or the Philippine Stock Exchange and listen to channels which are largely devoted to the economic and political situation of the Philippines. You can also enroll in courses at universities and colleges.

Next, you should have a basic knowledge in fundamental analysis. This means that you need to know all about companies. You must know how to read a balance sheet, calculate the earnings per share and from this, the price/earnings ratio. You need to understand what a yield means, how many times a dividend is covered, and what preferred and convertible stocks are. You should know book value and understand such concepts as debt and cash flows.

You can take a course in accounting or business management, and there are plenty of books, local and imported, in all the major bookstores. Or you can subscribe to my newsletter, which contains all of the above.

If you want to buy a simple but excellent technical analysis book, try TECHNICAL ANALYSIS OF THE FUTURES MARKET by John Murphy, available at local bookstores but expensive. It was written years ago but is still considered to be a classic. Every aspect is explained simply and it can be used for trading stocks, commodities, currencies or futures. Also buy Beyond Candlesticks by Steve Nison, a must. There are many sites on the Internet, which will teach you technical analysis and provide the necessary charts and parameters. Good Luck!

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