Guide To Investing In The Stock Market

Photo by Catherine Karnow

In one of my previous post, I talked about the two ways to earn money in the stock market, stock investing and stock trading. In this post I'll be sharing with you the strategy that I use to invest in the stock market. It's a method, that was taught to me as a member of Bro. Bo Sanchez's Truly Rich Club.

The strategy is called Strategic Averaging Method or SAM for short. The SAM strategy is a passive long-term investment strategy that Bro. Bo teaches to his Truly Rich Club members. In short, it is a buy and hold strategy (without the need to hold a certain stock for 10-20 years). The strategy has five (5) rules to follow in investing in the stock market.

1. Invest small and slowly - invest only small amounts of money regularly, preferably monthly (or twice a month for TRC members, after Bro. Bo email's his stock updates).
2. Buy at Buy Below Price (BBP) - Bro. Bo usually provides a BBP whenever he recommends a SAM stock in his stock updates. The recommended stock should then be bought at the price that is lower than the BBP.
3. Stop buying when prices go beyond the Buy Below Price - once the SAM stock goes beyond the BBP, it's a sign to stop buying that stock. Unless Bro. Bo says otherwise or he adjusts the BBP.
4. Wait for the Target Price (TP). Sell when the TP is hit - Bro. Bo's stock updates also comes with a TP, where you sell the SAM stock once it hits the TP. Unless Bro. Bo says otherwise or adjusts the TP.
5. Reinvest to other SAM stocks - use the money earned after selling the SAM stock at the TP to buy other SAM stocks. In this way, you'll be compounding your previous profits with the potential profits that your newly SAM stock could make.

This strategy is made easier to apply because of the stock updates that Bro. Bo provides to his TRC members. He provides an update twice a month, wherein he mentions the stocks to buy, at what price and at what price to sell them (he also sends out emails, outside of his regular updates, if a stock needs to be sold already or an adjustment with the BBP and TP). This system is basically the treasure map of TRC members to making millions in the stock market.

If you don't want to be a member of the Truly Rich Club, the suggested stocks to buy, when applying this strategy is blue chip stocks (PLDT, SM, Ayala, etc.), as these stocks tend to be safer due to the solid fundamentals of these companies. Then I suggest just sell them when you are happy already with the profits that you made and then just reinvest your earnings.

For those who are interested to be part of the Truly Rich Club, just click the link to learn more.