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Excerpt
Do you think that there is a strong manipulation in our stock market?
Marvin isn’t really sure. He’s not someone from the PSE, he was never a broker, nor was he an investment banker, or someone that dealt with mutual funds. He was just an outsider that was trading in the market.
This is why technical analysis works best for Marvin. He doesn’t have any other source of news or data besides the charts.
If the charts are telling him to buy it, then he buys it, If not then he won’t. This is why Marvin hammers into people that the charts discount everything. Everything he needs to know is found in the charts.
Marvin likes the fact that in the stock market, you don’t need to think about what other people are doing, rather it’s just about how he will be trading.
*How many times did the chart tell you to do something and the opposite happened?
Marvin and the charts that he believes in have been wrong numerous times. When that happens, he will just cut his losses before it gets any worse. There will be times when he will get multiple trades right and there will be other times when he gets multiple trades wrong. Now that Marvin has his routine when it comes to stocks trading, he doesn’t rely on his success rate through metrics anymore.
What’s important is that the money he earns there is used to buy more stocks that have more dividends.
What do you tell the people who think they failed in trade because of market manipulation?
Marvin tells them that it’s probably because they bought the wrong stocks.
When Marvin makes mistakes, he believes that it’s his fault. He thinks that other people think that way because they believe that they’re the victim.
Marvin has always had the mindset that he will enter the market and everything that will happen will be his responsibility.
As far as he knows, the PSE is doing the best that it can to safeguard stock trading. Everything and anything that you do is your responsibility.
How important is technical analysis for you?
Some people use fundamental analysis and there are a few other people who rely on technical analysis. The majority of the market, however, just guess or listen to what other people say.
For Marvin, technical analysis is everything. He needs to know where the stock is headed. He needs to know it’s direction. Most other indicators aren’t as important.
You should at least know the direction, that will let you know how you’re going to trade.
Knowing the trend is the most important thing.
How long have you been investing?
There was a time when Marvin wanted to just become an investor. He greatly idolizes Warren Buffet. He was the reason why Marvin segmented his portfolio and dabbled both in stock trading and investing.
The best way for him to do it is to separate his stocks in a different bucket. He has different mindsets when handling different stocks and investments.
You mentioned that Warren Buffet is someone that you look up to. He has Berkshire Hathaway. Why don’t you open up an account under it?
Marvin doesn’t have any plans on participating in that. He’s already content with what he has. It may look bad since he no longer dreams of much, but that’s who he is. Marvin is already happy with being able to eat what he wants daily.
His stint on YouTube, however, has been something that has reinvigorated him in a way. The challenge of getting one million subscribers is very hard. It gives him excitement.
What are some of the most painful lessons that you learned the hard way in stocks trading?
One of the most painful lessons that Marvin learned was to not listen to other people when it comes to trading. He did so when he just started and he lost so much because of it. This is why even if he teaches trading in Youtube and through seminars, he would always tell his audience to not listen to what he is saying. Instead, listen to the logic behind what he is saying.
It’s never about stock picks, it’s about the people forming an understanding of how the chart works for them.
Second, he learned to be patient and not hurry just to get money. Thirdly, hoping that a stock would go up. This is why Marvin says that hope is not a valid strategy.
He also regrets his first experiences when he went in without a plan. If he had planned on holding some stocks and its value dropped but eventually doubled in the long run, then he should have stuck with his plan.
Not exactly related to investing, but another mistake that Marvin felt he made was not buying real estate earlier.
He should have taken more risks and loaned more to earn more in the long run.
When did you make your first million in the stock market and what did you do with it?
Marvin vaguely remembers earning his first million at around 2010. Everything that he earned, he put it back in, including the first million that he made. All that he used were the dividends that he was making. He always reinvested capital appreciation.
Marvin doesn’t look at his money the same as other people. He looks at his money from the broad portfolio. That means it has to be cash, stocks and other assets.
Similar to Warren Buffet, Marvin has more cash on hand right now than at any other point in time. That’s part of their portfolio but it’s not in the stock market. Marvin just treats the stock market as another asset class. But among all of them, the stock market is his favorite.
People need to look at it with a more holistic perspective. Marvin has always maintained a level of cash funds that are hidden. He still puts it in the market, but they’re hidden in anticipation of something bad happening.
Do you have any business that you run or manage?
Marvin focuses solely on investing and trading. He did try starting up businesses in the past, but he realized that he’s not an operator. He doesn’t like the headache that comes with growing and maintaining a business.
He doesn’t like handling business. That’s why he structured his life in a way where the investments will be more than enough to provide for him. This allows him to travel when he wants to. He couldn’t see himself going into the office, even if he’s the owner.
Marvin likes Chinkee Tan’s template. He only works with a handful of selected individuals and makes a way to invest and make money through his own investments.
There’s a way to accumulate cash without going into business. Marvin tries to study how to value businesses and makes investments based on his analysis.
For young professionals who have a median salary of PHP25,000, how much would you suggest they put into savings and spending?
Marvin suggests that for people that have a PHP25,000 salary, they should look for enough side jobs to make their income PHP100,000. PHP25,000 will not be enough firepower for them to reach a million efficiently. The best way to do it is to hustle as much as you can while you’re young in order to earn so much more which you can, in turn, invest in the future.
If Marvin had a salary of PHP25,000, then he’d probably save 80% of it, he would work from his home to avoid commuting, and would eat cheap food such as canned food.
Is there anything new you’re working on?
Marvin and I are working on an online course called Make Money Grow Money. It’s primarily for people who want to learn more about business and investing. Since Marvin has been lessening his talks, the only way to get access to his seminars would be through these online courses.
That’s makemoneygrow.ph
Where can people find you?
Subscribe to Marvin Germo’s Youtube Channel!
If given a chance, do you think stock trading and investing should be a course in college? Will you teach it?
Marvin would teach it only on special occasions. He thinks that the best way to teach trading and investing is to go above and beyond the traditional educational system such as through Youtube and podcasts so that it’ll be more accessible.
If it were taught in college, it would be more academic. Marvin thinks that stock trading and investing are two things that are better learned through experience rather than through classes. Reading a stock market book or watching a stock market video will not change your life. Not until you invest in the stock market.