How Financial Advocates can demystify misconceptions about stock investing with Francis Louigi Pardillo Canizares – Transcript

Gwen Lazarito
Hey guys, welcome to another episode of the financial planners Southeast Asia podcast when here and today I am with Francis Canizares. Did I pronounce that right Francis? Yes, that’s correct. Wonderful. So Francis is a registered financial consultant and a full time trader in the Philippine stock and equity market for over six years and his primarily providing financial planning to Filipinos and licensed professional as well as business owners. He is also one of the co founders of alpha edge research, a startup focused on providing market education, as well as research on the financial markets to the average Filipinos. He is very passionate about promoting comprehensive financial planning in the Philippines and he aims to earn the Certified Financial technician. So, welcome to the show, Francis. It’s so nice to finally have you on the show.

Francis Canizares
Hi, how’s it going? Hi, Gwen. Good afternoon. Good afternoon, everyone who are listening to x y podcast,

Gwen Lazarito
I gave a really in depth introduction for you what I want our listeners to get to know you more and share your story. So can you tell us first, how did you get into financial advice?

Francis Canizares
First of all, I would like to think thank you for this opportunity to share my financial advocacy on towards to financial advice. So first, getting to know myself. I’ve been self taught trader for the past six years, and that created a path started a passion or commitment to learn more in the financial markets. Trading is fun. But there’s something more about it. So which led me to what’s the financial advice industry? With that? Of last I think 2018 2017 found a group of traders here in Cebu Philippines. Right. And one of them is a registered financial consultant. For those who don’t doesn’t know the registered financial consultant will provide the link below. Yep, he introduced me the financial advice industry. With that he shared some one of the books regarding financial planning. Then I read those books, then research from different websites pertaining to financial advice and other articles. And I got more interested because you provide that financial plan like it’s like a building routine, or, or a goal to achieve those long term achievements or as a major purchases?

Gwen Lazarito
Yes, yes. Like color isn’t houses for the family.

Francis Canizares
And with that I got more interested provide financial services, especially to the Filipino people as financial planning is not well known yet. In our financial industry, so yep, that’s how I realized that how important financial planning is. And hopefully, I could provide more solutions, tailored fit solutions to the Filipino people. Right, so

Gwen Lazarito
and so that’s why you became a registered financial consultant. But before that, you were a, you are still a full time trader. And you’re still doing that right now alongside becoming a financial consultant. Right? Yeah,

Francis Canizares
that’s correct. I’m still a trader, and also practicing as a registered financial consultant. As part of the registered financial consultants, compliance, we will need to have a continuing education. That’s why we need to be kept updated in the industry, and also in the financial markets. All right. And

Gwen Lazarito
that’s very, that’s so true, right? Because I find that financial planning is like being in the information technology profession where you have to keep up to date with the whatever, the latest information out there, because it’s important for not only for your business to stay afloat and for you to be the best at what you are, but it also greatly helps your clients in how you help them make the financial decisions that they do, which gives me the opportunity to ask what is a certified financial technician and why are you aiming to earn is titled,

Francis Canizares
for this certified financial protection technician, they’ll be based from the US. So it’s more specifically on the technical analysis and the financial markets more like, there’s involved in the price and volumes and also the indicators, which would forecast or predict the price, we don’t say usually split the deck we, we studied the price history. And we’re identifying, which are the supports or resistances prizes where there would be heavy buys or heavy sells. And it will also create more credibility to yourself, and more exposure to different financial professionals from different continents like Europe and the US. And hopefully, there’ll be more money CERTIFIED FINANCIAL technician in Southeast Asia. All right,

Gwen Lazarito
yes. And well, maybe I leave that question in another time. But I would really like to talk more about how to get that kind of certification. But for now, our main topic is actually about how financial advocates can demystify misconceptions about stock investing. So my question to that is, what are the most common misconceptions that you hear a lot about stock investing?

Francis Canizares
We may have different misconceptions. On what what we have heard, for me, based on my background, and other factors, I have narrowed down to three. So just to make it simple. The first one is some people say that investing is for rich people only. But over time, especially this evolution of the information and the wealth management services, there have been competitive businesses, which you can start your investing at a low cost or low initial balance. Or you can start with a zero account. It depends on the broker available in the market. Yeah, yeah. So yep, that would be the best time to invest right now. Because we have many ways on where to invest or start an account.

Gwen Lazarito
Oh, yeah. Right. Yeah. I remember that. A lot of my friends actually started with this company that lets you invest in as low as 5000 vessels. That’s correct. But yeah, what was like the second misconception,

Francis Canizares
some of it, second will be the, they don’t need the financial end. Some will say, Oh, you only live once you just just spend anything and anything we want. But over time, as you grow old and grow older, you you’re looking for retirement funds. But yes, I’d say some would say sad to say that you’ll have small time to invest. So with that stock investing is an integral part in the financial plan, especially for those risk profile, whose appetite is willing to take higher risks with higher reward. But besides from stock investing, there’s also some other financial instruments like bonds, which could talk with that another podcast. Yes, yes. Third one, and some of them say they want they don’t need the emergency fund.

Gwen Lazarito
A lot of Filipinos do that. Why is that? And it’s, it’s a common misconception. But I’d like to let’s try to expand on that a bit. Like why do you think a lot of people find it unnecessary to have an emergency, an emergency fund? Is it because they actually don’t know what an emergency fund is? And that’s why they just go dive deep into stock investing without having set that aside, or is it really like they do know that this type of financial security exists, but they just chose to disregard it because they don’t find that it’s necessary?

Francis Canizares
It depends on the financial circumstances. That individual, it’s because they have tight financial budget, which they don’t have any emergency fund. Some have enough cash surplus that they could fund the emergency fund. But some they will just leave it as part of it because some would say A that it was set up by the inflation rate, or some would say that cash is just sitting up there. But for me, emergency fund is bad should be easily liquidated. So in science of emergency, so for me, especially there’s situation that comes to life on that. So sometimes you need that font right away. So you need to be easy access. But somehow, some of those, they use the emergency funds for different purposes. Like they need to purchase the say, gadgets are electronics, which doesn’t define the emergency fund

Gwen Lazarito
in one. Oh, I’m guilty for that. So I remember, we actually had a fund an emergency fund before me and my husband, but we weren’t married at the time. But because our married we’re married, our wedding was cancelled. Because of COVID, we decided to say, that’s okay. It turned out for the best. But at the time, we were just very sad about it, that we spent all of the money buying gadgets. We knew it was wrong. But we had the impulse because we were sad. So we were driven by our emotions. And that’s why I can really understand why people sometimes deem their emergency funds. And when they need a gadget, they considered that as an emergency, when in fact that it’s not. But yes, if if these people talk to a financial planner, before they make a purchase, they would be told that no, it’s not

Francis Canizares
yes, because it’s misaligned with the financial plan. Yeah, I appreciate that you you’re aware of your expenses, especially with gadgets, and your emotions. That’s one of the values that the financial advisors provide, encouraging the client to focus that financial goal. So especially, they have such different attitudes in the cars and handling the funds, especially impulsive buying. So that’s why it’s important to have a financial planner to have a collaborative approach and achieving your financial goals.

Gwen Lazarito
Yeah, definitely. I definitely agree. 100%. And that’s why it is a goal for us to be able to help so pinos get access to a financial planner, even if initially they would think that they can afford it right. We have to demystify that as well. But for now, let’s focus on stock investing. So, as a specialist, how do you tend to address these like three common misconceptions

Francis Canizares
go be the creating awareness and education to the Filipino people that not also to other individuals or wants to engage in the financial markets to add and also without some will say that style stock investing is also as a scam. But the stock investing in the stock market is heavily regulated by the Securities and Exchange Commission’s and other government agencies really in relating to the any stock investing, so you can see that the investors are also protected from any scams or any missed or malpractices from other companies. That’s why we as financial advisors, also need to be aware of any scams around around in the community are any updates on the financial markets? Because once we know that we are aware of and we are updated, it creates a confidence between clients but achieve their financial goals.

Gwen Lazarito
Yeah. Oh, and yeah, so we mentioned or we talked about, like sources earlier before we started recording, can you give us friends some of the resources that you would recommend every financial planner or even advisors should check out on on a regular basis

Francis Canizares
sure for the Philippines or things. We’ll provide those links On the descriptions. So first one would be the, if you’re into Facebook, the Securities and Exchange Commission’s have their official page where there are posts on what’s on updates or advisory advisories and notices, then another one, you could check directly to the website that will provide that link also, for the Philippine stock market, there’s also a specific website. And let me also add that that’s in the PSE edge portal. That way. If you want to verify those news, you better check up guessing edge portal. Because if there’s any reports, there will be clarification of news reports. So it will give better information and clarity to the investors who are investing to that or, or wants to invest to that particular stock.

Gwen Lazarito
Great. Any other sources that you’d like to share?

Francis Canizares
There’s also some news media, but I’m not affiliated with that. But you’d go with the business world online. I usually fall into that any news regarding the Philippine market? Also, they also talk over the other Southeast Asian countries.

Gwen Lazarito
Nice. Right. And so that’s very helpful, right to be able to keep abreast on what’s currently happening in the financial world. But we can, as people in the financial advice industry, we would always receive clients or people that we know telling us that, Hey, I saw this post in Facebook, for example, or I saw this person referring this type of investment on Vine, and like, how do we educate them in a way that they would not push back on how they can be more mindful of taking or of making sure that they pick and choose the type of information that they receive.

Francis Canizares
Based on my experience, they usually have declined client or somebody creates a doubtful or any having doubts on that link or information post. It’s better to stay away with that. But if you need more clarity with that, you consult with a financial advisor and the financial advisor checks with that to the circle of financial advisors, also with the government and regular other regulatories. So that will verify that this this information, or this post is verified, or let’s call it digit, or that’s credible.

Gwen Lazarito
Yeah. So and, but that’s only like how you advise people who reach out to you but as a an advocate, like how do you just in general, how do you minimize the spread of fake news around investing, or these help the majority of the Filipino consumers steer clear of scams.

Francis Canizares
In the social media, I believe there’s a there are pages with the call them as verified pages, the one with the circle, a blue circle with a checking a white checkmark. So that could be a sign that is a verified page. There’s also times when you follow are like those groups or pages, it will notify you that this community provides the false information that this could be create awareness to the to the readers, or who wants to join to that group that would great with that it creates awareness to the readers,

Gwen Lazarito
that’s very helpful because I actually didn’t really think about verified pages in the first place. I in general, would just steer clear on any financial advice that I get on Facebook. So that’s Indiana, except for the people who I know who are really credible. So we talked about earlier before we started recording about the sources that are the where I get my sources and that’s why I asked you for more referrals so that I can have more but yes, I think verified pages is really a good way to go like the events the hands down the easiest way to make sure that you are getting verified in information or from qualified sources. And I asked this because it is a very widespread problem. I think that right now, there are a lot of information that’s out there, especially in Facebook, where a lot of majority of us Filipinos are tuned into all the time, right. And even tick tock tick tock is a new platform, but a lot, there are a lot of financial advice that are out there. And it turns out that a lot of them are unverified. And the people who provide these advice are not even registered or certified financial planners, financial advisors, or consultants. And, like, I guess what I wanted to ask is, how do you deal with these types of information? Like when you see it? Do you flag this type of information? If you think it’s questionable, or like, do you tell other people not to subscribe to this person or to this page or to this account?

Francis Canizares
I don’t I don’t usually follow. I don’t usually watch videos regarding the financial advice. But in my case, if I saw that, usually some clients, or the readers or Watchers or the viewers, they just ignore it and don’t flag it. But some of those if they saw those profile, and they want to verify that verified that name, that this this profile is as a registered or a certified professional. Yeah, I think it’s better to check the website or the host the license the licensee for that. Before let’s say you report it, or, or makes any excessive actions, because we don’t know that, let’s say the profile still buildings, and it’s ongoing on a verification. So and we don’t know yet. But I think it’s best to consult with professionals or regulatory is on that page, if that is credible or not. Even though we know that social media does have those EC verification pages, or is it easy verification page marks?

Gwen Lazarito
Yeah, that’s cool. In so another question that popped into my mind as we were talking about this with regards to stock investing. So you were a full time trader, right? And you’ve been doing this for six years. And I’m sure that there are a lot of your friends, or just people that you know, would come up to you ask you a question regarding the stock market. But do you provide them an in depth advice? Or a ready answer? Or is it’s like how do you manage that as a as a stock trader, and a financial consultant when someone asked you off the bat, like, Hey, what are you investing right now I want to invest in that too.

Francis Canizares
usually tell them that, there would be a disclaimer that they should have there’s a risk of capital loss with that. Actually, tell them that, please do what your own risks and make some research, do some research. I’ll just provide them what are the links to help them decide to buy for that? If you provide them that I’ll buy that my listener had the stuff turned around. So you will be blamed for that. So it’s best to provide them the credible sources information to if it’s best to invest with that.

Gwen Lazarito
Right? And because it’s different, right? So I just want to make because a lot of people think that if I just copy whatever it is that you’re doing, I’m sure to make the same type of success as this other person, but it’s not always the case. So and that’s one of the reasons why I think some of the misconceptions around the your profession as a as a trader, actually is that I don’t need someone to help me I can just copy what they do. How should a financial advocate place the value of a A trader or broker, into a client or for a client,

Francis Canizares
it’s best to show an analogy or a case study with that they wants to try to copy those trades. And that’s fine lines with financial goals, or if that is client has preferences, that he wants to copy trades so he can achieve that financial goal or anything. But it still needs to have, you still need to know what’s your risk profile? What’s your risk appetite? Because it will determine what’s your personality. On regards to managing your risk, some say you will, some was they will just copy but the risk is too high, and they can bear those huge losses in regards to high rewards. That’s true.

Gwen Lazarito
Because like, for me, I’m very risk adverse. So and if you as a, as a trader most likely have a very, like big grit, risk appetite, correct me if I’m wrong. So if I copy whatever it is that you do, and in case you incur a loss, for you, that’s okay, because you have a big risk appetite. But for me, who doesn’t, it would be a very big blow, and I might not be able to recover. Or if I if I do recover, it won’t be the same as like your, your trajectory, because it’s different from mine. So yeah, I really want that. And I think there’s a lot of things that we that we can discuss more into stop trading, and a lot more things to demystify in the financial advice section. So maybe we’ll do another podcast for that. But for now, what is your advice friends for, for financial advisors, and anyone in the industry, who wants to promote or to spread more credible information about investing? Okay,

Francis Canizares
it could be this advice could could may not be applicable, or anyone is wants to follow this one, but continuing education, and more awareness in the financial market? Because once you know, though, then you’re able to pinpoint what are those fake news was, its credit, a disk, right or not? Because especially we are in the information age, there’s a lot of information bouncing around. You see them every day. So you need to be a good picker on what’s the fake news or not. And also, the government or other regulatory regulatory is to keep check also on for those people who spread fake news because it might hurt the investment now, overall investors confidence that could create risk averse to different financial instruments.

Gwen Lazarito
Oh, that’s true. Especially. And what comes to mind is bitcoin and cryptocurrency. This is something that’s not regulated, and it’s also new, especially in the ears of Filipinos. It’s been around for a very long time, but I noticed that it has been a hype these days. And there are a lot of fake information that are out there. In particular the the one that was named after squid games, I remember Oh, yes. So yes, yes. Yeah. And so I I feel like your your advice is really on point to always learn about what, what is currently happening in the world because it’s where you get the knowledge to become wiser at the type of information that you should consume. So before we formally end the show, Francis, where can people find you if they want to get to know you more, or ask for your advice or your service?

Francis Canizares
I’m glad to share my contact for service. An email now be Canizares francis@gmail.com. So the email address will be provided in the description. So I repeat that scan is Iris francis@gmail.com. And for the phone number that will be plus 639183638783. I’ll repeat that one that will be plus 639183638783.

Gwen Lazarito
All right. Thanks so much, Francis, anything cool that you’ve been doing right now or any future projects or programs that you’d like to share with the listeners?

Francis Canizares
Yeah, currently, we’re starting up a new, a training company that provides specialized training in regards to wealth management services, and also improving the portfolios. And the target market with beyond banking and the wealth management side, also insurance. There will be more trainings to come, as this would create more knowledge, add more knowledge to the specialist and create more value to their clients and provide sustainable business service.

Gwen Lazarito
Nice. That sounds so cool. So if you guys, you guys listening out there want to know more about that, then you can go ahead and send Francis an email or give him a ring. So thank you so much, Francis, for being in the show today and talking about demystifying misconceptions about stock investing for financial advocates. So I hope that we can have a bit more conversation around even stock investing in the future. So if you guys are into that, please let us know. But for now, thank you so much for listening. Thanks for being in the show. Francis. Have a good one.

Francis Canizares
Thank you. Today, everyone.