It’s now going three years that I’ve been investing in the Philippine Stock Market.
And thank God, I’m still here. =)
Well, I’m actually lucky that I started when the 2008 crisis was over.
It was year 2010, and by 2011, I was happy to know that the Philippine market is still in Phase 1 of the cycle below. [Click here to learn more about this cycle]
Now, what I would do if I had to start all over again?
Knowing the available resources we have now, I would suggest below very simple steps:
STEP 0. Read Bo Sanchez ebook – My Maid Invests in the Stock Market. That’s what I believe is the easiest way to understand how investing in the stock market works without the usual intimidating market jargon nobody likes.
STEP 1. Second is to open an online broker account right away.
Many would agree to the need of “Aral muna bago invest“.
But that doesn’t mean you have to understand everything first before you take the first step.
I’m a fan of taking one small step, then just look again and adjust, instead of analyzing everything before taking that first small step. (analysis-paralysis as some call it). Action simply brings much more clarity.
Opening an account is totally free. It doesn’t even require any maintaining balance.
So stop thinking of all the other future steps before completing this.
Once done, only then you should think of what stocks to buy.
STEP 2. Speaking of what stocks to buy, this is the most frequent question we get from first-timers.
After having few years of experience under my belt, I would suggest to start choosing a few from the list below (updated as of May 10) and adding to them monthly.
It’s “safer” for beginners who are just starting.
Just observe the buy below price and you’ll be fine while avoiding all kinds of market analysis.
If you observe the previous version of this table, you would notice that some companies in this list had already appreciated from its price few days ago (which is already a lost opportunity).
(Compare it with below update as of April 29)
Of course I’m connecting now the dots backward.
But the point is those companies are already established and screened as studied by our broker researchers. So for newbies, you can start selecting those in the list while you’re still in the process of educating yourself.
STEP 3. Lastly, find ways to increase your income.
Investing in stocks is essentially money making more money. So if you have more money, then you’ll have more “more money”.
One golden lesson we can all ponder on – Focus on your cash flow, not on your stocks.
It’s okay to be excited while starting (everybody was) but after some months, never make the mistake of checking everyday your portfolio when you know that your investments should be passive. Better to redirect your time in finding ways to increase your cash flow,and thus increase your investments.
There you have it.
Those three simple steps summarize my advise for beginners.
What about you?
If there’s a total beginner to come up to you, what advise would you give coming from your own experience?
Have fun investing!
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