(If you want a quick guide for beginners how to start investing in the Philippine stock market, you can download your free ebook here.)
Investing in Stock market will not give you quick returns
There, i said it.
Sa Tagalog: ang pag-invest sa Stock market ay di madalian na pera..
If you cannot see your investment going down in value by as much as 20%, don’t even try putting your money in stock market..
There’s no guarantee of what you’ll earn here.
Even if you follow specific strategies that performed well in the past, ultimately your gain in the future, if tutubo ba or malulugi ka, will depend on the performance of the present market.
Even I, who outsmarted others during my engineering days in UP Diliman, make mistakes up until now..
What does that mean?
If people who are too logical and rational to think make such costly mistakes, what more in the case of normal employees/housewives/OFWs/drivers who don’t have the time to fully monitor what’s happening out there?
So should you stop preparing for your future now?
Nope, I’m not saying it.
What’s I’m saying is YOU NEED TO BE INFORMED AND AWARE AND READY.
Pera mo kasi yan, pinagpaguran mo, so dapat alam mo and sigurado ko kung san mo pinapasok yan.
So what are my thoughts?
Realize that the ups and downs are normal and is part of how the stock market is supposed to behave. It’s the risks involved.
In my experience, I’ve seen my money going down more than 20%.
WOah! It was scary at first.
But the good thing I did from the start is to be invested only in companies I personally believe in.
In businesses that make sense to me.
So even if the market’s going up and down in a way doesn’t make sense to me at all, at least I’m more confident that the company I part-own will continue earning money and grow.
In effect, the prices going down becomes an opportunity for me to buy more shares.
It’s what they call “accumulation”, or nag-iipon ka ng shares dahil you believe it’s on bargain!
I can say this because I’ve personally witnessed my investment bouncing back and giving more when the market recovered.
That’s where the key lies..
Two things you need to remember when investing
In other words, you need to ensure that
(1) You’re invested in businesses you are confident will grow, not necessarily tomorrow, but during the time you’ll remain invested, a company that can recover when everything becomes better
and (2) you know how long you’re supposed to be invested.
Di okay na maglalagay kalang ng pera, abang-abang umakyat at magbenta.
Okay yang sinasabi mo if laging paakyat ang market, but question is… what will you do if the opposite happens?
So you need to aware so you can be ready if market is not as friendly.. which is what we’re seeing now..
For kapitan ng barko (and other who have similar situations)
For seafarers, who are on vacation for five months and on ship for seven months, I’d strongly suggest getting into Mutual Fund instead.
Directly investing in the stock market will involve personal monitoring on a regular basis, something that may not be doable if you cannot access the internet at least once a month.
In that case, maybe better just put money in fund managed by professional..
This of course is also applicable to anyone who have no time monitoring.
Mutual Funds generally perform good over the long run (at least 10 years)
I’m urged to tell this to you because of the too many emails I see and receive from people who believe like stock market is a miracle solution that will solve all their financial miseries…
And here I am saying “NOPE!”. It won’t guarantee solving your money needs NEXT YEAR.
True that you can earn short term via trading, but that requires so much skills and time and (for some, money.)
But for the majority who don’t have such resources, then it’s best to be fully informed and aware of what you’re getting into. And allow time to work for you.
You’re just warned.
And if you’re like me, take this this market behavior as an opportunity.
Have fun investing,
PS: Lots of resources out there to help you be informed of you’re trying to play in.
I conducted a series of online videos too for total beginners. Check details here.
PS2: Keep learning.. Don’t let this email stop you from preparing for a better future. Instead, take this as a challenge to expand your means. Stock market is good if you know what you’re doing. 🙂
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