(If you want a quick guide for beginners how to start investing in the Philippine stock market, you can download yourย free ebook here.)
Have you been investing in our local Philippine stock market?
If so, how is your stocks doing now?
For many, daming ipit!
From stock investor, these people turned to stuck investor.
Will you stop now?
Better not…
The irony is…. this is a great time to learn how to do better!
For instance, one common mistake newbies don’t realize is doing what we call making "forced trades."
This is a bad habit an investor commits when he has no clear trading rules to follow when it comes to placing trades.
They simply place buy/sell orders because they feel like doing so.
Look again… San sya nag-dedepende?
Answer: Emotions.
They are excited to buy stocks because they just started.
Or they are thrilled. They somehow have this belief that the stock market will respond in kind to those kinds of positive feelings.
Bad assumption.
Remember, the stock market doesn’t know, even less, care about what you feel. It will move wherever it wants to go.
It’s been told many times how very important it is to not be swayed by your emotions when it comes to handling your money.
Thus, being objective in your trading activities is very important, and there’s no better way to do this than to establish a clear-cut trading system in which you have huge confidence of it doing well at least in the time frame you’re willing to work with.
Forcing trades is never good especially when it’s clear that the market you’re dealing with is far from doing great.
At these times, it’s for our benefit to learn how to invest in other markets that offer better upside…. such as US stocks and assets covering market indexes, crypto, currencies (forex), and more.
Let me show why this a logical step.
Did you know that the US market has already gone up by 20+% since start of 2020? And don’t forget we’re in a challenging pandemic.
Did you also know that our local market has been a laggard in the recent weeks (down -22%) while US is rallying with its modern tech stocks? US-based AMAZON for example is up by 60%!
(And if you’re asking why, the simple reason is that our main index which is comprised of SM, AC, ALI, JFC, SMPH & others are all in "traditional" businesses which were greatly impacted by our present crisis).
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You see, when our local market struggles very hard in its recovery, what we should never do is to force our trades for the sake of "investing."
Instead, we have to take advantage of other opportunities elsewhere which can help us achieve our goals faster.
And that’s what global investing is for.
It’s a form of common-sense proper diversification.
More as following where the good trend is.
While we can see there are better opportunities outside the local market, we go that way.
The good thing is, it’s very easy to start investing even in the arena of global markets. It’s very similar to local trading/investing.
There are a lot of brokers you can start with when it comes to global investing.
Popular names include Charles Schwab, Interactive Brokers, and TD Ameritrade. Unfortunately, these brokers either require a huge initial capital or that the funding and withdrawal can have a lots of fees. You may also need to open a dollar account.
With the eToro platform, things can be much more accessible.
The platform is very friendly to beginners and they also allow clients to invest with zero commission.
You can also deposit easily without hefty fees and withdraw anytime quickly.
If you’re interested to explore this path, You can sign-up here to join our Global Investing Walkthrough webinar this Wed and Saturday. It’s FREE.
Also,if you have friends willing to explore earning in global assets and markets, you can forward this post to them so they will also receive updates straight from me including webinar invites such as this.
Invite them to sign-up too and you will have a buddy to explore this with. I’m sure it’s going to be beneficial for your both. ๐
That’s all.
Hope this helps you achieve your trading goals.
Keep safe & happy learning.
Omeng
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P.S
For more practical videos how to start investing and to learn what stocks to buy and when to buy & sell, make sure to subscribe to my YouTube channel and check out my videos answering those questions.
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