One common reason why people lose money investing

One common reason why people lose money investing

(If you want a quick guide for beginners how to start investing in the Philippine stock market, you can download yourย free ebook here.)

One of the most common and obvious reasons why people lose money investing in Philippine stock market is not knowing what exactly is happening in the stock market.

With this lack of information, one can not really make sound and properly guided decisions.

In my case, having my full-time day job, being updated with the key happenings by myself is already a big challenge in itself.

“Is the market now starting its bearish (going down) pattern?”

“Are the government projects pushing through?”

“Are the plans of the companies I’m invested in still on track?”

These are just some of what can happen in any market.

More importantly, knowing what to do after realizing these market developments is much harder challenge.

That is, should I buy this stock with this update?… Or should I start selling some?

It is with these challenges that having an external expert guide becomes really helpful.

In my case, one of these external support is being a member of the Truly Rich Club.

This club gives regular stocks update to all its members following a long-term type of investing strategy.

When I saved my 20%+ capital gain

Shown below is an email stocks alert/update from Truly Rich Club on Feb 1, 2015, asking its members to sell.

Truly Rich Club stocks update - SELL alert

Having read that email, even if I’m NOT always aware of all market news,ย  I immediately knew what to do next – so I decided to sell a part of my holdings, specifically that of 9500 shares of LRI at 11.36/11.8 price levels. I sold it on Feb 2, 2015, a day after the stocks alert was sent.

Selling LRI in philippne stock market

Have I made the right decision?

Well, looking at what exactly happened to that stock LRI months after the selling recommendation was made, it’s very clear it was a good call made.

From the chart below, the price slowly went down from my selling price of 11.8/11.36 to its April 1 2015 closing price of 9.23, or an equivalent of more than 20% loss.

What happended to LRI in philippine stock market

With my base capital of more than 100k, I would have lost more than 20k of my capital gain had I not become updated with the stock alert and not sold at that time.

This is the beauty of having a buddy that does the FULL-TIME market watch for you.

I can be not fully monitoring the market with my job (or any other reason), but just be updated via email ONLY when an action to buy or sell is needed.

With this, I can focus my time and attention on other more important things (family, socials, career, business, etc.)

The Cost of not monitoring it yourself

These filtered recommendations I receive though, with my desire to not check the market updates every day, comes with a price.

In the case of the Truly Rich Club above, it has its membership fee (Php 497 monthly).

However, if you look at what it offers on its page here, it gives more than stock alerts.

In fact,ย  stocks updates is just a tiny portion of its entire package.

I can personally say that it’s not its stocks update that had the big impact in my financial life.

I shared in below video a review of stock market investing resources inside the club.

Do I recommend Truly Rich Club?

If you already have a big capital in your investments and believe that your potential gains from its service can cover the membership fee, then you can probably give it a try and see yourself.

For those just starting with small capital, the fee can be burdensome.

I’d think that if you’re able to invest a month of at least 5000, then the club is probably worth checking out.

In any case, it has its 30-day money-back guarantee during which you can check and download all its materials inside and avail of the no-questions-asked money-back option if you feel it’s not working well for you.ย  You can check here to find more details about it.

I’ve actually been a member since 2010 and saw how it evolved so much through the years in giving support to those new in the stock market and want to really make a huge difference in their financial life.

The Mutual Fund Option

Another option is to consider going into Philippine best mutual funds investments instead of doing your stock market investments directly.

In this form of indirect investing, you only put (invest) your money in a mutual fund investment company and let its fund manager do the task of managing and growing it for you. This delegation of tasks, however, also comes with a cost in the form of related entry and management fees of these mutual fund companies.

(You can send me an email here if you want me to forward your interest to someone who can help you open a mutual fund account.)

Your investment should give you a good time…

But whatever your case may be, what’s important is that your investments and all your related activities should give you financial peace, and not be a heavy burden because of your misguided and uninformed actions.

After all, the ultimate reason why you’re investing is to have a better and more relaxed life, and not to add up one more thing to be worried of.

Have fun investing (minus the stress),

Omeng


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This Post Has 2 Comments

  1. jm

    Sir, what is your recommended amount of investment so that it will not be burdensome to join TRC?

    I mean, when will be the time(the amount I already invested) you will recommend to join TRC?

    1. Omeng Tawid

      If you can feel comfortable paying that learning fee, it’s a good sign.

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