Listed below are the top questions I commonly heard from my families, friends and loved ones when I mentioned about stock market investing. I wrote down here as a guide for other readers who might have the same questions
- What is stocks? A stocks are share in the ownership of a public listed companies, companies that are listed in the stock market (ie, PSE or Philippine Stock Exchange in the Philippines)
- What is stock market? This is a place where shares of companies were bought and sold or traded. In layman’s term, it’s a public market where goods were traded.
- How to join in the stock market? You can not buy and sell shares of companies on your own in the stock market. To be able to join, you need to have a broker that will represent you to transact your order in the market. There are a lot of stock broker in the Philippines but personally I’ll recommend COL Financial because this is what I used and I am happy with their service. Unlike the public market in our places, we can transact things online, on your laptops or mobile phones. More details to open an account in my next blog.
- Is stock market for rich people? NO. This is the notion of many, before and still most of us is believing today that needs to be corrected. Stock Market are for all of us. We can open stock market account as little as Php 5000.00 by which it can be used to buy shares.
- How can I make money in stocks when most people had lost it? The secret in the stock market is knowing the right timing when to enter and when to exit. By knowing this, we can lock in the profits that can be used to buy another stocks in the future, when the entry is right. Most people who lost big in the stock market are the ones who are trading (short term) without proper system or rules to follow. Traders need right system that works based on his/her personality and 100% discipline to follow the rules. People who lacks this skills should rather go to investing (long term) or putting their money in stocks in a longer period of time.
- Is this gambling? Yes, it is if you don’t know what you are doing. That is why it is very important to know the basic of stocks. It doesn’t need to be smart here. It needs the proper mindset, discipline and the right attitude.
- Is this a get rich quick scheme? No, but this is a good way of riding the growth of a rising company, a good way of keeping your money for future purposes than saving your money in the banks.
- Where did you hear about stocks? I was a fan of Bo Sanchez, a preacher who’d like to bless others financially and spiritually. I joined his truly rich club to guide me in my stock journey as a complete newbie. I opened an account since 2013 and slowly grasping on how the stock works. Along the years, I found out that I have the passion in stocks, the passion of doing it full time in the future, the passion to trade short term and not merely invest long term. So, I invested time and money in it and enrolled in Caylum Trading Institute , their 8 weeks intensive training. I was first caught when I read their catchy vision, “We don’t play the market, we invest in it”. Truly, no regrets after 8 weeks. Indeed, it was the best decision I’ve ever made.
- I don’t know about stocks, is it fine to join? My advise, just join and slowly learn the process. Me too, I know nothing when I first join. You never knew unless you try. Just put little amount at first and slowly add up if you’re already confident enough. If you need more hand holding, join truly rich club for a complete newbie guidance in investing.
- You’ve been for a while now in stocks, do you already have profits? The reason I’d get more interest in stocks is during my first year, I saw my portfolio all in green that means I’d profited in my stocks, the next year it all went red that means I lost my gain plus I also lost some of my capital. If I have sold it before it went down, I should have locked in my profit. Now, if I just knew it before I should already have big gains but nobody knows. This is a business. Business takes experience, business needs proper strategies, business needs discipline and yes business is risky. But along with the high risk is high reward. Know the business you are in. Know the rules of the game. Knowledge on how this game to be played is the key. I was once an investor and it did well. I am now experimenting to becoming a trader. I still doesn’t have much profit but I am building into it. After all, experience is a great teacher!
Let me share to you my favorite quote in trading. “I fear not the man who has practiced 10000 kicks once but I fear the man who has practiced one kick 10000 times.” by Bruce Lee.
Make Mistakes and Learn. Cheers!!!