How To Start Stock Investing

Do you want to invest in stocks but do not know how?

 

Well, it is not as complicated as you think it is. If you think you are not that knowledgeable about it, you need not know everything experts know. You can start with basic knowledge. Then, you can work your way to expand it exponentially as you continue investing.

 

When is the right time to invest in the stock market?

Now is the best time! Why? Stocks are on sale!

 

Yes, the market is bearish which means that prices of stocks are falling; hence, it is high time to click the button and buy stocks you can afford. And the bearish market will continue because of the chaos in Syria.

 

Just like in shopping stores, you can buy more stuff when products are pretty much discounted. So indulge.

 

Since the rationale is buy low, sell high, purchasing stocks at this point will give you big profits in the future so take advantage of the bearish market now.

 

How do you start?

 

First, read my previous post on stock market investing.

 

Second, get yourself a trusted adviser. In the Philippines, the easiest way to do it is subscribe to Bo Sanchez’s Truly Rich Club.

 

Truly Rich Club uses Strategic Averaging Method (SAM) instead of Buy-and-Hold Method. SAM entails that an investor puts money every month. It has been proven that the use of SAM beats market timing. According to statistics, investors using averaging earn more than 90% of the market timers.
 

Truly Rich Club recommends a list of diversified companies to invest in. It also sends market alerts and hints like Buy Below Price (BBP) and Target Price (TP) of stocks to its subscribers. That way, every subscriber will not be overwhelmed and get lost in their buying and selling of stocks. Any price below the BBP is considered an attractive level to buy the stock. TP, meanwhile, is the Club’s estimated worth or fair market value as computed by various ways specific to its industry (i.e. DCF, NAV, P/E).

 

Third, open an online trading account. I recommend COL Financial, Inc. The platform is reliable and easy to use. Minimum investment is P5,000 for COL Starter and P25,000 for COL Plus. Click here to open an account. You can also try BPI Trade. In BPI Trade, you just have to maintain a minimum amount of P500 as balance.

 

Fourth, start buying stocks. And do not forget to invest every month! 

 

Do you need financial overhauling? Do you think that your financial life is not improving? Do something. Start stock market investing and and be ready to be wealthy.

Stock Market 101: Things To Know Before Starting

 

The stock market is one of the most misunderstood when it comes to investing. In fact, before, the first thing that comes to mind when stock market is mentioned is trading. And trading for them is gambling. Thus, mere mention of it sends chill to aspiring investors.  They would rather invest in some other investment vehicle than lose what they have in trading. But stock market is not just for trading (short-term), it is also for investing (long-term).

 

Stock market burns traders but not so much with investors. I am happy to see how people are slowly changing their mindset and gently opening their doors to stock investing.

 

Get Advice from the Pro.

Do not follow stock investing advice from friends, relatives and co-workers simply because they are close to you. Get it from the geniuses in the stock industry. They would not be in their shoes for nothing, right? Other people can tend to mislead you. Don’t be.

 

Trader or Investor?

Before you start, know first whether you want to be a trader or an investor. That will enable you to have perspective and focus.

 

Pick your broker right.

Brokers are the ones who will suggest what stocks to buy and sell and at what price. They are your agents who will execute all your stock transactions. They must be really good at it. Otherwise, prepare for disaster.

 

Buy low, sell high.

That is the rationale applicable to stock market. You buy stocks of a company that you believe will go high and give you profits afterwards. You can also earn dividends while owning some stocks.

 

Control your emotions.

Stock prices go up and down erratically. Do not expect to see a straight arrow up in your charts. Believe me, it will be a roller coaster ride so tame your greed and improve your patience. Do not let your emotions get in the way.

 

Financial education is key.

People buy beautiful and expensive things that eventually fade or depreciate. But only few invest in things that appreciate in time. People invest in good schools and spend a lot. They go to quality schools and shell out big money. But they rarely invest in quality books and seminars to get quality financial education and yield much more money.

 

In the stock market, getting yourself a good broker, exposing yourself to business news, reading trusted books, and attending helpful seminars can give you extra edge to retire a multi-millionaire.