I apologize that it took me quite a long while to wrap up this series. Part 2 of Ten myths of stock market investing was made available last October 2021. It took me some time to come up with Part 3 ! The reason was not because it took me a while to figure out what the other four myths were. The reason was that I became so busy with my other roles, especially with regards to my responsibilities in the academe. Now that all of my deadlines are done, here are the next two myths of stock market investing. 7.)Stock market investing is risky In anything that we do in this world, we take a certain kind of risk. Day to day activities like simply crossing the street or trusting that the food you eat or the water you drink will not make you sick do require that we take some kind of acceptable risk. Well admittedly, there is a certain risk involved when investing in the stock market however the risk I am talking about is not the same kind of risk that most people think. If you … [Read more...]
Ten myths of stock market investing – Part 1
Previously we learned about “Ten good reasons why I love investing in the stock market” By now, you must be very excited to start investing in the stock market. However before we go into the “how” of proper stock market investing, let’s take a look at the misconceptions or myths of stock market investing in order that you might truly have the right investing perspective. People have a lot of misconceptions about stock market investing. Most of the time because of these reasons they end up not investing in the stock market at all thereby missing a great opportunity to take advantage of probably the greatest money machine man has ever invented. Because of these reasons also, people miss some great market opportunities wherein prices are so cheap. These opportunities could only occur once every 3 to 5 years. Also, because of these misconceptions, people end up getting burned and end up vowing to themselves never to get involved in stock market investing. There are lots of myths and … [Read more...]
How to invest in the Philippine Stock Market – Part 4a
Stock Market Conventions and Terms If you have read my previous post you must have already known why companies trade in the stock market and why you should invest in the stock market. In order to successfully trade in the stock market you must first understand the language that is being used in trading. There are several terms that might still sound foreign to you. Take note the definition of the terms that will be discussed here will not be very technical. This is not meant to be a comprehensive, “encyclopedic” dictionary or list of technical and detailed stock market terms and conventions. If you wish to have a deeper technical meaning to stock market concepts, then try searching for other sources. The concepts explained here is intended for the ordinary layman. 1.) UNDESTANDING SHARES OF STOCK – First of all we need to understand what a stock is. A stock is in a sense “a piece of ownership of a company.” To fully understand this, I will have to give a “crash course” in … [Read more...]
How to invest in the Philippine Stock Market – Part 2
The advantages of investing in the stock market Last week I finished discussing part 1 of the series how to invest in the Philippine stock market, particularly talking about Basic principles that each prospective investors should understand. In this post we are going to discuss the advantages of investing in the stock market. As I said in the previous post, the stock market is just another vehicle of investment. You might be asking yourself why would you want to invest in the stock market? What are the advantages of investing in the stock market. The following reasons could probably answer the above question: 1.) Investing in the Stock Market has potential for great returns – Every financial expert would tell you that when the market has a potential to go up, it really goes up. Returns could range to as high as 30 % to 200 %+ per annum or even more. In the long term it is expected that you would really profit at lot. In 1997, the price of Globe Telecom Inc. (GLO) stocks was … [Read more...]
How to invest in the Philippine Stock Market – Part 1
Part 1 - Basic principles that each prospective investors should understand A lot of people have asked me on whether they should invest in the Philippine stock market. Most of those who asked also wanted to know how to start doing it. I do not know if they are really serious about investing or if they are merely curious about it since it has been given emphasis lately considering its very positive performance. Investing in the Philippine stock market is not for the faint hearted. As an investor you must have expectations as to how much you are going to earn for a certain vehicle of investment. Such is expectation is measured in terms of how much your money will grow at a certain period of time. (Most usually this is measured in interest per annum) Because the Philippine Stock market is in its all time high for several months now, people think that they should join the band wagon. They do not even understand the basic principles involved nor do they understand how the stock market … [Read more...]