Why there’s only few?
The main two reasons why is that we normally:
- Fear RISK or
- Lack KNOWLEDGE
Most Filipinos are natural hard workers. They know how hard it is to earn money. That is why most Filipinos have a stronger emotion when it comes to losing money than when it comes to earning money. They would rather put their money on something that is safe such as the bank than put it on something that would earn more such as the stock market, but has no certainty.
Most Filipinos tend to look at the immediate outcome that it wouldn’t work without even thinking about the process on how the money is used to earn more money. Again, this is the result of the two reasons stated above.
What is the STOCK MARKET?
It is simply where the stock/shares are bought and sold. Stocks change in value everyday depending on how the investors view the company representing stock. If the investors perceive that the company has good strategies for the future and that they believe that the company will earn in the future, the stock price will most likely rise because there will be more buyers than sellers. The opposite is also true.
MOST PEOPLE SAY:
- It is better to have a simple saving program
- Investing in the stock market is for the rich
- I don’t have time to learn investing in the stock market
Did you know that you can start being a stock investor by just knowing the basics of investing in the stock market?
Did you know that investing in the stock market is not as hard as you think but will be very rewarding if you invest in it?
So, what are the benefits of investing in the stock market?
Here are some benefits that you can obtain when investing in stock market:
- Higher returns than time deposit on a bank (around 4%-30% per year on average).
- As a shareholder, you are now one of the owners of that company.
- Being an owner means that you will receive profit sharing in the form of dividends if the company earns well.
- Your money earns higher than inflation and thus your money is not losing its value.
So how do I start investing then?
The very first thing to do is to learn the basics on how the stock market works. There are so many articles, blogs, seminars, and webinars on how to invest in stocks. You may also check FinancePH’s seminar on how to invest in the Philippines Stock Market by visiting www.financeph.com/seminars.
“WE MUST PUT AN EFFORT TO LEARN FOR US TO UNDERSTAND THE BASIC OF INVESTING IN STOCKS”
Second, if you already know the basics, you have to determine if you are a long-term investor or a short-term trader. For beginners, I suggest you go long-term. This is also true if you are busy on your job and just want to have your money work with minimal effort.
Is there any way to invest without so much effort?
You want to invest but you are too busy to learn these things by yourself.
I recommend talking to a financial advisor since they can give you options on how to invest in managed funds. As the term implies, you will not be directly selecting and managing the stocks but you will leave it in the hands of professional fund managers who will be the one to make your money grow in the stock market.
Talking to financial advisors may also allow you to learn the basics of investing in the stock market and would allow you to ask questions. After all, it would be much easier and safer to go in the stock market if you have a financial advisor guiding your way.
“NOW THAT YOU ARE INFORMED ABOUT STOCK MARKET, ARE YOU READY TO JOIN THE 1% AND BE CALLED AS A STOCK INVESTOR OR A TRADER?”
ABOUT THE AUTHOR:
Veejay Rumbaua is one of the financial advisors of FinancePH. He finished BS Electronics and Communications Engineering but eventually realized the importance of financial planning. So, he decided to become a financial advisor of FinancePH. As he learned more about the financial industry and how broad it is, he understood that this knowledge must also be learned by a lot of people to help and motivate them in making decisions for their financial plans. Veejay dreams for everyone to be financial literate enough not just to support their family but also for them to enjoy the good life. You may reach him at firstname.lastname@example.org.