Welcome to the world of Stock Market! Being a newbie investor is a challenging experience, but risk is always a calculated risk if you equip yourself with knowledge on what you are getting into…When I started in stocks few years ago, I got into something which my friends did not have any idea about.
Indeed, I was the first generation investor and a trader in our family. That’s the scary part because I didn’t know where to start. So I did a thorough study and ANC-On the Money which is a TV program, has been a credible source since then. I made it my daily vitamins in terms of sound financial information. Many years have passed, my investment experience has been exciting with less mistakes and minimum losses…
How to avoid some common dangers that a newbie would encounter?
What should I do now? Where to go? Where to ask help from? These are most of the questions you would think. Stock Market can be very overwhelming ( it is a whole new world of jargon) and many times it takes trial and error to make right decisions. However, with many credible resources nowadays, you can manage the mistakes if you will just study it with passion. Read finance books and watch youtube videos. There are even lot of videos now in “tagalog” just to tailor-fit the needs of those who want to learn.
I have many friends who started investing in stocks and ended up cashing out at a loss and decided not to do it again (They even spread negative feedback on stock market).They are expecting something that the stock market can give them fortune or easy money on a very short period of time without even knowing what they are getting into. They are only anticipating it like an online casino! When their own expectation did not meet, they tend to get disappointed. Remember that each stock is a company and each stock will perform independently whether it is gaining profit or losing profit. Ask yourself first…
What is my financial goal?
Again this is another misconception that many people are thinking about investment. Risk is always associated in stocks and any other investments. If you are a conservative investor and don’t have much time managing your own investment, you can try some less-risky investment instruments like Mutual Funds, Corporate and Government Bonds, VUL, UITF to name a few. That really depends on your risk appetite. Always remember, the lesser the risk,the lower the return and the higher the risk, the higher is the possible profit.
When you hear Stock Market, you might be thinking of those charts and numbers running in the headline of the news on your tv screen. Investing is not much a rocket science that most people are thinking. It can be learned and many ordinary people have become successful in their investments with only basic knowledge. However, going an extra mile of learning would benefit you in the long run and you can maximize what the market offers.