Philippine Stock Market - An Introduction

dirt_bike_jump

Welcome to my first blog. If you want to know more about stock market investing then you are at the right place. Now I am going to discuss about stock market - an introduction.

Most people complain that stock market investing is boring and slow moving. Others would say that learning jargons is cumbersome. They don't want to learn stock market terms.

Some have complained that it is too risky and the earning potential is not guaranteed. Read my post on how to reduce risks in stock market investing.


Enthusiast Not A Broker

I could not provide a specific advice as to what company to invest. I invest because I believe on the potential of this investment vehicle.

I started investing in the stock market last Dec 2012. I was hooked up with this when my friend showed me his account and it is growing steadily in years. Since then I take a part of my monthly income and invest in the stock market.


Banks are Crooks

With the power of leverage, they could use your deposits on their advantage. What do I mean with this. Banks have a huge liquid assets like cash from their clients like us. They could exploit this asset to invest in other markets such as Forex. Yes, they are using someone else's money to earn more money.

I'm not saying though that banks shouldn't exist. They could help us in obtaining a loan or cash deposits for petty expenses. They are just not the right tool for investment.



Is Stock Market For You?

1. You want to have a long-term investment so you have something to expect in 10 years or more. If you are setting aside savings for education or retirement then this is for you. 

2. You are risk-averse. Fluctuations in the stock market is erratic. But this shouldn't scare as this is normal. 

3. You are not satisfied with the banks' interest rates. If you have a huge amount of money deposited in the bank for a long time and you earned roughly 1% interest per annum then it's time to move on. Inflation is around 5-6% thus your money is losing value over time.


A Word of Caution

But here’s the catch, assuming all the statements above are true, then why do many people get rich in the stock market?

I am no Houdini in stock market investing. Far from it! I am not even a stock broker who knows about technical and fundamental analysis.


Why am I saying this? Because banks are actually stealing money from our deposits. Stealing in a sense that they are using it without our intent. I'm not saying that banks are of no use, anyway.

Not all of us wants to invest in the stock market. Stock market is a high risk investment and I don't recommend this to anyone who has low risk tolerance.

However, the silver lining is that stock market has a high growth potential as long as you know what you are doing. Yes, the higher the risk, the higher the potential for reward.


Conclusion

Are you investing in the stock market already? If not then it is time to start now. As long as you are investing on blue chip companies, chances are high that your investment grows in time.

1 comment:

Powered by Blogger.