Looking to start investing in the stock market, but are too scared? Well, most fears come from not completely understanding something. Like what Mr. Ernie Baron has repeatedly said: “Knowledge is Power!”
We attended an interesting seminar on “Stock Market Investing for Beginners” by the team from Biz Whiz recently and here are 10 Incredibly Useful Things I Learned About Investing in the Stock Market!
10 Incredibly Useful Things I Learned About Investing in the Stock Market from Biz Whiz
10. Stocks-Equities-Shares-Issues are NOT just certificates or bytes in a computer.
After years of misconception, I found out that those four things, though differing in name, are technically all the same. They’re not just certificates, but legit shares of ownership in a company. For example, owning stocks of SM or PLDT basically means you own a part of them. How cool is that?
9. There is more than one way to earn from stocks.
Movies and TV shows usually only show the surface of the power of stocks, like the voting power that usurped Zoren Legaspi as the President of Grande Hotel (I’m just a big fan of the TV show Forevermore.) On top of the voting, you will also have rights to the company, benefiting from its growth where you can hold on to your stocks or sell it for a profit. You can also receive dividends in the form of cash or shares monthly or annually. Just think of it as your investments earning a salary.
8. There are many different kinds of stocks.
I used to think that stocks were, well, just plain ol’ stocks; but apparently, there are a bunch of types of stocks from the Common and Preferred Stocks to different kinds like Blue Chips or stocks of a well-established company, Growth, Defensive and more! They all differ from each other, so it would be best to learn more about them before diving into the exciting world of investing.
7. Understand your personality in investing.
In life, we all have different personalities; some like to be outgoing, others are quiet and reserved and some are real daredevils. In investing, you have to understand your personality, as well. Are you a risk taker or are you conservative? Do you like rapid profits or holding down shares? It’s important to know this, otherwise you’ll have a lot of sleepless nights worrying about what you did (or didn’t do). Its best to consult a broker and assess what your personality is regarding investing before anything else.
6. Search for profitable companies or companies that you trust.
Well, this is more of an opinion from the speaker, suggesting that beginners (like me!) engage with profitable companies first, preferably companies you patronise. This way, you’ll have that sense of security that your company won’t go under overnight.
5. Know when to pull out and cut your losses.
Trying to invest in a new startup company that you think will be profitable in the future can yield large profits or similarly, a great loss. So, if a company plummets, then recovers, but not to the price that you expected, think twice about holding and building time. Sometimes, it’s best to just admit your losses and take what you can.
Biz Whiz owner Miss Estelle Osorio giving the basics and whatnots of investing in the stock market.
4. Look at the Losers, too.
When investing in stocks, you have to have this thing that we Pinoys call “diskarte”. Don’t just look at the Top Gainers and join the bandwagon. You have to put the Losers into account, too. Imagine Blue Chip stocks going down. You have to think about whether this will be permanent or whether they have the capability to bounce back. Buy or Sell – it’s all up to your “diskarte”.
3. You don’t need a fortune to start investing.
The stock market carries a vast and diverse number of stocks where you can buy 10s to 100s of shares of a company with just P500. There are also stocks that cost 1k to 3k per share. While there are stocks like that, though, it’s still up to the investor which companies they choose to trust and invest in.
2. There is a BIG difference between investing NOW and investing LATER.
The stock market is volatile and can change easily. A 100-peso stock can increase (or decrease) drastically just like that *insert snapping fingers*. Investing while in your 20s can also make a big difference compared to investing in your 30s, especially when it comes to your retirement fund. So, as with most other things, don’t go in half-heartedly. Always be knowledgeable in everything you do.
1. Nothing is a sure thing, but knowledge can increase your chances.
Stocks go up and down by the hour. They are as fickle and as capricious as a woman (haha!). A company can be profitable today and go completely bankrupt the next. However, with the proper knowledge about stocks, the stock market and different companies, you can get a deeper understanding of what you’re doing and drastically increase your chances in making a profit!
The seminar was amazing! I learned a lot and cleared most of my misconceptions about stocks, but most of all, it decreased my fears. I feel much more confident about investing now and a’m looking forward to more advanced seminars with Biz Whiz. For those who want to learn more about investing in stocks and more, you can contact them for their scheduled seminars or a one-on-one consultancy as needed.
A final thought Biz Whiz left us is that the core of all this is knowing “What to Buy or Sell and When to Buy or sell it”.
Biz Whiz Business Training and Consultancy
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