By Ann Gabriel | Negosentro
If you’ve found your way here, chances are you don’t know what to do with your extra money or you want to end the “wala na kong pera” attitude of Pinoys. So if you’ve really decided to give it a try, there are several investments you can choose from. All of which of course, has its own risks. Whether you invest in stocks, mutual funds, options or futures, the objective is the same – to make investments generate more cash in the future by having your assets work for you.
We save because we have an end goal in mind. Whether early retirement or send your kids to College, investing will help you get where you want to be.
Here are some tips we got for newbies to stock:
1. Identify your investment goal
Before going to any form of investment, it is essential to know your investment goal especially if you are not that familiar to financial markets. Knowing your goals will help you choose the investment you need. If it’s in the stock market, it should be a long term goal like 10 years or greater so you will see the learning curve.
2. Learn about stock market
There are several financial institutions who offer free seminar or orientation to those who would like to know more about investments. The stock market allows you to buy properties and sell them as well. You have to allocate time and educate yourself so you can be guided. Stock trading is not an easy form of investment. Although there are financial experts who can take care of your money and run it for you, it’s still better if you know what’s going on.
3. Know your risk profile
One way of knowing your risk profile is to attend stock trading seminars. usually , the trainers or financial advisors will guide you in identifying whether you are a conservative investor or a risk taker.
4. Set aside enough money when going into stock trading
According to the Philippine Stock Exchange (PSE), an investor would need at least Php5,000 to open a trading account. Though stock trading gives you the highest returns, there is no general rule that is applicable to all and it does not guarantee that there will be returns all the time. After saving enough funds, you can now choose a stockbroker to start with.
5. Allot time for investing
When you invest, you have to allocate time to study the fundamentals and technicalities of stocks. Allot time for understanding your earnings and downsides so you can come up with a good strategy. Monitor your investment even when the market is down. Note that investment is risky but understanding the risks is the key to better investing.