You may have heard good and bad things from the stock market. Let’s hear Alma’s story. Alma’s friend ecstatically told her , ‘Hey you know what Gary’s money in the stock market tripled in just a day! We should do that too because according to his trusted source it will continue to go up this week!’ Being amazed with the result, Alma emptied her bank account and invested it too in the same company Gary bought. Then the next day, that stock suddenly came down like an avalanche, and she watched her entire savings reduced into half and then a quarter. Filled with anger and disappointment, she sold the remaining shares and say, ‘This doesn’t work!’.
Alma’s story is just an example of what a lot of people, mostly uniformed, of the ins and outs of stock market investment. This aims to give some important information in case you would want to invest and become the likes of Warren Buffett one day and not with what happened with Alma.
Attend Stock Market Investing Seminars
If you really want to succeed in this, you should learn first. As Bob Proctor says, ‘The learners shall inherit the Earth, while the learned (those who learned and did not continue) will be beautifully equipped with a world that no longer exists’. Most online brokerage companies offer free seminars. You can set a schedule with them and attend one of their orientations.
Read ‘My Maids Invest in the Stock Market… and Why You Should Too!’’ by Bo Sanchez
This book really opened by eyes because I viewed stock market to be hard and required millions to invest. I was close-minded before because of what I heard similar to Alma’s story. The book is so thin, very light to read because Bo Sanchez loves to write in a conversational way. His two maids are making a lot of money with the stock market in which they will be using once they retire. You can get this best-selling book at any bookstore or get a short version here.
Pick a Successful Mentor
This is very essential because you can get first-hand information and experience from the one who is currently doing it and has succeeded with it. There is a saying that it is easy to learn from others’ mistakes and experiences rather than yours. Don’t forget to bring your handy-dandy notebook and jut down those precious information and tips your mentor will be giving to you. Make sure to follow every bit of what your mentor says, and develop a constant communication until you learn the basics.
If you’re really serious in finding a mentor, I can recommend you to Bo Sanchez because he was my mentor when I started investing 3 years ago. For a newbie like me who doesn’t have any background on this, Bo Sanchez taught me what stocks to buy, when to buy them and when to sell. That’s cool right! You can visit Truly Rich Club, and sign up for an account. He sends stock reports twice a month and informs you what to do with your investments. All you need to do is follow what he says, like what his maids did.
For you to access these reports and other bonus media like audio books and e-books, it will require a monthly fee, which you can pay via bank deposits or credit card. For as low as 497 per month (you can cancel the subscription anytime and get your money back), you can cut your learning curve into half and begin investing! Benjamin Franklin once said, ‘If you think education is expensive, try ignorance.’.
Find Your Broker
15-20 years ago, you will need to call a personal broker and tell him to buy x number of shares for a certain stock. Then you will have a stock certificate as a proof that you are a shareholder of that company. Well today, you can simply log-in to your own account, buy the stocks on your own, and see your portfolio online! Many online stock brokers are offering these services. For me, I am using COL Financial. They are one of the top online stock brokers in the Philippines. They also offer free investment guide that is updated everyday. I have experienced smooth transactions online and their security measures are dependable.
To open an account you can visit their website and view the required forms which are all available for download. You can personally submit them to their office or ship the documents via courier. I prefer for you to personally give them your application so you can see their office and also attend one of their free orientations.
Invest Only a Portion Every Month
Avoid investing your whole savings account or your whole salary and leaving you with nothing. If you’re deciding on what is the right percentage to invest in stock and tips on saving money, you can check this article. What is important is not how much money you invest, what is important is the habit. Because of the compounding interest (you will understand this as you read the book), buying stocks in small amounts every month is better than buying a chunk of shares one time, big time.
Never Ever Ever Withdraw Your Investment
If earn through the appreciation of the value of your stock or through the company’s dividends, use them to invest more. Remember compounding interest, your 1000 bill with compounding interest can be millions after 40 years. Investment is for the long-term, to prepare for your retirement so that you won’t depend on your children. It’s really painful to see the retirees get their retirement pay, get sick, go broke because of medicines and hospital bills. They have no choice but to depend on their children. The worst is some are sent to a home for the elderly because their children, who have their own families to feed, can’t support them. If you want to be self-sufficient on your twilight years, avoid this one!
Now You Know
Stock Market investment also requires time and effort just like other investments. The good thing is, it is not that hard to learn because we have experts who will guide us on what to buy, when to buy, and when to sell. All you need to do is to humble down, and follow. You maybe an expert in your field but stock market is another animal. Try to imagine 40 years from now, you are with your grandchildren in a mall. And since you invested years ago, you can afford to treat them to a movie house. You own children gives you money because they love you not because you need it. Just imagine how your life will be different from a lot of people who only depended on their retirement pay. Pay the price today in order for you to play a lot for the rest of your life.