NEWBIE IN STOCK MARKET, what to do?
Afraid of trying to invest your hard earned money yet captivated over the premise stock market? We are many, especially in this season, especially this AuGHOST month and in this very, very Bearish market. I always consider myself every day new in this market as in every day, every morning opens. Stock market trading is like an unexplored cave in the mind of ordinary people, to others naman they compared it like an exotic animal, “magandang tingnan pero mailap.” We just got the hindsight of it without understanding how it works. Basta alam natin parang nakakatakot.
I admit, kahit ako din ‘di malayo ganito tingin ko. So, I promise you I will try hard to make it easier for you to understand this investment. In this article let’s explore it little by little without overwhelming ourselves with so much technical information only experts will understand (I promise I am on the process of creating a more lighter one.) Making it simple. Simplehan lamang natin. Investing in the stock market industry means giving yourself a chance to buy a share from some of the most reputable company in the country, example JFC JOLLIBEE. You become part of the company and you can proudly call yourself a stockholder. Many newbies overthink that stockholder labeling, they tend to go ahead, and by the most popular company, they can think of without conducting the in-depth examination of the current stock market status or even just merely even reading the market disclosure. Natatandaan ko sa isang seminar I hold about Stock Market is “di ko maintindihan ang sinasabi sa news about Stocks, iyong disclosure ba iyon, paano ba iyon intindihin, may iba bang paraan para maintindihan ito or may iba bang way para malaman ito sa mas madaling paraan”, actually nagulat ako sa sagot niyang ito, kasi there is no way to understand better than reading about their company disclosure and reading their technical analysis kahit price volume na lamang ang tinitingnan. You have to, as in kailangan siya, parang ganito lamang iyan, ‘di masarap ang kanin na walang ulam or kapares na kahit ano, mahirap kainin, laliman pa natin, ‘di ka makakapag maneho ng walang gas o diesel. Mahirap itakbo ang sasakyan na empty na ang tank, tama? Let’s all learn some of my points, from my Diary as #thepennytrader.Begin a Diary.
Alternatively, a simple diary. A dream without a plan is merely a wish sabi nga nila. Every business we engage ourselves into we always need an idea, a business plan as we know it, the same thing with stock market industry simple said, you have to have concrete trading plan that will determine the kind of stocks you want to trade and the timetable on when the return should be feasible, kahit pa simple investment lamang.
You must know how to identify stocks you want to acquire for a short of time and the stocks you want to keep as a long-term investment and the shares you will be buying for trading purposes only or for investing like Blue Chips. Plan is identical and tailor-fitted to the investor himself as per your personal preference if you remember lagi itong tanong sa mga fini fill-up nating mga questionnaires from brokers or banks. Because of that profile differences in the trading plan, many first-time stock market investors often make mistakes taking after stocks that are suitable for a short-term profit and hold them as a long-term investment and vice versa stocks that are suitable for long-term profit has been sold way earlier for a little gain from their investment. Calculate the risk, set a margin of how many mistakes your capital fund can tolerate, state on the wrong stocks or buy it at an incorrect price then ‘di naman mababantayan. Make a journal plan, a Diary not “bahala na trading” kaya ang output “bahala na din.” Facebook analysis, walang research, walang understanding.Fear and Greed.
Who will not be afraid? The first time I was learning to trade, naging investor later.. naipit eh! When you enter the stock market trading, you should learn how to control your fear. Equip yourself with knowledge so you would know the run around of he business. It is normal that you experienced stock market fall, and sometimes you feel like every stock you bought are losing and continuously dropping down, lalo na po ngayon and affected lahat iyan, mutual funds, bonds, and UITF. As a result, you will sell your stocks right away or ano pa mang investment regarding money market. Controlling your fear and manage the presence of mind analyze the situation help you formulate a better decision, recheck mo iyong appetite mo with regards sa investment and assess.
Greed comes naman in a picture if you want to acquire and acquire more, ang term nito sa stock market FOMO or Fear of Missing Out or in tagalog “takot mawalan at mahuli sa tumataas na stock”, mas lalong mahirap ito sa na mag-hahabol ka and ‘di mo naman alam ang value ng hinahabol mo and I will tell you honestly dito naiipit ang karamihan as in.Let it go, let it go.
We all have that idea to be so much attached something we dearly love, or something we firmly believe in. When you know the stock is already losing LET IT GO! Calculate if you think the stock has a higher chance to recover then stay but base pa din dapat sa study, I mean here din merong underlying reasons such as point of resistance. If the stock seems to fall deeper, again, let it go especially catalyst lang ito, or base sa hearsay lamang, there are no fundamental lessons inside. Moreover, go back again to your Dear Diary, why and how you bought this stock and checked your cut loss points and find out where is your screening radar.
Try mo lang kantahin ito… promise it helps. Let it go, let it go Can’t hold it back anymore Let it go, let it go Turn away and slam the door I don’t care what they’re going to say Let the storm rage on The cold never bothered me anyway.Profit Taking.
It’s always good to know that your stock is doing well in the market, mapa long-term or short-term ito, and your portfolio would show you the right amount of profit. You also have to be aware profits in your portfolio aren’t a profit until you sell it, remember this po: ah, every day or even minutes lamang ito.
So please take a look of this, I mean check your Diary. Top stocks are simply going up and down; I base lamang natin sa human logic, one day it’s up, another day it’s crashing down. Sell it while it’s on a high and doing well, that you can still measure your capital. Always protect this big C “Capital.” Stick to your VAR (Value at risk) this equates how many times or trade before you go bankrupt. I don’t want your life in the Stock Market to be difficult. Always review Stock Market character before you enter. Make sense. And always prepare for the “nobody knows” scenario of the market. Must Share and Read ! TEACHERS -SPECIALISTS ORGANIZATION IN KUWAIT HISTORY Angels in disguise Series: Ms. Glenn Caduada Untal Case of Michelle Daguplo An invitation to share my skills My duty as a Filipino and an OFW If you like this article please share and love my page DIARYNIGRACIA PAGE Questions, suggestions send me at diarynigracia @ gmail (dot) com You may also follow my Instagram account featuring microliterature #microlit. For more of my artworks, visit DIARYNIGRACIA INSTAGRAMA multi-award-winning blogger and advocate for OFWs and investment literacy; recipient of the Mass Media Advocacy Award, Philippine Expat Blog Award, and Most Outstanding Balikbayan Award. Her first book, The Global Filipino Bloggers OFW Edition, was launched at the Philippine Embassy in Kuwait. A certified Registered Financial Planner of the Philippines specializing in the Stock Market. A recognized author of the National Book Development Board of the Philippines. Co-founder of Teachers Specialist Organization in Kuwait (TSOK) and Filipino Bloggers in Kuwait (FBK). An international member of writing and poetry. Published more than 10 books. Read more: About DiaryNiGracia
Acknowledgements
DISCLAIMER
Peace and love to you.