It’s been seven months since the hubby and I became direct stock market investors (through COL Financial) and so far, I’ve been enjoying the experience. I said “I” because the hubby has left the Herculean (exagg lang!) task of managing our stocks portfolio to me. He just helps put money into our account and I just report to him every transaction I make.
When 2014 ended, I tried computing our profit and was amazed to find out that we earned 7.55% from our original investment in just six months. I think we just got lucky because I bought mostly blue chip stocks like BDO, JFC, ALI, etc. For this year, I set a realistic target of 8% profit. If I could achieve a bigger profit percentage, I’d gladly take it.
I decided to write down the lessons I’ve learned and continue to discover about stock market investing on this blog starting with this post. Hopefully, I could pass on these knowledge (if I may call them that) to people, especially to young Filipinos who, like the hubby and I, hope to achieve financial freedom someday. Below are some of them in no particular order:
1. Learn to observe and time the market. During trading days (Monday to Friday), I try to take a peek of our stocks portfolio twice per day. First is in the morning at the opening of the market (9:30 a.m.) and the second is during its closing time (3:30 p.m.). By looking at the drop or surge of our stock picks, I try to think of a strategy with each one. Should I buy more shares or sell them in that instant? Should I wait for a few weeks or months before doing something on it? Those are some of the things I ask myself. Aside from reading the business news and checking out my fave stock market blogs, I don’t do a serious study of the stock market. Most of the time, I just follow my gut feel and the way the stock market and my stock picks behave. I say it’s all about observation and timing.
2. Be always ready to grab opportunities. In my very short experience in the stock market, I cannot claim to be anything but an ordinary investor. You see, I only started last year, July 21, 2014 to be exact. But since then, I think I’ve already learned a lot. There’s still so much to learn, though, especially that thing called technical analysis which I know nothing about. Haha.
If there’s one thing that a stock market investor should learn, it’s that you should always be ready to grab opportunities. It could be to lock in profits or to buy stocks at lower prices. It could also be to just find new stock prospects. You have to make sure you are at the right place at the right time. Otherwise, you won’t gain anything.
3. Be very patient. Aside from being stock market savvy, people have made money from the stock market because of patience. You have to be very patient in waiting for your money to grow. Some stocks grow fast while others grow slow. If you don’t have patience, expect to commit many mistakes as you go on with your investing.
4. Being emotional can hurt you. Yeah, right. In the first few weeks that I’ve been investing, I couldn’t help but be emotional whenever there would be a drop in the prices of our stocks. I had read, prior to my dip in the stock market pool, that being emotional is a big no-no in stock market investing. Instead, you have to be brave and calm. But it was not that easy for me. I remember I once had a stock that dropped to a pitiful -35%. I almost felt like crying! But over time, I have learned to control my emotions. Now, I can look at our stocks portfolio filled with reds and I won’t have any negative reaction at all. I’m so proud of myself! Haha.
That’s all for now, guys. I’ll add more lessons as I learn them. ‘Till next time! 🙂
P.S. If you also have stock market lessons to share, please do so at the comment section. I’d appreciate it very much.