Lessons on Stock Market Investing, Vol. VI

On July 21, 2014, my 30-year old self braved the financially rewarding yet dangerous world of stock market investing. I have never looked back since that time. Officially on my fourth year in my COL Financial journey today, I wish I have new lessons to share with you based on my first-hand account but I haven’t really been paying that much attention to my portfolio in the past months. The market has been down since February and all I’ve been doing is receiving dividends (which always makes my day!) and buying stocks (they are sold at bargain prices these days!) when I have extra money to deposit to my COL Financial account.

Image Source: http://www.yourmoney.com/investing/a-correction-or-the-beginnings-of-a-bear-market/

Well, maybe I could just give out some pieces of advice to you…yes, I’m referring to you, newbie stock market investor! You may have read these stuff already and if yes, just let them serve as a reminder from me as you move forward in your own COL Financial journey:

1. Add money to your COL account on a regular basis. It’s hard and I admit there are months in my COL Financial journey when I don’t get to do this myself (because adulting is hard, haha) but you will appreciate its beauty when the market is down — like how it is at present — and most blue chip stocks are sold on a discount. You gotta have money to buy ’em! It’s for your own good, trust me.

2. Do not sell stocks when the market is down. Unless you’ll lose a lot of money if you don’t sell, please do yourself a favor and keep your positions untouched. Wait it out. Sit back, relax, and do other things. Before you know it, the market has recovered and the prices of most stocks have started to move up (those of yours included).

3. Know when to trade and when to invest. I see trading as a gamble. Big risk but big returns. If you are risky enough, then by all means do it. You just have to be prepared for the consequences of your action. Even I do it on occasions by buying speculative stocks but unlike those expert traders, I don’t trade on a daily basis. I don’t even buy and sell a stock all in one day. I guess my risk appetite, despite my being an investor for four years already, has remained small. While I want to grow my money via stock market investing, I don’t think it’s the only way for a person to get rich. Of course, it can be argued that there are some people who became rich just by being badass stock market investors. But for a part-time stock market investor like me, it’s not the be-all and end-all of my stock market investing journey, if you know what I mean. There are more ways to accumulate wealth and stock market investing is just one of them.

4. Be VERY patient. So what if you only profited in the four-figures by being a stock market investor for x number of years? It still is a profit. A passive income. Remember, you’ve made money out of your good thinking and taking risks. It’s impressive and rewarding as it is. Now, continue waiting. If you’re younger than me, then your luckier than me, too. Let’s wait and strike when the time is right and our stocks are ripe (yay, it rhymes!).

As my COL Financial journey continues, I am still hoping for the best. This is for my and the hubby’s retirement, kaya laban lang ng laban!

Happy investing, pals! 🙂

You might want to check out my previous posts in this series:

Lessons on Stock Market Investing, Vol. V
Lessons on Stock Market Investing, Vol. IV
Lessons on Stock Market Investing, Vol. III
Lessons on Stock Market Investing, Vol. II
Lessons on Stock Market Investing, Vol. I

May you choose happiness always,