The Stock Market has become the talk of the town, and not so surprisingly, it starting to gain popularity in our country today (lalo na na ngayon that the Stock Market is recovering and nararamdaman na ng mga tao na kumikita na sila). Everyday, people from different walks of life are opening accounts with various brokerage platforms.
People are high hopes that the stock market can make them millionaires someday and possibly retire with a comfortable life. And in this digital age, information on how to start investing has become so much more accessible with all the available resources online. This is one of the advantages of living in these days than a decade ago.
Although it is very common to hear success stories, there are also some who have turned their backs, promising not to touch the stock market again. I, for one, have been investing for a good few years now. But even some of my friends who tried it in the past had stopped doing it. I was very curious to find out why, so I began to observe and ask some of them. I have come to realize a few things that can make someone’s stock market experience not as good.
You do not have an Emergency Fund yet.
Investment in theory is your “spare cash” or surplus that you do not need to use anytime soon. It is quite alarming that, these days, many Filipinos are getting into stocks without even having any sort of savings. We hate to say this but it is one way to set one’s investing journey for failure. Make sure to build your emergency fund first. It is okay to start in stocks later than others, as long as you confidently have a strong financial foundation. It is a very practical thing to do that everyone should follow.
If you insist to start in stocks without a buffer fund, chances are you will soon withdraw your money from your stocks at a loss when emergencies happen or if bills begin to put pressure on you to be paid immediately. You will be left with no choice but to sell at a loss.
Investing is not a sprint, it is a marathon. Practice stress-free investing!
You just don’t get it!
If you don’t understand what you are getting into, then it may not be the right time (or not the right type of investment) for you. When you invest in stocks, you should be a believer; whether you are a trader or an investor who believes that the companies you are investing in can give you good returns. That’s why you are encouraged to do due diligence. At the very least, you must study the basics of the stock market and understand how it works.
And just like any other type of investment or business, you need to look at the opportunities and risks that come with it before you commit your hard-earned money. Kung di mo pa siya gets, give yourself a chance to take some time to learn it.
You don’t have time for it.
The Stock Market is not for everyone!
If you do not have time to monitor your stocks, then you may consider other types of investments. The beauty of investment is that there are options available for each of our preferences, so you may consider those types that require little attention and monitoring. Although stocks can give you promising returns, it’s considered riskier than some other investments. The market is volatile, there are constant ups and downs. But in the long run, as long as you invest in good stocks, it will still potentially end up with some capital gains for you.
So if you just want to do long-term investing, not trading, the time needed is much lesser. There are several tools available for you to check the performance of your stocks from time to time even if you’re in the office or pretty much anywhere with a decent internet connection. Try Investagrams’ mobile app!
You want a guaranteed return.
We hate to disappoint but I that there’s no guaranteed return in the Stock Market! Stockbrokers, certified investment solicitors, and agents are even heavily-monitored and strictly-instructed by the Securities Exchange Commission (SEC) not to give assurance or guarantee of any profits or returns.
If someone is offering you an investment that guarantees a profit, then that can already fall to some form of an investment scam. Always be cautious in selecting your investments. Only choose legitimate ones.
For any suspected investment scams or unauthorized agents, do not hesitate to report it to the SEC hotline: 584-6103,584-5703 or Enforcement and investor protection department: (02) 584-6337.
You’re afraid to take the risk.
The higher the risk, the higher the potential return. The lower the risk, the lower the return. That is what I’ve learned early in my investing journey. Having a conservative profile, I started with very low-risk investments. But eventually, as my knowledge expanded, I began to look for high-yield investments. Now I’m trading stocks and I can take higher-risk trades.
Anything that offers an opportunity to earn comes with a certain level of risk. But as long as you know what you’re doing, it will always be a calculated risk. I failed in business 4 times already, got broke twice, and it made me realize that risk is part of our life, one way or another. There are going to be failures and mistakes. But learning the lessons from the experience is what makes us wiser for the next opportunity. Embrace it and fail forward.
Finally, we know that getting out of our comfort zone needs a bold step to take, and understanding new things are sometimes scary to do. But investing in the stock market is not rocket science. It is exciting to see ordinary citizens are now doing it — from teachers to janitors to OFWs and many more from different walks of life. You can do it, too.
All you need to do is to start now and take the journey one step at a time. Learning is where you start. So we say congratulations to you for the fact that you are reading this to learn! And once you know you are ready, then it’s time to invest!
To learn more about the Stock Market the simple and practical way, you can access Stocks-Ed’s digital courses through the links below: