4 C
Alba Iulia
Sunday, August 16, 2020

Of being a rookie

Must Read

Covid positive Filipina from Geelong breaks down after being taken into hotel quarantine

A 58 year old Filipina named Ella is currently being held in hotel quarantine in Melbourne after...

Philippine Airlines to operate special flights between Sydney and Manila

Philippine Airlines has announced a limited number of direct flights in the month of August/early September between...

Around 290 passengers fly home on special flight from Melbourne to Manila

Philippine Airlines in cooperation with the Philippine Department of Foreign Affairs, and the Philippine Consulate in Melbourne...
Avatar
Mervin Medelhttp://Philtimes.com.au
I am a stock market investor. I have been in the Philippine stock market since 2009. I read a lot about value investing and fundamental analysis. I am a big fan of the billionaire Warren Buffett. I use his investment philosophies as my style of investing.

 

Don’t be scared of the ups and down. Don’t buy and sell. Don’t get trapped in that stuff. Don’t look at the newspaper every day. – Warren Buffett, who became a billionaire through stock market investing

 

I’m a basketball addict. There’s one thing I observed.

Once LeBron James scores, most of the time he shows no emotion. He just runs back to play defense. But once he’s at the bench and sees his teammate scores, he jumps, he yells, he displays emotion in jubilation.

This simply means that watching the game is different from playing the game.

The same thing applies in the stock market.

Testing the waters

I have talked to quite a few about stock market and I always tell them that the first important thing is to experience how it is to be in this playing field.

You need to experience first the feeling of having your portfolio going up and down. I tell you, it’s a different feeling when your money is on the line. Powerful emotions start to creep in.

I was a newbie in 2009; and a newbie is always vulnerable to jitters. There is a tendency to be ecstatic when your portfolio is green and increasing, and nervous when it’s red and going downhill.

My experience taught me one thing: a person who enters the stock market the first time should not intend to make money instantly!

Hardcore businessmen know that it takes time (years) before profits are booked. Stock market rookies should have the same attitude. Experience is of essence first.

Otherwise, a new investor may end up buying more when the market is up and selling when it is down, which is the main reason why most new comers lose money.

As you go along you should learn to immune yourself of the ups and downs of the market. That’s the only way I know to deal with the irrationality of the stock market. So far, it serves me well (that’s by the way how Warren Buffett does it).

Source: Yahoo images
Source: Yahoo images

 

Learn

When I did my analysis on San Miguel Brewery (SMB, which is now delisted) in 2010, I found a gem. It was a check in all my boxes. I love SMB products, and it’s like a monopoly in the Philippines.

When I checked it in the market, it wasn’t moving. There was less trading. So I thought there must be something wrong, so I did not put my money on it.

Then one day its price just shot up and didn’t look back. I regretted that day I analyzed it and did not invest in it. I just missed quadrupling my money.

Further, I read one time a story of a New Yorker who got bankrupt because he invested in highly speculative stocks. He simply was in a hurry to make big money.

The market however is not, and should not, be treated as get-rich-quickly scheme. If you do that you may end up in a get-poor-quickly scheme.

If you want to be professional in this field, learn from your mistakes. Don’t forget to learn also from seasoned investors. That’s the second important thing,

Remember that when you’re an amateur, you are prone to commit mistakes. Nobody here does it perfectly the first time. Learn.

I tell you, those who do not know what they are doing are doomed to lose money.

Make money

Many consider the stock market as a big casino. I talked to someone one time and he told me that the stock market is rigged. It is manipulated by the big boys, and it’s only them who make money.

He simply missed making money the honest way, yes in the stock market.

What’s the point of putting money in the market if you aim not to make money? If you do not make money in three years then there’s something wrong with your strategy.

What’s the best and worriless way then to make money in the market? No one does it best than Warren Buffett.

Three things to consider if you’re just starting (I discussed these in my previous articles):

  • Choose companies you are familiar with
  • Invest in the most profitable ones
  • Invest for the long-term

 


Get more stories like this in your inbox!

Sign up for our newsletter and receive regular updates.

- Advertisement -
- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

- Advertisement -

Subscribe to our newsletter

To be updated with all the latest news, offers and special announcements.

We value your privacy. Your personal details will not be shared to third parties.

Latest News

Covid positive Filipina from Geelong breaks down after being taken into hotel quarantine

A 58 year old Filipina named Ella is currently being held in hotel quarantine in Melbourne after...

Random Posts

Wanted: a picture of your mother

To celebrate Mother's Day, Philtimes.com.au is planning to feature images of mothers with their children. If you have a...

Independence day celebration in Perth

The Filipino Australian Multicultural Association Inc. (FAMAS) celebrated its first anniversary and its second Philippine Independence Anniversary with a Grand Masquerade Ball on 8...

Help support our events this 30 July 2016

This 30 July is surely a busy day! Do you feel like watching the Freddie Aguilar concert, heading to the snow, enjoying a dinner...

Derek Ramsay on getting hitched with Angelica Panganiban: “It’s definitely looking like we’re going down that road.” – Posted on: 2010-04-28 21:47:36

But the Filipino-British model turned actor says they both just want to enjoy each other, for now. View full post on PEP Celebrity Life...

More Articles Like This

- Advertisement -