How to invest in PH stock market for Newbies


Keeping all your money in the bank is not a wise decision anymore these days. Why? Because of the inflation rate where the value of your money continues to depreciate as time goes by.

The yearly inflation rate is at 4.28%, compare that to the 1% interest rate that your bank is giving you which still makes you lose 3.28%. It would be much wiser to invest on stocks and earn 10-20% to ensure that you dont lose all the value of your savings.

However, If you are new to investing, make sure to STUDY! If you immediately invest/trade on the stock market without studying first, it's easy to LOSE MONEY. You'll just end up being dependent - always asking others for their opinion on what stock to buy and you'll find yourself either blaming or thanking them. That shouldn't be the case - you should be the one making choices because it's your money. There's nothing bad about asking for an advice, but do your homework as well.

If you are a Long-term investor then Study FUNDAMENTAL analysis.
If you are a Short term investor, Study TECHNICAL analysis.

Remember: Investing and/or trading in the stock market doesn't end by just selecting blue-chip companies. From the blue-chip companies, you also have to take into consideration which is worth buying, holding or selling in relation to your objectives. After selecting, you constantly have to monitor if it's still consistent with your goals.

For me, if you are new to investing, I'd rather go for mutual funds first while you study how to invest/trade in the stock market. It's less risky than stocks, since when you invest in the fund, the fund's already diversified (invested in various companies across different industries). This is a good starting point for people who want to invest in the stock market eventually because it lets you have a feel of the market volatility without exposing yourself to too much risk. It's also a good investment for people who do not have much time to study and monitor the market.

How to start? Study! Read (there's a lot in the files section of http://www.smartpinoyinvestor.com), you can also watch Aya Laraya in youtube.

Her are some episodes of Pesos and Sense:
Episode 1: Stock Market

Part 2: http://www.youtube.com/watch?v=bmDtZA_COx8
Part 3: http://www.youtube.com/watch?v=tf57Y9cIcqs
Part 4: http://www.youtube.com/watch?v=HJIgzta-pBM

Episode 2: Mutual Funds
Part 1: http://www.youtube.com/watch?v=fo0uAORZSlA
Part 2: http://www.youtube.com/watch?v=ofe8rgB8oSI
Part 3: http://www.youtube.com/watch?v=vTBcGJ-1bdU
Part 4: http://www.youtube.com/watch?v=9MxIG-kFvis

Long Term vs. Short Term Investment
Part 1: http://www.youtube.com/watch?v=0uWGtC3-gbg
Part 2: http://www.youtube.com/watch?v=qGvRP1S5SSs
Part 3: http://www.youtube.com/watch?v=O0h_kb0z50o
Part 4: http://www.youtube.com/watch?v=FrVB5-ghkJY

If you have any questions, suggestions or additional helpful information to share. Feel free to post them here.

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