Decision making is a bit tough when you get a vague view of what you wanted to pursue. It will be a lot easier when you see the whole picture.
One thing that I noticed from my friends and acquaintances is that at first, they get really excited about the thought of getting into stock market investment. For them, it sounds cool. But after sometime, only few really took action. Others got tired of reading reviews from people who got into Philippine Stock Market. While others got discouraged because they find it risky and complicated.
Now, I'm summarizing the steps that I follow when I started investing in Philippine Stock Market to make it easier for newbies and for those who are planning to get into stock market investment to understand the whole cycle.
1. Get Started! Apply for an online broker.
In my case, I opened an account in COL Financial:
Choose from the following category where you belong to know how to open an account so you can start participating in Philippine Stock Market. Click on the link if you are:
> Filipino Citizen - wants to go directly to COL Financial office
> Filipino Citizen - wants to send details via courier
> Not a Filipino Citizen
When you received your account details, go to Portfolio then check if your fund appears: If it appears, you can start buying stocks.
2. Buy Stocks and Shares.
It's an exciting feeling when you get your account, your fund has been credited in your account and you are finally ready to buy your first stocks. But that excitement suddenly goes low when you finally realize that there are too many companies, which you might or might not know, that appear on the list.
At first, I had this confusion on what stock to buy and at what price it is reasonable to buy it. That is where Truly Rich Club came into the picture. I joined the club and so far I am satisfied with what I get from it. They give Stock Updates (a newsletter type) twice or more in a month. It contains information on what stocks to buy and at what reasonable price to buy a stock based on their researches. In the newsletter "Stock Updates", you will find a portion that has this list:
This contains the columns:
a. Stock - refers to the suggested stock to buy
b. Current Price - the price in market as of the date mentioned (in this case it's Jan 23, 2013)
c. Buy Below Price - indicates the maximum price that you should buy stocks. If the current price goes high, you stop buying.
d. Target Price - indicates the price that your stock should hit before you start selling your stock.
e. Action to Take - it tells you what action to take, whether to continue or stop buying or to start selling your stocks.
My long-term investing becomes easier because I have a clearer picture of the actions I should take. So whenever I login to COL Financial system to buy a certain stock, I simply consult my Stock Updates in Truly Rich Club page to decide. Easy right? It's like hiring a researcher to do the company researches for you and a secretary to tell you whether it's a "go" or "no" to buy a certain stock. :)
If you want to know more about Truly Rich Club, visit their link below. Besides Stocks Updates, you'll find more perks:
3. Accumulate Stocks and Shares.
While the price of the stock I am monitoring is still in the buy below price (Based on Truly Rich Club's Stocks Updates), I accumulate shares. Make sure that every month you set aside a portion from your salary or earnings to fund your account. Develop the discipline of accumulating stocks monthly. Here's a simple guide to develop your saving discipline. Link Here - The Saving Formula
4. Sell Stocks.
When the price has reached its target price (again based on Truly Rich Club's Stock Updates), I sell my stocks and reinvest. That's the next step.
Whatever profit you make, or whatever dividends you receive, REINVEST them. Reinvesting is a key to your success in your long-term investment. Because you are not only growing your capital investment but you are also growing the "free" money you receive.
In more than 2 years in Philippine Stock Market, my membership in Truly Rich Club played and still plays a big role. As a newbie who wants to invest, I don't trust the level of knowledge I have in Stock Market therefore it works for me to have someone who will guide me while I invest in this unfamiliar world. I survived my 2 years with a satisfactory profit that makes my membership in the club worth it. (Click here to see how far I've gone in my two years in Stock market).
And what truly matters now is that some of my family members and friends got encouraged and are already investing in stock market and joining the Truly Rich Club. I am hoping to hear their stories so I can share what has happened to them in their venture in Philippine Stock Market Investment. For now, I can only share my experiences hoping you can learn from them.