my blogs: INVEST IN STOCK MARKET / NETWORKING

Which one is better? Actually they are both good type of investment vehicle. I also have my interest to invest in Stock Market, maybe sooner. Before deciding to invest in stock, you have some things to consider. Stock investing is a type of investment that is good for a long term, this is best for those who are regular savers, which instead of saving in a time deposit the bank offered, they better look for a stable company and buy a share of stocks. But there are risk of doing so, because not all company are growing and stable.

So it is recommended to make a little research whichever company you choose to invest in, or just follow the advise of your trusted broker which is more capable of knowing the market status. There are also clubs like Truly Rich Club of Bo Sanchez, which, if you are member, you will receive a regular update and recommendation when is better to buy, or sell your stocks. But like i said earlier, stock investing is good if you do it in long term, if you are a regular saver who set aside percentage of your income as savings, this is good for those who are preparing for their retirement fund. It can only be a good short term investment if you buy large amount of share ( usually worth 50K or above), the higher the bigger return, but also bigger risk, and sell when the price per share gets high. Buy low and sell high. In this case, it is highly recommended for you to be updated in the current status of our economy, and to some news either local or international. They can both affect our market status, especially the US. When the US sneezes, the world catches a cold. That's a common phrase in stock market field and is truly happening.

The American economy has a tremendous influence on other countries. When the US goes into a recession, this will result in a domino effect for other countries. When our demand for goods goes down during an economic slowdown, then other countries that we import from, will see a big decline in the demand for their goods. If you want to see an example, look at past inflation crisis of Latin American where America saw a small inflationary period, this resulted in a bigger inflation levels in Latin American countries---yahoo answer explained.

There are techniques the stock investor must learn in stock market business. The Fundamental Analysis and Technical Analysis. If you master one of them, you can win, if both, you can possibly beat the market like Warren Buffet. The most successful investor of the 20th century.

It takes a lot of study and research if you want become an expert in this investment vehicle, especially if you plan to do it in a short term. Of course there are ways to lessen the risk, but the gain is also lesser, i will write about it later in this blog.

Now i wanna show you the portfolio of my demo account in PSE game. Although its just a game, it is base on the real time market status, its just the money that's not real.

Now lets use AGI ( Alliance Global Group Inc. ) as example.

If you can see, i bought stocks from AGI for 22.35 per share. That was April 15, 2013 if I'm not mistaken.
I invested 71,520 pesos to buy 3,200 shares.

Look at graph, as you can see the highest peak was in the midway of May. Lets say the price of stocks during that time was 29 pesos, and I decided to sell my share of 3200, ( 3,200 x 28 = 89,600 -71,520 = 18,080). So i gained a profit worth 18,080 in just a month. Not bad right ? easy money hehe.. But what if you are still positive and assumed that the market will continue to rise and decided not to sell yet ? again that's a matter of good analysis considering some matters that will affect the market. Do you think you would still gain a profit if you do so? like this graph below.

Now i guess its already understood. That is how they play stock market in short term, that's good if you have big money to invest, totally not for me right now. Its more likely a game, a gamble if you're not good in doing analysis. But if you plan to invest for a long term, as long as you invest in the company with a good reputation and strong foundation, its better not to think of it too much, invest regularly and systematically until the time of your retirement. You will be shock one day how many folds your savings turned into..millions.

To summarize, before investing in stock market you should know and do the following:

SAVE
READ ( DO SOME RESEARCH )
STUDY THE TERMS USED IN STOCK MARKET (START IN THE NEWSPAPERS BUSINESS SECTION )
PRACTICE ( PREFERABLY START WITH A DEMO ACCOUNT )
LEARN ABOUT ANALYSIS , FUNDAMENTAL OR TECHNICAL OR BOTH
LEARN HOW TO READ CHARTS AND GRAPHS
INVEST REGULARLY AND SYSTEMATICALLY
HOLD FOR A LONG TERM

Now, are you ready to invest in stock market? do you have regular savings and already prepared an emergency fund? how much do you have now? 2,500 ? ... In BPI you need 5,000 to start, in COL financial you need 25,000 for active traders and 5,000 for entry level...How far your 2,500 can go? can you invest it in stock market? if so, will you?

If your going to ask me, i wont. I better make that 2,500 grow first, there are lots of investment vehicle who can give it a ride to abundance in a shorter time, it will not take me forever. And if i can already afford to save, that's the time i will ride on stocks..

Lets say you have 2,500 pesos right now, and that's all you got. What would you choose? I will change that 2,500 into hundreds of thousand in 5 months or i will change that 2,500 into millions after 50 years?

If you choose those millions, its not bad. But, how could you enjoy those millions if you're already old? you have your sports car but they will call you DOM instead of heartthrob. Would you still be allowed to eat all you can? would you still enjoy going to Disney land and ride a roller coaster? How can you enjoy your money if you're already old and weak?

If you choose the hundreds of thousand then you're with me, i choose that also. That's more than enough to enjoy my youth, that's enough to build my own small business of today and become a corporation of tomorrow.

Now I'm sure i made a right decision for my 2,500 . I cant prove it now since i just started riding this vehicle weeks ago, but i know somebody who can tell you from their experience, how far their 2,500 go...

Wanna know them? check them here

I really appreciate you for spending time to read my blogs,, so to show my appreciation,
i always prepared a gift in every blog i posted,,