Basic Investment Principles In The Stock Market - Part 1
A lot of people have asked me on whether they should invest in the Philippine stock market. Most of those who asked also wanted to know how to start doing it. I do not know if they are really serious about investing or if they are merely curious about it since it has been given emphasis lately considering its very positive performance.
The fainthearted has no business investing in the Philippine stock market or the stock market in general. A true investor always has expectations as to how much he will earn from a certain investment. Normally this is measured in terms of how much money will grow at a given time. (This is commonly known as interest per annum) Now that the Philippine Stock market is in its highest level for some time now, people think that they should get themselves involved. Sad to say most do not even have a grasp of the basic principles involved neither do they understand how the system works. This is not to imply that you have to be an economist before you should consider investing.
The point I am making is that you should understand the basic principles first before you will be successful in the stock market. It is true that fortunes are made on the Stock market, however there are also stories of people loosing a large amount of their money. Other who just dive into the stock market without knowing the basic principles of investment quit after some time, telling themselves that the stock market does make any money for anybody.
Before discussing the details on how to invest in the Philippine stock market we must first have a good grasp on the basic principles of investment in order that we might possibly succeed and enjoy trading. There will be ten principles that will discussed. The first one will be discussed here. Other points will be discussed in the articles to come. Please visit my blog if you wish to see the article in its entirety.
1.) Its just another vehicle of investment - The stock market is just another vehicle of investment. There are other investment vehicles where you could invest your money. They have their advantages and disadvantages. One vehicle of investment is not more superior than the other. However this will not be discussed in detail here.
You must understand that the stock market belongs to an investment category called "Capital Markets." Capital Markets are divided further into several categories. Here alone, there are several investment vehicles wherein you could place your money. Examples of these investment vehicles aside from the stock market are real estate, pension funds, bonds, insurance, different types of savings and time deposit accounts. It is of vital importance that you know this fact because knowing the different types of investment vehicles under the Capital markets will help you evaluate whether or not you should invest in the Stock Market considering that there are other vehicles of investment.
I reiterate that each vehicle of investment has its own advantages and disadvantages. I did not to place all of my eggs in one basket. Most of my investments are in the Capital Markets though. This includes bonds through mutual funds, the stock market, insurance, pension and deposits. - 23305
The fainthearted has no business investing in the Philippine stock market or the stock market in general. A true investor always has expectations as to how much he will earn from a certain investment. Normally this is measured in terms of how much money will grow at a given time. (This is commonly known as interest per annum) Now that the Philippine Stock market is in its highest level for some time now, people think that they should get themselves involved. Sad to say most do not even have a grasp of the basic principles involved neither do they understand how the system works. This is not to imply that you have to be an economist before you should consider investing.
The point I am making is that you should understand the basic principles first before you will be successful in the stock market. It is true that fortunes are made on the Stock market, however there are also stories of people loosing a large amount of their money. Other who just dive into the stock market without knowing the basic principles of investment quit after some time, telling themselves that the stock market does make any money for anybody.
Before discussing the details on how to invest in the Philippine stock market we must first have a good grasp on the basic principles of investment in order that we might possibly succeed and enjoy trading. There will be ten principles that will discussed. The first one will be discussed here. Other points will be discussed in the articles to come. Please visit my blog if you wish to see the article in its entirety.
1.) Its just another vehicle of investment - The stock market is just another vehicle of investment. There are other investment vehicles where you could invest your money. They have their advantages and disadvantages. One vehicle of investment is not more superior than the other. However this will not be discussed in detail here.
You must understand that the stock market belongs to an investment category called "Capital Markets." Capital Markets are divided further into several categories. Here alone, there are several investment vehicles wherein you could place your money. Examples of these investment vehicles aside from the stock market are real estate, pension funds, bonds, insurance, different types of savings and time deposit accounts. It is of vital importance that you know this fact because knowing the different types of investment vehicles under the Capital markets will help you evaluate whether or not you should invest in the Stock Market considering that there are other vehicles of investment.
I reiterate that each vehicle of investment has its own advantages and disadvantages. I did not to place all of my eggs in one basket. Most of my investments are in the Capital Markets though. This includes bonds through mutual funds, the stock market, insurance, pension and deposits. - 23305
About the Author:
Want to know more about investment strategies ? Visit the blog of Zigfred Diaz where he writes about several interesting topics such as investments, financial management, business, making financial online and Stock market investing
posted by Mr. Forex at
1:09 AM
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