Money Saving Tips | My First Year of Investing in Stock Market & the Lessons I Learned

Today marks my first year in investing in the Philippine stock Market. Even when i was a student, i was already curious about the stock market - but at that time, it was beyond my comprehension. Looking at the business segment news in any news program, my nose bleeds when movement of the stock prices are being discussed. All those numbers and figures and all those personnel with two or three telephones at their desk at the Philippine Stock Exchange made me decide to put my money on the bank, thinking it was the safest and the best money making opportunity one can ever have.

After 12 months of actively investing in stocks, there are at least 5 things i learned about money saving tips, stock market investments and other investment opportunities aside from the tried and tested bank deposit. LESSON NO. 1 Investing in stocks is not as difficult as i thought it to be. There are a number of online trading platforms available where you can transact business online and real time. I am based in Dubai but it's not a problem, the only minor concern is the 4 hours time difference.At the time i wake up - market is already open and before i can take my lunch, market is closed.

LESSON NO. 2 Investing in stocks is like a roller coaster ride. And it has been a wild ride - with so many ups and so many downs. In short, it's not for the highly emotional investor. What i mean is, if you're into stock investing, be ready to double your money in matter of minutes AND be ready to lose all your money in the next trading day. But don't lost hope, stocks are always like that - like a wave, there's always a cycle of high tide and low tide - and the lose is all in paper (paper loss) AS LONG AS YOU WON'T SELL OR WITHDRAW YOUR MONEY. LESSON NO. 3 Learn the fundamentals. Do not do panic buying or selling because somebody is hyping the particular stocks. Stick to your investment plan - define short term, medium term or long term investment. For long term investments - choose those companies whom you think will outlasts you. Meaning, it's those companies who are highly improbable that they go bankrupt or close down. Choose also those who give dividends to its shareholders. Avoid hyped and run-of-the-mill stocks - those whose price doubles in one day and is wiped-out the following day. Trust me, i learned it the hard way..

LESSON NO. 4 Diversify - do not put all your money in one basket. Try to spread your money and investments in different sectors. For example, put some in the banking sector, another in realty, in consumer goods, in power and energy, etc. This way you taper the high volatility or the movement of a certain segment. In short, you will not lose all your money because the stock prices of that sector went down. Remember, there will always be losing and gaining stocks in the market. LESSON NO 5 Continue learning or get a mentor. Nothing beats a knowledgeable investor. For me, i got advices from FB groups, from known investors e.g. Robert Kiyosaki, Warren Buffet, etc. The internet is so rich of these resources, you just have to invest your time to listen, read and learn from them. My first year as a stock investor is so far so good - i lose some and i gain some more. More than what i earned in any bank instruments combined. And the best lesson i learned so far is; IT'S NEVER TOO LATE TO INVEST IN STOCK MARKETS. If you want to learn, you can reach out to me or refer to lesson 5 above.