Investing in Stock Market is RISKY.
Investing in Stock Market is only for the RICH PEOPLE.
Investing in Stock Market is like GAMBLING.
Investing in Stock Market is too COMPLICATED.
You have to monitor it day and night.
How many misconceptions are there inside your mind, that made you FEAR the Market?
How did this wrong beliefs overcame you from being Invested in the Market?
What if i told you, every single person listed in Forbes Magazine’s Top Billionaires we’re invested in the Market, will you believe?
What if i told you, Our life is so risky, that we don’t even know when and how are we gonna die.
In this Article i will explain to you what Stock Market is,
the EASIEST WAY possible.
“Everything that you don’t understand. is HARD.”
Is a place where you BUY and SELL Stock/Shares
(In tagalog, eto ang Palengke Kung saan ka makakapagbenta at makakabili ng Shares)
Is a piece of Share/security/asset you will receieve upon buying shares of a Corporation
(In tagalog, Ito ang panghahawakan mo para masabing part-owner ka ng company)
“I started with zero knowledge about these things.
Nobody helped me but myself and google.
You can learn anything, as long as you’re willing.”
How Stock Market Works?
A Corporation issues Shares of their Company to Public to raise funds, either to fund their Expansions, to build new Plants, or anything that could result better income for the Company. Then Public/Investors buy and sell Shares and become Part Owners of the Company.
“Poor People SPEND before they save,
Rich People SAVE before they spend.”
How will you Buy/Sell Shares?
Back on the day, One way you can buy/sell Stocks is thru a Certified Stock Broker. Either you give him a call to buy your stock, and in return you will receive a stock certificate which has your certifications and your owned shares of the company.
Today, everything was made easy. You can choose and sign-up on a particular online broker.
Online Brokerage were like an online shopping store.
the only difference is that, you buy Company Shares.
***I was using COLfinancial as my online broker
You only need 5,000 pesos to start investing in the Stock Market.
All you need to know about the brokerage was already written on the link above.
How will your Stock/Share Gain or Lose its Value?
Let’s say, you Buy 100 Shares of SM valued at P900.
So this means, 100 (shares) x P900 (price value) = P90,000 (you invested 90k Pesos in SM)
Months later, SM Management Announced Good Income Earnings, and has Prospects to build more SM’s Nationwide and Abroad.
A positive news sometimes make a Stock Price go up, because Public/Investors Buys more of the Company Shares.
Your SM Share was now Valued P950/share. so this means, you now have +P5000 increase from your initial capital. your P90,000 becomes P95,000.
But what if Bad News comes in play?
A News came where SM didn’t meet its expected Quarter Earnings.
Public/investor lose their trust to the Company so they sell their shares.
Your SM now valued at P880/share
So, your investment now suffers -P2000 Loss
your P90,000 becomes P88,000
An easier explanation is this :
It doesn’t matter how much you have bought your stock.
If there are buyers who want to buy it at a Higher Price, you will Gain.
If they want it low, you will Lose.
Good news attracts More Buyers.
Bad news inflicts Panic.
the emotion or sentiment of Public/Investor drives the Price of a Stock.
***Stock Price changes every second, when buyers and sellers meet at a certain price
You can Buy/Sell stocks in the Philippine Stock Exchange from 9am to 3:30pm
Here’s the Door.
Behind this Door lies the Greatness within YOU.
It’s up to you when you will open it.