Basic Investment Principles In The Stock Market – Part 4

In this article we will be discussing the last three principles of investment in the stock market. In the past articles we have already discussed the first seven principles. If you want to see the entire article, visit my blog.

8.) Take time to study- Investing in the stock market requires that you should take time to study what it’s all about. You can’t expect to succeed if think that you can just place in your money and hope that it will somehow grow by itself. Studying a lot of books and materials on the stock market will certainly help. When I first started investing I searched for materials in the internet regarding the stock market especially the Philippine stock market. I bought the “investor’s primer” from the Philippine stock exchange. This is a great material for those who are new to the Philippine stock market.

You can also attend seminars on how to trade in the stock market. Several brokerage firms have conducted free seminars for those who are new to the stock market. I attended a 2 day seminar by CITISEC Online last year. CITISEC online is one of the most innovative, well managed and most active brokerage firms in the country. The information that you could learn is astounding. Studying the stock market requires continual study. You should not stop learning.

Read all the materials you can and attend all the seminars you can in order to learn. Don’t be discouraged when there are terms you could not understand. For example just reading this post alone, you would probably raise your hands and tell yourself not to invest anymore since there are some terms you could not understand. You don’t even know what “points” are when I was talking about them in point number 2. You don’t even know what the heck is the Philippine Stock Exchange Index (PSEi) or what does “Blue Chips” or “Bull run” mean. Worse you don’t even understand what a stock is and how it basically works. But so what? I started out not knowing what some of these things are.

Stuff like these are never taught in school. I only learned them by reading and having a hands on experience in trading. I highly suggest that you watch the movie “Pursuit of Happyness” This is a story about one man’s struggle to learn the stock market. Years later he made millions through stock trading. This movie is based on a true story and is sure to inspire you!

9.)Know what is happening in the world around you – There are several factors that affect the stock market. Be aware of the news that is making headlines in the news paper. For sure this will give you a hint on the direction that the market will take. Never skip the business news. It is here where you will be given an idea as to which stock you should buy. I prefer reading the online version of the Philippine Daily Inquirer in order that I may know where the market is heading.

10.) Now is the best day to start – Some people say that experience is the best teacher. I agree, experience is the best way to learn. It does not matter if you start small at first, the most important thing is that you start immediately. Never procrastinate but don’t rush immediately without first studying the basics. When you have already learned the basics of investments, start buying your first stock. The most rewarding thing in your career as a stock market investor is when you have profited from your first sale.

Would you like to know more about investment strategies ? Visit the blog of Zigfred Diaz where he blogs about several interesting topics such as investments, financial management, business, making financial online and Stock market investing