This is the last installement of the series on stock market investment principles. We discussed
about the first seven principles in the past three articles. Now we will be discussing the last
three principles. If you wish to view the article in its entirety please 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.
Attend seminars on stock market investments. There are several brokerage firms that conduct free
seminars for newbies in stock market investing. Last year, CITISEC Online did a 2 day free seminar.
I took the time to attend that seminar. This brokerage firm is one of the most innovative, active
and well managed brokerage in the Philippines. The information you will learn in the seminars is
very helpful. Continual study is required if you want to succeed in the stock market. Once you stop
learning you stop to succeed.
Do the best you can to read all the materials out there and attend all the seminars if possible. Do
not give up just because you encounter terms that you could not understand. For example when you
went over this aticle you would probably scratch your head since there are terms that are difficult
to understand. Terms such as "points", Philippine Stock Exchange Index (PSEi), "Blue Chips" or
"Bull run" may sound foregin to you. Add to the fact that you don't even understand what a stock is
and how it works. So what ? When I first begain I did not even know what these things are.
Most of these things were never taught in school. But I learned slowly by reading and experiencing
it myself. You should watch the movie "Pursuit of Happyness" You will be inspired on how one man's
struggle to learn the stock market has led him to make millions through stock market trading.
9.) You must know your current events - A lot of factors can affect the stock market. You should
read the news paper as this may give you a clue on what direction the market may take. More
importantly you should read the business news as this may give you an idea as to which stock you
should buy. I read the Philippine Daily Inquirer everyday in order to have an idea where the market
is headed.
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 dooes 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.