- Did you hear about investing on the stock market?
- Is stock market only for the rich?
- Do I need to graduate as Finance or Accountancy major?
- Is stock market only for the risk takers?
- How can I start?
Those questions above are the frequently ask by NEWBIE investor. I decided to blog for newbies and guide them on how to invest on the stock market. The feeling of lost and afraid to jump into a boiling water or the sea of sharks. The myth that stock market are only for the rich and educated individuals.
In this blog, I will separate my character as a hardline trader and start again together with those newbies on the stock market. There are many works to do and knowledge to share. I will try my best to deliver what is required by the newbies.
Many successful stories like the maid of brother BO and the janitor of BDO. I would like to hear many Pinoys achieving financial freedom thru stock market. They don't have any degree on Accounting and Finance but were able to succeed. They are not rich but were able to fund and grow their capital. How about the risk? Risk exists in everyday lives but we could take a calculated risks. They started their adventures in this field because of their mentors.
I will be one of your mentor and you can asks me newbie questions. Let's start working.
What is stock ?
Stock is a piece of ownership that represents a claim or part of a corporations assets and earnings. Stock is also called shares or equity.
What do you call the stock owner?
Stockholder or shareholder which is an owner of a company determined by the number of shares owned.
Can you compare the stock market to wet market?
Yes, in a wet market for example: you (buyer)want to buy a fresh fish (product) from a vendor(seller) while in a stock market there is a buyer and seller in which the product is stock. The main difference is brokers transact in behalf of the buyers and sellers.
In a business point of view, if I want to open a bank but I don't have enough capital then I would rather invest on stock market thru a brokerage firm and start accumulating shares of Metrobank, I will be in good hands.
Next step, open an account on a brokerage firms. The process of selection of brokers depend on your research on which stock brokers could deliver a valuable service. You can open an account as small as 5000 pesos.
Save the 5000 pesos. I will give you my review of different brokers on the next blog post. This is a right time for you to open an account especially that this month is an Aughost month, low trading volume and stocks can go bargain as low as -5%. The only problem is to pick the fresh fish on the market not by recommendations of market gurus.