Stock Market – Basic principles – Part 4 of 4

Stock Market – Basic principles – Part 4 of 4

by Zigfred Diaz

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.) Study Study Study !!! – You have to do a lot of study if you want to be a a successful stock market investor. Don’t expect that you can just place in your money and hope that it will somehow grow. Read a lot of books and materials on the stock market. I started out this way. I searched the internet for materials on the stock market, especially the Philippine stock market. The Philippine stock exchange has an “investor’s primer.” I bought this material and other stuff from them.

Attending seminars on how to trade in the stock market can further add to your knowledge. Some brokerage firms conduct free seminars for those who are new investors. Last year I attended a 2 day seminar by CITISEC Online. They are one of the most active, most innovative and well managed brokerage firms in the Philippines. The information that you learn in the seminar will certainly help you in your quest to suceed in the stock market. Continous study is required if you want to be succesful in investing in the stock market. Do not not stop learning.

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.

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.) Don’t delay today is the best day to start – Experience is the best way to learn. You may start small but the most important thing is that you start right away. Put off procrastination. Study how to go about it without rushing, but don’t delay. If you already know the basics about investments start buying your first stock. Making your first profit from your first sale is truly rewarding.

About the Author:

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 How to invest in the Philippine stock market

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