It seems like yesterday when Stock Smarts UAE Training Series has closed. As always, it is deeply fulfilling how more and more Filipinos are investing on their knowledge and skills to effectively get into stock investing. Year after year I have seen new and old faces. Some are beginners and some simply wanted to polish their skills.
I have heard so many fruitful stories. Previous attendees have reaped tremendously from the strategies they have learned. And I commend Mr. Stock Smarts, Marvin Germo, for being so amazing in translating difficult concepts into easy and applicable ones. And we can’t wait to run it again on 2018!
Stock Investing has created a buzz as one of the most lucrative ways of multiplying your wealth. But like any other investments, one should not just dive and ride the hype without proper preparation and consideration.
If you are new to stock investing, here are three things you might want to consider.
- Make sure your Emergency Fund is intact or you are in the process of completing it.
Your Emergency Fund is your back-up fund. If something unexpected happens like an unfortunate loss of a job, a major illness, or an unexpected calamity that has affected your home or your other investments, you must make sure you have a fall back. Your Emergency Fund should be your highest priority before thinking of investing in the stock market.
Also, the money you invest should be something that is extra for you. Or maybe something that you have allocated for investing apart from your monthly Emergency Fund savings. Markets go up and down. It is unwise to use all your cash to invest since if the unexpected happens, you might end up losing your hard-earned money in the end by selling too low just to cover your day to day needs.
- Do not borrow money to invest in the stock market.
For four years that we have organized Stock Smarts here in the UAE, we have always had the question, “is it advisable to take a loan and use the money to invest in the stock market?”
Like any business or investments, there will always be a risk. And stock Investing is not an exception. Studying Fundamental and Technical Analysis will help you make calculated risks. But still, investing a borrowed money that is charged with interest is something you cannot afford losing. If you really want to invest in the stock market, start small. Start with what you have. And use this time to practice and polish your skills. You would rather start small and win small than borrow big and lose big.
- Be ready to invest in learning.
Stock Investing is not a get-rich-quick-scheme. Through the years, I have learned from listening to Marvin Germo that stock investing is both a science and an art. Science because it involves a process. In choosing the stock you will buy, you have to know what its fundamentals are. Also, when you actually buy or sell, you have to know how to read charts and analyze them. Stock Investing is an art because it is personal. Your trades will be dependent on your goals. You make and set your targets.
I cannot stress enough how important it is to invest in learning. Your hard earned money is so valuable to lose and you cannot just lose it because of an uninformed decision. Read books on stock investing, browse through blogs, watch videos about it, and attend seminars if you can. Make time for learning.
Here at Investhusiasts, we believe that foundation is everything. I wish that as you enter stock investing, you are on track with your Emergency Funds, you are using your own extra money, and you are fully geared up with the knowledge you have invested time and efforts into.
I wish you all the best in your journey to stock investing. May yours be a successful story that would resonate loudly for everyone to get inspiration from. As the great Marvin Germo always say, “trade well, trade strong, and trade smart!”