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Thursday, January 1, 2015

5 Pesos Challenge: Why I joined the stock market

5 pesos, what can a measly amount do for you?

For me, 5 pesos can help me make a blog post. Apparently, 5 pesos is the smallest amount one can spend to have internet using Globe's Tattoo USB stick. 5 pesos is equivalent to 15 minutes of internet access (mahal po huhu).

Will I be able to create a blog post and share it within just 15 minutes? Let's see.

My first blog post will superficially detail the main reason why I joined the stock market - why I invested in public Philippines companies.

I was able to use up (student) years worth of savings and wait for an opportunity (free time) to go to COL Financial, apply and start investing.

(5 minutes has already passed, as of this line.)

The main reason why I decided to venture into investing as a young adult and as a student is because I know it gives higher returns (of course, with higher risks) compared to placing the money in bank accounts. But even if the stock market goes down, I believe that the PH economy is ripe to soar high and gather international funds and big-time investors.

I believe that, as long as you know that the company is not in great financial difficulty, has weathered a financial struggle before and is currently doing well, or has great financial performance with no history of significant scandals/issues (or as long as it has good track record), then it's safe to invest in them.

Why? For me, what only gets affected (or what matters, really) here, if you look  at the brighter side, is the time for you to achieve the gains that you are aiming. So, if ever the stock price goes down by say 10% (in months), and you know your limit (when to cut loss, say 12%), then the time to get your desired gains will be longer or your waiting time to harvest is prolonged. (I may not be perfectly right about this, because nobody can actually predict the market sentiment, but it's how I see it as a young investor. You've got nothing to lose since you own part of that company! And what public company, unless not fully researched well or just a dummy corp haha, will cease to exist?)

(Additional 5 minutes has passed.)

Stocks investment gives higher yields, and I needed these to better prepare myself for health issues in the family that may arise. I'm just so scared and I don't want to feel hopeless when that time comes, knock on wood. So as long as you have your own strategy and the way things are going is in line with your target, then you don't have to worry about your investments; obviously, investing takes a lot o time. You don't just go there, take a dip, and then expect that the mango seed you planted yesterday will bear fruit already in just days! :))

P.S. I will be editing this post tomorrow. Patapos na 15 mins! And yes, I made it po. 5 pesos challenge over! :))