Testing the Stock Market Waters!

Most of us are afraid to lose our money. We have been working hard through the years and then all of a sudden when an investment opporunity comes in, we begin asking a lot of questions. Before plunging in the stock market investment, I have a lot of questions in my mind also. I do not know what stock market is all about and I thought it is only for the big boys.

One question that runs through my mind before jumping in the stock market is if stock market is good for investing then why not everyone is into it?  I grew up in a culture of savings in the bank. I remember when I was a kid, I normally pick up a used bamboo pole, cut it at the ends of the segment, put a small slit just enough to put the 1 peso coin. Whenever I have loose changes after going to school, I put it there in my alkansya. My childhood friends also has the same savings bank and the rest of us would show off which one has the best looking alkansya. Likewise when I matured, I went to the bank, got a passbook and put my monthly savings there hoping a 1% interest would somehow give me additional money. I am not exposed to stock market, derivatives, etc.

As an OFW, who has some savings in the bank, I tried to think on where I can park my money that will earn a bigger interest than the bank. I studied the stock market, gave a few bucks and traded some stocks to test the water whether it is profitable or not. I found out in my own experience that the minimum interest you can get is around 10% a year. And if you know how to time the market, that 10% will surely increase. Of course in any investment there is always risks involved just  like what happended in Year 2008 when the financial crisis hit the US, our country was severely affected. The stock market during that time plunge downwards just like an airplane struck by a lightning and crashed into the ocean. It was nerve wracking! All the investors went out of the stock market and the stock market almost hit rock bottom! Yes, those times will come but the general trend is always up and will always break new highs.

When I was in 4th year high school, I belong to the top ten. I had this teacher who was my adviser in second year high school. He encouraged me to run for the Student Council. I hesitated because I am not the kind of person back then who will embrace the responsibility of running a student organization. Besides, I'm a pimple infested, introvert, shy and quiet student. After a few days with words of encouragement from my previous advisor, I finally gave it a go. I researched about student councils, how to manage the organization and the different activities normally being organized by the student council. The school organizes an activity wherein every candidate must present their plan for the student body. When my turn to address my fellow students about my plan came, I spoke with what I have researched in the library. Looking around while speaking, I saw some students retreating from where they stood and I thought that some of my fellow students were trying to get a folding bed to take a nap because of the sleepy nature of the speech. Judgement day came and I lost, by a wide margin.

That experience has taught me something about trying. That it's better to try than be crippled by my fear and playing it too safe. There are risks you can afford not to take, but there are also risks you cannot afford not to take as they say.Sometimes success lies just a step away from your comfort zone. We always need to take that extra step, that extra bounce and go out of our shell. Likewise, the approach in the stock market is the same. You need to overcome those nagging questions that pulls you back.

If you are scared to jump in, I can guide you in every bit of the way. If you don't have the time to study, just e-mail me at skyrainph@gmail.com.