My Only Tip in Stock Market Investing

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The only tip I can give for investors is to buy when the prices are low and sell when it is high. In other words, be fearful when others are greedy and be greedy when others are fearful!


That fundamental is very simple and yet most of the  investors failed to act on it (including me). When there is a crisis like what happened in the financial crisis way back in 2008, most of the stocks are down. It's like going to Divisoria and buy branded clothes at the price of the ukay ukay clothes (cheap clothes). And yet most of the time when the prices are low we keep ourselves at the sidelines waiting for it to go up or stabilize.  By the time we buy, it is already high and by the time e knew it, the stock market is going down already. It's silly to be on that kind of situation and that is what happened to most of us. At the end of the day, we lose money and defeat the purpose of investing. I've been there.

If your plan is to save money for your house five years from now. Just ignore the news and let your investments ride the bear and bull market. Since your purpose is to accumulate funds for building your house, stick to that  goal.

Last week , we've seen the stock market skydive to abnormal levels. It is even in the prime time news. This signifies that there is an extraordinary movement in the stock market. Otherwise, stock market will just go on in his life trading casually everyday.

Since the stock market is at very low level, it's time to plunge in. No, don't sell your house yet or borrow enormous money from your uncle to put in the stock market. If you have extra cash and is willing to try out the stock market, then please do so.

I was at this stage before when I was skeptical about stock market. And yet I gave it a try because I don't have anything to lose because my first investment is 25,000 pesos only. Through the years as I have learned and rode the rudiments of stock market investing, I began to discover new things and perspective.

In one year, my income from stock market is 100,000 pesos. Now do not roll those eyes yet. What I did is I made the stock market my savings account. Every month, I am putting a portion of my salary to the stock market.

You know, whenever I see the stock market go up, I am happy because I will be able to sell at a profit. When the stock market is down, I am more happy because I will be able to buy cheap prices. I don't sell stocks during the crisis because I am a long term investor. Let the market lose their money. My money is also down but only in paper. Sooner it will go up.

My strategy: Sell when it is high and buy when it is down.