Financial Blog

Engaging in a venture that is by nature highly volatile can be very intimidating, even off-putting to some–and yet investing remains to be one of the top ways ways to be financially free. While there are many horror stories with trades gone wrong, there are just as many successes. It’s never about luck, but framing an investment strategy that will allow you to win repeatedly over time.

Winning in the stock market requires the discipline to completely follow your strategy and ignore the noise of the crowd, but a general rule of thumb if you are a long term investor, is to invest in companies that are doing well.

Here are some investment tips from Marvin Germo, Stock Smarts CEO:

This might seem like funny advice, but this is the very first thing you should do. You are your greatest asset and you will only go as high as what you know. You need to not just educate yourself but you need to invest in building your skills. You need to develop skills that will bring value to people. Because people will pay you by the amount of value you give them.

Before jumping right in to buy a stock at an attractively low price, know and understand first the dynamics of the industry you’re investing in. Learn how it works and how to read the news properly–don’t make decisions based on every bad piece of news you read. Check first how the news impacts the company because if the stock drops, but nothing changes in the way the company grows and makes money, that should be the best time as an investor to put more money in and buy. People tend to be cautious and overreact at the slightest hiccup in the stock market. Just buy amazing companies when everyone is fearful and sell them when everyone becomes so greedy and want to buy.

We arranged our list from moderately conservative to aggressive, and currently have thirteen funds to choose from. You may invest in our SB Peso Cash Management Fund for just a minimum amount of Php5,000. This fund is ideal for investors who are looking for investment products with low investment amount requirements or a parking facility with a shorter duration so that the investment will also have less volatility compared to a bond fund or a money market fund that has longer investment duration

According to Germo, you should know that in investing, there’s no such thing as perfect strategy. If watching the market frequently isn’t for you because of your hectic work schedule — try to consider — being a long term investor. It’s about buying good companies, that are growing and holding them to the fullest extent of its potential.

Read the full article here.