Stock Market Investing
The basics
Active investing involves doing the actual trades or selecting the stocks, currency, or other financial instruments yourself.
This can be exciting, but it can also be risky. If you're going to do active investing, make sure you're willing to put in the time and effort to do it right.
On the other hand, passive investing involves having experts invest on your behalf. This can be a great option for those who don't have the time or knowledge to do active investing.
Examples of passive investing include copy trading, mutual funds, UITFs, VULs, and other similar products.
What is Stock?
Stock refers to a share in the ownership of a company. When you buy a stock, you are essentially buying a small piece of that company. As a shareholder, you may also receive a portion of the company's profits in the form of dividends.
What is Stock Market?
On the other hand, this refers to the overall market where stocks are bought and sold. The stock market is where investors come together to trade stocks and other securities.
Philippine Stock Exchange
In the Philippines, the stock market is known as the Philippine Stock Exchange (PSE). It is a marketplace where publicly traded companies can offer their shares for sale to the public.
As a beginner in the stock market, it is important to educate yourself on the basics of investing and to start with small amounts of money that you are willing to risk. It is also recommended to consult with a financial advisor or do extensive research before making any investment decisions.
They are large, well-established companies that are considered financially stable and have a history of consistent performance. They are typically leaders in their respective industries and have a reputation for reliability and stability.
2 Best Investing Strategy
Long Term Investing & Peso-Cost Averaging
Long Term Investing
Investing in the long term is important because it allows you to benefit from the power of compounding and minimize risks.
It is a way of earning interest on not only the original amount of money you put into an investment or deposit, but also on any interest that you've already earned. In other words, it's like interest on top of interest!
The Power of Compounding Interest
Risk Minimization: Short-term investments are often subject to market fluctuations and can be more volatile, resulting in higher risks. In contrast, long-term investing spreads out the risks over a longer period, giving your investments time to recover from any temporary downturns in the market. This can help minimize the impact of short-term market fluctuations on your investments.
Regularly buying fixed amount of investment (e.g. stocks, mutual funds) at intervals, regardless of price. Buy more when prices are low, less when prices are high.
Averages investment costs, reduces impact of market fluctuations, spreads out investments, avoids hasty decisions based on market changes.
Consistent, regular investing to smooth out market volatility on returns.
