Last year, you’ve planned on investing in stocks. You learned about how the stock markets, some indicators, how to read the charts and fundamentals, and the blue-chip stocks. This year, you are now invested in things connected to the stock market. You now have your account with a popular stocks broker. You have funded your account already and bought a couple of blue chips from your initial investment. This month, you are planning to add more to your investments and you are going to add funds during your payday.
But, let me ask you this question, are you sure you are buying the right stocks? Do you use your money wisely?
It’s been a tradition of many investors to invest in blue-chip stocks if it’s for the long haul. Blue-chip companies are those that have good fundamentals and can survive the market even if it’s in a downtrend. They are good ways to spend your money rather than hoping that some penny stocks will increase in price in a short span of time. Don’t hope for it as you will only lose your money. Instead, buy the companies that are already stable.
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The heart of why I do these seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more about how you could time the market check out the training below.
If you still don’t know it, there is a so-called pump and dump in the stock market. This is where investors buy penny stocks, pump the price until it reaches up to 50% higher then dump it the next day. If you don’t know how to time the market, you will lose your money in penny stocks. Penny stocks are cheap for a reason. Don’t gamble your money by buying stocks that you think are cheap. Again, look at the fundamentals if you are not familiar yet with reading the charts. Protect your money at all costs.
Do your own research. Don’t buy stocks without knowing what you are buying. A new investor tends to buy stocks based on hype. Don’t do that if you want to protect your money. Buy based on your research. Buy based on the news. Buy based on your technical analysis. Buy based on the company’s fundamentals. If you have a solid backup of information, you will not lose in the market. Always do your research. Avoid the noises around you. Don’t trust someone who is trying to pump a worthless stock. You will know you are buying the right stocks if the company has solid good information.
If you are investing for the long-term. I suggest you go for dividend stocks. Dividend stocks are stocks that pay investors at the end of the year and those are called dividends. Dividends are paid out of the company’s earnings. The more dividend stocks you have, the more dividends you will receive at the end of the year. Choose your stocks wisely. Dividend stocks can give you two things: a price increase in stocks and dividends. You will have two sources of passive income with dividend stocks.
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