I had the chance to watch Batman V Superman yesterday and I must say it is one of the best movies that I have seen in the past 5 years. It has a chance to be even better than Avengers, Star Wars, and other action/fiction movies. If you have not watched the movie yet, I recommend that you do! Of course as long as your budget permits you to and you do not go into debt just to watch the movie! Don’t worry this post does not have any spoilers for the movie. While watching the movie there we’re a couple of things that dawned on me that I think could be applicable to stock investing. I just wanted to share it with the intent to help you to become a better investor. My heart is to see more and more Filipinos learn to invest the right way so they can reach their dreams of financial freedom.
1. Don’t listen to the crowd follow your own conviction
I watched Batman V Superman in spite of critics and movie experts telling me that the movie was not worth watching. It just got 30% rating from rotten tomatoes discouraging people from watching it and calling the movie a failure. If I listened to that, I would have missed out on one of the best comic book movies ever created! The same is true in stocks and in any investment. Never listen to the crowd, to your barber or to anyone telling you what to do. It is your own money and your own financial course that you need to run. You need to make the due diligence if the stock is worth buying or not. Personally, the best way to earn in the market is when you are fully convinced in what you are doing. Conviction and confidence is one of the pre-requisites for stock market success.
2. Earnings always follow great value.
In the world of both the stock market and movies, cash is always king. No matter what critics would say how bad the movie would be, its success is always determined by how much money the movie has earned. As of this writing, Batman V Superman has 172 Million US Dollars on its weekend opener and has just beat Hunger Games as the biggest pre-summer weekend opener! The same is also true about the stock market. No matter how much bad sentiment would batter a good stock, a good stock would always bounce back because a stock with amazing earnings would somehow, someway bring people in to buy more. Again more buyers, bring prices up. Amazing companies with amazing earnings would always have buyers specially if the stock price drops to an insanely cheap price. Look for good companies that are earning well and reap the benefits when the market buys them back.
Here are some of so many good stocks that have been battered but are earning well:
Ayala Land (ALI) , up 38.9% from its bottom.
Jollibee (JFC), up 33.7% from its bottom.
MAXS Group (MAXS), up 67.5% from its bottom.
Universal Romina Corporation (URC), up 23% from its bottom.
3. You don’t have to be Superman to win.
If the movie trailers show you one thing, the whole premise of the movie is Batman battling Superman. Batman in all intents and purposes does not have any superpower at all. He is a model of how creating a strategy and being smart can bring you at the top of your game and that working with purpose and passion will drive you to be the best that you can be. The same is true in the stock market and in any form of investing and business. Not everyone will be born with the “power” or the “Millions” to start with to invest. But we all have time in our hands to build our craft and create our own strategy. We may never be Superman but we can be like Batman and be at the top of our game and still win. When it comes to the stock market, never be scared to make mistakes but learn from each trade that you make to elevate you and bring you further. Try to build a trading plan each time you plan to buy a stock, for me I love using technical analysis to help me pick strategic areas on where I should buy and sell my stock. That’s just one of some many arsenals you can use when you trade and invest. What I am saying is, never buy just for the sake of buying but buy because it is part of your strategy.
Hope this helps you1
I’m excited to share my latest book, Where Should You Invest? This will answer one of the biggest questions on the what, where and when you should invest on. I will also tackle the concept that there are certain investments that work well with others and some investments that don’t work well at a certain investment phases.
This is aimed to help investors have a holistic sense on how they can grow, maximize, and preserve their wealth!(Stock Smarts Book 4 is also coming this year)
To order: http://goo.gl/forms/AaciOAg92H