Is Investing in Stocks Risky?
To give you a straightforward answer, yes, the stock market is risky. It’s not for conservative investors. It’s not for people who don’t want to lose money. It’s not for you if you are expecting 100% return on investment overnight. The stock market can make you lose all your money if you don’t know how to trade or invest in stocks. Stocks are risky for those who are not willing to learn. But, even if you are new to the game, you can still make money from it as long as you will continuously learn and study.
Catch me in my live training events! (quick plug)
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.
Stock Smarts Taiwan – February 15, 2020
Stock Smarts Manila: March 14, 15, 21, 22 & 28, 2020
Stock Smarts Singapore: May 16 – 17, 2020
Stock Smarts New Zealand: June 6 – 7, 2020
Stock Smarts Sydney: July 11 – 12, 2020
Stock Smarts London: April 18 – 19, 2020
It Can Make You Lose Money
It’s true. The stock market can make you lose money. If you invest P150,000 pesos today, the volatility of the market can make you lose half of it overnight. That’s the risk you should be willing to face when you invest in this type of portfolio. Would you cry over your P75,000 losses? Of course. No one would want to lose that much! But remember, the stock market can also make you win more than what you invested. There are traders and investors who can make more than P150,000 in one day.
It’s Not for Everyone
I always tell people that investing doesn’t work for everyone. It’s like a business that fails regardless of your experience. The stock market is not for everyone, especially for investors who don’t want to lose something. When you invest in stocks, you are embracing the risks attached to it. You must be willing to learn every piece of it. If you’re not willing, then you are likely to face bigger risks in the future until you lose all your investments. There are a lot of ways to win in the stock market. If you’re eager to discover those ways, invest in your knowledge first before you invest money in it.
Invest What You Afford to Lose
As they say, invest what you afford to lose. Every investment has different types of risks and investing should only be done with the money you are willing to lose. That’s why it’s better to start small and allocate an amount for your emergency funds. I don’t recommend you put all the money you worked hard for just to lose it overnight. Don’t be too greedy. You can start for as low as P1,000 and as you learn, try to regularly increase your investment.
