Playing the Game of Stocks

Round Like a Circle in a Spiral

Round Like a Circle in a Spiral

Are you ready?

Believe me, no one at the start really is.  Some say the stock market is a simple game and playing requires only gut instinct, or no instinct, since the rule is buy low and sell high.  Timing is everything and nothing in this game. No one knows when the bottom will come, even when a downward curve is on the horizon.

You can play two ways: online or live.  You can see a list of trading participants (brokers, in street parlance) in http://www.pse.com.ph/.  Click the link on the left side that says “Trading Participants”.

I play both ways.  I have a real, live stockbroker and a BPI Trade Account.  But personally, I prefer going through a stockbroker because I do not like the guesswork that goes with online trading. It drives me crazy when I put in an order for a certain stock and I do not get a match. Real live stockbrokers give you actual prices, and the actual volume available, and tips (!) like “wag muna, bababa pa”.  Don’t buy yet, the price will still go down. But do set up an online account because you get the closing prices of your favorite stocks at the ringing of “the bell”.  Sure beats waiting for tomorrow’s newspaper.

Be warned, though.  The stock market is not for the faint of heart.  It is a very volatile market.  Millions are made and lost in a heartbeat in this game.  But you can (kind of) play with stocks via the route of mutual funds, a pool of stocks managed by a fund manager, and a good option for first time investors.  But this is long term (read: at least 7 years) so the risk is eased out of the equation.  Okay, okay.  It is not very exciting.

But if you are not ready to play either stocks or mutual funds, you can assess your stockmarket acumen via the www.pse.com.ph website and practice, practice, practice!

But however you play, you have to read and learn to look at the long term viability of a business and its potential for financial success. Clues may be found in a corporation’s projects, investments and financial statements.  Boring stuff, yes, but these are the stuff legendary millions are made of.

Happy investing.

Be rich,

Issa

Text by Issa.  Art by D. Copyright 2009.

blog: www.YouWantToBeRich.com

email: [email protected]

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16 comments

  1. ted says:

    I think Stock Market,Penny stocks, Venture Capital and Stock broker is one and the same rouge spammer.

    Anyway, i like your site. I don’t play the stock market, but i do invest 15% of my earnings into mutual funds and with 5% added by my company, 20% will take care of me by the time i retire, probably close to $1M in my retirement account, that is if the bears don’t come back again, lol. I’ve recently just recouped all my losses from 2008 just by sticking to my guns and never sold out. I’m actually 5% up now from end of 2008. I think the best thing is to “diversify” and indexed funds are the way to go. I do 70/30 stocks/bonds and im doing alright, just select the most stable index funds and go from there, and make sure you re-balance every year.

  2. Issa says:

    @Ted You are right. I think they are spammers too. I just haven’t had time to weed them out.

    I like your investment strategy. And I like that you have recovered so fast from the 2008 bear. Have you heard of the Motley Funds? I am actually interested in investing in that. I have been getting their reports for almost a year now and I like what I see. Like you, they invest in only the stable companies. I asked my accountant brother who is based in the US but he has not given me a “report” yet (not sure if I will see it anytime soon).

    Thanks, Ted. I do hope you come back soon – I really appreciate your feedback, and I think I am not the only one learning from it.

  3. Ted says:

    I’ve just moved some of my mutual fund holdings to VGHCX – Vanguard Health Care Fund Investor Shares, due to the passing of the Health Care reform in the US Congress, with Obama signing it into law just now. Watch for this mutual fund, it’s currently at $124.49/share

    I’ve heard and actually read articles in the Motley fool website (www.fool.com).

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  5. Anonymous says:

    Do not believe too much the stockbrokers, they are in the business for fees and commissions. If they are that good , what are they doing working?

  6. Anonymous says:

    I also have a stock brokerage account and online account, the advantage of the online account is the fees are substantially lower , what I dont like are market forecast, company earnings projection 5 years ahead up to the 3rd decimal point accuracy no less as if we have to act on them. To all investors, do your own research, there is nobody out there to protect your money except yourselves.

  7. Issa says:

    Haha… You may be right, but mine does not seem to be very greedy. I have not felt her pinches. And it’s been working so far, so I might keep her.

  8. Issa says:

    I agree. Investors should know what they are buying, and know intimately, if that is possible. A lot of money could be gained and lost here.

  9. Issa says:

    Yes. When that happens and there is available money, buy, buy, buy (but like what you have been saying, investors should do their due diligence first).

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