This morning while I was browsing the net and reading some featured articles, I came across an article talking about the 10 common mistakes when investing. I so like the facts discussed there as I feel that all of it were true and some I even encountered myself. There's one item in that list where I was truly caught off guard. In fact, felt a bit guilty because I just realized that I do that mistake myself every time I am doing transactions for my stocks. The article explained that one mistake when investing is basing it all from emotions. The two main emotions driving stock markets up and down are Fear and Greed. Oh dear, a big realization to me making my jaw fell in the ground. Because previously there was these two stocks that I bought and was keeping it for awhile. Then it went to a time that the price just blasted very high. Like it just went up like crazy. I was very happy as I was making indeed a very smart decision that moment when I choose it. As days progress, I was already starting to feel the fear of losing like what if the price will just drop the following day. So what I did was I sold it and fair enough I did gained some mark ups out from the amount I invested. After selling it, I noticed that the the price still getting higher and higher. So that's the time that I did felt some regret in my heart and told myself how foolish am I selling it in a hurry. Thinking that the stock value will never stop increasing, I bought again number of shares of the same stock to invest. And that's where I can say that I am becoming greedy already. And do you know what happened the next day after I bought that same stock? Well, the price suddenly fell so badly that I went losing with some percentage. And up to now, I am still recovering that very small portion that I lost. I admit my move was not so smart at that time but it is Ok because I am learning from this experience. Even pro investor also made mistakes and me as an amateur on this kind of thing, I know I still have a long way to go to really know how to move in the Stock World. Investing is really just like that. Sometimes you earned but sometimes you also lost. It will just depend on your strategies applied and well the gut feeling. But one thing I am also proud of is while investing, I really do embrace the fact that I am a beginner. Hence, I play being conservative. I only invest 50% in my account. And only play around with up to three stocks at a time. So far I am doing fine. And maybe I build confidence already with the moves I used, then probably I will upgrade.
It's almost a year now since I started investing in Philippine Stocks. And since I divulge only lesser time on analyzing stocks position in the market, I can only make few progress in terms of my investment portfolio. But despite of that, I am still very proud that I was able to at least stay break-even or at least gain an extra amount despite of the fact that I am a newbie to the actual world of Stocks. My passion of stocks started when I took my Masters in Business Administration classes few years back. But since I don't have extra amount yet before to try it, I wasn't really able to penetrate what's really the actual catch. One thing important when deciding to invest in the market is the amount you are going to use will be taken from an extra fund. And you can even afford to lose it if worst thing happens. And now that I earn extra, I allocate some portion of my savings and invest it to stocks. It was really fun also. I can still even recall how exciting it was. Looking forward for the coming months where I can already give much focus to it.
Another thing highlighted in the article is to never stop studying and learning about stocks. Even a very advanced and experienced investors also made mistakes at times. So it's indeed very important to always get updated and learn how to use tools that can give assistance when analyzing stocks. I was so glad that last year, I was able to attend a Stock Seminar here in SG. It was such a very nice opportunity for me. And I thank Wealth Mentor so much for offering that seminar to those who are keen to it like myself.
I am just glad, I already started it despite of my hectic schedule here at work. I am excited about it. Soon!
Wealth Mentors gave me this at the end of the seminar. Thank You very much..This will help a lot as reference.
Yahoo Article:
10 Common Mistakes Made In Investing
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