What is Stock Market?
Below are the common questions:
“How do you invest in the Stock Market?, Is the Stock Market risky?, Hi, I’m interested in the Stock Market, how can I start?, How do you earn from Stock Market? That is really interesting”
This time, let’s give the answers to these questions.
Let’s get back to Basics
Let’s discuss first on how the Stock market works. What is the appropriate example of a market?
We all buy and sell vegetables, meat, fruits, rice, and other ingredients that we need every day.
The Stock Market is similar to a Public Market. But instead of Products, you Buy Companies.
Yes, You Heard It Right, WE CAN BUY COMPANIES
Companies who will give us products and services in our everyday lives like AyalaLand, Aboitiz Equity Ventures, Megaworld, Jollibee, SM, PLDT, MetroBank,..Etc.
Is this for REAL?
How on earth can we afford to buy these Big and Famous Companies? and Why are they Selling their companies?
It’s Hard to eat Pizza if it’s not sliced. In te same way, these companies are difficult to Buy if you will not divide it.
If Pizza are divided into slices. Companies are divided on what we call SHARES.
Instead of buying the whole company like JFC (Jollibee) for example, which is almost impossible for ordinary working class.
The Companies are Divided into Millions of Shares so that an average earner can buy these shares as Investments.
All these small shares represent the “OWNERSHIP” of a company.
This is an example of a STOCK CERTIFICATE. This serves as your proof in owning some shares of a company. Because of the digital world now, you will find virtual certificates used by some investors.
Let’s say for example, if a company divides their 10 million shares and you bought 1 million shares, this means that you owned 10% of this company.
Why Do You Think a Company Sells Shares?
They are already rich enough what can they get from this?
The main purpose of the Stock Exchange is to provide an avenue for companies to acquire Additional Capital. This can help them finance their new line of Products, Research, Development, and somtimes used to pay debts, etc.
The Photos Shown above are some of the reasons why companies sell shares to gain more capital in Growing Company’s Profitability.
Then, What’s in it For Me if I Buy Shares of a Company?
You Can Profit in Two Ways:
1. Price Appreciation
When you buy shares of the company, the market value of the shares you bought will increase overtime. This will happen in a long-term span of time. As the company gets bigger, you’ll also earn more.
The price of a stock will be dictated based on the volume of bid and ask of investors in the market, just like in a typical market wherein the price will be dictated by supply and demand.
It’s the same concept with the Stock Market. Once the demand of the company is higher for whatever reasons (new products, higher profit, and other positive developments), the stock price goes up.
See example. It’s the Price Chart of Universal Robina Corporation (URC) stock.
If the value of your stocks will Increase or Appreciate, the opposite can also happen.
It is possible that the value of stocks will Decrease or Depreciate if the demands are low;
and if Investors have many reasons why they will sell their shares like the following; earnings are bad, not profitable products, plant explosion and other unforeseen catastrophe that can possibly happen.
See example below:
We should not only look at the aspect of business that affects the price and sentiments of the investors, it’s not that simple. There are more external factors that go along with the movement of stock prices. We also look at some factors of world events, since the economy of countries are connected. So it is important that we know the current events through the news especially updates with these big countries; USA, China, Japan, and Europe.
As part owner of the business that you bought, most of the companies will shell out a portion of what they have earned to shareholders which we call dividends.
If you are one of the shareholders of the company who gives out dividends, you will get them in a yearly basis, or sometimes it depends on the company’s policy.
Now We Know the Impact of Stock Market in our Society…
How does it work? How to become a shareholder? How to start investing in the Stock Market?
First, for you to start, you have to look for a Stock Broker.
The Stock Broker will be in-charge of all your transactions in the Stock Market.
They can be a Person or Institutions that have License to Buy and Sell shares for You.
There are two types of Stock Broker:
1. Traditional Broker
You have to look for a licensed broker to make transactions for you. Usually, you can communicate with these people through phone. But because of technology today, most of them are communicating through FB, Viber, or Skype.
2. Online Broker
This type is like Do-it-Yourself (DIY) method if you want to personally learn how to invest in the Stock Market. The Online Broker provides an online platform or a website in particular where you can log-in and make transactions. You will be the one who will choose what stocks to buy and sell. With the help of TrulyRichClub, investing is made easy for you. TrulyRichClub’s partner broker is COL Financial where you can start investing for as low as 5K only.
What’s Next After You Have Chosen a Stock Broker?
There are certain requirements that you need to comply before you can start. Below are some of the Basic Requirements:
- Fill up their forms.
- You must have the basic IDs such as Gov IDs, Driver’s license, Passport.
- You must have a T.I.N. (Tax Identification Number), since this is an important requirement. Working professionals already have this since it’s a requirement before entering a job. But for unemployed or young adults that are still studying you may process this by yourself. You may even ask your parents to open the account for you and use their TIN and other personal details.
- Once the requirements are complete, you may proceed in submitting them to your stock broker. Truly Rich Club recommends COL Financial as the partner online broker.
- Wait for the approval of your stock market account. Once approved, you will be given the account number and password so that you can start funding your account.
- Once you have deposited an amount of money in your account, CONGRATULATIONS! You can start buying stocks!
Your Investing Approach
Wait a minute…is that all? Are we going to be rich once we invest in the Stock Market?
For your information, Stock Market is one of the fields in the world where you can easily enter, but difficult to master.
It’s easier to enter in the Stock Market, however the question is, is it really that easy to earn here? The answer is: NO.
In reality, not everyone who ventures in the stock market will End Up Profitable.
Just like in any kind of business, it also has RISKS involved.
But the Risk depends on YOU.
There are a lot of people who lose money in the stock market because of the “Get Rich Quick” mentality or the Stock Trading. These people are Stock Traders not Stock Investors.
It is not only risky to invest in the stock market but it is also Very Risky NOT TO INVEST in the Stock Market. Take for example Inflation – your money loses its purchasing power each year. If you just depend on your savings in the bank, think twice! The value of your ₱1,000 today will become ₱400 few years from now.
Is the Stock Market like an Alien Monster to you?
As a BEGINNER, if you log-in in to your stock market account, you may become overwhelmed with more than 300+ stocks currently you can choose from. You don’t know exactly what good STOCKS TO BUY. Don’t worry! There is a simple way to be PROFITABLE INVESTORS.
Get STOCK MARKET GUIDANCE from Bo Sanchez’s TrulyRichClub!
It’s called “Truly Rich” because the subscribers are taught not only to be financially free and wealthy, but also how to be blessed in ALL areas of Life;
TRC only teaches Long Term Investment. You just buy and buy shares of good companies using the Strategic Averaging Method so that you can reap the rewards after few years. If you decide to pick individual stocks go with established companies that have stood the test of time. With the Truly Rich Club’s SAM Table, your Investment Journey is made EASY for you!
S.A.M, Your Best Buddy!
(S.A.M) Strategic Averaging Method – this is the passive Long Term Investment Strategy we follow to make millions in the Stock Market! This is our Treasure Map to the millions in store for us. We just need to FOLLOW it, follow it to the dot. Follow the system and you’ll make money.
In one (1) single page, TrulyRichClub recommends the top ten valuable stocks (companies), how they’re doing and what you should do with your investments.
How Much Time Are You Willing to Dedicate?
The Stock Market is not an easy breezy way to make money but if you do it the TrulyRichClub way, we will make millions in the Stock Market without hassle!
If you’re the busy type of person, then you can go Long Term and you will be rewarded abundantly. You will be amazed how much profits you can potentially make.
As a TrulyRichClub member, you just have to decide or fix how frequent you will invest. You can invest twice a month (every pay day), once a month, every other month, etc. as long as you Invest Regularly.
What Is Your Risk Tolerance?
Are you the young, wild and free type? or are you more on the conservative side?
Do you want big gains and acknowledge high-risk methods? or do you prefer small-to-medium gains with minimal risk?
How much money can you Afford to Lose?
In Stock Market, you have to be ready to take risks as you are ready to reap the rewards.
What Is Your Financial Profile?
Are you still Working? Are you a Business Owner? Do you have a Family to provide for?
How much of your Net Worth are you willing to put into the stock market?
How much of your Monthly Income can you invest and add to your portfolio?
Aside from having financial resources, Discipline and the Habit of Investing are the 2 important qualities to have as a Long-term Investor.
This is one of the most important aspects for anyone looking to start in the stock market.
It is a rewarding endeavor if you have the Right Discipline.
Once you have reflected on all of the questions above, you can further your learning by studying various resources
Visit TrulyRichClub at this Link Tinyurl.com/TRCCebu
START NOW! Take Charge of Your Financial Future and Be Truly Rich.
Article Source: InvestagramTags: Bo Sanchez, Col Financial, Long Term Investment, Stock Market, Stock Market 101, Stock Market For Beginners, truly rich club