Blue chip company potential gain over the long term
As you can see these are some of the blue chip company on PSE. As I computed their gains over only (2) year period it blows me away to their astronomical %.
Universal Robina Corp (URC) from July 2011 selling at 47/share reaches 128/share as of July 2013 giving 172%. and Jollibee Food Corp (JFC) from 88/share to 163/share as of July 2013 85% gain. So that's why it's much advisable to put some part of your cash on valued stocks over the long term.
Unless you can tolerate some negative return at start if you invest P5,000 and your P5,000 become 4,700 and 3,500 and still you can sleep at night you're qualified in for stock market because not a lot of people can handle losing their money. Doing your research will lessen your risk on losing so do a lot of it. I'll give you below some of the gains that other company reach so far. If you invested one time from the last 2 years.
Universal Robina Corp (URC) from July 2011 selling at 47/share reaches 128/share as of July 2013 giving 172%. and Jollibee Food Corp (JFC) from 88/share to 163/share as of July 2013 85% gain. So that's why it's much advisable to put some part of your cash on valued stocks over the long term.
Unless you can tolerate some negative return at start if you invest P5,000 and your P5,000 become 4,700 and 3,500 and still you can sleep at night you're qualified in for stock market because not a lot of people can handle losing their money. Doing your research will lessen your risk on losing so do a lot of it. I'll give you below some of the gains that other company reach so far. If you invested one time from the last 2 years.
Don't forget the dividend by these company. Other give dividend on a quarter, annual or semi annual basic.See their dividend valuation to your broker or PSE website.
Why does long term investing is the proper way to invest in stock market?
It's because it minimize risk. When you encounter small market fluctuation in short term it doesn't necessary telling you that tomorrow will be really bad and messed up.
I'm also stating that the past performance doesn't predict the future. But somehow the past performance gives you an idea whats the future potential in company.
As we look on the graph it's really an up and down market. Due to inconsistency and economic factor this is what the market looks like.
But when you notice it's long term performance from 1985 to 2000 it does beat the bad markets and giving you a handsome return. I know equity is really scary for newbie investor but according to my research annually PSE compound investment in an average of 8% gain over time. You when you start investing now you'll see it's potential. The key here put money that you are willing not to get touch. So I suggest have an emergency fund and other investment as well.
Know the idea of putting your eggs in other basket so when one basket does not going well you still have other basket to count on. Hopefully this gives you an ease and enlightenment how to properly invest in stocks.
I tried to be a trade but seems I messed up and losing some clear profits. Let me tell you a real experience of mine. I hope it serves you a learning experience too even you're not even started yet.
It's because it minimize risk. When you encounter small market fluctuation in short term it doesn't necessary telling you that tomorrow will be really bad and messed up.
I'm also stating that the past performance doesn't predict the future. But somehow the past performance gives you an idea whats the future potential in company.
As we look on the graph it's really an up and down market. Due to inconsistency and economic factor this is what the market looks like.
But when you notice it's long term performance from 1985 to 2000 it does beat the bad markets and giving you a handsome return. I know equity is really scary for newbie investor but according to my research annually PSE compound investment in an average of 8% gain over time. You when you start investing now you'll see it's potential. The key here put money that you are willing not to get touch. So I suggest have an emergency fund and other investment as well.
Know the idea of putting your eggs in other basket so when one basket does not going well you still have other basket to count on. Hopefully this gives you an ease and enlightenment how to properly invest in stocks.
I tried to be a trade but seems I messed up and losing some clear profits. Let me tell you a real experience of mine. I hope it serves you a learning experience too even you're not even started yet.
How does emotion ruin your trading strategy?
I tried trading too but I only experience a bad day. Well this is the story it happened to me on trading JFC "Jollibee Food Corp" I study it's stable performance back several years, according to my study it's really good for long term. But unfortunately my mindset was for a short profit terms.
What happened that week is I invested some of my money buying a 125/share that time and adding a little bit more share in a few days thinking it will goes up immediately. On the following week it started to depreciate to 120 below that's when I started to panic and sold the share.
When I realize what Jollibee right now I regret somehow the decision I made that day. If I was only cool and not too attached to the money I invested in, I made today a decent gain to that particular mistake I made before today. Jollibee share today October 2013 is at 170+/share so when you are thinking trading day by day sell in and out. Better think it twice and you'll certertainly miss the good profit you can make in investing.
What lesson you can learn from the story?
1. Stay cool on investing stick to your strategy and game plan. Seek advice from expert and people who actually getting good performance. They may have better perspective than you are. Don't be arrogant please!
2. Don't be attach to your money because it will ruin your strategy. Treat your money as like a token where you only lose a game if you really having a bad day. Don't let your feeling make you decide on your investment instead research and research before jumping into one company. That is where you minimize your risk.
3. Enjoy the journey of investing in long term that is where it beats short penny profit.
May my story helps you on your investing on the stock market.
I tried trading too but I only experience a bad day. Well this is the story it happened to me on trading JFC "Jollibee Food Corp" I study it's stable performance back several years, according to my study it's really good for long term. But unfortunately my mindset was for a short profit terms.
What happened that week is I invested some of my money buying a 125/share that time and adding a little bit more share in a few days thinking it will goes up immediately. On the following week it started to depreciate to 120 below that's when I started to panic and sold the share.
When I realize what Jollibee right now I regret somehow the decision I made that day. If I was only cool and not too attached to the money I invested in, I made today a decent gain to that particular mistake I made before today. Jollibee share today October 2013 is at 170+/share so when you are thinking trading day by day sell in and out. Better think it twice and you'll certertainly miss the good profit you can make in investing.
What lesson you can learn from the story?
1. Stay cool on investing stick to your strategy and game plan. Seek advice from expert and people who actually getting good performance. They may have better perspective than you are. Don't be arrogant please!
2. Don't be attach to your money because it will ruin your strategy. Treat your money as like a token where you only lose a game if you really having a bad day. Don't let your feeling make you decide on your investment instead research and research before jumping into one company. That is where you minimize your risk.
3. Enjoy the journey of investing in long term that is where it beats short penny profit.
May my story helps you on your investing on the stock market.