Toying with the Stock Market Idea
By The Parodist | July 2, 2007
Having graduated with a business degree, I reckon some of you might automatically assume that I’m well-versed in this sort of thing. Sorry to burst a bubble (my apologies to my Investment Management prof!), I’m quite ill-equipped for this sort of thing. That’s probably the reason why I stayed far away from getting jobs from banks or any financial company. I simply don’t want anything to do with money management. I just like them enough since I need them for shopping. Hehe.
Kidding aside, I knew I’m an entrepreneur and a marketer from the start. Apart from growing up with a family business and all, my mum would always tease me on how sociable I am as a kid, to the point of almost getting kidnapped! Seriously! But I’ll reserve that story for some other time. Anyway, part of it was she’d also accuse me of being a philanthropist, which, of course, I adamantly claim I have no recollection, whatsoever, of that incident, which she uses as an example. Anyway, I never had a hard time with my business subjects, even the Anaytical Business Math subjects I took (and that’s coming from someone who’s not a Math person). I guess it’s in the genes. LOL.
During my second year in Uni, a classmate voiced his intention of trying his luck with the stock market. He tried explaining it but, somehow, it all sounded gibberish to me. LOL. Don’t get me wrong, I know how it works in general but the risks and amount of money involved are too much for someone who grew up with traditional methods of earning money, i.e. Retail. I guess I was too young to really consider it. But having seen him last, he found a relatively big gain from his dealing in the stock market and it inspired me to understand it better. Darn textbooks are too outdated to help me formulate a plan though.
A few weeks back, Ely of Jozzua.com presented a great opportunity, Getting Into The Stock Market Jive, which would help get me started on it again, inviting a few people who are interested to sit down with stock brokers. But I missed out on this one, unfortunately. Gah. It seems bent on remaining cloaked and elusive to me. Double darn.
But my luck turns. And I wasn’t even looking.
Relaxing on cushioned deck furniture on an Azotea (I simply had to use that word cuz it fits) or a veranda, I had a wonderful and insightful conversation with J.J.B. (sorry but he values his privacy) after a sumptuous dinner on their gorgeous garden in San Juan Saturday night. And we talked about a lot of topics, from origins of the Transformers (went to see it last night) to taboos in relationships, but I’m sure you may have already guessed it, we also talked about stock markets.
After voicing my skepticism, he merely pointed out theories you can base your decisions upon. He provided a case study, which made the whole thing look easy somehow. He gave me a simplified look on how a transaction will go and the potential return. He told me to focus on the Mining industry and Oil exploration sector, reason being that their stocks are relatively cheaper but has a noticeable, though gradual, upward trend. Moreover, he even promised to refer me to his friends who are stock brokers. That’d be totally awesome. I reckon for somebody like me who’s just starting out, I’d love it if my broker would actively and personally care for my investments, if you know what I mean.
The conversation certainly got me thinking. I’m not a big risk-taker, you see (blame it on conservative business ideas). But I’m open-minded. I’ve already seen that, though, Retail can be a safer bet, the yields from the stock market can be bigger. I know that all things are not certain anyway esp since chances of a business going bankrupt is existent, slim but still there is that risk. So, what’s the harm of taking this risk, too? Bigger risks can mean bigger payouts. I reckon it’ll all boil down to the question on whether I have the balls to play this game.
He helped rekindle the idea in my head and I guess I won’t jump the gun and invest thousands tomorrow. I’ll take baby steps and continue to learn more, hence, this post. I was wondering if any of you guys are into the whole stock market thing or thinking of going into it. What are your thoughts on the matter? What aspect do you think I should learn more of? Any book recommendations? Stock tips perhaps? Hehe.
I’m looking forward to hearing your thoughts. Meanwhile, I’m cracking the books, keeping an eye out on dailies and brushing up on my jargons. But I need all the help I can get.
Photo credit: Simonok
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Topics: Mood Notes, The Rambler |
July 2nd, 2007 at 9:38 am
This is one avenue I know I would get into someday. If you want to try your hand in stocks without spending, go to the PSE site and play their stock trading game there.
July 2nd, 2007 at 10:15 am
While I was taking up Econ in college, the org I was active was in Finance ( MAFIA ) . They had this stock market game , no money involved for students, but the winner takes the prize. I tried it, but when I saw my stocks’ performance, yikes, I’ve decided I’m too fainthearted for the stockmarket! Lol! ( hint : if the game was real, I would be living on the streets already! haha! )
Jun is right, they have this stockmarket game online you could practice with!
My friend’s brother invests in the stockmarket, and the money really grows there , my friend says. 
July 2nd, 2007 at 10:39 am
I have a bunch of friends in the office who are into the stock market trading scene. They spend lunch times checking out stocks and buying/selling them on BPI and CitiSec Online websites. They trade stock info and business gossip during break times and even check out performances via GPRS (only primitive cellphones are allowed in the office). Most of them are short-term investors, meaning they try to milk small gains out of short-term stock rises. A few are long-termers, meaning they invest long-term on a sector or company with sound credentials and okay business practices. It’s true that the “geology” sector is the hot market right now.
I haven’t been bitten by the stock market bug because it’s a bit risky and you really need to devote lots of time to it (something which I don’t have) to make any meaningful gains out of it. If you don’t have the time, you’re better of investing in mutual funds so other people do the managing for you. Of course you don’t gain as much, but if the economy is booming, you’re sure to earn more than jut placing your money in a savings or time deposit account.
July 2nd, 2007 at 11:46 am
I guess the most important thing about investing in the stock market is to know what you’re doing. It’s good nga that J.J.B. broke it down into its simplest elements. That’s actually a good place to start from.
July 2nd, 2007 at 8:30 pm
Jun: That’s a brilliant idea! Thanks!
Sophie: That would’ve been great practice. At least, you had that opportunity. Perhaps you can help me learn more with case studies based on that activity?
Eugene: Thanks for bringing up the time factor. I failed to consider that. Gah. I’d love to learn more about that BPI/CitiSec bit (see how much of a n00b I am? LOL. Thanks for sharing these!
Rico: True. I also think that, oftentimes, it’s best if you know the right question to ask.
July 2nd, 2007 at 10:01 pm
Addendum: regarding the PSE online stock game, it uses the real stock market data but you just use “play” money. Just be prepared not to be dismayed when you do make a killing and be bothered with the what-ifs.
July 3rd, 2007 at 10:28 am
Eugene: That’s cool then. At least it can measure how well or bad (whatever applies) I’d be at it. And, yea, I’ll keep it in mind that it’s just a game and it’s just “play” money.