2 Ways of investing in the stock market

If you’re reading this blog for some time now (thank you!), you see that I share basic and fundamental information about personal finance. I also shared other related information that can help you in your financial freedom journey.

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I also share personal experience, views, and opinions about certain things related to personal finance. I hope by following and reading this blog, you’re getting valuable information that you can use and apply in your own life.

I also consider myself a newbie and beginner, because I know there is so much more to learn. I’d like you to join me as we take the journey to the financial freedom.

On this short article I’m going to share the 2 ways of investing in the stock market. This should be included on your plan before you start investing in the stock market.

In fact, you should’ve a sound investing plan included on your financial goals even before diving to any kind of investments. That way, you’ll have a road-map where you’re heading in your journey to get your financial goals. Let me share you the 2 ways on how you can invest in the stock market.

2 Ways on how you can invest in the stock market

1. Trading

You may have heard this already. In a newbie perspective, this is basically a type of investing in the stock market where you buy and sell stocks in a short period of time. Some called it “day trader” or “tsupitero“.

You buy stocks and sell it with in the day or week or month. It requires study of graph, trends and other technical terms related in stock market. It also demand time as you need to watch the market during trading hours.

You also need to be aware of the current news and happenings around the country or around the globe. It requires a lot of research and of course, it requires skills.

While it seems that this is the fastest way you can make money on the stock market,it is also the fastest way to lose your money. You can earn more than 50% or lose all your money in this way of investing in the stock market. That is why it is not advisable for beginners and newbies.

If you want to be a “trader“, you need to learn how to read charts, trends, support and resistance and many more. As also mentioned, you need to have your “free time” to monitor the movement of the stock market.

COL Financial is offering a free seminar about the basic of technical analysis that you can use if you want to trade in the stock market. You can check the schedule and register here.

If you’re a newbie and beginner, I suggest you to not focus on this way of investing in the stock market. While there is a high potential that you can make money in a short period of time, the risk is also high to lose all your money.

Start with the basic first and learn along the way. I suggest you to do the 2nd way which is investing.

2. Investing

This is basically the most suitable way of investing in the stock market especially for beginners. In this way, you’re just investing your money in good and solid companies over the long period of time.

It suggests you do it on a regular schedule and have a fixed amount to invest. This is also called peso cost averaging. You can also set it up and have it run automatically.

In this way, you can focus on your day job or business while letting your own money to grow on their own. This is the safest way investing in the stock market and can really give you high returns over the long run.

Say you will invest in a stable and good company over 15-20 years, that can surely grow your hard-earned money. There still a risk involved but not as high and the same as trading.

If you’re already investing in the stock market, I suggest you do it in this way if you’re a beginner. If you’re about to start, do it this way too.

You can also attend a FREE seminar about investing in the stock market here. by checking my lists here.

Last words

Before you start investing in stock market or even in any type of investments make sure you setup an investing plan. Knowing the basic and fundamental knowledge of the 2 ways mentioned above can really help you decide how you want to execute your plan of investing in the stock market.

Why are you going to buy that stock or when and why are you selling that stock should be answered by your investing plan or financial goals?

Everyone is unique and so we have unique point of view and goals in life. Whatever ways you want or option you choose, it’s really up to you in the end.

Remember that investing is a journey, we can always re-asses along the way and change plan if needed depending on our financial goals.

Let’s start small and take one step forward towards financial freedom. Cheers!