How To Teach Yourself To Manage Your Investments

How To Teach Yourself To Manage Your Investments. To be able to manage our own investments, first we need to assess ourselves.   Do we really have the time and perseverance to do so? And do we have the drive to keep learning?  If yes, then there are two approaches: the Free way and the Paid way.
Sometime ago an anonymous reader asked me a pretty good question (I'm paraphrasing to make it more concise):

"I'm planning to invest in UITF but I have very basic info about investing in general. Since I don't have any prior experience in investing, I'd rather be a passive investor. But then I also would wish to learn how to manage my investment by myself. Could you please give me advice? Thanks"

Although I already answered his/her question I realized it was actually a very good topic worth sharing. I didn't have any earth-breaking advice, but that's the point.

I think it's something that's going to be very relevant to a lot of beginner investors. And everyone who went through it would have great ideas on how to pull it off. So I'm posting this for all of us to chime in and give what worked for us (and even what didn't work).


I'll start and give my answer, and hopefully I'll read your ideas too in the comments section.

How To Trade Stocks during Bull Markets, Consolidations & Bear Markets

How To Trade Stocks during Bull Markets, Consolidation & Bear Markets.   The are quite a number of different stock investing strategies. We can choose which ones fit us best. But sometimes the choice isn't all about what we want.  The stock market is a chaotic place. A lot of things can happen. And, like most other things in life, different situations call for different actions.  Day Tading, Swing Trading, Position Trading, Buy and Hold, Contrarian, Value Investing.
The are quite a number of different stock investing strategies. We can choose which ones fit us best. But sometimes the choice isn't all about what we want.

The stock market is a chaotic place. A lot of things can happen. And, like most other things in life, different situations call for different actions.

To be honest, cost-averaging over the long-term is still the best approach. It's easy, simple, hassle-free, and - best of all - emotionless. Emotionless until the euphoria of finally pocketing your gains, that is.

But there are times when your goals are not so long-term. And times when, after a long-term investment, you may be looking to end on a "high" note, so to speak. Or perhaps your goals are just too steep, and by necessity are forced to maximize your earnings.

If one of those is the case, it pays to adjust your strategy to the situation at hand.

Position Sizing - Or How Not To Lose Your Shirt In The Stock Market

Position Sizing - Or How Not To Lose Your Shirt In The Stock Market.   Aside from diversification, position sizing is one of the best ways to make sure you don't hurt yourself financially.   The bottom line is that we shouldn't place ourselves in a position to lose a lot of money if things go wrong. So instead of looking at the reward side and buying a huge amount of shares because of the potential profits, we should concentrate on the risk side and limit out potential losses.
Most of the time when we invest directly in the stock market, we worry about target prices and buy below prices.

There's obviously a good reason for that. Those two numbers dictate how much we can make. What's more, they're readily available from our brokers, investment group, and even on facebook.

What's missing though is something that we almost never consider: how much money to place on a stock.

Again, there's an obvious reason for that: we invest what we can, when we can. In fact, we might be investing it regularly through cost-averaging. And over the long-term it hardly matters how much.

But of course, not everyone really goes long-term. We say it to ourselves and then something happens and we get shaken by the market. Maybe we sell early or we seriously ponder (maybe even worry) about it. Maybe we banish it to the back of our minds, tell ourselves we're in it for the long term and ignore it altogether (the Ostrich effect; yet another one of the "irrational" money behaviors).

It actually doesn't have to be that way. And in fact, it shouldn't be. That's where position sizing comes in.

Be Financially Secure - Manage Your Finances

Managing our finances is an integral step in achieving financial security. And today, we have a guest post from Marie with helpful tips on how we can manage our finances.

5 Ways To Beat Inflation Without Chasing Capital Gains In The Stock Market

5 Ways To Beat Inflation Without Chasing Capital Gains In The Stock Market
A lot of times, the stated goal for investing is to beat inflation.

But to me personally, that rings hollow when I read that their solution is to get into the stock market and chase capital gains. Most likely, they just want more money and the inflation rate was a no-brainer excuse.

That may sound harsh or judgmental. But I should know; I did it too.

And to prove it, here are five ways to beat inflation without chasing capital gains in the stock market. If they're un-appealing, then most likely what we want isn't really to beat inflation.

The Complete Guide To Avoiding Scams, Cons, And Other Money Pitfalls

The Complete Guide To Avoiding Scams, Cons, And Other Money Pitfalls.  Earning a living is hard. Earning extra income is harder still. But compounding that difficulty is the abundance of scams, cons, and other deceitful ways used to part you with your money.  In this post, we go through the ways to detect and avoid whatever, scam, con or "moneytrap" gets thrown at us.
Everyone wants (sometimes, actually needs) a bigger income. It's hard to earn such extra income, but sometimes it's made even harder by things that pretend to be investments but aren't. (hello pre-selling condos!)

That's particularly true for networking opportunities. Networking is perfectly legitimate, and though I'm no good with it myself, I realize people do make money from it.

However there are mulit-level marketing groups that are really just pyramid scams. By now, hopefully everyone knows how to spot them: you make money mostly (if not solely) from recruiting - or getting "downlines".

But if a friend you know or even trust joins one, and it sounds legit, how can you check and be sure?

7 Behaviors That Silently Affect The Way We Handle Money

Our mind is a funny thing sometimes. The same reality, if perceived differently can result in different decisions or outcomes. What do I mean?

Take for example the money in your wallet. As you've probably heard, if you want to save money or just spend less, have bigger denominations in your wallet.

Now there's no reason that should be effective. After all, Php1000 is Php1000, whether it's one Php1000 bill, 2 Php500 bills, or 50 Php20 bills. But in reality it's easier for us to spend those small bills than see a Php1000 get broken down.

It's called the Denomination Effect.

And it's not the only "irrational" behavior we have when it comes to money.

1 Good Technique To Stop Worrying And Start Doing

1 Good Technique To Stop Worrying and Start Doing.   At various points in your lives, there are always things that make us question if we're going to get through them. From projects, finals and removal exams to deadlines, debt, tuition and mortgage.  Invariably though, we get through them one way or another. But regardless of that fact, worrying is unavoidable.  Even though it shouldn't be. "If it's not your problem, don't make it your problem." "Can I do anything about it?"
At various points in our lives, there are always things that make us question if we're going to get through them. From projects, finals and removal exams to deadlines, debt, tuition and mortgage.

Invariably though, we get through them one way or another. But regardless of that fact, worrying is unavoidable.

Even though it shouldn't be.

Inspirational Quotes

I know it's already February, but to be honest I haven't quite recovered from the hectic pace of last year.

So for today, please allow me to share with you some of the inspirational quotes I've shared on the Personal Finance Apprentice facebook page.

I'll do my best to get back to writing longer articles soon.

In the meantime, I hope these are as inspiring to you as they were to me. In fact, I book-ended it with my two favorite quotes in the group.

3 Reasons Why You Procrastinate - And 3 Things You Can Do About It

If you're like me, there's probably a lot of things you've put off doing. Even when you know it's not a good idea to do so.

There's always a reason - or at least I always find a reason for procrastinating. So I figured I'm probably lazy. But maybe that's not all there is to it. So I'd like to share a video about what goes on in our brains that leads us to procrastinate - and the steps we can take to overcome it.