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.


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:
  • Find a stock investing blog. One that offers more than just charts. Try to familiarize yourself with the terms and what not.
  • Join a forum (I like pinoy money talk, but there's also finance manila). This is where you can ask the questions that you have after reading blogs or other websites.
  • Attend free seminars. There are several offered by PSE, your broker, and even banks (for UITFs) and mutual fund companies. 
  • Join Facebook groups. Some (or at least one I heard of) actually have a lot of free materials available to their members.
  • Borrow books from fellow investors you meet. There are also some that are available for free online.

The Paid Way:

Attend seminars conducted by Marvin Germo, John Mangun, Randell Tiongson, and Fitz Villafuerte. OFW Usapang Piso also offers investment seminars featuring different resource speakers.

Buy books. The ones I keep hearing about are:

  • Richest Man in Babylon
  • The Intelligent Investor
  • Reminiscence of a Stock Operator
  • Winning on Wall Street

Join an investment group. I'm not going to recommend any since I haven't joined and evaluated any group. But there are a lot out there; you'll definitely see ads for them in Facebook groups and even in various sites and blogs.

What I wouldn't recommend though, is doing what I did: immediately getting a broker, buying shares, and learning on the fly.

I got out unscathed, but that was because I was fortunate enough to have unwittingly done it in the middle of a strong bull run.

And while I've heard several success stories about people losing a lot of money in stocks and then re-grouping, learning, and going on to make a ton of profits - it's just best to skip the losing tons of money part altogether.

What about you, do you have other tips for Anonymous? Share your own tips by leaving a comment below! 


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photo credit: sean dreilinger via photopin cc


2 comments:

  1. Absorb as much information as you can about stock investing and take the plunge by actually getting in the game with money that you can afford to lose.

    Although you may think that what you did was wrong, the most lasting lessons are always those that you learn firsthand, moreso if you get burned in the process. So even if you don't recommend learning on the fly, I say go for it. Nothing will propel you more than the possibility of losing money.

    Of course, since you're still learning, don't be an idiot and plunk down your life savings in stocks. Again, invest an amount that you won't miss if the market suddenly heads south once again.

    ReplyDelete
    Replies
    1. There really is no substitute for experience :)

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