I had been writing several articles that gave a comprehensive introduction on how to invest in the Philippine stock market . Focus was given on the basic principles that each prospective investors should know. In this article the advantages of investing in the stock market will be given focus.

As I said in the previous articles, the stock market is just another vehicle of investment. You might be asking yourself why would you want to invest in the stock market? What are the advantages of investing in the stock market.

The answer to such questions could be as follows. Note that the examples given refer to Philippine based companies and currency. Visit my blog if you want to view the entire article.

1.) Investing in the Stock Market has potential for great returns – Every financial expert would tell you that when the market has a potential to go up, it really goes up. Returns could range to as high as 30 % to 200 %+ per annum or even more. In the long term it is expected that you would really profit at lot. In 1997, the price of Globe Telecom Inc. (GLO) stocks was only P152.00 per share. Buying the minimum board lot which was 10 shares during that time would have only cost you about P 1,520.00. Now the price per share of Globe is P 1,620.00+. The value of those shares is right now P 16,200. That means in ten years time your money has grown times ten or a 1000 percent increase. It also means that you have a return of an average of 30 % per annum. Not bad compared to putting it in a time deposit account at less than 4 % per annum. You might also be interested to know that the Philippine stock market is at its highest these days. A bull run is still expected for the next 2 to 3 years. So hold on to your horses, I mean bulls and make the best out of the bull run.

2.)”Ownership” in the companies that you are investing in. – Wouldn’t it be so cool to have your own Jollibee franchise ? However the investment of 20 to 25 million pesos does not make it so cool considering that you also have to put in time and effort to run the store. So instead of owning a Jollibee franchise why not buy Jollibee instead through buying shares of stocks in the corporation ? The minimum board lot of JFC shares (Jollibee Foods Corporations – JFC) cost only P 5,000+. With this investment you indirectly own the more than 1414 stores in the Philippines and 175 in other countries not to mention Red Ribon, Chowking, Deli-France, A popular fastfood chain – Yonghe King in China and popular teahouse chain from Taiwan called Chun Shui Tang including Jollibee’s pilot restaurant “Tio Pepe’s Karinderia.” So next time you eat at Jollibee tell your friends and that you like to eat there because you “own part of the company.” You might want to own stocks of PLDT or Globe to help you become more prompt in paying your bills.

3.) Belonging to a “special group of people” -

When asked to join a multi-level marketing scheme, I always want to know when the company started. I ask this question because I believe that if it started a long time ago, my chances of recruiting other people will be lessened as most people that I know has already been recruited.

But investing in the stock market is not multi-level marketing. It does not matter whether the market is saturated or not. But it’s good to know that we are among the first to exploit the market’s potential.

Statistics released by the Asian Development Bank shows that as of 2005, only 600,000, out of the of the country’s 87 million population, invest in the stock market. If you do the math that is only 1 % or roughly around 0.7 % Most of the market players are from the Class A and B segments.

Would you want to know more about investment strategies ? Visit the blog of Zigfred Diaz where he writes about several interesting topics such as investments, financial management, business, making financial online and Stock market investing

In this article we will be discussing the last three principles of investment in the stock market. In the past articles we have already discussed the first seven principles. If you want to see the entire article, visit my blog.

8.) You must devote your time to study – When you want to invest in the stock market you should devote time to study what it’s all about. You can’t just place in your money and hope that it will somehow grow someday. You have to read books and materials on the stock market. When I started investing I dug out materials in the internet related to the stock market especially the Philippine stock market. I bought books on the stock market. The Philippine stock exchange has an “investor’s primer” for those who are new to the stock market. (See the Philippine stock exchange website for more information.)

Attending seminars on how to trade in the stock market can further add to your knowledge. Some brokerage firms conduct free seminars for those who are new investors. Last year I attended a 2 day seminar by CITISEC Online. They are one of the most active, most innovative and well managed brokerage firms in the Philippines. The information that you learn in the seminar will certainly help you in your quest to succeed in the stock market. Continuous study is required if you want to be successful in investing in the stock market. Do not not stop learning.

Read all the materials you can and attend all the seminars you can in order to learn. Don’t be discouraged when there are terms you could not understand. For example just reading this post alone, you would probably raise your hands and tell yourself not to invest anymore since there are some terms you could not understand. You don’t even know what “points” are when I was talking about them in point number 2. You don’t even know what the heck is the Philippine Stock Exchange Index (PSEi) or what does “Blue Chips” or “Bull run” mean. Worse you don’t even understand what a stock is and how it basically works. But so what? I started out not knowing what some of these things are.

You can never learn these things in school. However I learned these things by reading a lot about the subject and through experience. In order that you might be inspired, I suggest you watch the movie “Pursuit of Happyness.” This inspired-by-a-true-story movie is about a man who overcame all odds to learn the stock market letting him make millions later on through stock market trading.For sure, you will be inspired by watching the film.

9.) You must know your current events – A lot of factors can affect the stock market. You should read the news paper as this may give you a clue on what direction the market may take. More importantly you should read the business news as this may give you an idea as to which stock you should buy. I read the Philippine Daily Inquirer everyday in order to have an idea where the market is headed.

10.) Now is the best day to start – Some people say that experience is the best teacher. I agree, experience is the best way to learn. It does not matter if you start small at first, the most important thing is that you start immediately. Never procrastinate but don’t rush immediately without first studying the basics. When you have already learned the basics of investments, start buying your first stock. The most rewarding thing in your career as a stock market investor is when you have profited from your first sale.

Are you willing to learn more about investment strategies ? Visit the blog of Zigfred Diaz where he writes about several interesting topics such as investments, financial management, business, making financial online and Stock market investing

If you’ve always wanted to train to become a profit trader in the stock market, it is important to know that there’s never been a better time for stock market beginners to join the ranks! With today’s technology, there are more resources than ever before to help you achieve your dream of becoming a profit trader. Some might call it stocks for dummies, but we call it a really great training center.

That’s right, all it takes to get you moving in the stock trading business is a fantastic training center that can provide you with all the resources you need to make your stock trading business a success. Whether you’re new to the stock trading scene or you’re a life-long veteran, there are great tools for everyone to make their lives easier and it all starts with a fantastic trading center.

You can start off by simply looking at the training center’s Web site. If they are a reliable, well-respected company, you should be able to gather a lot of great information about the stock-trading world for free right off their site. The more information they have on their site, the more you know they’re ready to exceed your expectations.

Wouldn’t it be great if you could try the program for a month and, if you didn’t learn a thing from the subscription, they would give you your money back? It is called a 100 percent satisfaction guarantee and it is something you should look for when searching for a training center.

It is up to you to take the initiative and learn the self-discipline to stay dedicated and motivated to your training. You must remember that the training can only do so much. The training center should know this and, if they are an honest training center, they will even make note of this right on their site.

Another great feature to look for is the option of a personal trading coach. Hidden values like that are great and you should look for them while choosing a training center. This will give you a chance to ask any immediate questions about the industry, before you venture off on your own. If you’re lucky, they might even offer the first session for free.

Finally, see what the company can offer you in terms of group forums and discussions, so you can make contacts in the field and ask questions. The training company might send out weekly email alerts about potentially profitable trading candidates, which is another great feature to look for.

Just remember to stay motivated, dedicated and focused. Trading stocks is a great option for those looking for a change of career or those who are looking for some extra cash as a part-time job. This kind of a life change is possible and the resources are out there to help you succeed. Good luck!

Find out more about stocks for dummies. Chad Reynolds is a veteran in the business and he has a plethora of insight for stock market beginners ; let him teach you about the stock market and how to hit the ground running.

If you are new to stock market then you should first take small steps and the first baby step is that you should learn all the stock market terminology. The other steps that you need to get done are the opening of an account with a stock broker as well as using a dummy account to get some good fail safe testing in the stock market.

There a few avenues from where you can in reality get the real understanding about the stock market basics as well as the stock market terms If you are looking at online place then the best place to start are the stock exchanges site of NYSE, NASDAQ and FTSE. These sites will provide you with a very good start for your learning process

Stock market games and financial magazines is another way to provide you with decent amount of insight into the working of the financial industry including stock market.

Futures and options should not be ventured into. Stick to stocks initially. Futures and options are very high risk products and chances are that you will burn your cash in little time. Patience and perseverance is the name of the game. In stock market you can make money but you need to be slow and patient and you need to stick to a strategy. This helps in taking a long term view of the investments

After a few weeks of understanding the next best thing is to open up an account with an online share broker and use that account to buy a first few stocks. Never buy high number of shares but small amounts to begin with.

Stock Market is a risk place so you should be well prepared. In that preparation make sure that you have the risk taking ability. The stock market is not for the faint heart.

Learn the stock market basics before you start stock market investing.

What your about to learn has nothing to do with using a stock screener. If you want to greatly improve your stock trading skills and accuracy, you need to learn this secret.

It almost seems to good to be true, but in fact it is true. I learned this secret from a retired institutional trader years ago and it still works today! I have managed to increase my trade accuracy to 80% after learning this simple rule. I directly make money from this secret every week. Not only that, but YOU can duplicate what I have done and make money every week. I will show you exactly what to do in the next 30 seconds.

No doubt you have heard the phrase “two minds can think better than just one”. I have a new phrase for you as it applies to this trading secret: “6 Institutional Minds Can Produce What 90,000,000 Unprofessional Brains Can’t”

There is more than 85 million traders in the U.S. alone and yet none of them have discovered the secret I’m about to tell you. Is this because most traders are ignorant? No it is not. The reason is that institutional investors have a range of tools that give them better insight into the market and in spotting trends before the average trader.

Weekend Effect: Trading Activity is Lower On Friday and Monday and Returns Are Negative On Monday

Way back in 1988, a genius called Miller proved that returns are usually negative on any given Monday. Miller said that this anomaly might just be the result of small investor trading activity. In another study done two years later, Lakonishok and Maberly (1990) and Abraham and Ikenberry (1994) used odd-lot trading as a measurement for what smaller, non-institutional investors were doing and found evidence that supported the Miller hypothesis.

Trading activity is lower on Friday for large-size trades which is why volume tends to be lower on Fridays. Institutional traders often zero out their trades on Thursday or the latest Friday. Institutional traders do not like to go into the weekend news cycle with open positions.

Trading is lower on Monday for large-lot trades. Also, small traders have more sell orders on Monday morning compared to other days of the week. If small-size trades reflect individual investor activity and large-size trades reflect institutional investors then both types of investors play a role in the negative return on Monday. The individual traders directly contribute through their trading and institutional traders indirectly contribute through their withdrawal of liquidity on the proceeding Thursday or Friday. Institutions indirectly contribute by their absence on Friday and Monday, which reduces liquidity in the market.

Your odds of making money on your trades are better on Tuesday through Thursday. You will discover your trading accuracy greatly improves when you go long a stock on Tuesday and sell on Thursday.

Because markets have a tendency to dip on early Monday trading, don’t get stopped out of your trade too quickly based on Monday trading activity. Monday’s have the highest occurrence of head fakes to the downside.