Australia: My Experience With The Stock Market - Part 4

Aside from stonks, I was also researching about ETFs (exchange traded funds). It's like mutual funds but no. Then I came across spaceship voyager  then raiz .  If you want to know more about the two, you can refer to this  article . Below is a summary: 📌Make sure you understand the product and the risks involved before investing.  Source: Update: I opened an account with Raiz and will do a review after a few months 😊 . If you want to get started, maybe you can use my referral link here  to have  $5 for me, $5 for you! Thanks!   

Stock Strategy: Peso Cost Averaging

Nabanggit natin na mataas ang risk sa stock market. Hindi natin alam kung ito ba ay pataas or pababa. Dahil dyan, marami ang natatakot mag-invest sa stock market. Pero kung titignan natin ang history ng PSE, tumaas ito from 2,900++ (September 1994) to 6,500++ (2016). Imagine if you invested way back in the late 90's.
Isa sa mga paraan para ma-minimize ang risk ay ang peso cost averaging. Ito ay ang pag-invest buwan buwan sa isang stock regardless of the price. Yung amount at time frame ay depende sa inyong budget. At dahil up and down ang market, tandaan natin na mas madaming shares ang mabibili kung mababa ang price at konting shares naman ang mabibili kapag mataas ang price nito.
Halimbawa: P5,000 every month. Stock: MEG

Month 1: P4.25
Month 2: P3.57
Month 3: P4.14
Month 4: P3.77

 Kung titignan ninyo ang example, if the market is down at bumili kayo ng shares, ang average price (AP) ay bumababa. Since ang closing price for Month 4 ay P3.77 versus P3.91851, ikaw ay may paper loss na (P892.39). 2016 52-week high ng MEG ay P5.51. Bandang July-August yan.


"Whatever happens in the stock market today has happened before and will happen again." - J.Livermore



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