My First Investing/Trading Books

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When I was learning about investing in the stock market, I needed books for more information. There are a lot of free pdf on the web but the books that I like, I want to have a hard copy of it so that my children maybe can read it someday. Maybe that will be the legacy that I'll be leaving them. I want them to know money management as it is very important. If only I have known that when we were kids, maybe I have chosen a different path. So, I went to check the bookstore and EXPENSIVE!! I searched for online bookstores that offers affordable books like amazon and I found at about BOOK DEPOSITORY. These are my first books. Jesse Livermore's Methods of Trading in Stocks - Richard Wyckoff This was my first ever book about trading. It has only 32 pages and can be read in one sitting but full of information. It tells about how Livermore's preparation before and after trading, money management, news, stocks to trade and pyramiding.   How To Trade in Stocks - Jesse Li

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.

Tandaan:



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

 

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