Investing in Stocks: Some Lessons Learned

colfinancial

When I was just new to the concept of SAM (Strategic Averaging Method), I made a mistake of buying a number of different stocks recommended by TRC (Truly Rich Club) that I could afford with my available funds in Citiseconline. This resulted to accumulating 12 stocks in my portfolio. (Note: Most of the stocks in my portfolio are just the minimum number of stocks allowed per boardlot restrictions.)

This is actually A LOT for a newbie like me. And now I learned from the club‘s, Mike V. that this is not advisable because it is very hard to manage too many stocks. You won’t be able to keep track of or read about ALL of the different companies/stocks. And what’s more, you can’t buy all of those stocks regularly (unless you’re very rich).

So what they suggest at the club is to set aside a fixed budget for investments regularly (monthly or quarterly) and divide the budget among a few stocks. As long as the stocks are within the Buy Below Price, then you can buy them.

Switching from one stock to another is also a bad idea. So TRC suggests that you have to stick to a few stocks and buy them regularly.

I also learned that among your chosen stocks, you can decide if a stock should be under SAM or EIP. With SAM, you buy the stock if it’s below the Buy Below Price and sell when it hits the Target Price. With EIP, you buy it regularly regardless of the price and sell it after a looong time (like 10 years).

Right now, I still need to hold on to most of the stocks. I can’t sell them because I will lose money. But when I’ll gain some profit, I’ll sell most of the stocks in my portfolio so that I could reduce them to about 4 or 5. Two stocks for EIP and two (or three) stocks for SAM.

Hope this helps and have fun in learning stock investment! You can learn more if you become a member of the club 🙂

Sneak peek of some of the stocks in my portfolio (for those who are asking):

stocks

Some stocks

PS: I wasn’t able to buy monthly because there were times when I don’t have extra money. So if you think you can’t afford to buy stocks monthly, don’t worry, we are in the same boat. You can do it quarterly, per trimester, or when there’s extra money – whichever fits you. It should be extra money because the idea is you shouldn’t touch it for a while, so that time can let it grow. Although you CAN withdraw your investment anytime – esp when there’s an emergency.

P.P.S. I’m not an expert nor consider myself a successful stock investor (yet 😉 ). I’m just sharing the things I’ve learned along the way…

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