IN order to make money from the stock market, you need to learn how to become a wise investor.
For investors, finding the right stock to buy can be one of the most fun, rewarding, and fulfilling activities.
It is just like finding gold in a gold mine. Many of them turn this to become a lucrative investment.
In 1993, Jollibee Foods Corp. shares were sold at P9 per share. In 2019, it went up to P328 per share.
10k shares x P9 = P90,000
10k shares x P328 = P3,280,000
Are you interested to earn from the stock market?
I’ve interviewed many of my uncles, business people, and stockbrokers on how to profit from stocks.
Many of them gave me good insights and strategies, but one thing I found out was to know when is the right time to buy.
They told me, if you only know the RIGHT TIME, this will increase your chance to make money and it will spell a big difference from making or losing money in the stock market.
So if you are ready to know and learn when is the RIGHT TIME to BUY, read on.
5 SIMPLE TIPS ON HOW TO MAKE MONEY FROM THE STOCK MARKET:
- BUY WHEN IT IS ON SALE
Women can actually be good stock investors. Why? Most women know when and where the sales are!
They can smell a sale a million miles away. Women are good bargain hunters. They are always on the lookout for a deal.
Buy! Buy! Buy! Whenever there is a SALE!
Closed out sale
Christmas sale
Back to school sale
Lazada or Shopee sale!
Why buy on sale? Because prices are on a bargain.
However, for some reason, startup investors become afraid when stocks go on sale. Instead of buying, most of them are selling to cut loss.
If you can still recall the global financial crisis in the year 2008 and early 2009, people were selling their stocks like crazy, most of them are staying away from the financial market. But if you know what wise investors do, they will not stay away but they would pick up many stocks at beaten-down prices.
Let us talk about JFC. In the year 2009, the price was P9 per share.
If you came in and hold on to it, it even reached P328 per share, highest to date.
Again, think about it, historically speaking, downtimes and market crash have been a great time for investors to buy in at bargain prices.
- BUY WHEN IT HITS YOUR TARGET PRICE
Investors know what is their price target. Wise investors know how much is their target for a stock they will invest in.
Imagine you are shooting arrows without a target. The exercise will be useless since you are not hitting anything. If you do not have a target, you will not know if you scored or not.
So set price targets for the company you want to invest in. So you must also know and learn about the value of the company you are going to invest in and ask this important question, “What is a reasonable price?”
That is the reason why you need to study, understand, and learn about the background, financial status and plans of the company you are going to invest in.
If you are a newbie, you can also check the financial websites which publish these figures. Without a price target range, investors would have trouble determining when to buy a stock.
- BUY WHEN IT IS UNDER VALUED
In investing, you buy low and sell high. That is the main objective to profit. So it is important to estimate how much a stock is worth. You need to understand the VALUE of the company you are going to invest in.
As I mentioned, women can be good investors.
Women know how much an LV bag is worth. If there is a sale she would know if the bag is undervalued. She will buy it without any hesitation because she knows that she is getting a good deal.
So Chinkee, how will I know if a stock is undervalued? Check the past numbers. Numbers can’t lie. You need to diligently research. There is a lot of information out there to know if a stock is being undervalued.
Logically, if the current stock price is below value, then it is likely to be a good buy.
- BUY WHEN YOU WANT TO HOLD IT FOR THE LONG-TERM
Wise investors hold on to their stocks for the long-term. You will have a higher chance to multiply and earn exponential growth from your investment if you invest for the long haul.
CHECK GROWTH POTENTIAL
CHECK CASH FLOW
- BUY WHEN YOU HAVE DONE YOUR OWN HOMEWORK
Great investors do their own homework on a stock.
Learn how to read a company’s annual report, the company’s future plans, and growth. All this data can be easily located at a company’s corporate website.
I hope I was able to enlighten you with this information.
