2012年1月10日 星期二

How To Invest In Stocks | Principal Rationale In Investing In Stocks

I encountered the word "stock" six years ago when I was working in a manufacturing firm in the Philippines. It was given to me by the company because it is one of the benefits for all the workers. The number of shares disposed to mer is according on the job position. That stock benefit is really a big assistance for me and my loved ones in terms of our financial demands in those time.

Investing in stock is a nice investment you can ever make if you only know when and how to invest in stocks. You must have also knowledge, discipline and perseverance in controlling your investment in order to have an excellent earnings from stocks. Remember that you can only lose money in stocks in two events: when you buy and sell it.

Moreover, one nice thing about investing in stock is that you can a greater earnings in the long term than other investment methods available presently. Long period of investing in stocks means you will buy shares regularly to a selected stocks greater than 5 years.

In the Philippines, blue chips are those stocks included in PSE Composite Index (PSEi). Based on the facts from PSE and BSP, the stocks put in blue chips will give you a 14% average annual total return acording on the past behavior of Philippine stock market from January 1989 to August 2009.

Moreover, for the last 20 years, investing in stocks earns you higher average annual total returns compared to Treasury bills (T-Bills) and savings account with 11.0% and 2.3% average annual total returns, respectively.

Thus, investing in stocks, particularly blue chip stocks, is the best technique in order to gain bigger profit in stocks.

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