How Does Stock Market Really Really Work???

[a fictional story]

Once upon a time there was a generous kind old man named Lolo living in the mountain of Alps.

He’s with his four grandchildren - Lulu, Mimi, Pepe and Wawa.

Lolo loves telling stories very much ever since, but one day, for a change, he decided   to share to his grandchildren the story of Warren Buffet, the guy who made the greatest wealth in the history of stock investing. Everyone was amazed in what the stock market could do after hearing the story, except for Wawa.

Fortunately, these children had been holding 10 peysows inheritance each left by their parents.

So the next day, Lulu, Mimi and Pepe went down the mountain to apply for an online stockbroker account. Wawa, who realized there were no other kids in the mountain to play with, also went down with the three. They all waved their hands as they bid goodbye to  Lolo.

Very timely, a  strong company OMG had placed an IPO – Initial Public Offering, which only means the management was taking their company public, to gather funds for expansion and development. They were offering 5 outstanding shares.

Lulu, Mimi and Popo eyed to buy OMG which was priced 5 peysows per share.  Wawa, on the other hand, still doubtful, decided to put his whole money in the bank.

Is it Possible? How to Earn Even with Falling Stocks?!

When stocks are going up, almost everyone is making money.

People throw parties, fly balloons and eat lotsa cake. That’s great, and that should always be the case.

image from http://free-extras.com

(If you still don’t earn money with rising stocks, then there must be really something wrong in what you’re doing)

How about making money even with falling stocks?

Sounds great right?!

But is it really attainable? Is it really possible to earn even with stocks falling down?

The short answer is an all-caps lock bold font-18 YES. HAHA
How?

What else, but with the power of PESO-COST AVERAGING. 

TGIA: Thank God I’m Alive (NOW)

Last month I had my regular stock update from the Truly Rich Club (TRC).

But the April batch I received contains info which I believe would be more useful for anyone still outside and oblivious of the stock market world.

I tried to translate it to make it more practical for a clueless public but it seemed I could no longer condense it to a more simplified practical version. And so I just showed below some snapshots of the article. (I hope Bro Bo wouldn’t mind me posting a portion of it here. Well, I know him as a very generous man, so I’m quite confident he won’t rebuke my membership one he knew my giving this icing on the cake.  Yummmmy!) Read first before going on.

How to learn about stock market WITHOUT losing money

In my last blog, I shared my first-hand experience investing in the Philippine stock market and showed all my baby activities last year.

It was not totally flawless of course, what can you expect from a newbie who had no any business and financial background. But the rewards are good enough for an investor infant like me.

And the more I engage playing in the market, the more I see myself doing it in the long run.

Ten or twenty years from now, I picture myself doing trades and investments every weekday morning  when the market opens,  entering orders, watching the market movements and sentiments, and making wise (and hopefully right) decisions.  That’s the kind of battle I would have to conquer every few hours of the day.

Photo credit

After that I’ll proceed playing with my kids, managing “cute” businesses, strengthening my family, building my friendships,  enjoying my own farm, jogging with my pets,  doing my other advocacies and (possibly) teaching  all my life learning and realizations to the generations after me.

Waaaaaahhhhh!