Things I Wish I Knew Before Investing in Stocks (Overview)

I Want to Invest in Stocks! Be Ultra Rich and Retire Young!

So you've heard of Equity Stocks and you've heard many stories about it. Stories where people built a fortune investing in stocks like Benjamin Graham, Warren Buffett, Peter Lynch, George Soros (although this guy probably got rich through currencies and bonds), but not Bill Gates if you're thinking about him.

However, there are more stories where people lost their life savings on stocks. People that had put everything they had on stocks then 1998 or 2008 happens. Afterwards, they swore never to invest in stocks again.

Stocks Are Too Risky! I Don't Want To Put My Money.

As with all investments, we should always do our due diligence. We should learn as much as we could first before buying our first stock. We must understand the risks involved and possible ways to mitigate them.

You can start by visiting websites like Investopedia, pinoymoneytalk, financial forums, and FAQ webpage of stock brokerages (like COL Financials and Philstocks). Stock brokerages usually provides free seminars about stock investing too.

Stocks Are Not Risky If You Know What You Are Doing

As the late Ernie Baron said, "Knowledge is Power". However, when I started investing, even after reading a lot, there are a number things I missed to learn. And this is a common experience for new investors. Consequently, we take more risk than necessary and get disappointed with the results. That's why I created a list of items investors should look at before putting their money on the table.

1. Inflation and Investment
2. Different Investment Options and Their Expected Yield and Risk
3. Investment Goal: Time Horizon and Risk Appetite
4. Asset Allocation and Diversification
5. Difference Between Investing and Speculating
6. Fundamental Analysis and Value Investing
7. Peso Cost Averaging
8. Emergency Fund
9. Insurance (Life or Mortgage Insurance)
10. Health is Wealth

I will discuss each one of them on a separate post.