Share the BEST Stock Market Lessons you’ve learned!

James Ryan Jonas

It surely has been an overwhelming rollercoaster ride in the Philippine stock market in the past years. There was a time when most investors were crazy jubilant due to constantly rising prices that produced outrageous stock returns in just a short span of time.

But recently, stock prices have been declining in an abrupt turnaround — producing investors who are now suffering from paper losses, with some investors being caught off-guard with what hit them.

What are your own stock market stories? More importantly, what life-changing lessons have you learned so far about stock investing?

We share below some awesome insights and inspiring realizations from several PMT Forum members. If you have some more stocks and stock trading lessons to add, feel free to join the PMT Forum discussion on Stock Market Lessons You Have Learned

Here are some of the best stock market lessons from that discussion thread:

Not a quick-rich tool

  • pinoyinvesting says:

“The stock market is not a quick rich tool.

First you’d need lots of money if you want to have lots of gain. Unless of course, super galing mo. And in times of bear periods, there’s no way of making money for the majority.

Better to shift attention to improving your income.”

Stock trading is like planting and harvesting

  • rds says:

“Bear market = planting season (you buy because the price is cheap)

Bull market = harvesting season (you sell because the price is good for profit)”

Trading plan is important

  • INDO says:

“Follow your trading plan consistently.

May trading plan na nga, di naman sinusunod kaya ayun ipit!”

Don’t join the hype

  • Homeboy says:

“First sell ko, negative return (cut loss), hanep!

Wag sumabay sa hype lalo na kung newbie ka. Pero kung ready ka na isugal pera mo, then go!

Mag-research at matuto.

Always have cash!

Hindi ganun kadali lumago ang pera sa stocks gaya ng iniisip ng iba. Masakit sa ulo at sa bulsa.

Have a plan. Adjust if necessary but stick to it.”

Timing to get in and out is key

  • wilch23 says:

“Of all the research you can do, probably 90% is history. History doesn’t predict the future.

The price is still dictated by the people’s sentiments which can be irrational. So logic doesn’t always apply. Staying long will be a good strategy also because of various financial and economic factors and realities.

Getting in and out at the right time is key to big gains. Now, luck plays a part here.”

Learn from Warren Buffett

  • Wills says:

“Quoting Warren Buffett: “If a business does well, the stock eventually follows.”

This is why he said this:

“I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.”

Because fundamentals greatly change in a span of 5 years and Mr. Market is slow to notice that but of course eventually he will notice the value.”

Also read these other stock market lessons! –> The 3 Painful (but Important) Stock Trading Lessons I’ve Learned

James Ryan Jonas teaches business management, investments, and entrepreneurship at the University of the Philippines (UP). He is also the Executive Director of UP Provident Fund Inc., managing and investing P3.2 Billion ($56.4 Million) worth of retirement funds on behalf of thousands of UP employees.