You Want to Invest in Stock Market?

Finally, you now want to invest in the Stock Market.

After all the promotional seminars, Youtube and Facebook Ads you’ve finally decided to invest in the stock market. Adding to the hype is your friend showing you his portfolio of blue chips stocks. Sabay sabi “I am now a shareholder of Jollibee” (financial freedom anthem playing)

Bakit naman hindi? Each one of us should learn as well as participate in this exciting world of investment. There shouldn’t be exclusivity in the stock market or in any kind of investment. If Bro. Bo Sanchez kasambahay invest in the stock market and became a millionaire, all I could wish for is Sana All!

But before you submit your CAIF and fund your online broker’s account, let me tell you these two stories that serve as my guide. One story is a warning of a danger that awaits and the other one gives hope that despite the challenges everything will be worth it.

First Story: The Monkey, Villagers and the Salesman

Once upon a time in a village, a man appeared and announced to the villagers that he would buy monkeys for P100.

The villagers seeing that there were many monkeys around, went out to the forest and started catching them.

The man bought thousands at P100 and as supply started to diminish, the villagers stopped their effort. He further announced that he would now buy at P200. This renewed the efforts of the villagers and they started catching monkeys again.

Soon the supply diminished even further, and people started going back to their farms. The offered rate increased to P250 and the supply of monkeys became so little that it was an effort to even see a monkey, let alone catch it!

The man now announced that he would buy monkeys at P500! However, since he had to go to the city on some business, his assistant would now buy on behalf of him.

In the absence of the man, the assistant told the villagers. Look at all these monkeys in the big cage that the man has collected. I will sell them to you at P350 and when the man returns from the city, you can sell it to him for P500

The villagers squeezed up with all their savings and bought all the monkeys.

Then they never saw the man nor his assistant, only monkeys everywhere!!!

Second Story: The Chinese Bamboo

A man got frustrated with life. Despite all the hard work and effort, failure was all that he learned.  Feeling defeated with life, he left everything and exiled himself in the woods. There he met a Hermit. The disappointed man shared is a failure with the hermit. “Give me one good reason not to quit?”- He pleaded the Hermit

“Look”, the hermit said, pointing towards two plants. “Do you see that fern and bamboo there?

“Yes”, the man nodded.

“When I planted the fern and the bamboo seeds, I took very good care of them. I gave them water, light, and fertilizer. Within a short period of time the fern quickly grew from the earth”, the hermit continued.

“But despite the Bamboo seed being watered and nurtured for years, it did not outwardly grow as much as an inch. In fact, nothing at all happened in the first year. There was no sign of growth.  But I did not give up on the Bamboo seed and continued to water and nurture it.  By the fifth year, a tiny sprout emerged from the earth. And within six months, the tree grew a hundred feet tall.”

“So, did the bamboo tree lie dormant for four years only to grow exponentially in the fifth?” the hermit asked.  Baffled by the question the man kept quiet.  “The answer is quite obvious. The little tree was growing underground, developing a root system strong enough to support its potential for outward growth in the fifth year and beyond. Had the tree not developed a strong foundation, it would not have sustained its life as it grew.”

“Did you know that all the time you had been struggling, you were growing strong roots”, remarked the hermit

Don’t quit, have faith and commit to discipline.

I hope you learn something from those stories. I suggest reading these stories again and again until it became part of your subconscious mind.

Whenever you feel you’re all-powerful and confident, remember the first story, because tragedy in the market happens when you begin to think you are superman. And when you messed up and feel hopeless and about to quit, remember the story of Chinese bamboo. Don’t quit, have faith and commit to discipline.

Welcome to the stock market! Good luck. Have fun!