How to make millions in the stock market
MANILA, Philippines – The assumption that investors cannot become rich in the stock market is not true, an expert said on ANC’s “On The Money.”
Ricky Liboro, director at BPI Trade, said he has heard stories of ordinary people making millions by investing in stocks.
But before investing all your hard earned money in the stock market, Liboro warns that investing in stocks takes commitment and skill, noting that “millionaires are not made overnight.”
“It takes homework and a lot of focus. Rome wasn’t built in one day so stay focused and build your wealth by slowly finding your best skill and style,” Liboro said.
Aside from developing skills in picking the right stocks, making money off of the stock market requires volume.
“You can’t make millions from the capital you started out with, you also have to slowly increase it as it goes along. Keep on building so you can keep on investing,” said Liboro.
Liboro said for newbie investors, P10,000 is a good start-up capital.
He advised those thinking of investing in the stock market to pick companies or industries they are familiar with.
An “on-the-grounds analysis” of these companies will do when starting out, Liboro said, adding that the deeper analysis of the stock market can come later on.
He said investors should view start-up capital as a “tuition fee,” which will be used to learn the ins and outs of the stock market.
Many are intimidated by investing in stocks because of the jargon and amount of money involved, but Liboro debunked these misconceptions by saying that it's for everyone.
“It’s for the common folk. It’s a publicly listed company for the public so it’s meant for a broad range of people who are interested to learn about it and make money that way,” he said.
Liboro said it is also advisable to seek the help of brokers, bloggers and books as well as financial planners to be educated on stock market basics.
More importantly, Liboro said you must know what type of investor you are, and the time horizon you are comfortable with.
He also advised starting small to make room for mistakes.
“When I made mistakes, I learned because I develop my own way of trading and what works for me,” he said.