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The Sunk Cost Fallacy

The Sunk Cost Fallacy

The sunk cost fallacy is a cognitive bias that makes you stick to a losing investment or project. This is even when it would be better to cut your losses and move on. The sunk cost fallacy occurs when you consider the money, time, or effort that you have already invested in something as a reason to continue investing, regardless of the future prospects or outcomes.

The sunk cost fallacy can lead to irrational and suboptimal decisions, as it prevents you from evaluating the current situation objectively and rationally. Instead of focusing on the potential costs and benefits of your future actions, you are influenced by the past costs that you cannot recover.

Examples of the Sunk Cost Fallacy

The sunk cost fallacy can affect your investment decisions in various ways. Keeping a stock that is declining in value is a common scenario. Hoping that it will rebound instead of selling does little to help investors. Sometimes, people even tend to double down on that investment for no good reason. 

In general life, it can also be referred to as the “economics of spilled milk.” We tend to worry too much about wasting things we’ve spent resources on. Often, this comes to the point of making suboptimal decisions. 

Why Does the Sunk Cost Fallacy Happen?

The sunk cost fallacy happens because of several psychological factors, such as:

– Loss aversion: Loss aversion is the tendency to prefer avoiding losses over acquiring gains. People feel more pain from losing something than pleasure from gaining something of equal value. Therefore, they are reluctant to accept losses and try to avoid them at all costs.

– Commitment bias: Commitment bias is the tendency to remain consistent with one’s previous actions or beliefs, even when they are contradicted by new evidence or information. People feel the need to justify their past choices and actions, and to maintain a positive self-image and reputation.

– Escalation of commitment: Escalation of commitment is the tendency to increase one’s investment or involvement in a situation, despite negative feedback or outcomes. People feel the pressure to prove themselves right, to avoid wasting their previous investments, or to avoid admitting failure.

How to Overcome the Sunk Cost Fallacy in Investing

Overcoming the sunk cost fallacy in investing can be challenging, but the following strategies can help you:

– Ignore the past costs: The past costs that you have already incurred are irrelevant to your future decisions. They are sunk costs that you cannot recover, no matter what you do. Therefore, you should ignore them and focus on the future costs and benefits of your actions.

– Evaluate the opportunity cost: The opportunity cost is the value of the next best alternative that you give up as a result of your decision. By continuing to invest in a losing situation, you are missing out on other opportunities that could be more profitable or beneficial. Therefore, you should evaluate the opportunity cost of your decision and compare it with the expected value of your current investment.

– Learn from your mistakes: The sunk cost fallacy can also be a learning opportunity, if you are willing to admit your mistakes and learn from them. Instead of being defensive or stubborn, you should be open-minded and flexible. You should analyze your decision-making process, identify the sources of error or bias, and correct them for the future.

In Life and in Trading

Always make sure to have an objective view of the situation. Try to assess the costs and benefits of each decision. Just because you’ve already invested time or money in something, doesn’t mean you need to continue to do so.

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The Perks of Dividend Investing

Dividend investing is a strategy that involves buying stocks of companies that pay regular dividends to their shareholders. Dividends are payments that companies make from their profits to reward investors for owning their shares. 

Dividend investing offers several benefits

  • Steady income: Dividend stocks can provide a consistent source of income that can supplement your earnings or help you fund your retirement. Unlike interest payments from bonds or savings accounts, dividends are usually not fixed and can grow over time as the company increases its profitability and dividend payout. Dividend income can also help you cope with inflation, as dividends tend to rise faster than consumer prices.
  • Capital appreciation: Dividend investing can also help you increase your wealth over time. As the company grows its business and expands its market share. During poor market conditions, these are also the companies most investors look to invest in. The reliability of dividends can help boost their stock price.
  • Diversification: Dividend stocks can help you diversify your portfolio and reduce your risk. Dividend stocks can come from various sectors and industries, such as energy, consumer goods, healthcare, technology, and utilities. By investing in different dividend stocks, you can spread your exposure and hedge against market fluctuations. Dividend stocks can also perform well in different economic conditions, as some dividend stocks are more defensive and resilient, while others are more cyclical and growth-oriented.

How to Invest in Dividend Stocks

Investing in dividend stocks is a long-term strategy that requires patience and discipline. To invest in dividend stocks, you should follow these steps:

  • Do your research: Before you buy any dividend stocks, you should do your homework and analyze the company’s financial performance, dividend history, and future prospects. You should look for companies that have a track record of stable and growing dividends, a strong competitive advantage, a healthy balance sheet, and a sustainable payout ratio. You should also compare the dividend yield, which is the annual dividend per share divided by the stock price, with the industry average and the market average, to see if the dividend is attractive and sustainable.
  • Build a diversified portfolio: You should not put all your eggs in one basket and invest in only one or a few dividend stocks. You should diversify your portfolio by investing in different dividend stocks across various sectors and industries, as well as different market capitalizations and geographic regions. You should also balance your portfolio between high-yield and low-yield dividend stocks, as well as dividend growth and dividend value stocks, to optimize your returns and minimize your risk.
  • Reinvest your dividends: One of the best ways to grow your dividend income and compound your returns is to reinvest your dividends. You can do this by using a dividend reinvestment plan (DRIP), which allows you to automatically buy more shares of the same company with your dividend payments, usually without paying any commissions or fees. By reinvesting your dividends, you can increase your share count, boost your dividend income, and benefit from the power of compounding over time.
  • Hold for the long term: You should not invest in dividend stocks if you are looking for quick profits or short-term gains. Dividend investing is a long-term strategy that requires you to hold your stocks for years or even decades, to enjoy the full benefits of dividend income and capital appreciation. You should not be swayed by short-term market movements or emotions, and stick to your investment plan. You should only sell your dividend stocks if the company cuts or suspends its dividend, or if the company’s fundamentals deteriorate significantly.

Conclusion

Dividend investing is a rewarding and proven strategy that can help you achieve your financial goals and secure your financial future. By investing in dividend stocks, you can enjoy steady income, capital appreciation, tax advantages, and diversification. To invest in dividend stocks, you should do your research, build a diversified portfolio, reinvest your dividends, and hold for the long term.

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Investa App: A Hassle-Free Investing Platform

The Investa app is our very own investing platform that allows users to invest in mutual funds. Investing through Investa is as simple as just clicking a few buttons once your account is all set! Let’s look at what the investing platform has to offer, and how easy it is to invest in mutual funds through it.

Get to know our investing platform’s partners

Investa has partnered with some of the best performing mutual fund companies in the Philippines: PhilEquity, BPI, SunLife and ATRAM. Partnerships were made with these companies to promote financial inclusion and affordable investing to millions of Filipinos! With Investa, you can buy their funds with ease! Here is a quick overview of what each mutual fund company offer:

  • PhilEquity – The ideal choice for investors who wish to engage in the stock market but lack the time and knowledge to do so is Philequity Fund (PEFI), which has been acknowledged for its exceptional record since its founding in 1994.
  • BPI – Focuses on funds that emphasize on inexpensive and lower beta names, shorter durations, and diversification strategies consistent with capital preservation in order to generate appealing risk-adjusted returns.
  • SunLife – Is a leading international financial services organization providing protection and wealth products, financial planning and retirement solutions.
  • ATRAM – Suitable for investors with a moderately aggressive risk profile while also being managed by an award-winning fixed income team.

Of course, this is just a very generalized overview of their fund management methodology. If you wish to learn more about their specialized approaches to the different funds they offer, you would have to go over the specific fund’s prospectus, which will be talked about later on.

How do you get started with our investing platform?

To begin trading mutual funds with the Investa application, head on over to the Investa app and sign up or log-in. For those who don’t have an account yet, let’s walk you through the steps. 

Your personal and contact information will be asked for to create your profile. Additionally, information such as your sources of income and relevant disclosures are needed. Don’t worry though, as all our data is protected and we ensure you that no one will ever gain unwanted access to your information. You will also be asked to create a 6-digit pin. This pin is IMPORTANT as you will need it to confirm your transactions.

Agreements and Documents

You will be asked to sign some forms and agreements after you provide your information. Documents will also be needed in order to verify your identity. When the selfie with your ID is asked for, make sure that your face is visible along with your picture in the document to make sure there aren’t any problems when your identity is being verified.

Risk Profile

Financial market investing is always risky to some extent. The degree of risk a person is ready to tolerate while investing is known as their risk profile or risk appetite. Before you can invest in mutual funds, you will need to fill out a risk profile survey which will help determine a proper investment asset allocation for your portfolio.

There are 3 types of risk profile scores: Conservative, Moderate & Aggressive

  • Conservative – prioritizes asset preservation above capital growth.
  • Moderate – equal importance to lowering risks and maximizing revenue
  • Aggressive – may aim for financial gain despite the potential risks of the investments.

Made a mistake or want to update your risk appetite? Investa allows its users to do so by contacting their user support email support@investa.ph

The investing platform itself

The account creation process should only take 24 hours if there were no setbacks with the documents asked for. Once you finish, you are greeted with the Investa homepage

Don’t know how to get started or want to know more about Mutual Funds? We got you. We have different sections to help your every need. From knowing what mutual funds are, to understanding how they work. We also have an FAQ section if there are any further questions. 

To begin with investing in Mutual Funds, start topping up your account through the following payment methods. Payments are fast and usually processed within the day or the following day. 

Topping-up is very easy with our different payment channels. The amount should reflect in the same day for most of our payment channels if the amount is less than PHP10,000. Once you have successfully topped-up your account, click on explore then scroll down to categories for you to check out the different ways you can invest in Mutual Funds.

Once you have chosen a category, start choosing a fund that you feel will suit your needs. Relevant information such as their YTD profits as well as risk type are also provided for users to check out. 

Once you have chosen your Fund, click on Invest Now to start investing Mutual Funds! If you want to learn more about the Fund’s prospects and methodology, documents are easily accessible on the right side of the page

Be sure to take note of the following information listed below the page to know more about the fund’s details. These will help you know how much you would need to start, how much you can add as an additional investment, and more. Keep in mind that funds usually have a minimum holding period. For this example, you need to hold the fund for 7 days or else you’ll be charged with a 1% fee.

To keep track of your investments, click on Portfolio. It will show you the current status of your investments such as the total profits, losses, and portfolio value. 

Don’t forget to check out the Prizes feature and complete tasks in order to win rewards from Investa!

When is the best time to invest?

As they say, the best time to start investing was yesterday. The next best time to start is today. Start your investing journey here with us at Investa as we help you achieve your goal of becoming financially independent. What are you waiting for? Create an account now and start investing in mutual funds through Investa, our very own investing platform. 

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What are Bull Traps and how to Avoid Them

For any trader with experience, bull traps are the worst. One minute, a stock could be rallying after a breakout. Then stops are suddenly hit only a couple of hours later as prices plunge downwards. Bull traps happen pretty frequently. It’s a part of the reality that traders have to face.

For traders who haven’t encountered this annoying market behavior yet, it would surely pay to learn more about it. Let’s dive into what exactly bull traps are and the countermeasures we can take!

Bull Traps

A bull trap is often known as a “false signal” in the market. As the name suggests, they often trap buyers – forcing them to close their positions as their cut loss points are hit. Bull traps can take many forms. Bull traps commonly appear as false breakouts. However, they can also come in the form of reversals that fail. Generally, you can identify bull traps when you see bullish technical patterns that appear to be working, only to fail in the following candlesticks. 

SPX counter-trend rally bull trap

A recent bull trap that occurred was in one of the U.S. stock market indices, the S&P 500. The gist of this was that everyone thought the inflation-interest rates fiasco was over. Players in the market assumed the Fed already turned dovish. As enthusiasm filled wall street, stock prices rallied. The general 4,200 level was the major resistance to break. Although prices broke past, the breakout immediately failed in the following week. As prices failed to hold, this only proved that the breakout was but a mere bull trap.

Bitcoin intra-day bull-trap

Just recently, Bitcoin also staged a rally. While the trend is still intact, prices created a bull trap scenario for intra-day traders. 21,800 was proving to be a resistance point that needs to be broken. Prices suddenly surged past the level, only to fall back quickly in a matter of hours. Again, the move trapped breakout buyers.

ACEX ongoing retest

This one is still an ongoing case. Will $ACEX hold above its resistance-turned support, or will it become a bull trap? Again, prices broke out of a major resistance level (17.00). Currently, prices are still retesting the level. If 17.00 fails to hold, the move can then be labeled as a bull trap. However, as the level still holds we can’t determine yet if the move was only a sucker play, or if it still has short-term potential.

The market psychology behind bull traps

As always, we need to understand the market dynamics behind certain behaviors. For shortable markets, these moves happen when bears start to take control. Since breakout strategies are already common, advanced market participants take advantage of creating false breakouts in order to get better prices for shorting. They are also able to short a bigger amount as breakout buyers put more liquidity into the market. 

For long-only markets, bull traps often take place during bearish environments. There will always be outliers in every market. However, not all breakouts tend to stay strong. Traders who are aware of this often make the adjustment of selling early into the breakout. While most retailers are still buying in hopes of a jackpot, seasoned veterans are already selling. In effect, this creates bull traps.

How do you avoid bull traps?

This begs the question, how do you avoid bull traps? Like all other losses, it’s impossible to fully avoid all bull traps. Breakout strategies are still strong tactics that can be used in trading the markets. Although not all can be avoided, you can take extra precautions or certain adjustments to avoid getting caught all the time

Look at the macro view of the market

As mentioned, bull traps often happen when the overall environment is bearish or when bears are in control. Hence, it would make sense to look at the bird’s eye view of the market. For example, if the index of the market you are trading is bearish, you can expect bull traps to happen more frequently. From there you can start to look at how you can make adjustments.

Selling quickly into strength

If you already know that the broad market has turned bearish, adjustments need to be made. There is a wide variety of tactics that can be employed. Selling into strength is one of the simplest, yet effective ways to avoid bull traps. Rather than trying to follow an uptrend, you can opt to sell profits quickly after a breakout. This entails lower risk-to-reward ratios, so you have to tweak your strategy to suit your style of trading better.

Buying tranches at support

As rallies are more short-lived in bearish environments, shifting tranches bought closer to support levels can be a viable adjustment. This will also let you get better risk-to-reward ratios if you choose to sell into strength after breakouts. However, keep in mind that you are also exposing yourself to the risk of breakdowns. 

Finding the right strategy

There are limitless variations in how you can adjust the way you trade. What was mentioned above are only just examples of adjustments you can make. As different market conditions demand different needs, you need to be flexible. This is where experience and preparation come in. Through being consistent with doing the hard work, such as studying your trading journals and reflecting on charts, the better you will be at anticipating possibilities and adjusting your strategies in your own unique way.

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Featured Trader of the Week: @jrebong

Our featured trader of the day is basing his trades on price and and trend analysis! Let’s give a round of applause and congratulate our featured trader of the week @jrebong!

Ray Dalio once said that “In trading, you have to be defensive and aggressive at the same time. If you are not aggressive, you are not going to make money, and if you are not defensive, you are not going to keep the money.” In the case of @jrebong, he believes that an entry of trade using TA is a must as it helps him to be more successful in terms of trading accuracy.

@jrebong has been a member of the Investagrams community since March 2016 and has been very active and sharing his trades. 

A couple of weeks ago, our featured trader posted his technical analysis on $ABA. A hot stock in the local market and a key player in the mining industry locally. $ABA recently surge with a whopping positive close at 2.36 with 7.76%.

As the stock recently reached a 52-wk high at 2.36. @jrebong charted its support, volume, and resistance,  on the chart, bound for a breakout in its trendline as he believes in its technical analysis. @alphatraderph felt an opportunity to have a good entry near the support and HOLD for a while.

TECHNICALS OF THE TRADE

In sequence 1, our featured trader charted RSI, MA, EMA, Volume and Stoch. Furthermore, as $ABA recently reached 52-wk high at 2.36 area. It is further to move up more and retest at 2.5 and 2.6 onwards before it pullback or retest in the 2.2-ish area. It’s RSI is overbough already but this will matter whether it will surge or pull back in the next few weeks. It’s MA remained uncrossed as it surges. ABA’s chart looks good in the market as local and foreigners are jumping in with the stock. The support of this stock is at 2.2 and 2 area. It’s resistance remained unknown since ABA closed at 52-wk high. While other mining stocks are falling, ABA remained strong and break its previous resistance and closed at 52-wk high. On the next sequence of the photo, our featured trader urges local and foreigners to ride in as it breaks out. He assumes that it will further surge and might be profitable for trading. Furthermore, it is best to observe technical indicators as ABA remained a hot topic recently. 

@jrebong was confident that this stock will further surge as he indicated in sequence 1 photo that this stock might be explosive. Explosive meaning that the stock will surge and will further break resistances. He did not charted support and resistances. However, he remained positive for this stock as he is obviously aware that it is overbought already and might be retesting in the next few weeks. Further to that, he is encouraging fellow traders to ride-in as he believes that ABA will further surge more.

FUNDAMENTAL CATALYST

AbaCore Capital Holdings, Inc. is a holding company whose shares are listed and traded in the Philippine Stock Exchange (trading symbol: ABA). At present, AbaCore Capital Holdings, Inc. has interests in the leasing of gaming equipment, gold and coal mining, real estate and financial services.  

As of September 02, 2022, the ABA closed at 2.36, 52-wk high. ABA remained underrated for some as book value per share of ABA is at 3.5 2Q 2022. Further to that, ABA is engaged with the businesses above. Furthermore, its key indicators are the following: return on assets, return on equity, earnings per share, current ratio, debt-to-equity ratio.

Return on assets: 0.09%
Return on equity: 0.10%

EPS: 0.0025%
Current ratio: 2.817:1
Debt to equity ratio: -1.39:1

The ability to pay for a company to its debts plays a vital role for each company. Based on the financial indicator of ABA, this will depend on you whether you will invest or not. Furthermore, ABA remained speculative for some and an ideal for some. Based on its financial statement and key indicators, it is some how doubtful for investors to ride in with ABA as its financial statement is doubtful for some. It is best to observe what will ABA will do in the next few weeks (For its TA and FA)

WHAT SHOULD BE MY NEXT MOVE

As the stock recently 52-wk high, it would be wiser to observe and wait for what $ABA might do next before jumping in. This stock is speculative since the industry right now is a much more focused industry by the national government. In terms of trading, the demand from consumers is continually growing. However, it’s best to wait for a consolidation, pullback, or a good entry near its support for a better risk-to-reward ratio. It would also be advisable to trade lightly and in tranches given that we’re not yet out of the woods.

Once again, KUDOS to @jrebong for being this week’s featured trader! Enjoy your 14-day InvestaPrime Access and continue to be an inspiration to the trading community.

Invest to build a better future and learn continuously to improve yourself.

Join our #InvestorDay 9.9 and get a chance to win LIFETIME ACCESS to our InvestaFest premium recorded videos and have the opportunity to learn straight from top traders, entrepreneurs, industry leaders in the country!

To join, simply:
1. Download Investa app
2. Complete application
3. Invest for as low as Php 1,000.00 to claim your 150 raffle tickets

You can invest as much as you want on or before September 9 and claim unlimited raffle tickets!

Invest today: http://invs.st/IVGWInvestorDay99Daily

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What to Know About Mutual Funds

Almost everyone knows by now that investing is a great way to grow your wealth. However, the biggest barrier for most people is often not knowing how to invest their funds. Luckily, there are Mutual Funds. Mutual Funds are a great way for people with no experience to start investing. Among the different assets, it is the easiest one to invest in. Let’s dive into what they are and what you need to learn first before you get started.

Mutual Funds

Mutual funds are issued by investment companies regulated by the Securities and Exchange Commission (SEC). There are different kinds of Mutual Funds. There are some that invest solely in stocks, while others focus more on fixed-income assets. They can also be categorized based on if they invest in the local or global markets. In fact, some go as far as to state whether they invest only in specific industries, or if they invest in the broad market. The easiest way to figure out the details of a specific fund is to read their Fund Methodology. From there, you can figure out if you’re interested to the fund or if you’d prefer something else.

NAVPS

Aside from a fund’s methodology, you also have to keep track of the funds value. The NAVPS, or Net Asset Value Per Share, refers to a Mutual Fund’s market price. When you invest in Mutual Funds, you will be buying shares of the fund. The NAVPS serves a function similar to a stock’s price. With this you can determine how the fund has been performing, and you can keep track of how your investment has faired moving forward.

Where do you find the NAVPS?

Usually, NAVPS is often reported at the end of the day by your broker or platform.

For example, in the InvestaPH platform, you can look for your fund of choice to figure out its NAV.

Why are Mutual Funds a good investment?

Mutual Funds have a low barrier for entry as it only requires a small amount to start. In addition, incremental top-ups also only require a small minimum a mount. For example, investing in a diversified Mutual Fund allows you to stay invested in a bigger group of companies while enjoying tax-free profits. On the other hand, individually investing in these companies by yourself would cost you more commissions and taxes, along with a bigger investment minimum.

Mutual Funds also save you the effort of having to research on your own. Since a professional fund manager takes care of this, you don’t have to worry about making decisions and executions. All you need to do is find the fund that fits you, then invest in it.

Are mutual funds safe?

Like all other investments, mutual funds are subject to losses as well. However, the goal of a mutual fund is to build or protect wealth in the long-term. Losses are unavoidable in the short-term, but most of the time you can bank on the experience and knowledge of the investment companies to make the right decisions and do what’s best for your investment.

Invest to build a better future and learn continuously to improve yourself.

Join our #InvestorDay 9.9 and get a chance to win LIFETIME ACCESS to our InvestaFest premium recorded videos and have the opportunity to learn straight from top traders, entrepreneurs, industry leaders in the country!

To join, simply:
1. Download Investa app
2. Complete application
3. Invest for as low as Php 1,000.00 to claim your 150 raffle tickets

You can invest as much as you want on or before September 9 and claim unlimited raffle tickets!

Invest today: http://invs.st/IVGWInvestorDay99Daily

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How to find the market that fits you

Did you know that there are a ton of markets you can engage in? With the multitude of options available, which one’s the best for you?

The entire global economy is full of opportunities, failures, growth, and success. What matters the most is finding the market that fits your needs. There are a lot of platforms that offer products and services that meet your specific need; you just need to go through them to find the market that fits you best. You can even go to our platform should you want to learn more on how to trade and invest. There are multiple tools, ranging from charts to watchers that help you navigate the markets no matter what your current knowledge is.

            There are various choices and these include the following:

1.       Stock Market – The stock market broadly refers to several exchanges and other venues in which shares of publicly held companies are bought and sold. (Investopedia, 2022)

2.       ETFs – An exchange-traded fund (ETF) is a type of pooled investment security that operates much like a mutual fund. (Investopedia, 2022)

3.       Forex Market – The forex market allows participants, such as banks and individuals, to buy, sell or exchange currencies for both hedging and speculative purposes. (Investopedia, 2022).

4. Commodities – A commodity is a basic good used in commerce that is interchangeable with other goods of the same type. Traditional examples of commodities include grains, gold, beef, oil, and natural gas. For investors, commodities can be an important way to diversify their portfolios beyond traditional securities. (Investopedia, 2022)

Since technology is inevitable, platforms globally are offering accessible products and services to trade/invest with your preferred market. All you need are the following: information about yourselves, funds, and an internet connection. Furthermore, these markets offer advantages and disadvantages.

Which market is suitable for you?

If you’re a day trader, the forex market could fit you best. The investment amount required is minimal (On an average of 100$). In addition, this allows individuals to trade or invest in global currencies, indices, and commodities. Furthermore, the forex market is simply the exchange of currencies (e.g USD to PHP, USD to Yen, USD to Euro, etc.)

According to Investopedia, generally there is no commissions in the Forex market, but a spread is being paid and serves as charges. “Spread, forex spread is the difference between a forex broker’s sell rate and buy rate when exchanging or trading currencies.” Furthermore, forex is a high leverage trading wherein it involves high risk and reward.

ETFs

If you’re onto ETFs, this could be the market you can engage in. Another thing to consider as day traders is ETFs or Exchange-traded funds. They will allow the trader to engage in currency moves by making trades on the stock exchange. In an ETF, there are advantages and disadvantages. One advantage ETF can produce is that it can be leveraged or underleveraged depending on the risk appetite of a trader or investor.

ETFs are also available in markets of oil, gold, silver, or stock indexes. Furthermore, this could be the best market for you if you’re into stocks. The day trade can also engage in the global and local stock market. Wherein you can long/short the stock pick you have. In the market as a whole, there are multiple alternatives you can engage. On the other hand, locally in the Philippines, the only available instrument for stock trading is longing.

Cryptocurrencies

Cryptocurrencies are popular nowadays because of person-to-person transactions. A lot of people transact using cryptocurrencies to date.  When trading cryptos, you can easily access it on any exchange platforms wherein the platform offers multiple products and services like forex, CFD, crypto, etc.

Commodities

Commodities such as gold, silver, or platinum are alternative investments you can make. Most investors globally are engaged in these commodities when there is a piece of bad-driven news in the market where investors and locals are switching their portfolios to more diverse commodity picks.

Stock Market

Of course, we also have to consider the stock market. If you’re into the safer side of trading, blue chip stocks are the best stocks you can choose to invest in. Blue Chips is a term that comprises the top companies representing one’s indexes. In the Philippines, the PSEi is known as the “Philippine Stock Exchange Index” and represents the top 30 companies that majored in the market.

Importance of selecting a market

The best market for you will depend on your needs. Thus, this will depend on the risk appetite you have. If you’re a risk-taker, go with high leverage markets such as Forex, ETF, and Volatile stocks. On the other hand, if you’re on the safe side of trading or investing, you can go with growth stocks and non-volatile stocks or market options. Again, this will depend primarily on what type of trader or investor you are.

With that, it is essential to know that there are different alternatives and options in the market. The markets has a lot to offer. What matters the most is how you do your trades or investments. Before you engage in trades or investments you must be knowledgeable about the products and services that the market has to offer.

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