How To Make Money By Investing!

I had a friend, he invested a one time amount and expected to earn form it. I also invested some time ago on Petron's IPO that did not earn what I expected it will. So many clients and friends tell me the same story, that investing does not make them money. They are wary that what they invested had not earned anything for them and so does not want to repeat the same, so they shy away from any form of investment.

Another case is that of a company who invested 3M in Mutual Funds last 2008 and when the Net Asset Value Per Share (NAVPS) plunged by as much as -34%, they sell it off at a loss, and then concluded, it is not good to invest in Mutual Fund. We cannot make money on investing!...

What is the missing activity or process that leads many to have this experience and then concludes it is not good or even safe to invest? Obviously, it is lack of knowledge and correct practice in investing.

There are two ways of making money on investments... One is what we call Trading, and the other way is Money Cost Averaging.

Trading is buying and selling . So stocks trading is also buying and selling stocks. It is timing the market when it goes down so you can buy shares and selling it when the share price goes up. I will liken this to any kind of trading. You buy then you sell it again to interested buyer at the cost you buy it plus your profit. This kind of making money in stocks or shares in Mutual Funds requires timing, and trending. Some people earn from trading in stocks this way , but based on the information I have obtained from our mentors, only 20% win this way. 80% lose their money in trading.

The other way is to maximize money cost averaging. This is a more disciplined approach in investing and does not require you to time the market. Meaning, you just consistently and continuously invest regardless of whether the share prices are on upward or downward trend. This is what we recommend investors do. This is also what Warren Buffet recommends when he said "do not time the market".

Of course, profit or loss is only realized when you sell off your shares. Therefore, the rule is you only sell at a profit so you win.

If you want more specific and personalized coaching on Mutual Funds, please feel free to contact me.

God bless!