Success in business doesn’t happen by accident; it’s a result of careful thought, planning and execution. A key component of business planning involves the development and implementation of specific strategies. Successful business strategies include areas such as self education, innovation, marketing, and correct usage of resources.
This applies as well in managing your savings from your business. You want to maximize the income of your hard earned money without being bothered with what you know better in making money. In my case, what I know better is working full time on my job for my living and working part time online business for my fortune.
I don’t want to be bothered with my affairs sa aking bini-build na business kaya I decided to invest my savings sa Unit Investment Trust Fund (UITF) sa bank. The fund is based on securities, and to simplify, I just took the one that mimics the Philippine Stock Exchange Index. Setting a strategy that I will follow can be lifesaver for me.
Short term trader or Long term investor?
Some investors are short term traders. Some are long term investors. I consider myself to be in the second group.
Ang isang strategy na nabasa ko ay “invest your money that you will not need in the short term”. If we refer to the 10 year graph above, masasabi natin na “foolish investor” ang nag-enter during the peak of 2008. Ang strategy niya is to “buy and sleep” for 10 years (at least his holding), despite the 50% loss on paper during 2009, paggising niya ngayon, his money doubled. This might be perfect for long investors.
Isa pang nabasa ko na strategy ng isang super worrier, he put a stop loss at 5% and sell order at 15%. This way, he can get way ahead of the heard who has the mentality of buying high (when even your barber talks loud about stocks) and selling low (when everybody is afraid that the economy is doomed). This might be perfect for short term investors para maiwasan ang ma-heart attack .
Set your goal then enjoy the ride
Anyway, I’m still a newbie (and too old to get started) in investing and I am still in the accumulation phase ng aking investment fund that I will need 15 years forward. Sa ngayon, ang goal ko is to put into play P1M within two and a half years (until December 2017) regardless of the price.
I will concentrate more on what I do better in looking for money, that is by working full time on my job for a living and part time online business for my fortune (investment). Then I will let the market do its job and my investment to work for me.
And with two years of experience as I am also learning from a group, my knowledge about investing is improving. And with this additional learning, I will be refining my strategy to use 10-20% of my portfolio to be a bit aggressive.
Historically, 65% of the time, buying a participation/shares during December-January and sell during June-July is a winning strategy. That means I will buy double my regular monthly purchase during December-February period and wait until June-July to sell at 15-20% gain. I will then park the cash or put in money market and wait again for December-January to do the same strategy.
And since I’d be doing that strategy with only a small percentage of my fund (10-20%), my long term strategy will not be affected.
Kaya ang sa akin, set a strategy and work with it. Keep improving the strategy, but always keep in mind that the strategy will not bother me with my job and online business which are the bigger source of income right now. And when the time comes that my investment can pay for the lifestyle I choose, by then, I can go full time with my online business while my money is also working full time for me.
Please comment below if you have learned something with this blah blah from me.