Setting a Strategy To Succeed In Your Business
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 full time job and part time online 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 with my full time job and in building my part time business so I decided to invest my savings in Exchange Traded Funds (ETF) and Unit Investment Trust Fund (UITF). The fund I chose is based on securities, and to simplify, I just took at 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 herd 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.
With two years of experience in investing in the Philippines, most investors are noticing the downtrend during July to January period. Historically, this happens 65% of the time. With this, I will be refining my strategy. I will be doing the Peso Cost Average (PCA) monthly, and Strategic Average Method (SAM) to buy during dips. I’d be calling this Strategic Cost Average Method (SCAM). As usual, I will buy and hold for long.
Keep adjusting your strategy
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.
Let me know if I can help you get started with your investment for your financial freedom in the coming near future.