From a hesitant investor to full-time stock trader
Arthur James Aliazon, a 35-yearold former college professor, had so many misconceptions about the stock market.
He thought investing in stocks was just for the rich and smart people, and was only suited for those who have guts to watch it every day.
Not until six years ago when his wrong perception about stock investing had totally changed, and Arthur shared how he rose from being a university professor to a full-time stock trader now.
"I've heard about the stock market all my life but nobody I know could fully explain it to me. My younger memories of the stock market were comments coming from friends and family that it is 'gambling,' 'only the rich could be in the stock market,’ 'you need millions,' etc.," the Cebuano stock trader shared in an interview with The FREEMAN.
Six years ago, Arthur came across a book entitled "My Maid Invests in the Stock Market" by renowned book author, inspirational speaker, and financial and life coach Bo Sanchez.
"That intrigued me a lot. At that time, I thought it was impossible given what I've heard about it growing up," he said.
And so he got a copy of the book and it struck him.
"It is not as difficult as people say it is. The idea that Bo Sanchez's helper was in the stock market inspired me. I thought if she could do it, I could do it too," the Cebuano investor said.
Arthur had been teaching computer science at the University of San JoseRecoletos for around 10 years but he decided to quit from his teaching job just early this year to go full-time on stock trading.
"I began investing in the stock market around six years ago while I was teaching. I tried to learn as much as I could while I kept my fulltime job as a teacher. Early this year, I felt that I'm ready to move on to the next step. That is why I decided to go full-time in the stock market. Right now, while I trade, I continue to invest in myself. I continue to attend seminars and training related to the stock market. Each day, I grow more confident with my skills," the professor-turnedstock trader further shared.
Arthur also encouraged some of his friends to invest.
"Many of them are also my fellow teachers. We've been investing and trading since then," he said.
Arthur started investing in stocks with only P5,000, the initial investment for a person to start buying stocks in the market.
He started as an investor — someone who puts money in the market for the longterm — and eventually became a trader — someone who plays in the market for the short-term.
When he was starting, Arthur applied the peso cost averaging method in investing where one allocates a regular amount of money in his portfolio in an aim to accumulate more stocks in the long run and realize the power of compounding.
CONTINUE LEARNING
Arthur has realized that in investing, it's important to continue learning.
"Learn, learn, learn. We are at a time in our history when we can learn anything from baking to immigration laws to first aid even without going to school or learning from professionals. Everything is right in our fingertips with a computer. I take advantage of this technology to learn more from other traders and investors here in the Philippines and abroad," he said.
In stock investing, it is ideal to start small.
"As you increase your portfolio, increase your knowledge too," he added.
He also urged would-be investors to always ask and learn.
"Don't be afraid. Ask around. I'm happy to discover that there are a lot of traders who have made it their mission in life to teach others. Nobody becomes a master overnight but knowledge is actually available if one seeks it out," Arthur said.
Aside from being a fulltime stock trader, Arthur also finds time hosting events as source for his daily expenses.
"My gains in the stock market are rolled on to buy more stocks. I'm building up my portfolio so I can realize my mid-term goal to have a sizeable amount to put in the US stock market," he said.
For Arthur, stock trading and investing is an ongoing journey of learning and relearning.
The greatest investment one can have is himself or herself because the more he or she knows, the greater financial decisions he or she will make.
And people should never rely on one source of income, thus must create multiple sources of income.
Arthur's story teaches that a person's background does not hinder him or her from investing in the stock market.
It is also important for aspiring investors to surround themselves with people who share the same goals and values with them, and must have a financial goal and plan first before investing in market.
MORE FILIPINOS SHOULD INVEST
Book author, renowned financial speaker, personal finance expert and stock market trader Marvin Germo said it's time that more Filipinos earn and take advantage of the growing Philippine stock market.
"It's been almost a decade since I started my road towards financial freedom. When I started to invest there were less than 1 percent of the Filipino population investing in stocks. Fast forward a decade later, there’s still less than 1 percent of Filipinos investing in the stock market," Germo lamented.
He said people still think it’s too complicated, too risky, that it’s only for the rich, for analysts, for people good in math, people with insider connections and people who are glued to their screen watching green and red numbers move from left to right.
"Nothing can be further from truth. These are all misconceptions on what the market is. The sad part about it is the PSEi has moved by leaps and bounds for the past decade and a huge chunk of the earnings went to foreign funds," said Germo, who is author of the Stock Smarts book series.
"Nothing wrong about that as we still need an infusion of foreigners investing in the Philippines but I really believe it’s time that Filipinos earn and take advantage of their own market," he said.
"I believe we can get 10 percent of the population invest in stocks. I believe it can happen in this generation," Germo said, stressing that there is definitely a need to bring more consumers into stock investing.