"90% of the time, stick to what you know."

POSTED ON June 14, 2019

Rucha, 26 years old, writer

How did you get started in investing?

Growing up, bonding with my parents included watching the news with them. They would make comments about the stock ticker while we watched. My dad, a businessman, explained the stock market in simple terms - buy low, sell high. Everything else was a fun guessing game. That's why we called it "kawat" - the Bicol word for "play."

What's the most important lesson you've learned from investing? 

I started with the blue chips but now I put my money in smaller companies. The thing with stocks is it can be exhilarating. You get into one stock recommended to you and a week later, you have double-digit growth. Seeing those numbers make you crave for more, even when the bigger picture is worrying. You get into stocks you don't know about. Then, it happens. The global economy starts slowing down, foreigners start pulling out. Now your portfolio's in the red. You struggle to improve the situation and you dig a bigger hole for yourself.

Lessons learned: Have a system in place and stick to it. Trust your gut only 10%. 90% of the time, you stick to what you know. Don't get greedy and don't try too hard.