Updated: December 21, 2020
Note: This article was written in December 2017, a time when Bitcoin set a record high. In December 2020, Bitcoin hit an all-time high and many are asking how to make money from Bitcoin. This is my advice for those asking.
While most people are focused on Bitcoin, there are a few who are making more money in the stock market. And today, I’m going to tell you a true story that just happened this week.
I don’t normally put money or trade Bitcoin because I know other ways of making money where I have more control, with less risk, and I’m more competent with.
Those other ways of making money, one of them is stock market trading. And that’s what today’s story is all about.
Easy money with ECP
Last December 12, a stock trader friend called me to ask if I know of any news on EasyCall Communications Philippines, Inc. (Stock code: ECP).
I said none, and then I asked why.
He said that its stock price is hovering below its long-term resistance of P5.50. And that he plans to buy once it breaks above P6.00.
He called me as part of his due diligence.
I did some digging in the news and I couldn’t find anything. So I said to him it’s a fair opportunity, and I’m thinking of joining him in the trade.
On December 13, the price of ECP opened at P6.00 and closed at P8.15.
I was able to buy 2,800 shares at P7.00 each, which costs me around P19,600.
Then on December 20, the price of ECP shot up to P60.00. Yes, sixty pesos!
I sold my 2,800 shares at P40.00 that day. And in a span of one week, my P19,600 became P111,000. (Exact amount: P19,656.84 to P111,115.20)
That’s 465.27% profit in just a span of 7 days.
Meanwhile, one Bitcoin went from $16,000 to as much as $19,700 around this period. If I had put my money on BTC, my P19,600 would only be around P24,100 instead of P111,000.
Here’s what I want you to learn from this story.
There are a lot of opportunities to make money. Don’t focus on just one.
And don’t be lazy and just wait for something to trend.
Because as I always say, when people are already talking about it on Facebook, you’re probably too late for the party.
Invest on your financial education.
Learn how stocks, bonds, mutual funds, currencies, and other financial instruments work. Know the difference between them, as well as what trading and investing means. And study how to start and manage a business.
Before Bitcoin, people have been making money from the stock market and the currency market. And even before those two markets existed, people have been building wealth through businesses.
It’s fun to make money with very little effort. But the truth is, that can only be possible if you invest time in your financial education first.
My friend has been a stock market trader for almost a decade. It’s his passion and has dedicated countless hours to studying technical and fundamental analysis.
That’s why I’m sure he made a heck of a lot more money than me from that ECP trade. And I was just lucky enough to be tagged along with him for the ride.