Highlighting the importance of risk management in investments, Investment Analysis professor and stock trade expert Neil Patrick Muega RN, REB, MBA encouraged students to not be afraid of risk since “risk equals to opportunity.”

In a zoom webinar titled ‘Risk Management in Investments’ Muega said that one “does not need to have a high-level IQ to compete with finance professionals in investing.”

“The important thing here is that you have discipline and attitude. If you have the discipline to stick with the goal and the attitude of investing every month, then, in the long run, you can be better than them.” he explained.

According to Muega, the first step in investing is learning.

“Kung gusto niyo talaga mag invest and no knowledge kayo, first is mag-aral muna kayo kahit konti lang o kahit papaano, be informed and you stick with diversified instruments.”

The trade expert further reminded the students not to trust youtube traders who have become millionaires overnight because these are just ‘marketing propagandas’.

Risk and Investments

The stock expert explained why decisions should not be based on emotions or feelings.

“Risk is equal to uncertainty, and buying low and selling high is the key to earn,” Muega said.

“We must be logical,” he added.

Muega further elaborated the two types of risk namely the Unsystematic risk, which can be eliminated or lessened and Systematic risks such as wars,and natural disasters.

According to him, the most inherent Systematic risks in the Philippines are people power, floods, pandemic, earthquakes and one way to eliminate these risks is investing in other countries.

“More risk is equal to more return.”

The said webinar participated by approximately 120 students was held as part of the School of Business and Governance’s Week organized by the Junior Finance Executives last January 21.