How To Invest On Stock Market Of the Philippines for Beginners in 2021

A simple step by step guide for Filipino beginners in building a wealth for your future…

Money is the single medium that symbolizes power, it may not make you happy but it will buy things can make you happy. But earning money, is only a reflection on how valuable you are in the market.

To earn money, you will only need two things; your time and your money itself. Your job or work falls on trading your time to make money, while your money is needed to earn new money.

Needing money to make money, which means a capital to start like business or to invest on something which will become more valuable in the future.

Starting business is very risky, especially if don’t do some needed actions while investing comes with risk but not that much risk.

Investing in the Philippines stock market is one of the best you can do now, while doing it for your future. Time is the friend of investing, the more time you put in the bigger your fruit will be.

The Stock Market of Philippines is relatively small compare to the U.S stock market and other bigger economy nations. It is governed by the Philippines Stock Exchange, which are the sets the rules who can go publicly available or not.

Keep in mind, that if you’re planning to invest your hard-earned money to stock market, then you should do a research about it. There are always risk with this, your goal is to at least minimize those risk or ending up losing your entire investment.

Common Terms You Might Encounter in investing at Stock Market…        

Philippines Stock Exchange

It is the corporations that facilitates the exchange of securities or any instruments of every public traded company or corporations, whether for buying or selling those.

Source: Philippine Stock Exchange.

Brokerage Firm

Brokerage firms or companies acts as your middleman in any transactions involving in the stock market, whether you’re buying or selling stocks or mutual funds and other public traded assets. They will receive commissions or fee every time a transaction is completed from you.

By the way, I’m using COL Financial as my brokerage firm, but you can easily find many in the internet today or ask your bank if they have.

Note: NOT SPONSORED or AFFILIATED

Stock Trading

From the word itself, “Stock Trading”, which means that you’re doing a transaction or trade on a public traded stock or mutual funds, whether you’re buying it to position yourself in the future or selling it to receive the profit. Either way, stock trading is a dangerous game that you should avoid if you don’t really know about the risk it brings.

Mutual Funds

A financial vehicle made by a pool of money from the investors, which then invested into securities such stocks, bonds, money market and other asset; by a fund manager. Mutual funds enable you to invest on the entire stock market as a fraction of price than individually picking each stock.   

Source: Investopedia                      

   

The steps on how to invest in the stock market of the Philippines…                                                              

First step – Do a research

As I already mentioned above, find all the information needed about investing in the stock market, and what are the risk involving it.

Always, follow this rule, “if somebody makes money in the stock market, then there is somebody that also loses money”

Information’s about the stock market are already available in the web right now, whether you will invest in the stock market of Philippines or in the foreign stock market, which the rules are the same.

There’s a huge chance that you will immediately jump into investing, especially if you know someone whose been so called “investor”, and shares how much money he/she is making from it.

Research about “the risk” on investing at the stock market because in doing that, you can identify to yourself what is your risk tolerance.

Your risk tolerance is very important here, because investing on wrong product like mutual funds, there’s a chance that you could lose money.

Second Step – Find a Brokerage Firm

So, you’ve already done your thorough research about the stock market now, and already knew about the possible risk involving it.

You cannot directly invest at the stock market, you will be needing a licensed stock broker, which are working on Brokerage company.

There are a number of ways you can to find a licensed stock broker or a brokerage firm, you search the internet now, so much information’s are already available about the top brokerage firm in the country.

Just find enough information about your chosen firm, because every brokerage company has its own rules being, which you might like or not. That information will be your basis, if the firm you chose is for you.

Also, you must identify how much they will be charging every time you will do a transaction, because it will definitely eat your profit.

Third Step – Invest Your Capital

You’ve already done the first two steps in investing to stock in the Philippines, then your next step is to invest your capital now.

Invest your money, that is consider to be “extra”. Since this is a long-term commitment, which by the way, there will be a lot things that might happen in your life during that time. Which might affect your investment decision-making at all, resulting into bad investment strategy.

As many investors always says “at least have a reserve money, that will support your basic needs for at least 6 months”.

For me, I will invest the money only I’m willing to lose, but losing money in investing is just small chance.

Just check the entire graph of stock market of Philippines, from the very first day of operation until now, you will immediately that it goes up, with few downs.

Look on the big picture, it means that your capital will be continue to earn more depending on how many years those capital will be invested at the stock market.

Fourth Step – Invest consistently

After putting your initial capital to a certain stock or mutual funds, you must consistently invest certain amount, whether monthly, quarterly or annually.

Just imagine that your saving money on a bank, but with more earnings on your capital than the bank provides.

There’s nothing wrong on saving money, because it will provide you the money needed in case of emergency, but if your goal here is to build up wealth.

Putting money regularly on your investing account, it will allow your capital to continues grows on a yearly basis, whether the market goes down or up.

Investing consistently until you retire, which means that you invested for more than 20 years, it surely be in millions once you pull those.

And you will be enjoying your retirement never worrying on money at all.

My final thoughts…

Investing in the stock market of Philippines, needs a lot of patience and of course a strategy, if you want to truly build a wealth at the future. Investing is a long-term commitment but also it guarantees that your capital will definitely earn a profit for you.

Those market downs that happened in the past or might happen in the future will be just a bump, because your money is invested for many years. Which if the stock market is down now, then it will surely go back up on the very next year.

Investing at the stock market of Philippines, is one best way to create a wealth for your future and to your family. And the more quickly you act now, the more your capital will earn in the future.

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