How to make money in the Philippine Stock Market in 2023 ( Beginners Guide to Investing at Philippine Stock Market)
” Stock Market is a device for transfering money from the impatient to the patient” – Warren Buffet
So, who does not want to make money with their money alone is the one working? Yes, it does sounds ridiculous while very interesting also.
But the truth is that you can do that, the word for it is investing. You will buy something that will rise value or price in the upcoming years, then sold it for profit.
Company stocks fall under this principle, especially if the company alone have a long history of success both in growth and profit.
You can only buy company stocks at the Philippine Stock Exchange (PSE), unless you have millions in liquidity to directly invest on a company bypassing the stock market.
Well, if you’re just like me, a common people, then you need the Philippine Stock Exchange to buy any stocks of any public traded company in the Philippines.
But before I continue about making money in the Philippines Stock Market, I will share about some terms you might encounter if you decided to invest in.
Philippines Stock Exchange
The PSE is the marketplace in the Philippines, where roughly 300 public traded companies are available for trading and investing by any individual, whether a Filipino or a foreigner. If you’re not a millionaire investor, then this your place to buy or trade any of those public trader company’s stocks.
Stocks or shares are part of the company, which being offered via PSE or the Philippines Stock Exchange to any individual that looks to put their money to exchange of ownership.
Then, the company will use that money they gathered via those stocks or shares for business expansion and other things that the company will benefit.
Stock Market Broker
One more thing, before you can buy any company stocks in the Philippine Stock Exchange you will be needing of a license broker or commonly known as stock broker. The stock broker will be the one to buy or sell a stock on your behalf.
So, basically, you will not do anything on this, you will just to pay a stock broker everytime you made a transaction, either selling or buying.
For me, I’m using the COL Financial firm as my stock broker, because they have an online account registration, which by the way is very convenient for me, since I do live in a province. But you can find many stock brokers in the Philippines via the web right now.
Be sure to conduct a thorough research on your chosen stock broker, be sure he or she is a licensed stock broker in the Philippines.
So, let’s begin on how you can make money in the Philippine Stock Market or the Philippine Stock Exchange…
There are only two ways to make money in PSE or the Philippine Stock Market…
Stock Trading
It may sound simple, like trading stocks if the current price of your chosen stock is higher than you bought it, then you can sell it. Most stock traders do that, but it may make you money or not.
The common principle on stock trading, is that “BUY LOW, SELL HIGH”.
Because every time you will trade a stock, the stock broker of yours will get a commission, which they in the profit, which will then lower your profit.
And, the dangerous part of stock trading is that the stock price, is the one thing you will never predict, which could lose your initial money.
Most stock traders never actually made money, since it is impossible to predict the price of any public traded stock, that’s why seasoned investors never promote stock trading.
Also, emotions will play an important aspect on this, especially if you see the stock goes down, there’s a high chance that you would sell it, in a lower price.
Which means that you’ve already loss a significant amount of money on this.
It is just a human nature, to follow others if there’s something happening around, stock market is not an exception to this. That’s why we have Stock Market Crash.
Investing
On the opposite side of Stock trading is stock market investing. Stock market investing is widely promoted by many known investors, like Warren Buffet, because it guarantees a return of investment (ROI) in small amount yearly.
Investing will not give you any stress, since your aim is long-term success on a stock or a company, you decided to put your money.
On the other hand, there’s a danger also in investing in stocks, especially if you’re the one who will pick the stocks to buy. Unless, you’ve done your research on that stock, the chances of not making money are also little high.
So, most successful investors promote a mutual funds. Mutual funds are a pool of money from many investors, which a mutual fund manager will be the one who will invest it in the stock market and other equity asset.
Mutual funds are relatively cheaper to buy per share than company stocks actually. Plus, you will not get stress knowing your money is in a good hand.
The best mutual funds are Equity Mutual Funds and Index Funds. These are common mutual funds you can buy, but they have a huge difference in earning money.
Equity Mutual funds aims to beat the Philippine Stock Market, means that they are expected to make higher returns than the market itself.
While Index funds aims to follow the trends of the Stock Market, means that if the market is doing well then, the fund also does well.
But, investing in funds comes with also with risk, you will not see any returns of investment if you are investing it for just a year. To see an actual money here, at least invest on those for 5 years.
My thoughts on Stock Market Investing…
Never invest your money if you lack knowledge on something, because I guarantee it, you will lose all of your money. Do a research about Mutual funds, the stock market itself and what are the risk of investing.
Always remember that time is your friend in investing in stock market, the earlier you start the bigger the money you will receive at the end.
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