A Guide for You to Start Investing in the Philippine Stock Market Today
The stock market is the place where shares of different companies are being bought or sold. When you buy a share of that company, you are now called a shareholder of that company.
When you start investing in the Philippine stock market, you can earn in two different ways: by receiving dividends from the company you have invested on or by the appreciation of the price of your stocks. The most common way an investor earn in the stock market is by selling their stocks to other investors when the price of their bought stocks increases.
The Philippine stock market is also known as the Philippine Stock Exchange. The Philippine Stock Exchange has two trading floors, one in Ayala, Makati City and the other at Ortigas, Pasig City. You may not go there personally because transacting in the stock market are done by your chosen stockbroker, himself.
But before you start investing in the Philippine stock market, you might want to do some of these things first:
- Read investing books or articles and be knowledgeable about the country’s economy and how the Philippine Stock Exchange is doing
- Pay off all your debts, if you have any, and avoid investing borrowed money
- Save and build up your emergency fund before you start investing in the stock market
- Know your goals and why you are investing in the stock market
- Identify what kind of investor you really are
You can start investing in the Philippine Stock Exchange for as low as 5,000 pesos today, depending on your chosen stockbroker, but it is still advisable to invest as much as possible. By doing that, you may reduce risk and invest in more stocks.
Things That You Should Do To Start Investing In The Philippine Stock Market Today
If you think you are ready, you can follow these steps to get you started in investing in the Philippine stock market as soon as possible:
- Choose your own stockbroker
You have the option to choose your very own stockbroker, the person that will be doing transactions for you at the Philippine Stock Exchange. You can choose between a traditional stockbroker or an online stockbroker. Both have its advantages and disadvantages, so be aware of those when choosing your stockbroker. Traditional stockbrokers can give tips and advice to you on where you can invest while online stockbrokers offers easy access and monitoring of your investments.
- Open your brokerage account
If you have chosen who your stockbroker is going to be, it’s time to open a brokerage account. Opening brokerage account is like opening your own bank account, you will just be asked to fill out some forms. After filling out those forms you can forward it directly to the office of your stockbroker.
- Select the stocks you want to buy
Know what stocks are good for you to buy and those that are not. You should give some of your time in researching and studying about different companies in the Philippine Stock Exchange. Knowing how companies perform and what they are doing, will give you an advantage when it comes to buying and selling stocks. When you start investing in the Philippine stock market, you should always remember this
“Your earnings will be calculated the time when you buy your stocks not when you sell them.”
- Place your order
When you have opened your brokerage account, you can start investing in the Philippine stock market and buy your first stocks. You can do that by instructing your stockbroker about these following information: what company are you planning to buy stocks from and how many are you going to purchase. You may contact your stockbroker by calling him directly or by just sending him a message, or through the internet when you have an online stockbroker.
- Monitor your investments
You should always be updated on what is going on about the economy and how the Philippine Stock Exchange is performing. By reading newspapers or contacting your stockbroker to ask what the market is doing, you can be informed properly and this will help you decide on your next move.
Always remember that when it comes to investing in the Philippine stock market or other investments there are risks involved and it is up to you how you will manage those risks. Don’t expect to earn fast, investing in the stock market is not a get-rick-quick-scheme.
To be successful in the investing world, you must have the patience, knowledge and dedication to learn more and improve your decision-making skills. You don’t need to be that smart in academics but you do need to know how to play the game of investing and to play it right.
Photo Courtesy of Tax Credit