Did you know that Philippine Stock Market started since 1927 and it is considered as one of the oldest in Asia Pacific? Manila Stock Exchange started a shop in the Binondo business district that year. Its sister Makati Stock Exchange started also on the same year in the Makati financial district.
But despite of its existence for almost 9 decades now, only a handful of Filipinos are into stock market investing. According to the latest statistics, less than 1% of the pinoys are investing in the stocks.
It is still not popular among us, Filipinos.
We can’t blame our kababayans for shying away from stocks. There are so many myths and urban legends about investing in the stock market. I’d like to bring them up on this article.
1) Philippine stock market is only for the rich and affluent
Pangmayaman lang daw ang stock market. Kailangan marami kang pera kasi malaki ang kailangang capital.
This is one of the first myths about Philippine Stock Market Investing. Of course, there are big institutions such as banks, mutual fund companies and even foreign fund managers that trade in the Philippine Stock Market.
However, the truth is that you don’t need to have lots of capital to start investing in stocks. As low as P5,000, you can start an account with online stock brokerage and you can start investing.
2) Philippine stock market is complicated
Masyadong komplikado ang stock market. Kaya sabi ng ibang kaibigan ko, huwag na lang.
Like other things in life, you need to learn how to make “baby steps” until the time comes that you begin to master the steps. There are terms that you need to understand. You also need to learn how to trade with your online brokerage platform.
But it is not really as difficult as people think. On a side note, brother Bo Sanchez even wrote a book about his house helpers investing in the stock market.
Minimum you will need to know the following to start investing in the Philippine Stock Market:
a. How to open an account in an online stock brokerage. Since I started trading in PSE, I am using CitisecOnline (COL Financials) and I love their service.
b. How to fund your online account
c. How to buy and sell in PSE using your online stock broker
d. And the most important! Knowing what stocks to buy, when to buy and when to sell.
3) Stock market investors are glued to their seat watching their stock investments like hawk
Wala akong panahon. Ubos oras mo niyan sa kakabasa ng mga company news at stock analysis. Busy ako sa trabaho.
This is another myth I commonly hear from my friends. I consider it as half truth.
Currently, PSE opens on weekdays at 9:30am to 12 noon. It closes for a noon break and then reopens at 1:30 pm to 3:30 pm. I have friends who are doing day trading. They are in front of their computer all the time. They need to get a real – time update of price movements of the stocks in their portfolio.
On the other side, I don’t do day trading. I invest in the stock market. I don’t trade.
Those two are different things. Trading is buying stocks with the intention of selling soon and it could be as short as few seconds. Investing is buying stocks with the intention of holding it for a long term.
I usually check my stocks once a day. I check at around 11:45 am before I go for my lunch. There are only 3 things I take note of – what stocks to buy, their buy below price and sell price.
Every stock I owned has buy below and target selling price.
All these things I get from the truly rich club. Thanks to the wonderful team of brother Bo Sanchez. It saves me a lot of time.
4) Stock market is dangerous. I might wipe out all my money.
Masyadong delikado at sobrang risky yan. Baka maubos ko lang ang pera ko diyan.
Again this myth is true but incomplete.
After all, according to statistics, 85% of those who invest in the stock market loses money.
Stock market is dangerous and you can wipe out all your money if you treat it as a game of chance. You can’t just pick any stock on the basis of your gut feel, buy it and hope it goes up after some time. You can’t get lucky all the time. You will be wiped out.
There is a way of increasing the odds in your favor. It is called cost averaging. It is also called passive investing. Cost averaging is a process of buying stocks from a very stable company regularly. You buy weekly, monthly or quarterly whether that stock goes up or goes down.
You will be part of the 15% who earn. It is true and it is possible that you can make the stock market as safe as your savings account. The best part is that you earn much much bigger than the interest you can get from the 1% per annum that you get from your time deposit.
But there is more, truly rich club is teaching its members SAM (strategic averaging method). It is as safe as cost averaging but the returns are even higher.
5) Stock market is a scam.
Baka scam yan. Ayoko niyan.
In the stock market, you are depositing your fund on your online stock broker. Using your funds, you buy and sell the stocks of your favorite companies. In the process, you earn from stock dividends and you loss or earn money depending on the price difference of your buying price and selling price.
For more than 9 decades, the Philippine stock market went into several up and down cycle. Lots of people have lost or earn from it.
It is not a scam. It is a legitimate investment open to every pinoys for the taking. This is true as well to other stock exchange around the world.
Need a proven method to earn from stock? I highly recommend that you can join the truly rich club.
Got questions, clarifications, suggestions or comments. Just add them below in the comment section. I’ll do my best to help you.
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