Stock Market Investing for Beginners

By: Crown Asia

According to an article in the Philippine Daily Inquirer, the stock markets all around Asia are positively spiking due to their American counterparts similarly rising as well. The Philippine stock exchange, fortunately, is benefiting almost the same amount as its fellow Asian countries.

The article stated, “MSCI’s gauge of Asia Pacific stocks outside Japan was up 0.39 percent at 0134GMT. Hong Kong’s Hang Seng index and China’s benchmark CSI300 Index were up 0.3 percent and 0.14 percent, respectively.”

With this, you can definitely have enough money to revamp your condo for sale Philippines especially if you become one of the many (and smart) new investors as well.

Still, having some hesitations? Here are some reasons why it is a great financial move if you become a stock market investor, especially how things are going.

Why You Should Take Part in the Philippine Stock Market

Investing in stocks is a ticket to wealth especially if the other option is to just store in your local bank. As the financial institutions advise, the poor spend, the middle class, and the rich invest in stocks. They invest money because this is one of the few ways the possibility of an individual’s or a company’s growth when comes to money. Here are the specific benefits:

Protect Your Money from Inflation

According to the Motley Fool, a website known for good financial advice, the returns of a stock market investment often significantly outpace the rate of inflation. For example, the long-term inflation rate has run about 3.1% annually since 1913. That compares to a double-digit annual return from stocks. Stocks have been a good way to hedge against inflation.

In this current time of the rising prices of basically everything and anything possible to buy here in the Philippines, you need every bandage or weapon to help fight inflation, and stock trading of the right stocks could do just this. If you want to maintain your fine dining trips and/or the sophistication of your condo for sale Philippines, you really need to dodge the harsh consequences of inflation. One thing to cope with this is through investing in stocks.

Connect yourselves to your favorites

Ever wished you are the owner of McDonald’s? Apple? The curator of your condo for sale Philippines, Crown Asia? Well, turns out you can become a part owner of your favorite brands and businesses by picking stocks of the company listed.

Basically, by becoming a stockbroker or trading participant of a company, you more or less partly own that said company. Buy stocks, you can definitely show off that you are an owner of a well-known company. “A part owner of Facebook”, doesn’t that sound nice? You should also encourage your spouse, and perhaps even your children (through the allowance you give them) to buy stocks, as well!

So, the next question is:

How to invest in the Stock market Philippines?

There is a reason why people find it intimidating. Though it sounds nice and promising, its benefits could not be reaped without hard work and knowledge of this aspect. Do not fret that much, though, because we are here to tell you how to maximize the Philippine stock investment instruments. Here is how you kickstart your journey in the local stock market:

Start investing in stocks by investing in knowledge first

Check the stock portfolio of a company, ask friends who sell stocks, go around and talk to people who buy stocks (so they could inform you about stock prices, upgrading companies, and the best stocks that are trending), make phone calls, familiarize yourself with online trading platforms, and invest lots of time learning from other brokers, the internet, and intense researching. More knowledge would always benefit anyone especially when the goal involves money, and as challenging as stock investing.

According to Money Max PH, a website that would help you maximize and multiply your money, here is the list of questions and topics you must get to know if you plan for a ride of long-term stock investing:

  1. How the Philippine stock market works
  2. The best time to invest in stocks
  3. How to choose the best stocks to buy
  4. The risks of stock investing and how to minimize and manage them
  5. How to properly diversify your portfolio of stocks
  6. Trading and transaction fees (broker’s commission, VAT, etc.)

Open Your Philippine Stock Exchange Trading Account

To open your online trading account and invest in your first stock, you may first choose your broker. They will then inform you of the companies that are doing good, and the branches that are trending and therefore would be wise to invest in their stock. They will also advise you if it would be wise to put your money all in one basket or spread all your eggs to other investments.

On another route, you can invest directly in the companies you want by calling them directly. However, even though it may seem less of a hassle, this actually gives you more work to do since you have to call each one of them, and they probably have their own biases. To add, it is also not advisable to put all your eggs in one basket. Without the help of a broker, you may not be knowledgeable enough about the other investments you can do.

Always, always ask for updates

You always need to call and make sure your investment is doing okay. Always update yourself on how your money is doing. If the stock market is not doing good, perhaps you need to withdraw some of your money from your investment in stocks. Or, if it is doing well, you may opt to start investing even more.

If there is one thing harder than to begin investing, it is maintaining and growing your money in your investments because this is a two-way effort, both yours and the companies you bought stocks from.

But, it is also without a doubt that by investing in the Philippine stock market, you are also investing in the Philippines, and helping out with its economy. So, if ever you are looking for more ways to be more patriotic, instead of investing in international stocks, you can invest in your own country.

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