Stock Market Investing in the Philippines

By: Crown Asia
Stock Market Investing in the Philippines

As more people look for various ways to invest their money like purchasing a condo in Bacoor, the majority of them are turning to the stock market since stocks are becoming increasingly popular and many investors are taking chances to invest their money in such. Some people are eager to diversify their portfolios, while others seek to make immediate profits from stock market speculation as a day job or source of investment income. Even so, regardless of the fact that many people are intrigued by the concept of stock market investment, it is also evident that many are hesitant due to a lack of knowledge.

As you sit back and relax in the comforts of your condo in Bacoor, contemplating if the stock market investment is really worth it, you quickly realize that you also don’t know enough about it and have no idea how to get started. Therefore, this article will discuss the highlights and significant points regarding stocks and the stock market, as well as give a sense of where a potential investor should start.


What are stocks and the stock market?

A stock, often known as equity, is a financial instrument that symbolizes ownership of a portion of a company. It is primarily purchased and sold on stock exchanges (though private sales are also possible), and it is the backbone of many individual investors’ portfolios. This grants the stockholder a share of the company’s assets and profits according to how much stock they own. “Shares” are the units of stock.

Stockholders do not own corporations; they own the shares that corporations issue. The law, on the other hand, treats corporations differently because they are regarded as legal entities. In other words, corporations can pay any taxes, take loans, own property, be sued, and so on. A corporation’s profile as a “person” indicates that it has its own assets, as well as it owns a corporate office with chairs and tables, while stockholders do not.

Furthermore, the stock market is a collection of exchanges and other venues where publicly traded companies’ shares are bought, sold, and issued. Such financial transactions are carried out on over-the-counter (OTC) markets or institutionalized formal exchanges (physical or electronic) that are governed by a set of rules.

Despite the fact that the phrases “stock market” and “stock exchange” are sometimes used similarly, the latter refers to a subset of the former. When someone trades in the stock market, they are purchasing or selling equities on one (or more) of the trading platforms (or online trading platforms) that make up the stock market as a whole.


Why should you invest in the stock market?

Aside from having your own condo in Bacoor, one of the best asset categories to invest in is stocks, which can be bought on the Philippine Stock Exchange (PSE). As a stock market investor, you can buy stocks directly, or you can also invest in UITFs, which invest in stocks using funds provided by investors. You can also become a shareholder of a firm if you buy stocks listed on the Philippine Stock Exchange (PSE), considering stocks portray shares of ownership in a corporation.

How to start investing in the stock market?

  • Choosing the right stocks and industries.

To optimize returns, the top-down investment method involves analyzing the state of the economy, the strength of various sectors, and then selecting the strongest stocks within those sectors. When the economy is doing well, investors can select sectors and equities within those sectors that are performing well. However, even if the economy isn’t doing good, some industries and companies may be outperforming the others.

  • Establish your objectives.

Evaluating the goal of your stock portfolio is an important step in choosing investments. When it comes to investing, everyone wants to make money, but some investors are more focused on providing an income supplement in retirement, conserving their wealth, or capital appreciation. Each of these objectives necessitates a distinct approach.

  • Choose whether you prefer to invest for the long or short term.

Long-term and short-term trading methods are offered in stock trading, and your choice will be determined by your investing objectives. To execute effective trades in short-term trading, you must be knowledgeable in technical analysis and techniques. Short-term stock investing entails holding a purchase or selling a position in stock for a few days or weeks. Long-term investment, on the other hand, is purchasing companies that you believe will grow in value over the next five to ten years. It is based on the principle that the longer you retain an asset, the greater the gains.

  • Know how to make trades and analyze charts.

Reading stock charts, also known as stock quotations, is an important ability for understanding how a stock is operating, what is going on in the larger market, and how that stock is expected to develop. It needs knowledge of technical analysis as well as the many forms of candlestick charts: bars, lines, and candlesticks. Knowing the elements can help investors make better judgments and are an important step in learning how to invest.

  • Pick a good broker and get started.

Once you’ve mastered the fundamentals of financial planning while staying in your condo in Bacoor and have decided to invest directly in the Philippine Stock Market, the next step is to open a stock trading account with your preferred and trusted broker. This is the account you’ll use to buy and sell stocks or shares in Philippine corporations. Experts advise beginners to register in an online stock trading account as it is more convenient than using a traditional broker. Unlike traditional brokers, who need you to contact your live broker to place stock orders on your behalf, an online trading account enables the investor to do it on your own, anytime and anywhere, on any internet-connected computer or mobile device (even overseas).


The following are the additional steps to officially begin your stock investment:

1. Funding your account, which can also be done through a bank or through their online banking option (BPI/BDO/Metrobank) via merchant payment. You have complete control over how much money you put into your trading account after the initial investment.

2. You can purchase your first stock, now that you have the funds to do so after financing your trading account.

Read more: How to Engage in Stock Trading

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