Investment Ideas

Investing in the Philippine Stock Market

(Updated 23.May.20)

Did you know that every Filipino can become an owner of Jollibee or SM and get a share of their income?

How does it feel when one Sunday morning you go to ‘your’ SM mall to shop then savor that crispylicious, juicylicious, and finger-lickin’ good Chickenjoy at Jollibee that you are a part-owner, too.

It sounds like you’re a big shot, huh? But it only requires a starting capital of P5000, even cheaper than that smartphone of yours.

This can be made possible by buying the company’s stocks by investing in the stock market.

What is the Stock Market?

Stock Market is a place where you can buy shares of stocks of publicly listed companies. A stock is a share in the ownership of a company. A Stockholder is the owner of stock/s in a corporation. On the other hand, Stockbroker is someone who executes buy and sell orders for shares through a stock market.

The Philippine Stock Exchange (PSE) is the sole stock market in the Philippines. Only publicly listed companies can sell stocks. PSE thoroughly selects a company to be allowed to register based on its track record.

To illustrate, let us take Jollibee as an example. You, as an investor, can be a part-owner of Jollibee. All you need to do is to buy shares of stocks of Jollibee listed in the PSE through a stockbroker.

How to Earn in the Stock Market?

There are two ways to earn in the stock market. One is Dividends, which a part of the company’s revenue provided to stockholders. If the company’s profits are enormous, dividends are also high. The second way is through Capital Gains. When a company grows, its price per share is also rising. If you have bought a stock for P10, after five years, the rate rose to P100, and you have a gain of P90/share.

How to Open an Account?

You have to open an account with a stockbroker to start investing in the stock market. My broker is COL Financial. Read “How to Open an Account with COL Financial?” to learn more.

Best Stock Market Investment Strategies for Beginners

Based on my two years of experience in the stock market, the best strategies to invest, considering a lower risk, but maintaining a profitable gain are Peso Cost Averaging and investing in Equity Funds (Mutual Funds). These are also the easiest and hassle-free investments. Read my articles “Mutual Funds” and “Peso Cost Averaging” for details.

How to Buy Stocks and Mutual Funds?

It has been a wrong notion that investing in the stock market is tough. Buying stocks/equity funds is as simple as Facebooking. All you need are a computer/smartphone and internet. For more details, read “How to Buy Stocks?” and “How to Buy Mutual Funds?

How to Succeed in the Stock Market?

When I started investing in the stock market, I also encouraged the rest of my family to join. We opened a total of 4 accounts. While the three accounts prospered, one didn’t. It belongs to my brother. But what happened? Well, he just invested P5000 in the past two years. Now, his investment remains 5000 with a few pesos gains.

In the stock market, you need money to earn money. Here money works for you. You need capital.

What is good about this investment is it doesn’t require a large sum to start. You need only P5000 in the beginning. But for heaven’s sake, commit a monthly investment for the next five years. Only then will you feel that your money is earning.

Who are Suited for Stock Market Investment?

Anyone can invest in the stocks; however, here are the group of people whom I think stock market investment suit well:

OFWs possess an excellent income flow but struggle to start a business in the Philippines as they are working abroad.

Working Professionals possess a considerable fund, but find no time to start a business as they are busy with their career.

Millennials/Young Professionals. Many of the new entrants to stock market investments are millennials (people born in 1980-1998). These are technologically savvy, innovative, entrepreneurially-minded individuals.

Retirees. If you are in your 60’s now, you might still live a good 30 years or so. A part of your pension or retirement bonus can be invested in the stocks while you enjoy your retirement.

How Much Have I Earned in The Stock Market?

This investment doesn’t promise excessive earnings to the investor. It does generate a good income from safe, low risk, and hassle-free investment. Mine has earned P35,000 in 22 months. Read this “How Much Have I Earned in the Stock Market?” for more details.

My Investment Update (23.May.20)

It has been four years since I started investing in the stock market. There was a point when my investment had reached around 400,000 pesos. I have tried long-term investments through Peso Cost Averaging, Equity Funds, and Strategic Averaging Method (from Truly Rich Club). I’ve also ventured in day trading for a few months.

After three years of opening my account, in 2019, I have started diversifying my capital and pulled out almost all my money in the stock market. As of writing, I only have 34,000 pesos left in my COL Financial account.

I feel that stock market investment does not fit in my financial goal. It does not satisfy my need to have a steady income source that I require after my planned retirement. This does not mean that the stock market is not suitable for you, as we have different needs and goals in life.

I will have a separate article on the Lessons I Learned from Stock Market Investing and will be posting soon.

Disclaimer

EarnPeso holds no control over your financial fate. It is here as a guide. Exercise prudence in every investment or business you undertake, and success will follow.

I hope this article encourages you to start your own business/investment. Click the links for Business Ideas and Investment Options for more insightful essays.

Do you have any questions? I would love to hear from you. Please leave a message in the comment box below or follow and message me on Facebook.

Categories: Investment Ideas

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4 replies »

  1. I’m confused. Do I have to pay 5000 every month or just 5000 to proceed to whole process of buying/selling?

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    • The 5000 every month is just a recommended top up for you to grow ur money. Because if you will just invest 5000 only it wont bring you nowhere. In the stock market your money works for you. Money is your worker.

      Like

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