How to Invest in the Philippines' Stockmarket
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By: Charles, Calgary Canada
Warren Buffet, equities, bull market, bear market, IPO's, technical analysis, fundamental analysis, PSEi, quotes, gainers, losers, dividends, corporate earnings, day trading, uptrend, downtrend, portfolio, bid price, ask price, buyer, seller, volume, PE Ratio.
What do these terms have in common? You guessed it right, The stockmarket.
Among all investment vehicles the stock market offers the biggest potential for increasing the value of your money through time. Ironically, it is also the investment vehicle that provides the biggest risk in making you lose money if you don't do your homework and trade wisely.
The stock market is actually where the level headed financially educated people make money and the emotional ignorant gamblers lose theirs.
The fundamental principle in stocks trading is to buy low and sell high.
Trading in the stock market is all about timing. Knowing when a price of stock is (too) low and therefore knowing when it is time to buy and knowing when a price is (too) high and therefore knowing when to sell. But this is easier said than done.
That's when fundamental analysis and technical analysis comes into place.
Citiseconline defines Fundamental analysis "as the study of financial statements and all other aspects of a company's business" , while technical analysis is the study of stock charts- a graphical illustration of stocks prices trends.
Most stockbrokers provide these analyses and provide recommendations saving their clients the burden of doing all the analyses themselves.
Recession has brought so much fear in people and have made most of them stay away from the stock market. And who can blame them, a lot of people have lost more than 50% of their money when it hit. But, while some people see only the crisis in the crisis, others see the opportunities in the crisis. When the stock market starts to plunge, it is actually starting to create opportunities for people to buy low, and eventually sell high and eventually make profits.
Philippine Stock Market Selected Stocks Performance Year to Date:
- Meralco (MER)-----Oct 17, 2008: P47/share-----Oct 17, 2009: P198/share-----%Profit: 321%!
- GMA Network Inc. (GMA7)-----Oct 17, 2008: P5.1/share-----Oct 17, 2009: P8.4/share-----%Profit: 64%!
- Jollibee Foods Corp. (JFC)-----Oct 17, 2008: P37.50/share-----Oct 17, 2009: P52/share-----%Profit: 38.67%!
- SM Prime Holdings (SMPH)-----Oct 17, 2008: P7.2/share-----Oct 17, 2009: P10.75/share-----%Profit: 49%!
- Metrobank (MBT)-----Oct 17, 2008: P25.50/share-----Oct 17, 2009: P41/share-----%Profit: 60.78%!
***money in savings bank account: %profit ≈ 0.25%-0.50% p. a.
***money in time deposit: %profit ≈ maximum 4% p. a.
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CommentsLoading...
Thanks Marlonduba!
It does take a lot of time and effort to learn how the stock market works and discover the strategy that works. In the stock market, and i guess life in general, it is very important not only to be courageous but to learn how to take calculated risks.
I hope all Pinoys realize their strengths and weaknesses, recognize opportunities around them, conquer their fears and maximize their potentials.
I would suggest you read : "The Snowball" by Alice Schroeder..(spell check).
You'll be surprised that the greatest and shrewdest of them all didn't always make the right decision but you'll marvel how he got out of difficult situations.
very good post, i was really searching for this topic as i wanted this topic to understand completely and it is also very rare in internet that is why it was very difficult to understand
thank you for sharing this.
Regard
Stock Market
hi, im interested to invest.. how can i start?
Hey, I just want to share this very encouraging report about investing in the Philippines:
Invest in Philippines, the 'Dark Horse' of Asia: Expert
(CNBC, 18 November 2011)
Read more:
Hi! I just finished in college and now I'm trying to study how to invest in philippine stock exchange. I don't have any background when it comes to money matters because I'm a science graduate. Will you please help me on finding a website or a book that is basically complete with info when it comes to stocks exchange. Thanks and more power!
Hello, I am new in phil, can any suggest me any site or book were I can get the full detail abt stock exchange of philippines? Wat wat the basic requirements & how to open account to start trading? Is there requirement of opening demat A/c ? Plz suggest me some stock broker too under wihich I can do the trading. How much the tax on it? wat amount to be taxed? the principal amount or profit amount is taxable ? lots of confusing here. Plz suggested me. Contact me by e-mail robinoswal@rediffmail.com thnx
nice t ag and blogs...hey,im a networker in the mindanao phil.and im an uphulstery man, i.t.by propession,im a small deal investor,cos i have no much money to i9nvest.my mentoe said 'if you have no money to invest?just go to samll deal investments and be an agent of mlm marketing and realtys.bt i would like to be come a trader and investor if god weell...
To learn more about stock investing, please visit the new market education website of the Philippine Stock Exchange, www.pseacademy.com.ph.
PSE Academy--your smart start to investing!
marlonduba 2 years ago
Hello Pinoyconnection, yes - all high yield investments are always high risk. You can always stick to blue chips for lesser risk - long term investment however. IPO's are your best bet for a fast buck - my investor friend says - just don't get too greedy - you might end up with nothing - different strokes for different folks. Welcome to hubs...