The Complete Guide on How to Invest in the Philippine Stock Market Today!
Over the years, the stock market has been widely known to be dangerous. And they’re not wrong. It is dangerous, but only if you don’t know where and when to invest your hard-earned money. It’s like chess, there are many pieces (company stocks) you can control (purchase), each with different moves and probability of winning. But, in order to win, you must first analyze the board (market) and create a winning strategy. So, to help you in your journey here is the definitive guide on how to invest in the Philippine stock market!
How do you create a winning strategy?
It depends, are you a long-term investor? Or a short-term investor? If you’re investing just for the sake of buying a new car or the latest phone (Like most people do) then formulate a strategy for short-term investing. However, if you’re the long-term investor, then I suggest sticking with low to medium returns over a long period of time. Although it will take time, the rewards will be amazing! Whichever style you prefer, I’ll make sure to discuss it in this how to invest in the Philippine stock market guide.
Note: The market is volatile and unpredictable. There are no guarantees of returns.
1. Long-term investing
(LTI) is done by investing in huge and successful blue-chip companies that give high to medium dividends. Or by buying good companies that are expected to increase its value over time, and selling it in its maturity period. In long-term investing, people usually rely on the dividends that companies give as a compensation for the loyalty of their shareholders. The how to invest in the Philippine stock market guide mainly focuses on this type of investing because it provides asset protection and it has lower risks.
DIVIDENDS – This is the reward given by companies to their investors as a sign of appreciation. Dividends can be given in two forms, stocks and cash.
2. Short term investing
On the other hand, short-term investing mainly relies on capital appreciation. People who are in this type of investing, usually buy penny stocks. in other words, these are companies who are not yet reliable in terms of success, but are really cheap. It is a well-known fact that 80% of the people who lost money in the stock market was because of stock trading. Although it’s dangerous, you can lessen the risk by thoroughly analyzing the market before you make an investment. If you’re a newbie, I suggest you follow our long-term investing plan here in the how to invest in the Philippine stock market guide. At least until you are confident enough to handle stock trading.
CAPITAL APPRECIATION – This refers to the increase in a stock’s value over the course of time.
STOCK TRADING – usually people who engage in this activity, buy low priced stocks today. Then sells it the next day if the price increases
The Key to stock market investing
Investing in the stock market takes a lot of research. But, And it’s true, there are a huge number of people have lost their money through the stock market. But, only because they tackled the market without having proper knowledge about the nature of the stock market. In order to conquer the risks, you need to follow a certain strategic plan. Lucky for you I have an amazing way you can use to maximize your learning experience.
By following this definitive how to invest in the Philippine stock market guide, you will learn many important details that you will need in investing in the stock market. One of the things I suggest is joining The Truly Rich Club,- It’s an amazing club that teaches you the latest strategies in stock market investing, Proper wealth strategies, encourages spiritual abundance and helps you mold your character in the best possible way. Always take note – Buy low, Sell high.
In the Truly rich club, we follow a certain strategy called the Strategic averaging method (SAM) We buy company shares at a low price, hold on to them for a certain period of time. Then sell them when they reach our target price. The stock recommendations are analyzed by top-notch professional stock market analyzers. Annually, Truly rich club member enjoy 12-15 % or more growth in their portfolio.
Why Should You Invest in the Philippine Stock Market today?
Are you one of those who keeps all of their money in banks? Well, I’ve got bad news for you. Okay, not necessarily bad, but, the point is. The interest rate you usually get from these “investments” will never be enough to keep you safe from inflation. With the country’s situation right now, it is estimated that the inflation rate will increase from last year’s 1.8% to around 2.9% this year.
That means higher product prices and more expensive services. The Philippines is currently is experiencing a black swan. But, the good thing about all of these anomalies is that. Smart stock market investors can greatly benefit from this anomaly. There’s a saying that the best time to invest is when the market is down. Now, I’m not encouraging you to only invest when the market is down. The key to great investments is consistency. And the best way you can leverage the system is by following this how to invest in the Philippine stock market guide. Always remember: Don’t make bad decisions because of bad events.
To help elaborate the discussion. Here are the 5 reasons why you should invest in the stock market right now.
1. Go with the flow
Investing now when the market prices of great companies are cheap. Will assure you greater yields in the years to come. Why? Great blue-chip companies like Globe, Meralco, Jollibee, and much more will always bounce back. Even after experiencing a black swan (Or a crash), the company will still develop and return to its original condition. It may take some time, but the yields are worth the wait. As I’ve said before in this how to invest in the Philippine stock market guide. The key to long-term investing is putting your money in successful blue chip companies that are sure to survive the test of time.
2. Beat inflation gap
With the Philippines’ inflation rate rising like hellfire. It’s no surprise if your saving account will not be able to keep up with inflation. Bank interests are probably the lowest interest rates you could ever receive from any investment. While banks never offer above 2% interest rates. The stock market (If you invested properly) offers potential gains of 12% and above.
3. Be part of the tiger growth
According to the latest research. Only less than 1% of the Philippine population are engaged in stock market investing. That means the current demand in the stock market is low (for now). Joining the 1% of our country’s investors in their investment journey will later benefit you. Why? What happens if almost 50% of the citizens in the Philippines suddenly invested in the stock market over time. Just like the united states; the stock market will go boom! Those in the bottom (the early investors) will drastically improve in the scales. It is predicted that by 2020, Philippine stock market investors will increase over the course of these three years. So invest early, yield gracefully.
4. Get ahead of others
I don’t mean that you should always get ahead of others. But, when it comes to your success, sometimes you need to go where the crowd won’t dare to go to. In this case, the stock market. While most people invest their hard-earned money in banks. You could bypass the middleman, by investing in stocks. Not only does it accumulate a much higher interest rate compared to banks. It’s also one of the most efficient ways of long-term investing. By following this brief h