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Published on Jan 20, Investing in philippine stock market for beginners - a quick start for Filipino Pinoy investors: Stocks are simply shares of ownership in a corporation. Being a part-owner, you partake in the performance, growth, earnings and profits, as well as losses, of these companies. The stock market is the place where people converge to buy and sell shares or stocks through an authorized stockbroker.

That means once you have your broker and enough money to buy stocks, you can readily start investing in the stock market and brand yourself as a noble shareholder of giant fantastic companies. In the Philippines, the Philippine stock market is the place where you can invest in Philippine Stock Exchange PSE - listed companies.

And only those people or firms accredited by PSE as authorized brokers can participate directly in trading and putting buy or sell orders. It is said to be the most effective way of building personal wealth and attaining future financial security for oneself. Because history says so! The fact is that stock market is not the only type of investment present in the capital market. But history has proven that nvesting in the stock market over the long-term has outperformed all fixed-income instruments, plus it offers good protection against inflation.

The market undeniably continuously experiences highs and lows, dumps and trumps, and blows and dips, but these short-term pictures are just tiny pixels compared to the general uptrend portrait recognized in the long run. Anyone can invest in the stock market.

It is a readily available choice of financial vehicle for those who want to make their hard-earned money work even harder for them. Millionaires or not, everyone can earn in the same battle field. Everyone motivated can do it. When should you invest? Clipping is a handy way to collect and organize the most important slides from a presentation. You can keep your great finds in clipboards organized around topics.

SlideShare Explore Search You. Investing in philippine stock market for beginners - a quick start for Filipino Pinoy investors. How to invest in philippine stock m Show related SlideShares at end. Full Name Comment goes here. Are you sure you want to Yes No. It's a great program for newbie trader. Also there is good option for trading. J Amihan , Sales Manager at PHAT water filter trading at PHAT water filter trading. Kristine Jane Garcia , Registered Nurse at KSAFH at KSAFH.

Embeds 0 No embeds. No notes for slide. Investing in philippine stock market for beginners - a quick start for Filipino Pinoy investors 1. A quick-starting kit for beginners 2. No part of this publication may be copied, except for brief quotations, without prior permission of the author. Cartoons by David Gonzales Cover photo from http: Disclaimer Investing involves substantial risk.

All information provided herein is for informational purposes only, not intended for trading purposes or advice and does not constitute recommendations or endorsements of any issuer, security or action. While some of the information herein are from sources believed to be reliable, the author does not warrant their completeness and accuracy and should not be relied upon as such when making your investment decisions.

The author shall also not be responsible for updating or correcting any information or opinion contained herein. No reader should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence.

Neither the author nor any of his associates is liable for any informational errors or for any actions taken in reliance on information contained herein. To the maximum extent permitted by law, the author and his associates disclaim any and all liability in the event anything in this book proves to be inaccurate, incomplete or unreliable, or results in any kind of loss.

I dedicate this book to all hardworking Filipinos whose only desire is a better life for their families. Preface Chapter 1 Investigating Investing — What the heck is the stock market??? Stock Market Why Invest? How do you make money? Chapter 2 Choose Your Winning System — Have a winning game plan! Invest in yourself Set your investing goals Know thyself Chapter 3 Have Your First Order — Let's get started! Choosing your broker Placing your orders Costs of trading - How much will you need?

Trading hours - When to post your order How to get your money out of the market Chapter 4 Take Charge! Epilogue - Receive Stock Update Report Share This 6.

I actually had a hard time contemplating to pursue or not finishing this book. Initially give back investing market by you. I might be pushing you into the realm of gambling in the stock market as opposed to investing. As you know, gambling should not be encouraged, more so in public. I wish I could help you not just in the early stage of your stocks investing journey, but also in every succeeding steps of the way. But just to help you get started, I managed to go on and compiled all I learned from my own experience.

I don't claim to be perfect at investing. Like you, I'm still learning. But if you want your money to start working for you one day soon, allow me to sing your first lullaby. For your dreams and passion, Omeng Tawid P. Grow your wealth and achieve financial freedom. If this is your first time investing in the 8.

You may want to take advantage of the TrulyRichClub. Receive Stocks Update every month telling you everything you need to know about your stock investments, plus a mountain load of materials for your financial and spiritual growth. To try it out, log-on now at the TrulyRichClub. CHAPTER 1 Investigating Investing What the heck is the stock market?!?

How To Start Investing In The Philippine Stock Market

Welcome to the world of stocks investing! For that give yourself a pat on your shoulder! Stock Market Stocks are simply shares of ownership in a corporation. But history has proven that It is also important to note that you should find time to assess your financial standing, age, return objective, and experience to find out if it is the best time to invest for you.

It is never too early to start. But remember that stock market operates on the power of compounding, which makes time your dearest ally. It makes your investment grow exponentially when your earnings or dividends begin to generate their own earnings.

Those who enter sooner have that advantage. Every day you delay is a day wasted for your money to work for you. Make time your best friend! Capital appreciation or capital gain means an increase in the market price of a stock. You buy something at a low price and sell it at a higher price, the difference of which becomes your gross profit. As an example, Manila Electric Company, or Meralco stock code: MER shares passed through Php per share level last December 7 , then it reached Php While it is considerably a large return on investment, some more active and volatile stocks can achieve the same or even higher within a single day.

Stock prices going down can also happen resulting to losses in your investments.

See below what happened to MER Price starting last week of January If you decide to keep your shares, those paper losses or gains can be bigger in value, or take opposite roles. In the case above, if MER shares were kept until January 12 , the The second way of making money is through receiving dividends.

Dividends are given in the form of cash or stocks. MBT has declared a cash dividend amounting to P1. Cash dividend represents cash earnings given for every share of stock as decided by the company. This means that if you have 10, shares of MBT as of the record date, you will receive a cash dividend of Php10, The second type of dividends is stock dividends. Here, instead of cash, additional shares are given to present stockholders for free. You can sell those stocks just like your ordinary stocks anytime after they are issued.

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Different companies can have different positions when it comes to declaring dividends. Some can be very generous, and are known in giving consistent dividends, while some are not. You can navigate through the PSE website to check all the dividend declarations of listed companies. CHAPTER 2 Choose Your Winning System Have a winning game plan!

Information without action is dead! The following pointers may help guide you in starting your adventure in the stock market world! You can never invest if you do not have a cash flow meaning money entering your pocket in a regular basis , So invest first in yourself before trying investing in companies. Many people do pay others before themselves, and so they are left with nothing for their savings and investments. And after many years of working hard, their financial condition is nothing different than when they started working.

So setting aside a portion of your income for your savings is a must. And you allot a part of this savings for your long-term investments. Start saving small amount and build it up through time.

You should design your own plan of saving system and allow them to work harder for you. Put in as much money as you can in your liquid savings until you can start funding your stock investments.

Set your investing goals One of the biggest mistakes investors make is not having clear long-term investment objectives, focusing on short-term returns, rumors and price swings. Not having these essential clearly-defined objectives exposes you to the risk of relying on just anything that comes along your way instead of These goals can be different for individual investors. Still others want to make their assets grow aside from having a continuous source of cash flow for them and their loved ones.

The whole point is in being clear with your goals and objectives so as not to make you lost in the wilderness. Know thyself Closely related with identifying your goals is defining what type of stock market participant you will be and setting-up your game plan. Your returns will result from your investing horizon. Are you a passive investor or an active trader? They hold them and go for the long term. Because of this, they are very picky when it comes to choosing their stocks, making sure those companies have solid big reputation and potential for growth.

This method takes various names like peso-cost averaging or money-cost averaging. Online broker Citiseconline calls it Easy Investment Program.

These conservative investors make money from dividends, stocks rights, and price appreciation. They like short-term pursuits, so they need to time the market. They also sell in a shorter timeframe, within a matter of days, even hours. They just buy and sell stocks every day. Anyone can be a trader, but not everyone can be a successful trader.

It requires a lot of time analyzing While passive investors look for the fundamentals of companies, active traders look solely at the current price conditions of the stocks.

And since they trade full time, they need to check the market health every day even the market of foreign nations and have the discipline to follow strict rules without which, they cross the boundary toward gambling. The Third Approach Semi-Passive Balancing the passive and active methods paves the way to the third approach. In this semi-passive or semi-active strategy, you combine your buying with some timing.

Unlike pure passive investing where you keep on buying every single month, you assess first the condition of the market and your potential stock before placing your orders. You buy when the The table below summarizes the major differences among the three strategies. Note that this is just a very loose classification.

Others call active traders as speculators while semi-passive as medium-term traders. The first two chapters show you just some of the basic preparation you need to know before getting started in the stock market. With all those basics, starting investing in the stock market then becomes a simple following of rules choosing your broker, opening your trading account, placing your orders, and keeping track of your investments.

Choosing your broker One needs a stockbroker to invest in the stock market. Your broker can either be the traditional live broker type, or the online one accessed through the internet. A list of more than brokers is provided in the PSE website for your reference. Your choice of what type of broker to use should be based on the service best suited for your needs.

They can ask question, seek advice and get answers personally. Online brokers on the other hand are designed for self-directed investors and who want to manage their portfolio online.

You place your orders directly and make transactions in your computer. It also offers the lowest commission rate 0. You do all your analysis by yourself with the aid of market researches offered by your online brokers. You can get the full list of authorized brokers in the PSE CitisecOnline is the leading online brokerage firm in the Philippines. It has been actively trading since , and is also a listed company in the PSE with stock symbol COL.

They offer free seminars to its customers and the general public, and have launched the EIP or Easy Investment Program for passive investors. You can open with 5, initial investment. Philstocks by Accord Capital is another broker that also allows you to start trading immediately with With FirstMetroSec, you just need to open a Metrobank bank account and enroll it in its internet banking service, after which you can enroll for a trading account also online.

Same procedure goes for BPI Trade. All these four online brokers practically offer the same services. Opening an online trading account is pretty easy just like applying for a bank account. You submit the required forms and documents, and initial cash if necessary, depending on the broker , and you wait for a few days for your account log-on details username and password to be emailed to you.

You can then start buying stocks after sufficiently funding your trading account. In fact, you can just leave it there and start your stock market self-study by navigating in their websites, touching the stock market without touching your cash.

These brokers pay a lot to their analysts to provide their clients relevant researches, company updates, market news and insights about the prevailing market conditions. Online brokers also allow you to track all your transactions in your computer screen. Placing your orders Unlike having a traditional broker where you communicate your order through a phone call or text message, online trading allows you to place your order directly through the internet.

Below image depicts a typical online window when making an order entry from BPI Trade: Here you will see the important fields necessary for placing any order. These details include the side or See other online order entry windows below. While these functionalities can be helpful in some of your strategies for a more active trading, the first three mentioned constitutes the very basic order.

There are certain restrictions you need to follow when filling them out to make a valid order. First is the stock symbol. Be familiar with the codes of your favorite stocks.

Second is the volume or number of shares. This is where the board lot table matters, shown below. All buying and selling orders are subject to a minimum number of shares as prescribed by the board lot table instituted by the PSE. The Board Lot Table Price Minimum Fluctuations Tick Size 0. This minimum lot size is called a Board Lot.

For example, if Meralco stocks are priced at Php per share, inside the [ If you want to buy or sell more shares, you can post larger volumes using only multiples of 10, like 10, 20, , etc for main board lot. Volumes like 7, 13, or will be rejected. Third is the price. The board lot and fluctuation table also dictates the prices allowed for use in your order postings. In the example above with Meralco at Php price, the table shows the minimum price fluctuation to be 0.

Once posted, that order can either be fully matched, partially matched or remain unmatched. Costs of Trading - How Much Will You Need? The Costs Involved The following lists the basic charges for buying and selling transactions.

Also check your broker for the slight modifications in their actual computation. Philstocks, for example, has PSE Fee Philippine Central Depository Ad Valorem which includes transaction and other brokerage fees of. BPI Trade applies 0. For Citiseconline, the table above shows their exact computation with 0. Shown below is a sample computation from Citiseconline for a buy and sell of shares of Ayala Land Inc.

The values can be confirmed using the computation table above: BUY OF SHARES OF ALI AT PHP SELL OF SHARES OF ALI AT PHP You may prepare a ready MS Excel file that will automatically calculate these for any given order. PSE trading hours are from 9: Note that you can start placing your orders 30 minutes before the market opens or at 9: You can also put off-hours orders or orders after the trading hours in preparation for the next trading day.

This feature is especially useful for those who Be aware also of the specific restrictions and schedule of your broker regarding posting orders after trading hours. BPI Trade for example accepts off-hour orders on weekdays from How to Get Your Money Out of the Market You can withdraw your money out of your trading account anytime subject to the withdrawal policies of your broker and your cash balance available for withdrawal.

Check your broker for their specific policies and conditions on this. If you totally want to get out of the market but still have stock positions in your hand, you will need to sell them first before you can take it out as cash. CHAPTER 4 Take Charge! The previous chapters only serve to guide you in your first steps along your stock investing journey.

The following can help you plan your next moves: Save More Saving is a prerequisite of investing. Seeing your investment growing should drive and motivate you to save more each year. And the best way to do this is by increasing your income at a rate greater than the rate of increase of your expenses. Find your own little ways on how you can save more. Invest More With more savings, invest in more than one company and industry as a form of diversification.

Investing more also gives you the benefit of seeing more significant earnings during favorable market uptrend. Learn More This is for those who want to spend more time in their stock investments. There are a lot of venues available to increase your knowledge about stocks investing which can be rewarding in the end.

You may want to dispose stocks that are not moving and replace them with more aggressive ones, or add more conservative ones to reduce your risks. As a final note, once you get started, keep practicing and build up your momentum over time. Your investment will grow at the extent your knowledge is growing. Start humbly, keep saving, learn from your experiences, ask questions, test your answers, and stick to what applies to you.

Have fun and millions investing! I needed all the guidance I could get to protect every peso I put in the market. Specifically I needed to know when and what stocks to buy and sell, their entry and exit price levels, and their target prices.

I also needed a constant direction for my investments. You may also want to take advantage of the entire TrulyRichClub system to guide you in all succeeding steps of the way. It will tell you the new undervalued stocks that you can buy. With its December Stocks Update Report, TrulyRichClub parades itself with its TOP 10 winning TrulyRichClub may have different stock recommendations now.

How to Invest in the Philippine Stock Market » Business Seminars by BusinessCoach, Inc., Philippines

First Gen FGEN Co. EDC Mar to May Jul to May Oct to May Mar to May Mar to May 14 Mon ths 10 Mon ths 8 Mon ths 14 Mon ths 14 Mon ths P9. Share This The goal of this book is simple - To cover the basics and essentials of stock investing, and help you help yourself in your financial life. I hope I was able to attain that with you.

In case you have any suggestions or comments to better achieve that end, then please share your thoughts and help improve this book. It can be anything - in the content, the presentation, the organization, or any random message. You can send all them here. As a gift, you will receive my second investing book for free.

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Thank you for the opportunity of being part of your financial journey. In the meantime, keep learning. This book is just the brief copy of the original edition. Get the complete and more comprehensive version here. How to invest in philippine stock market for php 5, How to Invest in the Philippines Stock Market [PDF]. MBA thesis on the Philippine stock market.

Personal Finance Apprentice: How To Start Investing In The Philippine Stock Market

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