Friday, July 13, 2018

How to Invest in Philippine Stock Market?



Philippine Stock Market is where you can buy some shares from different company like SM, Jollibee, Ayala Corporation, Meralco and many more. This is one of the cheapest way to be the stock holder of the company. This is where you can trade everywhere. Inside and outside at home as long as you have internet connection.

How to earn in Stock Market?

1. Appreciation of Stock Price  - This is the increase of Stock Price over the time. Mostly it happens in Blue Chips company with the good Financial Statement. This is where the explanation of having a good demand (means many people wants to buy a shares) and having a bad supply(means many people wants to sell).  Can be the effect of inflation rate over the period of time.

Example : Jollibee (JFC) 



YEAR    PRICE PER SHARE 
2010 88.9
2011 90.45
2012 102
2013 173
2014 215
2015 219
2016 194
2017 253

2. Dividend  - This is sharing profits of the company distributed by it's   shareholders typically annually. It can be Cash Dividend or Stock Dividend.  

Ways to be part of it are follows:

1. You must have knowledge. But before you get in, you must have style, strategy and  knowledge to minimize the risk of loss. However, many people lost their money because of ignorance and maybe bad luck. Nowadays many websites you can search related to stock market. You can also download online books for you to read and buy more books. There are some free seminars from different brokers, you can also try one of those. 

2. You must know how much money you can invest and how much you can afford to lose. You can start to invest in some brokers with the minimum of five thousand pesos. However, you must know the eight thousand rules minimum per stock to buy to lessen the tax fees. Some expert says don't put all your money in stock market. Just put only below 25% specially if you are nearly to retire.

3You need to find your broker. There are 2 types of broker 

Traditional Broker If you are a busy  person and want some professional advice this kind of broker are good for you. You can message your fund manager to buy and sell by via call, messaging through social media like Facebook or email

Online Broker - This is where you can trade online buy simple log in to their website. This is a kind of institutions who has license and connected in Philippine Stock Market Exchange. They also offer some free seminar before you invest. Most traders prefer to use this kind of broker  The fees are more lower compared to Traditional Broker.  

Click Here  to see the List of Brokers in Philippines Stock Market 

4. Open an Account - Just  fill up the form nicely. Pass the requirements. Mostly the requirements are 2 valid ID's, BIR ID number, and Capital.

5. Be ready with your emotions. You must keep your emotions separate.

     

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