Truly Rich Pinoy: A Stock Market Journey
OFWs, students, employees and retirees have been asking about the Philippine stock market, and whether it truly is easy to invest.
Thanks to the internet and online stock brokers, things are more convenient now. No wonder there are now at least 1 million stock market accounts, according to the Philippine Stock Exchange (PSE). [Source]
It begins with opening an account with any of the top online stock brokerage companies in the Philippines, and learning how to buy or sell stocks using their websites.
Part of the journey also involves reading blogs, articles, and tutorials published by various groups. Some of the information is freely given, while other information is available to paid subscribers.
NOTE: If you need legal or financial advice, please consult a professional advisor. This article is for information purposes only.
Here are some things to consider before investing in the stock market:
1) Set-up an emergency fund.
Some people place up to 6 to 12 months of their monthly income in a bank savings account, so that if ever an emergency arises, they won’t be forced to sell their existing stocks just to raise cash.
By emergency, we’re referring to medical or health cases, or damages to shelter.
2) Know how much you will set aside for the stock market each month.
There are people who budget up to 10% of their monthly income for stock market investing purposes. Although they set aside funds, they do not automatically buy stocks each month.
3) Check if you are a long-term investor, or a short-term trader.
Your style of buying and selling stocks will vary, based on your investing personality.
Long-term investors may sometimes keep buying shares of the stock of a particular company each month for years, and then sell those shares after 5 years.
Short-term traders will buy a stock today, and then sell it on the same day, or after 2 days, 2 weeks, or 3 months.
In short, starting your stock market journey involves preparation, asking questions, and connecting with those who have already embarked on the quest for a brighter future.
There will be ups and downs.
And yes, the stock market comes with its set of risks.
There’s no guarantee you’ll make money.
Yes, there’s the possibility you’ll lose everything you’ve put into the stock market.
Still, there is a growing community of people who are aiming to grow their money at least 12% on average.
And I’m happy to see you here, someone who’s also thinking about starting your financial journey in the world of stocks.
As they say in the Philippines: Tara, mag-stock market na tayo!
Manny M. Viloria is an IT professional and trainor. He lives in the Philippines, and enjoys helping more people appreciate the life and culture of the Truly Rich Pinoy.
