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Tips: Investing in the Philippine Stock Market

I have been investing in the stock market for more than a year now. That’s not long enough for me to give out advice on what to stocks to pick or how to grow your money ten-fold. Don’t expect that on this post. What you can expect, however, is where to start and some other tips that I wish I’ve read before taking the plunge in the greatest investment I ever made. With all that said, let’s start!

Get smart! Read about the Stock Market

Before anything else, it is important to know what you are getting yourself into. Read as much as you can on the stock market especially on its risks and benefits. If you ask me, the stock market is the best investment I made BUT it has its costs. Your money can really grow but it’ll take time and its risks are too high if not done correctly. You should also compare the pros and cons of investing in the stock market versus other options like mutual funds, bonds, etc.

Read 5 Things You Should Know Before Investing On Stocks

Know your risk profile

If after reading about the stock market and you feel confident about investing, the next most important thing you have to know is what kind of an investor you are. You can easily find risk profiling tests online. Here’s a basic one from Rappler but I took mine from the BPI ALFM website (or if you have BPI Express Online, there’s a tab for investments where it’ll link you take the risk profiling test).

Your risk profile should guide you in determining your plans or goals for investing.

Have a plan and know your goals

After knowing the basics, it is very important to create a plan and know your goals. It doesn’t have to be detailed. It can be vague but it must answer some basic questions like:

  • How long do I plan to invest in the stock market?
  • How much can I initially and invest and how much am I willing to add regularly?
  • What are my expectations?
  • How much am I willing to lose?

This step is important because you are now managing your expectations and you are creating limits for yourself. I feel this is important because, from experience, it is easy to let your emotions control your investments especially if you see your stocks gaining or losing.

Too much information can be bad

As you start your journey in investing on stocks, soon enough you’d find yourself reading and asking about it endlessly. This is normally good but it’s a two-edged sword. It’s natural to get as much information as you can. This will arm you with the knowledge that you’ll need but believe me, it can also overwhelm you. Worse case scenario, you have all this knowledge but you’re still where you’re at – the starting point.

Ready? Start!

As for me, I skipped most of the tips I wrote down, lol, and jumped right into the world of stock market. As they say, experience is the best teacher and it taught me a lot.

There are different strategies for investing in the stock market but it would mostly depend on your money and time. Always put that into consideration when picking a stock and also try to be mindful of the following lessons I’ve learned:

  • Always remember that the more you invest, the higher the returns. Try to pick stocks that are cheaper so you can buy more stocks even if you only have 5,000 pesos.
  • Buy low, sell high. It’s not the other way around guys! BUT if you plan to use averaging as a strategy for your investment, this wouldn’t matter that much.
  • Blue chips are the safest way to go especially if you are investing for the long term.
  • There’s this called fast trading (or that’s what I like to call it) where you invest in companies whose prices swing a lot. Be mindful of your risk profile before even considering this. (I tried it and I had the worst experience ever. DON’T DO IT.)
  • Everything takes time. Prices don’t just change in a day. Some take weeks or even months. Remember your plan and execute it!
  • Always pursue more knowledge. There are tons of free sites out there that can guide you but remember that too much information can be bad. You must learn how to filter the information that can help you.

I hope somehow these tips can help you and push you in the right direction. To be honest, I did lose a lot of money during my first year but since 2017 has started, things have been pretty good because I created a plan for my stocks (see tip above) and made sure I stuck to it.

If you arm yourself with a right attitude and continue your quest for more knowledge, hopefully, things will go smoothly. I hope this helps you in a way and if you have any questions at all, I’ll try to answer it. Or if you want a more detailed how-to on investing I’d be glad to write about it.

Be safe and go invest!

* * *

This post was written for Jolens. I pray that this helps or inspires you, lol.

 

17 Comments

  1. I started in 2014 and you won’t believe how much money I lost due to over-enthusiastic “fast trading” aka gambling. Hehehe. I’ll post about it soon.

    • It’s really risky and addicting, to be honest. You hear all these people who gain money using that strategy and it makes you want to try it as well. I’ve been there and it sucks! I’d love to read about it send me a link or a pingback once you do!

    • Sa COLFinancial for as low as 5k, you can invest sa stocks. It’s risky and it’s very much like gambling that’s why I lost a lot of money, lol, but if you do it properly you can really gain a lot too! I also invest in MF (through BPI and COL) and COL beats my BPI MF. Where do you invest your MF?

      This is really one topic I’m interested in. I’d love to read your investment tips and experience too 🙂

      • I haven’t invested yet pero I am thinking sa BDO. Would like to invest in MF through COL pero sabi nga you need to have a COL account muna, yung sa stocks. Hopefully this July I can invest na sa BDO ng MF. Would you recommend BDO? 🙂 I love reading tips sa The Global Filipino Investors group on Facebook.

        • Hmmm honestly, depende siya sa risk profile and strategy mo. Kasi ako nagtry ako ng 2 strategy. For ung BPI ko medyo low risk kaya ang baba ng return, years na siya pero 1% pa lang ang return. And then ung COL ko medyo high risk in 6 mos, 11% na ang return ko. Kaya mas gusto ko ang COL. Although factor din ung pumasok ako ng MF ng COL medyo mababa ang market. Kaya ngayon na paangat na ulit ung market, sumasabay yung investment ko.

          It’s all about timing talaga and yung end goal mo. 🙂 But if I were a newbie and gusto ko magtry ng investments bank investments are better for the simple reason na mas safe siya.

          I don’t read on FB kasi isang naging issue ko dati is naoverwhelm ako sa mga info kaya tnry ko nlng din. Hahaha. Kaya kung may tanong ka pa, willing ako ishare lahat ng natutunan ko 🙂

          • Wow, salamat Kat. Sige I’ll let you know kapag natuloy ako sa BDO. My friend told me yung kanya 1k lang ang initial investment then 1k every payday ang hulog nya. Equity fund daw. Oo nga, minsan information overload talaga sa FB, haha! Ang laki ng 11% return. Maganda nga talaga sa COL 🙂

          • Yung strategy ng friend mo yung pinakasafe, ganun din ako nagstart. Kaya push na yan Meg! 😀

  2. aaaaah I love reading this. Though, I don’t personally play in the stock market.. I entrust my money to Pru Life UK instead. I believe East Spring will manage my funds well more than I can. Hahahaha But it’s really really important to invest now. We should start working on it now whether it’s for a short or long term goals.

    • I do the opposite! I don’t have those insurance-funds I go do it myself, lol. Also, honestly, I think the returns aren’t that high? I mean it takes a looooong time, I feel like my money will just sleep if I invest there.

      But I’ll probably invest in Sunlife/Prulife/Manulife for insurance soon. :p

      How are your returns so far? I might be wrong so I’m really open to reading your experience. 🙂

      • Hahahaha I think it’s okay whichever way as long as we invest and take time to plan for our future. Returns are actually good. It increased now to 7.63% in Growth Fund and 9.71% in Equity 🙂

  3. YASSSSS, #ADULTING!!! 😀

    I don’t have any financial investments whatsoever 🙁 which is kind of ironic since I work in a financial company. I did have a UITF at one point, but i’m such a super conservative (even according to BPI’s risk profile assessment) i chose the fund with the lowest risk and lowest return. I withdrew my money eventually.

    Ang sarap ng mga usapang adulting na ganito, kahit wala akong kahit anong pondo, medyo nakaka empower pa rin, knowing that there are so many options. 🙂

    • What company do you work for? LOL.

      I always encourage others to invest and don’t touch the money kahit super baba pa ng risk profile mo. Kaya I’m encouraging you to try again! Basta extra money mo, invest mo. 🙂 And laging tatandaan, maraming options even as small as 1k per month, may mapupuntahan yan. 😛

      Gustong gusto ko yung usapang pera talaga, lol. Kasi sa hirap ng buhay need natin talaga yan hahahaha!!!

  4. Omigod thank you!!! Didn’t think you were gonna write about it this soon lol, but this was really helpful! I think I need a little bit more “disposable” money before I take the plunge hehe. Salamat ulit! 😀 😀 😀

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