If you are from Baguio City or other places outside Manila and wanted to invest in Philippine Stock Market, this post will guide you towards your financial freedom.
1st Step: Find a good Stock Broker
There is one paper stock broker along Session Road owned by Regina Capital Development Corporation and many online brokers that you can choose. Online brokers dominate in many ways, so go for an online broker.
What online stock broker will i choose?
It depends, if you have an existing Metrobank account choose First Metro Securities, if you have an existing BPI account choose BPITrade. Banco De Oro and other similar banks don’t have online trading platform, however, it can be arranged through personal negotiation with them.
Other good online stock trading account requires you to personally register and attend seminars in their main office in Manila which is the biggest obstacle of an aspiring investor located in far flung isolated places. Personally, I suggest COL Financial as a starting point because of its track record and the approval of application is only one(1) week if proper documents are presented.
2nd Step: Fund Your Account
Upon approval of your application by the broker of your own choice, you can now trade. Before trading, you must fund your account. Some stock brokers require a minimum amount of funding. For COL Financial, the minimum is 5,000 Pesos. For BPITrade and FirstMetroSec, there is no minimum value of funding that is required.
How will I fund my account?
Fund your account on a regular basis based on your financial ability. Lets say, if you are minimum wage earner, set aside 1,500 pesos per month to fund your account. Think this as your monthly obligation but for your own good in the future. At best, set aside atleast 10 percent of your monthly earnings for this purpose. 10 percent will not hurt you alot, you can still recover. Don’t invest much of your earnings in the Stock Market, invest only what you can afford to loose.
3rd Step: Buy winning Stocks
This step will determine your success, Pick the best stock/s based on choice and research. You don’t need to spend much time online just like a “zombie trader” that is infront of the computer screen all the time, just follow the stock recommendations of your broker and by other sources online of your choice then compare which of them is worth it.
What Stock/s to buy?
Pick a company that will still exist for the next 20 years with steady profit stream nothwithstanding the value of capital appraisal and dividend.
4th Step: Your Goal
Steady Profit should be your main goal. It can only be done if you if you have a good “enter and exit” strategy. “enter and exit” means you must know when to buy or sell a stock.
What should my Portfolio consist of?
It should contain Long Term Stocks, Medium Term Stocks, and Short Term Stocks.
5th Step: Learn from your Mistakes and Don’t be Greedy
Don’t fight the the trend, learn from the trend. Be contended with your earnings, its better to earn slow and steady than to a earn a huge profit that will not last.
6th Step: Attending Seminars is not necessary
Attending seminars about stock trading will help you a lot, however, it is not always a guaranty. If you have doubts, go back to step no. 3.