Are you looking to invest in the stock market Philippines?
The total stock market accounts in the country continue to grow. Despite the recent global challenges, experts predict the local market to bounce back heading to 2022.
Things seem promising for Philippine stocks, but beginners still need to learn a lot before investing. Continue reading below for an ultimate guide to stock trading in the Philippines.
What Is the Philippine Stock Market?
The Philippine Stock Exchange (PSE) is where companies and individuals buy or trade shares of stocks. The stock market opens daily from Monday to Friday from 9:30 A.M. to 12:00 noon.
It re-opens at 1:30 P.M. before closing at 3:30 P.M. It is during these times where a stock trader can buy or sell shares.
How Does It Work?
To make money from the stock market Philippines, you must buy shares of stocks of listed companies in the PSE. The owners open their companies to the public by listing to raise funds.
In turn, the public can buy shares of the stocks and become shareholders or part-owners.
When the companies grow and make profits, shareholders will also get a piece of the earnings. For example, you buy stocks of company XYZ for 2 PHP per share. When the company grows or hits a milestone, the price per share increases to 3 PHP.
The shares that you bought for 2 PHP now have a value of 3 PHP. You can make money by selling the shares at 3 PHP, giving you a 1 PHP profit.
Licensed stockbrokers buy and sell stocks inside the PSE. However, private individuals may also trade shares through other methods. Online trading platforms are your best bet for trading shares online.
The minimum deposit for opening a trading account depends on the platform you choose. Some online trading companies accept as low as 1,000 PHP, which is excellent for beginners. Those living abroad may also trade stocks online.
Visit www.monexsecurities.com.au to learn more about trading Philippine stocks from Australia.
Tips for Investing in Stock Market Philippines
Aside from completing the basic requirements, stock trading requires basic knowledge and understanding of the stock market. Learn about buying and selling stocks, especially the best times to buy or sell.
Study the top-performing companies or “blue chips” and how they affect market trends. Understand technical analysis since it will serve as your tool in deciding the stocks to buy and how much.
Thankfully, the PSE Academy and other brokerage firms offer free seminars.
Determine your risk profile before investing. Interestingly, more millennials are investing in the stock market.
The younger you are, the higher your risk appetite. Start small by investing not more than 10% of your funds.
Learn to control your emotions and never be too greedy. Practice buying low and selling high. Lastly, track your stocks’ performance. Unload the underperforming investment stocks and keep the ones likely to grow long-term.
Discover More Ways to Make Money
You now have an idea on trading on the stock market Philippines. With this knowledge, you can find an online broker and start trading small. If you don’t think stock market trading is viable, you have other investment options at your disposal.
Discover more ways to make money by checking our other blog posts.
