Since the Stock Market crash cause by the COVID-19 Pandemic, more and more people are jumping in the Stock Market Bandwagon. Many investors gained a lot since investing on the market crash. Some even had 85% gain in their initial investments. Talk about serious returns.
This guide is specifically centered in the Philippines Stock Market (PSEI). So why the Philippines?
- Top 7th Best Country to Invest Post- COVID base on CEO Magazine. The Philippines was described as the Tech Hub of Asia by the said magazine. Here are some of the notable scores that Philippines have been measured:
- 91.3 – Trade Openness
- 92.8 – Market Potential
- 94.9 – Constitutional Framework
- 94.8 – Education and Research
- Aside from the hard facts and endorsement from a reputable magazine, my recommendation might also be a little bias since I found and joined a great community that gives me guidance on What, When and How to trade, specifically in the Philippines. I cannot deny the fact that a decent tip when to buy and sell by leading investing expert is so much valuable. Especially for people like me that does not have time and background to monitor the rise and fall of stocks plus calculating the current news, COVID-19 statistics, vaccine rollout status, US President Biden, Ellon Musk etc.
Here is a sample guide that they give me daily:
You may also be wondering what the Max % column is in the sample above. The Truly Rich Club also gives advice on how much percentage a given stock should be in your portfolio. Like for example the AC stock above indicates a Max % of 15%. This means that it is recommended that your AC stock should cover up to 15% maximum of your total portfolio. This will ensure that you will diversify your investment and therefore be more secure in the future.
They also give lots of free eBooks for financial literacy and there is also a monthly stock updates and online meeting to show us the latest trends and what might soon to come. You can also ask questions during the live online meeting. The speakers on the online meetings are usually the CEO of top Trading University in the Philippines and or the Chairman on COL Financial, one of the Philippines’ top trading platforms. The insights you will gain from those top players in the game of stocks are monumental.
If you want to check this group out, just click this affiliate link here: The Truly Rich Club.
So how can we join in all the trading/investing fun? Here are some of the best trading platform we can use to start trading/investing in the Philippines Stock Market (PSEI):
- COL Financial (Stocks | Minimum Starting Php5,000)
The most popular stock trading platform in the Philippines. It started in 1999 and has helped thousands of Investors with its advocacy in financial literacy. I personally use COL Financial; it is simple, easy and gets the job done. Its users have also grown exponentially since the COVID-19 Lockdown and COL Financial did many maintenances for infrastructure upgrades to ensure good service. You can catch a zoom meeting with the COL Financial President in the Truly Rich Club (Affiliate link) from time to time. There you can hear him speak about common trends, future trends and the market in general. You can also ask questions in the live online meeting.
2. eToro (Stocks, Forex, Commodities, ETFs, Index Funds and Cryptocurrencies | Minimum Starting $1,000)
eToro is one of the leading social trading platforms out there. You can use this to Copy trade. Copy Trading is a part of social trading in which users copy the positions of another trader (which is usually an expert). You can trade on your own here but if you do not know how then this platform might be for you. You just fund your account and research traders you want to copy. I usually choose top traders from their list of most copied traders. You can also find their past years history per month to see how much you can potentially earn in percentage. Their risk score is also shown. I find best to copy traders with a not so high-risk score. Traders in this platform can trade stocks(not necessarily in the Philippines) and even Cryptocurrencies.
I also like to mention their User Support which is AWESOME in the very least. I once tried to issue an add fund command in my account but did not push thru. After a day of not processing, someone from eToro Sales Representative contacted me with a call to ask me if I need any help with my account or if I experienced any technical problem. They even sent me an email afterwards about guidelines in funding my account using my preferred method and some getting started guides.
3. First Metro Securities (Stocks, Mutual Funds, ETFs | Minimum Starting Php2,500, no minimum for Metrobank or PSBank Account Holders)
This brokerage firm is backed by the Metrobank Group and the First Metro Investment Corporation. They offer access to listed securities that are in the Philippine Stock Exchange. You can also choose to be assisted by professional brokers if you need help.
- GCash Invest Money (Mutual Funds | Minimum Starting Php50)
Last but not the least, it is worth mentioning GCash. With a minimum starting fo Php50 or roughly just $1 anybody can now start to invest. I currently could not find anything lower than that right now to start investing. The best thing about GCash is their mobile app which you can use to start investing right away and you can also use it to pay in so many stores.
General Tips and Advices:
- Invest Early
Historically stocks tend to rise. If you look at a Stock market graph for a month you will see many rises and fall but compare it to a graph, let say 10 years, you will most likely see the graph in an upward pattern. The best time to start trading is now, if there were only a time machine then I would say that the best time to trade is years ago. The point is, if you have extra money above your safety funds right now then you should invest. Let your money work for you.
- Diversify
One of the best advices is to diversify your stock. Like the old saying: “never put all your eggs in one basket” If all your investment is only in a single stock and that company collapse then you lose all your investment. It is also not wise to invest in many different stocks but in the same industry. It is always a good practice to pick good quality stocks on different industries. Diversifying will ensure that when a given company or sector is negatively impacted by an incident, recession, new state law, pandemic or whatever, not all your portfolio will be impacted.
- Greed will eat up your funds.
Many traders lose money or miss the right opportunity just because they wanted more. Always looking for that golden time to sell or buy a stock. A sign of a good trader is the ability to predict the best time to trade but wise trader knows that the best time may also be an inch away to a missed opportunity.
- Research, research, research
Before investing in anything, always do research first. Know the company background. Does it have any pending cases, issues or are there any future development or plan to merge. Knowing the stock historical price is rising or slowly decreasing is also a must.
- Beware of hearsay, hot tips, and hypes.
Unresearched hot tips in stocks is a gamble within a gamble and hypes are just a bubble that are waiting to burst. I warn you my friends on uncredible tips. Always do your research and stick to organization or groups that are credible. Hypes can be good for the short term if you can time your buy and sell at a good time. Thread with caution.
For investing in stocks, I use the stock table guide from the Truly Rich Club. I also attend their monthly online meeting to stay updated. TO check them out just click the affiliate link above.
REFERENCE:
CEO Magazine. 29 April 2020. 10 Best Countries to Invest in Post – COVID-19. Retrieve from the URL: https://www.theceomagazine.com/business/finance/countries-invest/