Over the last weekend, Philippines stocks have been decreasing and many of the Day Trader has been investing and buying shares to Philippine Blue Chip companies. And just last week, one of the airline company in the Philippines has a huge issue on making a mistake for opening their shares to its lowest trade amount.
Is it a good idea to invest in stocks now?
Aside from it, there are many factors that cause the decrease and increase of the Philippines Stock Market. But, I will not talk about it here since I am no expert of this kind of investment however, I will share to you why investing to stocks is the right time to invest your hard-earned money.
Buying stocks, or investing in mutual funds is a risk. You are indeed gambling your money to something that you do not have control of it. However, investing in stocks is way better than losing money in gambling to your favorite casinos.
Important things to know about buying stocks:
- Putting the majority of your cash in a load of a solitary organization is extremely risky. You can immediately lose most (or all) of your cash, however, it additionally has the potential for getting a huge returns.
The best way for lessening the risk is to spread out your ventures to different companies, yet that has inconveniences, as well.
- Obviously, companies change their profits or dividends regularly. They once in a while cut their profits – implying that they’re going to pay out a little profit for each offer this time than they did last time – and here and there raise them.
- Profits are never a guarantee, yet they are an extremely decent advantage, particularly with a steady organization/company that has a long history of keeping up and raising profits/dividends.
- Make sure you have enough allocation when investing in stocks. Meaning, you have a certain budget or an amount of money you do not need for your other expenses like paying bills, bank savings, education for your child, etc. In a simpler way, you have extra money to gamble.
- Make sure you have enough funds and you know your goals when investing.
- Do not be GREEDY. Always set your expectations and a certain amount when to sell your stocks. Say, your target is to reach 100% increase, when you hit that amount, sell your stocks right away. You wouldn’t know when your investments will hit rock hard bottom and with that, you will greatly lose huge money.
- Always invest in Blue Chip companies. They have stable dividends over the years and has a great guarantee you profit from it.
Blue Chip stocks in the Philippines:
Aboitiz Equity Group, Inc.
Alliance Global Group, Inc.
Aboitiz Power Corporation
First Gen Corporation
Universal Robina Corporation
Where to buy stocks?
What I am currently using is the BDO Nomura, and few of my family members are using BPI Trade and some friends are using Metrobank Stocks.
A 5,000 to 10,000 Pesos is a decent amount of money if you want to start investing. Once you get the flow and able to learn more about stocks then you can invest in a much higher amount. I personally started at 6,000 Pesos and I’m able to buy shares from 3 Blue Chip Companies.
I am still learning and will closely monitor my investments every day since the fluctuations of Philippine Stock Market is erratic and I am hopeful that I will earn huge money so I can buy additional shares from other stable companies.