So, you want to invest in stocks? Like many new investors, you’ve finally decided to invest in a public company and buy your first shares of stock, but your limited knowledge leaves you wondering how to actually start investing in the Philippine Stock Market.
Here’s an easy to follow step by step guide on how to start your investment
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Self-assessment is key
Is stocks really for you? Bear in mind, stock market investing is not for the faint hearted. Well, pwede naman. Bawasan lang ang kape. If you think you cant stomach a slight price fluctuation, you might want to consider other form of investment.
How much time are you willing to spend? If you’re busy with your accounting job where confidential strategic meeting aka “chismisan” and daily team meeting is a part of your daily routine and every minute counts, individual stock picking might not work for you. Try investing in Mutual Fund or UITF instead.
Investing in the Philippine stock market in general is very risky. A number of traders have lost millions here. Not trying to be a pessimist, just making sure you see the whole picture and presenting a possible worst case scenario.
Continue reading if you’re still up for the challenge.
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Know your risk appetite
Risk appetite is the amount and type of risk you are willing to take in order for you to meet your objective.
Age and amount of responsibility plays a key role here.
Simply put, the younger you are, the bigger the risk you can take.
Same thing with responsibility, If you are the breadwinner of a family of 7, its not a good idea to invest a huge portion of your savings into stocks. As we Filipinos are known to the world, its always family first. This situation is different if you’re feeding just for yourself.
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Prepare your requirements
All stock brokers will require the following requirements. If you have them in advance, the better.
- TIN number
- Company/Student ID or Government issued ID (most brokers require 2 valid IDs). Here are some example of Government issued IDs:
- Digitized SSS ID
- Driver’s License
- GSIS E-card
- PRC ID
- IBP ID
- OWWA ID
- Digitized BIR ID
- Senior Citizen’s ID
- Unified Multi-Purpose ID
- Voter’s ID
- Initial investment (as low as 5,000.00)
- Completed application forms
- Bank account
Guys, if you don’t have any of those I mentioned above, get one. If you’re not eligible to get any of them, mag barker ka nalang. 
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Sign up and open an account from a stock broker
Guys, please lang, don’t go to the stocks exchange and scream, PABILI NG SMmmmmmm! I don’t care if you have 10M cash in your brand new LV bayong, just don’t. My goodness! This is not a grocery store where you can buy goods freely. A stock broker is required by law if you want to invest in the Philippine stock market.
Gone are the days of floor traders. Online na ang uso ngayon. They are quick, real-time and convenient. Traditional brokers are still available if you prefer one. There are number of online stock brokers to choose from. You may refer to this link if you want to know where what are the accredited stock brokers by the Philippine Stock Exchange
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Buy your first stock
So you’ve assessed yourself, opened an online account, funded it, now what? Your fund will not grow if you dont use it. So buy one!
I’m a member of a lot of FB groups related to stocks and its always a puzzle to me when someone tells the newbies to study first before putting your money in. I have a slightly different view.
Learn to trade by studying AND trading
Experience is the best teacher. For sure you’ve heard that saying a lot of time. The same is true with stocks investing. I’m not saying don’t study. What I’m suggesting is, studying isn’t enough. Studying alone does not make you a good investor. It makes you knowledgeable about the subject but it doesnt make you an experienced one.
Remember, “One can never learn how to bike by just reading”
Which stock to buy? One can never go wrong with a bluechip stock.
