Did you know that only around 1% of people in the Philippines know how the stock market work or actually use it as their primary investment driver? The opportunities in the stock investment market are vast, ranging from constant profit and even a lifetime of financial freedom. Looking to take advantage of it as well? You’ve stumbled upon the right article.
This here is a quick startup guide that will teach you the basics before you continue your stock investing journey.
Understand what the stock market is
While it’s true that you can make a ton of money through the stock market, you can also potentially lose out a lot if you rush into it without knowing what you’re doing. Stock trading is an acquired skill, just like playing an instrument or mastering art, so you can’t expect to be a stock expert overnight. It will take time and effort to improve your skills and learn how to navigate the world of trading.
Never put your life’s savings on investments you know barely about. Stock trading may be a gamble, but at least it’s a smart gamble. The stock market is a fantastic option for those looking to grow their money, though it is not your only option. Understanding what you’re getting into before diving in with your hard-earned money can make the difference a bad or a good investment.
Seek out a broker
If you’ve decided that you want to invest in the stock market, the next step you must take is to seek out a stockbroker, which is either an individual or an institution that’s licensed to buy and sell stocks in the Philippine Stock Exchange (PSE). You will need a licensed stockbroker to make the actual transactions in your stead.
The two main types of brokers are traditional and online brokers.
Traditional ones are individuals that you contact whenever you want to make transactions. This is good for busy people who want advice from a professional. Online brokers are usually institutions that are licensed to make but and sell stock transactions. You can just log into their website and transact there yourself. This is perfect for active traders. You can learn more about how to invest in stock market Philippines through websites such as eastern-sec.com, which is also an online broker/institution.
Purchase and open an account
After choosing a stockbroker, you will then open an account with them. Different brokers have varied requirements, but most of them will require the following:
- Application form available from their office or website
- Two valid government ID’s, like a driver’s license and a passport
- Tax Identification Number (TIN)
After submitting the requirements, just wait for the application to be approved.
After depositing the money to fund your account, trading can begin! Take note that this doesn’t mean you’ll make tons of instant money right away. Stock trading takes time and effort. You need both time and effort to assess the market, improve your strategy, and yourself if you want to succeed. The more you trade, the better you will know what works—the risks you can take, how often you want to make trades, and how much money you can afford to invest, etc.
Of course, it doesn’t stop there. You need to continue learning more how to invest in stock market in the Philippines, which as stated above is available through online brokers like ESDC. They offer a full quick course on how to trade plus many hacks and tips to get you started on the right path.