Investing in philippine stock market pdf books

An investor can only make a profit when he can sell his shares at a price higher that the purchase price. This market gives a continuous reflection of the value of securities prices at some point in time according to the best available information. Secondary markets include the stock exchange and the over-the-counter OTC market. What is a stock market and stock exchange? There are differences in their definition but real concept of a stock exchange and stock market remains constant.

In a fundamental sense, a stock exchange brings buyers and sellers together. It is an organization whose function is to facilitate the purchase and sale of stocks and other securities. It is a market where investors can buy and sell securities after they have been offered in the primary market.

Remember that the stock exchange is not a capital raising mechanism. As part of the secondary market, it is only adjunct to the capital raising market or primary market. It is merely a place or means where existing shareholders can sell their shares to those who are ready to buy. The stock exchange and the stock market facilitate the flow of savings into investments by providing a ready market for the resale of securities.

The inflow of funds in the stock market is one efficient way of directing a needed resource in this case, money into a growing economy. As such, the stock exchange plays a key role in economic development by providing a centralized environment that brings together the demanders and suppliers of funds to make secure and fast transactions.

What is the over-the-counter market? Stocks of corporations not listed and therefore not traded in the stock exchange but registered and licensed by the Securities and Exchange Commission for sale to the public are only available in the so-called over-the-counter OTC market. This market is not a specific organization but another way of trading securities. OTC transactions are carried out by direct inquiries and negotiations among the buyers and sellers through the use of mail, telephone, telegraph, Teletype, or other forms of communications.

What are the advantages of the stock market? The stock market is a better market for the trading of securities as opposed to the OTC because of the following: Most accessible market Through the offices of member firms located everywhere, even in the provinces, stocks are available to millions of people. Ready market With a simple phone call, an investor can buy and sell stock, virtually within minutes. Market transactions are done swiftly, conveniently and at a fair price.

Liquidity of the market Hundreds of different stocks are available to thousands of buyers and sellers and can readily be turned into cash due to the large number of market players. The OTC market is generally much thinner or less liquid which makes it more difficult to sell at a certain time in a failing market due to lack of buyers.

Operates in full public view Transactions and price data are readily available through newspapers, radio, television and information networks. Unlike the stock exchange, the over-the-counter stock prices are not published daily in the newspapers, which makes it more difficult for an investor to keep track of his investment.

Who are the players in the stock market? Investors are the ones who buy and sell securities in the hope of receiving dividend income and making a profit through capital appreciation. These buyers and sellers are not the only players in the stock market. Other persons or institutions ensure that the stock market is a readily accessible, efficient, orderly and transparent market. These are: Stockbroker Anyone who wishes to buy shares of stocks or bonds must have a stockbroker.

As an intermediary, the stockbroker executes orders for clients, purchasing or selling the stocks on the stock exchange. He is the only person or corporation authorized and licensed by the Securities and Exchange Commission to trade in securities. They are commonly known as members, member-brokers, or member-firms of the Philippine Stock Exchange. Stock exchange This is the organization that oversees the transactions of the buyers and sellers placed through the member-brokers.

Its professional management ensures that the market is efficient, fair, transparent and orderly by enforcing its rules and regulations. Think Rich, Pinoy! By: Larry Gamboa If you want to earn passively through real estate investment, You may want to check out these real estate investment books in the Philippines. Larry Gamboa aims to change your perception of investing in real estate by sharing his personal experiences and knowledge about the real estate industry.

The book narrates the childhood years of Warren Buffett, the stock market crash, and more events after that. The Snowball is more detailed compared to other biographies about Buffett. Aside from being a great investor, you could learn more that would make you admire him. Warren Buffett mentioned that this was the most remarkable investing book ever written. Since it was first published, it has been one of the most reputable investment books. The book focuses on the value investing philosophy, which prevents readers from making possible investment errors and guides them in creating long-term plans of action.

As a result, you could learn how to make the right investment decisions and be successful. Arguably t could also be one of the best investment books for beginners in the Philippines. Nevertheless, it might not be a good idea for those who do not have background knowledge about investments. It is because there could be parts that were challenging to comprehend. Ang Pera Na Hindi Bitin: How to manage your money so God will entrust you with more By: Ardy Roberto Although this book is thin, it is filled with information and tips on saving money, giving and paying debts, living simply, investing, and becoming financially stable.

This investment book in the Philippines is highly recommended to people who always borrow money and struggle to pay it back. The author also shares lessons about finances he learned from his experiences. By: Roselle P.

Reig This fantastic book is one of the best investment books for beginners in the Philippines since it will come in handy for those who have no idea how or where to invest their money. Roselle Reigh explains the impact of inflation on your money , various investment opportunities people could consider in earning more, and how to succeed in investments. She also gives tips on how to invest in each of them.

This time he co-wrote it with David Dood, an author, financial analyst, and professional investor. The book discusses ways to create investments, even on businesses that are thought not to be secured. The Four Pillars of Investing By: William Bernstein One of the key takeaways of this book is to invest in something you have knowledge and understanding of when beginning.

Also, it advises refraining from investing because it is on-trend. Aside from learning how to manage money properly, the book teaches the reader how to invest wisely with some exclusive tricks of the trade.

Kontento ka na ba sa kaPERAhan mo? They also explain why money difficulties occur, different money manager types, self-control methods by Vic Garcia, and the difference between Filipino and Filipino-Chinese business owners. Kasusweldo pa lang, UBOS na? Book 2 By: Vic and Avelynn Garcia The second investment book in the Philippines by Vic and Avelynn Garcia gives the possible reasons why people always borrow money and tips on staying away from debts.

In part 2, they mentioned that the key to avoiding debts is to live within the means. To avoid having debts, they shared the rule. Chinkee Tan enlightens the readers on this phenomenon and what separates the rich and the poor in this book. But, on the other hand, the poor give more value to entertainment than investing in education. Therefore, a different mindset sets the poor from the rich apart.

Having a poor mindset makes one poor, and thinking rich can make you one. By: Bo Sanchez In this book, Bo Sanchez shares how he helped three of his house helpers invest money in the stocks and save up for their retirement. He also taught them the 5-envelope budget system and explained how each envelope works.

You could also feel inspired to invest money in the stock market and become a millionaire eventually.

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This is the much more dangerous type of risk we must be aware of, the risk due to ignorance. Risk Due to Ignorance The risk due to ignorance is perfectly expressed in one of my favorite but highly underrated quotes on investing. There are only good investments, and bad investments. When I read the quote above, I got really confused. If Robert Kiyosaki was right, it meant that it was possible to get higher returns, without having to take on higher risks.

All you needed to do was to become a smarter investor. This was puzzling, but at the same time empowering. From this there has developed the general notion that the rate of return which the investor should aim for is more or less proportionate to the degree of risk he is ready to run. Our view is different. The rate of return sought should be dependent, rather on the amount of intelligent effort the investor is willing and able to bring to bear on his task. The minimum return goes to our passive investor, who wants both safety and freedom from concern.

The maximum return would be realized by the alert and enterprising investor who exercises maximum intelligence and skill. Rather, it depended on disciplined study. This is because you can never exactly predict what the value of your investment will be in the coming years. The Biggest Problem in Investing The biggest problem that can arise with investing is when your personal situation forces you to suddenly sell your investments for cash when the market is down.

Mark invested all his savings — amounting to P, — in the stock market. Unfortunately, he got into an accident where the bones in his leg got crushed. The medical fees were P, And even though his company offered medical benefits, his employer would only pay for P20, So Mark had to find a way to pay for his share of P80, The only other place he had money was in the stock market.

Unluckily, at that time, the market was down and the value of his investment was just P80, The value would go down and then it would go up again. It would go down and then it would go up again. Normally, he would just wait it out. But this time was different. He had to pay the hospital. So, he withdrew his investment worth P80, , taking a loss of P20, This is one of the most discouraging things that can happen when you put all your money in the stock market.

In order to prevent the problem above, there are three ways to protect your investments from a sudden need of cash. I recommend that you do all of them, before you invest in the stock market. Protect yourself with insurance. This is to make sure that when an accident happens to you, your loved ones, your car, home, or business it will be the insurance company that will be obligated to pay for it.

Shield yourself with an emergency fund. An emergency fund is a sum of money set aside just for emergencies. The general minimum of this amount is 6 months of your living expenses. So if you suddenly need money because you lost your job, you can live off your emergency fund until you find a new one. There are people who spend in total 1 hour per year. While there are those who go at it 8 hours per day! When I was starting out, I took a look at my portfolio every hour! It was very exciting to see my money move up, and terrifying to see it move down.

That habit lasted for about two weeks, and then I got used to it. Checking it frequently just became boring and well, a waste of time. Now, I just spend 30 minutes every Saturday and Sunday to read up on the stocks I have. And once a month I spend a little more time to place my buy orders in the stock market. I now spend more time studying the stocks, rather than just staring at my portfolio and illogically cheering it on. Instead, the money you can make is proportional to the quality of investment knowledge you have learned and applied.

They asked about their cars, suits, shoes, vacations, houses, worries, and more. Of course they also asked them about how long they kept their investments in a particular company. A great majority of them hold their stocks for a minimum of one year. Thus, they can focus their time and energy to master their understanding of a much smaller variety of offerings in the market. Stanley Ph. Danko Ph. With the widespread use of the internet, you can start investing for as low as P5, The primary limitation before was that you needed a personal stock broker in order to be able to invest.

So the stock brokers who had limited time had to set a minimum amount of investment before they accepted individual investors. But today, there are online stock brokers who allow you to invest in the stock market on your own.

All you need is a computer and a stable internet connection. You can send your buy or sell orders online. Here are the websites of some online brokers. Take note that this list is not complete. I am not paid to promote them. I just highly recommend them, being a satisfied customer myself. They are the largest online brokerage in the country. They are also the most active when it comes to promoting stock market education.

They even hold introductory stock market seminars every week at their office. Stress and risk are highly related to each other. Stress comes from the feeling of being out of control, of not knowing what to do next. And not knowing what to do next is simply a cause of lack of information caused by the lack of research.

Imagine two college students taking a Calculus exam. Student A studied several weeks before the exam. Student B just started studying the night before. Who do you think would be more stressed before, during and after the exam? Rick just heard the news that his officemate, Steve just made P30, in one day from the stock market.

He asked a friend for more information and to let him in on the next big thing on the stock market. A week later his friend tells Rick to invest in XYZ Company so that could double his money in a week. Rick gets excited over the news, and on the same day, invests his P, savings into XYZ. The next day, Rick looks at his account… his money is just P90, He demands an explanation from his friend. Rick being a very trusting guy follows the advice… One week later, he opens his account….

And boom. Account Balance: P10, Imagine the stress Rick was going through. He blamed his friend for losing his money, and swore that he would never invest in the stock market again. Rick was unprepared and took on a lot of risk due to ignorance. I also counted the number of steps and clicks you had to make for the basic transactions. I also made a distinction whether the stock market term is really useful. Count the number of buttons available in your TV remote, and then count how many of those buttons you actually use.

What you see when you open the order window. There are three ways to get your money into the stock market. The key here is to find which best fits your desired style of investing. These funds are professionally handled by the fund manager. In a mutual fund, you are not buying specific company. Instead, what you are buying are shares of that specific fund. So if the fund is invested in 10 different companies, your money is also invested in those 10 different companies.

This also means that you no longer have to decide which companies to buy, and when to sell them. That responsibility is delegated to the fund manager. The good thing about this is that you can get advice made specific to your investing needs: Your investment goals, your timeline, and your tolerance to risk. A good stock broker will be able to advice you on what to buy, when to sell, and notify you of the upcoming opportunities.

You can even assign some brokers to manage your portfolio for you while you go on vacation. The many personalized services that come with this method entail a price — commonly in the form of higher commission rates and higher minimums for starting an account.

On your own, you will be able to buy and sell stocks as long as you have a computer with access to the internet. Since everything is do-it-yourself, you will be paying the lowest commission rate possible 0. For the market tips and advice, your online broker will be providing you with tons of reports and market information.

It would be up to you how to understand it and how to get the relevant details. Among these three options, what I generally recommend to starting investors is to start with an online stock broker. This makes it accessible to almost anyone who has a source of steady source of income.

You will read the company reports. You will decide which companies to buy, and which companies to sell. You will execute your buy and sell orders. You will manage your own portfolio. This means you stand to earn the biggest amount. This is also the reason why I would recommend doing it on your own first, before getting a mutual fund.

In a mutual fund, everything is managed for you. Your only responsibility is to write a check or make a deposit to the mutual fund company. Developing the skill of writing a check and paying someone is very dangerous! In fact, I also have investments in mutual funds. The lowest that is allowable by the PSE is 0.

These other fees however would not vary from broker to broker. This is why with online brokers where only generic market information is provided , they just charge the minimum. Here is a complete list of online and traditional brokers registered with the PSE. Broker Directory. A ranking report by volume of transactions is also available in that link. Overall, you should pick a broker who matches your investing needs. As a beginning investor with little starting capital, it would be best to pick brokers with the lowest fees.

This way, more of your available money is put into stocks rather than transaction fees. Take the Leap - Quick Tip! They have the lowest fees. And they provide a lot of market information. And they are the largest online brokerage in the country stability. Some are simple, and some are a little complicated. Take a look at which one would be best for you. If it gets bigger, great! But if it gets lost, then you should still be okay.

Pick the companies that will most probably outlive you. These are the companies that have a history of expanding into new ways of making money. Then they expanded their business to also provide internet and cellular services. And much more recently, they even acquired a competitor, Sun Cellular.

Then the business shifted to selling hotdogs. After the hotdogs, came the Yumburgers and Chickenjoy. This marked their entrance in the pizza-pasta business. But aside from this product, SMC has had a history of expanding into new businesses. Clearly, San Miguel Corporation will keep on evolving to thrive in the ever changing market.

SMC P In fact, if it was the year — and you had put your money in San Miguel Corporation, your returns would have been negative in However, it requires more discipline than the buy and hold strategy. The peso cost averaging strategy is investing a fixed amount of money in a good company at fixed intervals, regardless of its price.

This way, you spread out the risk of buying at expensive prices, at the same time take advantage of the opportunities at cheap prices. Here is an example to show you how this works. The following table shows the prices of Ayala Land Inc, at six-month intervals. Average Purchase Price of Shares Purchase Price of Shares Notice that even if the prices have gone up in January , the average purchase price still remains lower.

This is because a lot more shares were purchased during Jul to Jan What does lot size mean? As a result, the average purchase price also goes lower. This is the magic of peso-cost averaging. By buying at fixed intervals, with fixed amounts of money, you take advantage of the price fluctuations. Market Timing Market timing is also known as stock trading.

This means actively watching the stock market for opportunities to buy at the lows, and sell at the highs. Market timing requires more skill, time and dedication. At the same time, it is also a lot more exciting. With timing the market, you can double your money in a week! But at the same time, the reverse could happen. This rush of winning and losing is the reason why the stock market is often likened to gambling.

While the concept of timing the lows and selling at the highs seems simple, it requires knowledge of a science called technical analysis. Technical analysis is a technique where you look for patterns in the stock charts, and look for different market indicators.

Just to show a preview of some things you should know if you plan on doing this, take a look at this chart. Of these three strategies, the best strategy for the new investor is peso cost averaging. You spread your risk. You only need to check on it, once or twice a month. If you already have a huge amount of money set-aside say, P, and above , divide that portion into 6 portions or so and slowly invest it into the stock market using the peso-cost averaging. Professionals use two approaches in deciding which companies to buy: Fundamental analysis and Technical analysis.

Before I explain these two methods, please be reminded that the people who do it are professionals. Meaning they spend majority of their work week performing these kinds of analyses. Now, rest assured though that you do not need to learn how to do this. The approach is usually done in a top-down manner, from general to specific. The following list is the series of questions one would need to answer using the fundamental analysis approach on a global level.

North America? When I was still starting out in studying how to invest in the stock market, this was one of the first things that I read. And it overwhelmed me. I felt that I had to read my book on Econ again! Fundamental Analysis: Simpler Version To make fundamental analysis easier, the best first step is to start with what you already know.

Start by identifying the products that you already use and find out who makes them. Which fast food restaurants do you eat in? Do you use electricity? Of course you do - Find out more about Meralco. Who provides your water? Where do you shop? SM Malls or Ayala Malls? Either way, both are listed in the stock market. Which airlines do you use for travel? Where do you work? Who provides your internet? What about your sim card? For each of these companies, your goal is to find evidence that these companies will continue to grow in the future.

The more evidence you have, the better your chance of making a good choice. Which can convince you to buy a stock? Which are good enough reasons for you to buy a stock? Come , all these units would be sold out. My boss just invested P10m into company XYZ! My boss, whose wife is a mutual fund manager of an international bank, just invested P10m into company XYZ!

Some evidence will be based on 10 years of performance, while some will be based on the latest rumors. The major assumption in technical analysis is that everything that has happened and is happening is already factored into the stock price. And therefore, by studying the stock price alone, you have already factored in everything that could affect the price including fundamental factors and the market psychology.

In short, you only consider the price of the stock with technical analysis. This is in contrast with fundamental analysis where everything seems like a factor to consider. This makes technical analysis look a lot simpler, making more people want to try it out. In fact, the seminars on this offered by CitisecOnline have two sessions, each one going for at least 4 hours. I have decided to end the discussion on technical analysis here. The reason is that I do not want to encourage you to try it without more in-depth training.

At this point, it is enough that you know that Technical Analysis exists. Yes, there is a better, easier, safer and more effective way to do it! This way you get to leverage on their time and talent when it comes to picking stocks. There are a lot of sources online wherein you can get this guidance.

A few are great, some are okay, and many are just plain risky. So to answer this question, I will just recommend the best one. I believe that this expert is the best because of the consistency, reliability, integrity and ease of use. Bo Sanchez actually taught his maids and drivers how to invest in the stock market.

The Stocks Update is a page article which contains stock recommendations and the reasons why that company is being recommended. The following picture shows a snippet of the StocksUpdate. The recommended stocks and the prices would have changed by the time you read this.

This is the maximum price that you should be willing to pay for 2 - Buy Below that stock. Anything below the buy below price is considered What Price? This is the target selling price. So for AP, when the price reaches When to Sell?

This is why the buy below price is very important. It is because of this Buy Below Price that investors are able to confidently invest their money in the recommended companies. Investors who understand this concept clearly, know that as long as they follow the buy below price, they are maximizing the use of every hard-earned peso they have. Learn and Earn at the Same Time By the way, did you notice that I said there were 4 questions, but only gave you 3?

However, this stock recommendation list is considered to be best because of the minds that created it. Edward was introduced to the stock market at a very young age of One year later, the stock market crashed, and he was completely wiped out. He was even buried in debt because he used borrowed money for investing! But, thankfully for all of us, that stock market crash taught him a lesson. He persevered, and recovered, and continued studying and investing in the stock market.

Yes, with a B! Standing on the Shoulders of 2 Giants The best way to look at the StocksUpdate, then, is to see it as a product of 2 giants: Edward Lee the stock market genius, and Bo Sanchez, the brilliant and inspiring motivational speaker. Edward Lee provides the technical expertise of the recommendations.

Then, Bo Sanchez translates the recommendations into a simple and entertaining manner in the StocksUpdate. As a member, you get e-books, recordings of live seminars, financial newsletters aside from the StocksUpdate. Benefit What is it? StocksUpdate Your ultimate step-by-step guide to investing in the stock market as shown in the previous sections. These are inspirational and transformative talks that will teach you how to live the life that you would want for yourself.

Sent twice a month 3. Through these interviews, you get to learn not only from Bo, but other experts as well. Sent quarterly 4. Wealth Strategies This is a newsletter that gives you financial education. Topics range from the principles of abundance, to the nitty-gritty details of business, insurance and other investments.

If you share the Truly Rich Club with friends and family and they sign-up using your link, you will get to earn a commission. So when you sign up using my link, I will get a commission from your subscription. However, income aside, my recommendation is always based on my personal experience that the product provides excellent and valuable service.

There are also other membership options which have different prices and benefits. The details however, need not be discussed here. They will give your money back, with no questions asked. You have to read this section first. You see, the only time following a stock recommendation list would be irresponsible is if you act on it blindly, without knowing the source and its credibility. Let me explain using this story: There was a young and beautiful girl who lived in a hut by the ocean named Marimar.

Her evil aunt, named Angelica, told Marimar that his husband Sergio has been cheating on her. Being very gullible, Marimar believed Angelica and went home crying to seek comfort from her dog, Polgoso. Marimar was so angry and hopeless and irresponsible that she packed her things and left the country without saying goodbye to anyone.

During the trip, she got into an accident, and died. Now, Marimar failed to do something that she should have done after she got the information. She should have first checked the credibility of two things: the credibility of the source of information and the credibility of the information itself. For the benefit of the very young readers, the above story is just a reference to the Telenovela entitled Marimar.

It was a show that swept the Philippine TV during its time. I still have the introductory song memorized! He is a spiritual preacher, best-selling author, publisher, international speaker, entrepreneur, millionaire, philanthropist, father and a husband. He has built many ministries for the poor and less fortunate, he has achieved many awards, and the list of his accomplishments is just too many to mention here.

He is a self-made billionaire and the chairman and founder of CitisecOnline. He started investing in the stock market when he was only 18 years old. Today he has almost 40 years of experience under his belt. Under the guidance of Edward Lee, the Truly Rich Club has been recommending stocks for the past 2 years.

And so far, the performance has been stellar. Here is a list of the past winners of the Truly Rich Club this The picture above is a screenshot of my portfolio just this January Some parts have been blocked out for personal reasons, but you may direct your eyes to the rightmost column which shows the percentage gains.

Some of these stocks have been held for almost one year, while some of the stocks have been only there for a couple of months. With that, I really encourage you to join the Truly Rich Club as you start investing in the stock market. Join the Truly Rich Club. With the StocksUpdate newsletter it would be like you have an expert baby sitter for your investing. And 4 When to sell them. Important: When you sign-up, remember to sign-up through any of the links in this book, or in the stockmarketforpinoys.

Truly Rich Club Links 1. Signing-up and Getting the Stock Market for Pinoys. Performance Review of the StocksUpdate Recommendations 4. But of course, the more you know the better right? The information here has very little to do with investing in the stock market. I just put this here for those who are a bit more curious than the rest.

As of , there are listings in the Stock Market. While five years ago there were only listed companies. The size of the market is measured by market capitalization. This is the total market value of all listed companies in that particular stock market.

In the table below, it is easy to see that our stock is still very small when compared to others. Companies get listed in the stock market in order to raise huge amounts of capital without having to borrow money outright. With the stock market, they sell their shares of stock their ownership to the public — and just share the profits through dividends to their stockholders. The first board caters to companies with market capitalization of at least P Million.

The second board is for companies with market capitalization of at least P Million. The following table is a quick summary of the standards set by the PSE for the three boards. Philippine Stock Exchange Main Website 2. This refers to the first time the public is given an opportunity to buy shares of a newly publicly listed company. Of course, this happens after PSE screens the company in order to protect the investing public. IPOs are very exciting since it may present an opportunity to make a lot of money.

Actually, the investing public is a bit biased towards IPOs. Its opening price was P However, for those who stuck with it for the next couple of months, they would have nearly doubled their money. This meant that a lot of people wanted to buy the stock. It climbed from P to P on its first day. However, after several months, the stock price gradually declined.

Many people held on to the stock believing that it would one day get back up again. One year passed, but sadly the stock price dropped even more. In July , the stock price was only in the P67 - P70 range. The first person to go to if you want to get into an IPO is your stock broker.

As soon as you hear the news of an IPO, contact them already to ask when you can get the shares. Do not wait till the opening date since that would already be too late. In an IPO the shares of stock are limited to each person. Add to that the emotional rush it creates: the excitement from everybody wanting to get it, and the fear from missing out on an opportunity.

This emotional rush makes a lot of investors blind to the risk of not knowing anything about the company. Ellie is a cautious and patient investor so she waits for more information before getting into it. It must be one of the random people she added just to get the notifications down to zero. While having dinner, she overheard one of the tables talking about investing.

Since the table was already full, she just tried to listen to their conversation. After a few minutes of listening she learns that several of them already signed up for the IPO. The next morning, Ellie calls up her broker, and asks to also get her shares for the coming IPO. Did Ellie learn anything about the company? Not a thing.

What she did find out was that a ton of other people was also getting into it. I got the texts. I saw the posts on Facebook. Instead of a birthday party, it was a despedida. And the moment I signed up for the stocks, I also encouraged my other friends to get into it.

Unfortunately, for every IPO like Microsoft that turns out to be a big winner, there are a thousand of losers. Psychologists Kahnerman and Tversky have shown when humans estimate the likelihood of an event, we make that judgment based not on how often the event has actually occurred, but on how vivid the past examples are. But we conveniently overlook the fact that most other IPOs were terrible investments.

Stock Symbol or Stock Code In the stock market, each company is assigned a nickname or a code. This is called the stock symbol. The table below lists some examples. Market Price The market price is simply the price per share of a particular stock. When the stock market is open, the price can change every second.

It all depends on how much the buyers want to buy, and how much the sellers want to sell. You will probably see something that looks like this. Naturally, buyers would want to buy at the lowest price possible, while sellers would want to sell at the highest price possible. This is why this table shows the highest buying prices and the lowest selling prices. Label What is it? What does it mean? Take advantage of this exclusive information for OFWs and their families alike.

Each chapter offers different saving and investing strategies giving you ideas to practice on your own. Plus, the book is in printed and kindle formats so you can read it at your convenience or review multiple times. This book contains a step by step guide for beginners who are new to stock market and would like to start investing in the Philippine Stock Market. It was a good starter for me on how to make the first step in investing in the stock market.

Think, what proof of authority ethereum really

This was puzzling, but at the same time empowering. From this there has developed the general notion that the rate of return which the investor should aim for is more or less proportionate to the degree of risk he is ready to run. Our view is different. The rate of return sought should be dependent, rather on the amount of intelligent effort the investor is willing and able to bring to bear on his task.

The minimum return goes to our passive investor, who wants both safety and freedom from concern. The maximum return would be realized by the alert and enterprising investor who exercises maximum intelligence and skill. Rather, it depended on disciplined study. This is because you can never exactly predict what the value of your investment will be in the coming years.

The Biggest Problem in Investing The biggest problem that can arise with investing is when your personal situation forces you to suddenly sell your investments for cash when the market is down. Mark invested all his savings — amounting to P, — in the stock market. Unfortunately, he got into an accident where the bones in his leg got crushed.

The medical fees were P, And even though his company offered medical benefits, his employer would only pay for P20, So Mark had to find a way to pay for his share of P80, The only other place he had money was in the stock market. Unluckily, at that time, the market was down and the value of his investment was just P80, The value would go down and then it would go up again. It would go down and then it would go up again. Normally, he would just wait it out.

But this time was different. He had to pay the hospital. So, he withdrew his investment worth P80, , taking a loss of P20, This is one of the most discouraging things that can happen when you put all your money in the stock market. In order to prevent the problem above, there are three ways to protect your investments from a sudden need of cash. I recommend that you do all of them, before you invest in the stock market. Protect yourself with insurance. This is to make sure that when an accident happens to you, your loved ones, your car, home, or business it will be the insurance company that will be obligated to pay for it.

Shield yourself with an emergency fund. An emergency fund is a sum of money set aside just for emergencies. The general minimum of this amount is 6 months of your living expenses. So if you suddenly need money because you lost your job, you can live off your emergency fund until you find a new one.

There are people who spend in total 1 hour per year. While there are those who go at it 8 hours per day! When I was starting out, I took a look at my portfolio every hour! It was very exciting to see my money move up, and terrifying to see it move down. That habit lasted for about two weeks, and then I got used to it.

Checking it frequently just became boring and well, a waste of time. Now, I just spend 30 minutes every Saturday and Sunday to read up on the stocks I have. And once a month I spend a little more time to place my buy orders in the stock market. I now spend more time studying the stocks, rather than just staring at my portfolio and illogically cheering it on. Instead, the money you can make is proportional to the quality of investment knowledge you have learned and applied.

They asked about their cars, suits, shoes, vacations, houses, worries, and more. Of course they also asked them about how long they kept their investments in a particular company. A great majority of them hold their stocks for a minimum of one year.

Thus, they can focus their time and energy to master their understanding of a much smaller variety of offerings in the market. Stanley Ph. Danko Ph. With the widespread use of the internet, you can start investing for as low as P5, The primary limitation before was that you needed a personal stock broker in order to be able to invest.

So the stock brokers who had limited time had to set a minimum amount of investment before they accepted individual investors. But today, there are online stock brokers who allow you to invest in the stock market on your own. All you need is a computer and a stable internet connection. You can send your buy or sell orders online.

Here are the websites of some online brokers. Take note that this list is not complete. I am not paid to promote them. I just highly recommend them, being a satisfied customer myself. They are the largest online brokerage in the country. They are also the most active when it comes to promoting stock market education. They even hold introductory stock market seminars every week at their office. Stress and risk are highly related to each other.

Stress comes from the feeling of being out of control, of not knowing what to do next. And not knowing what to do next is simply a cause of lack of information caused by the lack of research. Imagine two college students taking a Calculus exam. Student A studied several weeks before the exam.

Student B just started studying the night before. Who do you think would be more stressed before, during and after the exam? Rick just heard the news that his officemate, Steve just made P30, in one day from the stock market. He asked a friend for more information and to let him in on the next big thing on the stock market. A week later his friend tells Rick to invest in XYZ Company so that could double his money in a week. Rick gets excited over the news, and on the same day, invests his P, savings into XYZ.

The next day, Rick looks at his account… his money is just P90, He demands an explanation from his friend. Rick being a very trusting guy follows the advice… One week later, he opens his account…. And boom. Account Balance: P10, Imagine the stress Rick was going through.

He blamed his friend for losing his money, and swore that he would never invest in the stock market again. Rick was unprepared and took on a lot of risk due to ignorance. I also counted the number of steps and clicks you had to make for the basic transactions. I also made a distinction whether the stock market term is really useful. Count the number of buttons available in your TV remote, and then count how many of those buttons you actually use. What you see when you open the order window.

There are three ways to get your money into the stock market. The key here is to find which best fits your desired style of investing. These funds are professionally handled by the fund manager. In a mutual fund, you are not buying specific company. Instead, what you are buying are shares of that specific fund. So if the fund is invested in 10 different companies, your money is also invested in those 10 different companies.

This also means that you no longer have to decide which companies to buy, and when to sell them. That responsibility is delegated to the fund manager. The good thing about this is that you can get advice made specific to your investing needs: Your investment goals, your timeline, and your tolerance to risk. A good stock broker will be able to advice you on what to buy, when to sell, and notify you of the upcoming opportunities.

You can even assign some brokers to manage your portfolio for you while you go on vacation. The many personalized services that come with this method entail a price — commonly in the form of higher commission rates and higher minimums for starting an account. On your own, you will be able to buy and sell stocks as long as you have a computer with access to the internet. Since everything is do-it-yourself, you will be paying the lowest commission rate possible 0.

For the market tips and advice, your online broker will be providing you with tons of reports and market information. It would be up to you how to understand it and how to get the relevant details. Among these three options, what I generally recommend to starting investors is to start with an online stock broker. This makes it accessible to almost anyone who has a source of steady source of income. You will read the company reports.

You will decide which companies to buy, and which companies to sell. You will execute your buy and sell orders. You will manage your own portfolio. This means you stand to earn the biggest amount. This is also the reason why I would recommend doing it on your own first, before getting a mutual fund. In a mutual fund, everything is managed for you. Your only responsibility is to write a check or make a deposit to the mutual fund company.

Developing the skill of writing a check and paying someone is very dangerous! In fact, I also have investments in mutual funds. The lowest that is allowable by the PSE is 0. These other fees however would not vary from broker to broker. This is why with online brokers where only generic market information is provided , they just charge the minimum.

Here is a complete list of online and traditional brokers registered with the PSE. Broker Directory. A ranking report by volume of transactions is also available in that link. Overall, you should pick a broker who matches your investing needs. As a beginning investor with little starting capital, it would be best to pick brokers with the lowest fees. This way, more of your available money is put into stocks rather than transaction fees.

Take the Leap - Quick Tip! They have the lowest fees. And they provide a lot of market information. And they are the largest online brokerage in the country stability. Some are simple, and some are a little complicated. Take a look at which one would be best for you.

If it gets bigger, great! But if it gets lost, then you should still be okay. Pick the companies that will most probably outlive you. These are the companies that have a history of expanding into new ways of making money. Then they expanded their business to also provide internet and cellular services. And much more recently, they even acquired a competitor, Sun Cellular. Then the business shifted to selling hotdogs. After the hotdogs, came the Yumburgers and Chickenjoy.

This marked their entrance in the pizza-pasta business. But aside from this product, SMC has had a history of expanding into new businesses. Clearly, San Miguel Corporation will keep on evolving to thrive in the ever changing market. SMC P In fact, if it was the year — and you had put your money in San Miguel Corporation, your returns would have been negative in However, it requires more discipline than the buy and hold strategy.

The peso cost averaging strategy is investing a fixed amount of money in a good company at fixed intervals, regardless of its price. This way, you spread out the risk of buying at expensive prices, at the same time take advantage of the opportunities at cheap prices. Here is an example to show you how this works. The following table shows the prices of Ayala Land Inc, at six-month intervals. Average Purchase Price of Shares Purchase Price of Shares Notice that even if the prices have gone up in January , the average purchase price still remains lower.

This is because a lot more shares were purchased during Jul to Jan What does lot size mean? As a result, the average purchase price also goes lower. This is the magic of peso-cost averaging. By buying at fixed intervals, with fixed amounts of money, you take advantage of the price fluctuations. Market Timing Market timing is also known as stock trading. This means actively watching the stock market for opportunities to buy at the lows, and sell at the highs.

Market timing requires more skill, time and dedication. At the same time, it is also a lot more exciting. With timing the market, you can double your money in a week! But at the same time, the reverse could happen. This rush of winning and losing is the reason why the stock market is often likened to gambling. While the concept of timing the lows and selling at the highs seems simple, it requires knowledge of a science called technical analysis.

Technical analysis is a technique where you look for patterns in the stock charts, and look for different market indicators. Just to show a preview of some things you should know if you plan on doing this, take a look at this chart. Of these three strategies, the best strategy for the new investor is peso cost averaging. You spread your risk. You only need to check on it, once or twice a month.

If you already have a huge amount of money set-aside say, P, and above , divide that portion into 6 portions or so and slowly invest it into the stock market using the peso-cost averaging. Professionals use two approaches in deciding which companies to buy: Fundamental analysis and Technical analysis. Before I explain these two methods, please be reminded that the people who do it are professionals. Meaning they spend majority of their work week performing these kinds of analyses.

Now, rest assured though that you do not need to learn how to do this. The approach is usually done in a top-down manner, from general to specific. The following list is the series of questions one would need to answer using the fundamental analysis approach on a global level. North America? When I was still starting out in studying how to invest in the stock market, this was one of the first things that I read.

And it overwhelmed me. I felt that I had to read my book on Econ again! Fundamental Analysis: Simpler Version To make fundamental analysis easier, the best first step is to start with what you already know. Start by identifying the products that you already use and find out who makes them. Which fast food restaurants do you eat in? Do you use electricity? Of course you do - Find out more about Meralco.

Who provides your water? Where do you shop? SM Malls or Ayala Malls? Either way, both are listed in the stock market. Which airlines do you use for travel? Where do you work? Who provides your internet? What about your sim card? For each of these companies, your goal is to find evidence that these companies will continue to grow in the future.

The more evidence you have, the better your chance of making a good choice. Which can convince you to buy a stock? Which are good enough reasons for you to buy a stock? Come , all these units would be sold out. My boss just invested P10m into company XYZ! My boss, whose wife is a mutual fund manager of an international bank, just invested P10m into company XYZ!

Some evidence will be based on 10 years of performance, while some will be based on the latest rumors. The major assumption in technical analysis is that everything that has happened and is happening is already factored into the stock price. And therefore, by studying the stock price alone, you have already factored in everything that could affect the price including fundamental factors and the market psychology. In short, you only consider the price of the stock with technical analysis.

This is in contrast with fundamental analysis where everything seems like a factor to consider. This makes technical analysis look a lot simpler, making more people want to try it out. In fact, the seminars on this offered by CitisecOnline have two sessions, each one going for at least 4 hours.

I have decided to end the discussion on technical analysis here. The reason is that I do not want to encourage you to try it without more in-depth training. At this point, it is enough that you know that Technical Analysis exists. Yes, there is a better, easier, safer and more effective way to do it! This way you get to leverage on their time and talent when it comes to picking stocks.

There are a lot of sources online wherein you can get this guidance. A few are great, some are okay, and many are just plain risky. So to answer this question, I will just recommend the best one. I believe that this expert is the best because of the consistency, reliability, integrity and ease of use. Bo Sanchez actually taught his maids and drivers how to invest in the stock market.

The Stocks Update is a page article which contains stock recommendations and the reasons why that company is being recommended. The following picture shows a snippet of the StocksUpdate. The recommended stocks and the prices would have changed by the time you read this. This is the maximum price that you should be willing to pay for 2 - Buy Below that stock. Anything below the buy below price is considered What Price? This is the target selling price. So for AP, when the price reaches When to Sell?

This is why the buy below price is very important. It is because of this Buy Below Price that investors are able to confidently invest their money in the recommended companies. Investors who understand this concept clearly, know that as long as they follow the buy below price, they are maximizing the use of every hard-earned peso they have.

Learn and Earn at the Same Time By the way, did you notice that I said there were 4 questions, but only gave you 3? However, this stock recommendation list is considered to be best because of the minds that created it. Edward was introduced to the stock market at a very young age of One year later, the stock market crashed, and he was completely wiped out. He was even buried in debt because he used borrowed money for investing! But, thankfully for all of us, that stock market crash taught him a lesson.

He persevered, and recovered, and continued studying and investing in the stock market. Yes, with a B! Standing on the Shoulders of 2 Giants The best way to look at the StocksUpdate, then, is to see it as a product of 2 giants: Edward Lee the stock market genius, and Bo Sanchez, the brilliant and inspiring motivational speaker. Edward Lee provides the technical expertise of the recommendations. Then, Bo Sanchez translates the recommendations into a simple and entertaining manner in the StocksUpdate.

As a member, you get e-books, recordings of live seminars, financial newsletters aside from the StocksUpdate. Benefit What is it? StocksUpdate Your ultimate step-by-step guide to investing in the stock market as shown in the previous sections. These are inspirational and transformative talks that will teach you how to live the life that you would want for yourself.

Sent twice a month 3. Through these interviews, you get to learn not only from Bo, but other experts as well. Sent quarterly 4. Wealth Strategies This is a newsletter that gives you financial education. Topics range from the principles of abundance, to the nitty-gritty details of business, insurance and other investments.

If you share the Truly Rich Club with friends and family and they sign-up using your link, you will get to earn a commission. So when you sign up using my link, I will get a commission from your subscription. However, income aside, my recommendation is always based on my personal experience that the product provides excellent and valuable service. There are also other membership options which have different prices and benefits.

The details however, need not be discussed here. They will give your money back, with no questions asked. You have to read this section first. You see, the only time following a stock recommendation list would be irresponsible is if you act on it blindly, without knowing the source and its credibility. Let me explain using this story: There was a young and beautiful girl who lived in a hut by the ocean named Marimar. Her evil aunt, named Angelica, told Marimar that his husband Sergio has been cheating on her.

Being very gullible, Marimar believed Angelica and went home crying to seek comfort from her dog, Polgoso. Marimar was so angry and hopeless and irresponsible that she packed her things and left the country without saying goodbye to anyone. During the trip, she got into an accident, and died. Now, Marimar failed to do something that she should have done after she got the information.

She should have first checked the credibility of two things: the credibility of the source of information and the credibility of the information itself. For the benefit of the very young readers, the above story is just a reference to the Telenovela entitled Marimar.

It was a show that swept the Philippine TV during its time. I still have the introductory song memorized! He is a spiritual preacher, best-selling author, publisher, international speaker, entrepreneur, millionaire, philanthropist, father and a husband. He has built many ministries for the poor and less fortunate, he has achieved many awards, and the list of his accomplishments is just too many to mention here.

He is a self-made billionaire and the chairman and founder of CitisecOnline. He started investing in the stock market when he was only 18 years old. Today he has almost 40 years of experience under his belt. Under the guidance of Edward Lee, the Truly Rich Club has been recommending stocks for the past 2 years.

And so far, the performance has been stellar. Here is a list of the past winners of the Truly Rich Club this The picture above is a screenshot of my portfolio just this January Some parts have been blocked out for personal reasons, but you may direct your eyes to the rightmost column which shows the percentage gains. Some of these stocks have been held for almost one year, while some of the stocks have been only there for a couple of months. With that, I really encourage you to join the Truly Rich Club as you start investing in the stock market.

Join the Truly Rich Club. With the StocksUpdate newsletter it would be like you have an expert baby sitter for your investing. And 4 When to sell them. Important: When you sign-up, remember to sign-up through any of the links in this book, or in the stockmarketforpinoys. Truly Rich Club Links 1. Signing-up and Getting the Stock Market for Pinoys. Performance Review of the StocksUpdate Recommendations 4.

But of course, the more you know the better right? The information here has very little to do with investing in the stock market. I just put this here for those who are a bit more curious than the rest. As of , there are listings in the Stock Market.

While five years ago there were only listed companies. The size of the market is measured by market capitalization. This is the total market value of all listed companies in that particular stock market. In the table below, it is easy to see that our stock is still very small when compared to others.

Companies get listed in the stock market in order to raise huge amounts of capital without having to borrow money outright. With the stock market, they sell their shares of stock their ownership to the public — and just share the profits through dividends to their stockholders.

The first board caters to companies with market capitalization of at least P Million. The second board is for companies with market capitalization of at least P Million. The following table is a quick summary of the standards set by the PSE for the three boards. Philippine Stock Exchange Main Website 2. This refers to the first time the public is given an opportunity to buy shares of a newly publicly listed company.

Of course, this happens after PSE screens the company in order to protect the investing public. IPOs are very exciting since it may present an opportunity to make a lot of money. Actually, the investing public is a bit biased towards IPOs. Its opening price was P However, for those who stuck with it for the next couple of months, they would have nearly doubled their money.

This meant that a lot of people wanted to buy the stock. It climbed from P to P on its first day. However, after several months, the stock price gradually declined. Many people held on to the stock believing that it would one day get back up again. One year passed, but sadly the stock price dropped even more. In July , the stock price was only in the P67 - P70 range. The first person to go to if you want to get into an IPO is your stock broker. As soon as you hear the news of an IPO, contact them already to ask when you can get the shares.

Do not wait till the opening date since that would already be too late. In an IPO the shares of stock are limited to each person. Add to that the emotional rush it creates: the excitement from everybody wanting to get it, and the fear from missing out on an opportunity. This emotional rush makes a lot of investors blind to the risk of not knowing anything about the company. Ellie is a cautious and patient investor so she waits for more information before getting into it.

It must be one of the random people she added just to get the notifications down to zero. While having dinner, she overheard one of the tables talking about investing. Since the table was already full, she just tried to listen to their conversation. After a few minutes of listening she learns that several of them already signed up for the IPO.

The next morning, Ellie calls up her broker, and asks to also get her shares for the coming IPO. Did Ellie learn anything about the company? Not a thing. What she did find out was that a ton of other people was also getting into it. I got the texts. I saw the posts on Facebook. Instead of a birthday party, it was a despedida. And the moment I signed up for the stocks, I also encouraged my other friends to get into it.

Unfortunately, for every IPO like Microsoft that turns out to be a big winner, there are a thousand of losers. Psychologists Kahnerman and Tversky have shown when humans estimate the likelihood of an event, we make that judgment based not on how often the event has actually occurred, but on how vivid the past examples are.

But we conveniently overlook the fact that most other IPOs were terrible investments. Stock Symbol or Stock Code In the stock market, each company is assigned a nickname or a code. This is called the stock symbol. The table below lists some examples. Market Price The market price is simply the price per share of a particular stock. When the stock market is open, the price can change every second.

It all depends on how much the buyers want to buy, and how much the sellers want to sell. You will probably see something that looks like this. Naturally, buyers would want to buy at the lowest price possible, while sellers would want to sell at the highest price possible. This is why this table shows the highest buying prices and the lowest selling prices. Label What is it? What does it mean? The picture above shows that the highest price buyers were willing to pay was P2, per share.

Example, on the third row: Buyers want to buy shares at the price of P2, The picture above shows that the lowest price sellers were willing to sell was at P2, Example, on the 4th row: Sellers want to sell shares at the price of P2, Tick Size The fluctuation or tick size is the smallest increment in the price of a stock. The tick sizes are standards which have been set by the PSE for the purposes of easier trading. This book contains a step by step guide for beginners who are new to stock market and would like to start investing in the Philippine Stock Market.

It was a good starter for me on how to make the first step in investing in the stock market. He was faced with the same problem as an OFW of giving his family a better life but having left with little or no savings. After struggling, he researched the best way to make most of his income by investing in the Philippine stock market.

Now the result of his investing is available to you.