Businesses are the main driving force of any economy, a strong business sector means a country is capable to sustain the needs of its citizens – which is Job generation. But as time goes forward, we are in the constant fight to make ends meet to provide for ourselves and for our family. Being in this situation, we grab every opportunity that might come. The Philippine Stock market is one of these many opportunities.
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"Stock market dice roll" by QuoteInspector. is licensed under CC BY-ND 2.0 |
What is the Stock Market?
It is where businesses/companies are publicly listed and is looking for individuals who want to be investors of that businesses/companies.
What is an investor?
Simply put, investors are part owners of the company. Meaning, if you bought a stock share of SM then you are part owner of the company. Though, not in the same level yet as the tycoons.
What is a stock share?
It is a unit of measure used in the stock market. Think of it as a cake (stock) then 1 slice of the cake is the share.
Is it legal?
The stock market is regulated by the government via certain departments. The Security and Exchange Commission is one of them. They track the businesses/companies, online/offline stockbrokers, and among others that are involved in the market.
The Philippine Stock Exchange Commission is the main operating body of the market. They are the ones who will approve the companies that want to be listed publicly and give sanctions to those who violate the ground rules. They also monitor the participating brokers.
How can I profit from it?
Buy a stock share at a lower price and Sell at a higher price. The difference will be your profit.
How do I know if the price of a stock will increase?
No one really knows… The market fluctuates depending on the state of the country (economic, political, even big shareholders have a hand of moving the stock price). You cannot pinpoint exactly where the price is going, but you can at least predict its movement by doing research about the company, its industry and how it relates to the country's state of affairs.
Where to start?
Playing in the stock market is risky if you don't know what you are doing. Educate yourself first! Learn how money works and how it affects you as an individual both psychologically and emotionally. Once you are able to grasp yourself, you can then start learning the ins and outs of the stock market before going into the actual battle.
How can I enter?
Way back, the stock market is only for the rich because you need a big investing capital just to enter since brokerage firms are the middlemen between you and the market. But with the advent of online platforms, individuals like us can now enter the market and can start with a low investing capital.
Where do I go from here?
There are many books, online resources and seminar/training available on the stock market. Educate yourself first, make use of your social media platforms to find these resources. Take baby steps and take your time learning.
Sort out also your finances, make sure that you are not buried in debt, have an emergency fund, a savings fund, and an investment fund.
You can read my 70-20-10 rule article to cover the basics of sorting your finances.
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