Sunday, September 6, 2015

Investing in the Philippine Stock Market for the First Time!

Investing in the  Stock Market

Investing in the Philippine Stock Market for the First Time!

Who would have though that someone like me would invest in the Philippine stock market? I earn less that PHP 20.000.00 a month (that;s less than US$500.00) and knows very little about investing in the stock market. Yet, last Tuesday, On the 1st day of September (2015) I bought my first stocks! I realized then how exciting it is to invest in the Philippine stock market.

I could have actually started a week before when stock market globe around the has been going down, But I my account at ColFinancial (my online broker) got activated last week, and I got overwhelmed watching at the data and the graph --- though I was just starting to understand them.

Excitement Of A First Time Investor!

When I bought my first stocks, I felt really excited and quite nervous. Well, I always feel nervous when I am about to do something for the first time.Then again I got excited because I bought my shares of stocks from one of the biggest corporations here in the Philippines-- SMPH, thus I am assured that my money is secured in this corporation and will surely grow in due time.

Why I Chose SMPH

Technical Guide from ColFinancial
If you are a first timer in the stock market like I am (or was),  the technical guide, or the table where you see the list of companies and the prices and the movement of these prices are shown, is just not enough to help you choose which company to buy. Specially if you are seeing lots of red --which means that the prices go down/ Traditional traders would hurry to sell their shares to coup up with their 'losses'.

So how I was able to choose SMPH as the first company to invest to? Simple it is listed in the Truly Rich Club's SAM (Strategic Averaging Method) Table as one of companies to buy during these times. (I'll explain about the SAM table on my future posts).

According to the SAM Table I should buy SMPH when the stock price is below PHP 22.00. I bought it at PHP 19.30 last September 1 -- which dropped further to 19.22 in less than a minute after I bought it. (At the time of writing the price is now PHP 19.06!)

Learning to Invest in the Philippine Stock Market Through the Truly Rich Club

Yes, I'm a member of the Truly Rich Club, but I'm not financially RICH. Not yet! I admit the name sounds like a club for the elite. It's not! It's a group for those who wants to get rich without selling their souls to the devil. 

In Truly Rich Club, I have learned some basics about the stock market, thus investing in the Philippine stock market for the first time was not that difficult for me. I receive daily updates about which stocks to buy and sell. Not only that, I have also learned  from this site how to save the money that I used to invest in the stock market. 

Spend Only 10 Minutes A Day

One of the reasons why I was reluctant to start investing in the stock market before, is I thought I need to spend a lot of time monitoring the stock market. I was wrong.  All I needed is to spend only 10 minutes a day. I don't need to look at the ticker nor analyze the chart for the day. I don't even need spend so much time choosing the right company to invest on. Why? 

As I have mentioned above I'm a member of the Truly Rich Club, a Gold member at that -- meaning I'm a paying member. One of the benefits of a Gold member of the Truly Rich Club is you get daily stock updates. The list includes the following information:

  1. The code of the company to invest on
  2. The current price (though the actual price move a lot within the day)
  3. Buy Below Price - Tells you that if the current price is below the "Buy Below Price", you can buy that stock.
  4. Target Price - the once the price gets near this price, you can sell the stocks for a hefty profit.
  5. Expected Growth - The expected growth of that stock
  6. Max Percentage - Truly Rich Club always advises to divide your money into several stocks. Never put everything in one company. So if it says 20% put only 20% of your money into this company and invest the rest on other companies.
  7. Action To Take - it tells you if you can buy, sell these stocks or to wait it out, Sometimes there are conditions that affects the company that even though the current price is below the buy below price, it is not the right time to invest into this company for several reasons (e.g. it could get lower)
Getting stock updates everyday is just one of the benefits of being a Gold member of the Truly Rich Club, you will get a lot of freebies like downloadable audio/video of talks of Bo Sanchez (do you know this guy?) also you will get emails of his teachings also, specially on how to handle personal finances. That's how I was able to save the initial PHP 5,000.00 that I invested in the stock market.

You can actually try the  bronze membership for free. Oh before I forgot, you can earn extra cash in the Truly Rich Club even if you are not a paying member. Try it out.

God Bless and may your dreams come true!

(ok I borrowed that phrase from Bo Sanchez).