How to Earn Your First Million through Stock Market
Starting an investment in the Philippines stock market isn’t as complicated as most people believe. Actually, if you start early, you can most definitely earn your first million in 10 years or less. But unlike the bank that gives minimal interest rate, stocks can get you great investment returns as long as you invest regularly and never trade until you reach the right time.
So now if you are ready to start investing in Philippines stock market and earn your first million, this article will include how to get started, answer frequently asked questions and useful tips so you will not lose money. Its a complete Philippine stock exchange for beginners!
The Secret in Stock Market Investment For Beginners
The best secret I can teach you when investing in the stock market is to actually invest long term and not trade. One reason why other people lose a lot of money in stock market is that they are doing it for trading and not for investing. When you are investing, you intend to keep your stocks for a long time so you are NOT affected if any of your stocks go down.
Which Philippines Company to Invest in?
When choosing which company to invest in, its crucial to only invest in big and reputable companies like SM, Jollibee, BDO, and companies alike. These companies have been around for a long time so you are sure its almost impossible for them to go bankrupt. Of course, there are days where their stocks will go down but this is just temporary so it is important to not trade your stocks right away.
When is the Best Time to Buy New Stocks?
Unbeknownst to many, the best time to invest in a big company is when they are actually experiencing a crisis. Many of their stockholders will usually sell their stocks at a low price and all you need to do is buy it and wait for the crisis to end. More often than not, the prices go back to its normal price and might even go higher if you waited longer. Its really all about waiting for the right time to buy and sell.
How to Earn Your First Million?
One of the reasons why I started to invest in the stock market is Bo Sanchez’ book “My Maid Invests in the Stock Market”. He shared that his maids are almost a millionaire because they learned how to invest and waited patiently before considering to sell.
According to him, you don’t really need a big amount of money to start investing. You can start with as little as 2,000 pesos a month and in 20 years, you could be earning your first million. Yes, it really takes time before you get your first million BUT compare this to your long-term savings in the bank, the ROI is much better in the stock market.
Getting Started: How to Invest in Philippine Stock Exchange
There are many ways to start investing in the stock market. You can actually contact your bank and inquire. Most of them offer additional services when you choose them to handle your account. This option is actually good especially if this is your first time and don’t have the time to do it yourself. So far, I like BPI’s offer where your account is handled by a professional who will give you an update anytime you need it.
If you like the challenge of starting your own investment and want to do everything yourself, you can opt to sign up at COL Financial at http://www.colfinancial.com. All you need to do is register and one of their customer agents will contact you to guide you through the process.
Tips Investing Philippine Stock Market
You can also start open an account for your kids that you can grow as your kids grow up. In this way, you are not just investing for their future but also teaching them how to handle their money properly. So by the time they reach the age of 20, they already have their first million to help them get started in the adult life.
When choosing a company to invest in, it is recommended in invest to big companies in small amounts each month. Its good to have as many as 10 different companies in your portfolio and have the same amount of stocks for each of them. In this way, if one or two of these companies go down, you still have eight strong companies to keep you up.