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What are stocks?

Understanding everything about stocks can spare you from the potential risks involve. When you invest in stocks, you’ll be called as a stockholder in which you become a part-owner of a corporation or a company. Thus, gives you the rights to receive dividends and to vote the members of the board. Likewise, you’ll also have the right check the books of the company and most specially to receive the residual income.

How can you make money from stocks?

As mentioned earlier, investing the stock market is very profitable. There are two ways on how you can make money from it. One is through the stock’s price appreciation and the other way is through the dividends. However, most investors depend on the stock’s price appreciation because only few companies provide substantial cash dividends.

Things to consider when investing in the stock market

• How much money you can invest

The first thing to do if you’re planning to invest in the stock market is to determine how much money you can afford to invest. Consider your financial status and never put to risk the financial obligations to your family. This means that you should not use the funds for the basic needs of your family.

• How much to invest

You can start investing in stock market for as low as Php5,000. But, if you want to diversify your holdings, you’ll need more funds. Experts recommend that the safest way is to put at least 25% of your savings or available resources. Invest only the amount that you can afford to lose.

• Choose a reputable stock broker

This is very important to ensure that you’re not wasting your money. You can find accredited stock holders from the official website of the Philippine Stock Exchange. Open an account and submit the requirements including two valid ID’s, proof of billing, and specimen signature cards.

• Pick a stock

There are different types of stocks to invest. But, if you don’t have idea about a particular stock, the best thing to do is to invest in a mutual fund that includes various stocks.

• Place an order

Placing an order can be done by virtually if you have an online broker. After completing the order, you will receive a confirmation invoice about the details of your transaction.

Read: How to Start Investing in Stock Market Philippines

Although trading in stocks can make you huge amount of money, but not all the time. There are times that you may lose money and even brokers can’t guarantee about it. The skills of the investor and the strategy employed play part on how an investor can make money in the Philippine stock market.

The post Guide on How You Can Make Money from the Philippine Stock Market appeared first on Pinoy Business Ideas.

If you become knowledgeable in investing in the stock market, you can really consider this is a profitable investment, especially if you are careful not to lose any money. If you consider buying stocks and begin your investment, this article is for you.

Here’s a list of guidelines you can go by before you purchase your first stocks.

1. Understand what stocks are and what stock market is. Before you even get to this business, you need to somehow have an understanding about what stock market is and how things work here. Stocks pertain to the shares in a corporation and when you purchase stocks that means you have a certain portion in that corporation. The stock market is where people buy and sell shares.

2. Determine your goal when it comes to your investment. The kind of goals that you have will help you determine the best option when it comes to investment. You have to identify whether these goals are short term or long term goals. You may plan to purchase a car or buy a house and lot and if you have these things in mind, investing on stock market may not be the only option you may need to consider. Most of the time, investing in a stock market will be more appropriate for those who really have long term goals.

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3. Know how to start investing in the stock market. Before you even begin investing, do a research and take time to read the official guide in stocks investment in the Philippine Stocks Exchange website. This will give you more information on how you can open an account with a broker until you can start trading.

4. Know how to do fundamental and technical analysis. This is a step you cannot afford to miss before the actual purchase of stocks. Take time to also learn the basic techniques such as buying and holding of stocks, active trading and cost averaging. These are just the basics but it will be better if you get familiarized with them so you will be able to know which style fits you best.

The post How to Start Investing in Stock Market Philippines appeared first on Pinoy Business Ideas.