Friday, July 25, 2014

Investing in Stock Market for OFW

Today, I'll write about some tips about stock market investing.


COL Financial (formerly CitisecOnline) is a stock brokerage firm. According to Wikipedia, a brokerage firm or simply brokerage, is a financial institution that facilitates the buying and selling of financial securities between a buyer and a seller. There are lot of accredited brokerage firms in the Philippines (see below).

StockbrokerWebsiteMinimum InvestmentBroker's CommissionAffiliate Banks for Account Funding
AB CAPITAL SECURITIES, 50,0000.25%Metrobank
ABACUS SECURITIES 10,0000.25%Metrobank, BDO, RCBC
ACCORD CAPITAL EQUITIES CORP.www.philstocks.phPHP 5,0000.25%BDO and BPI
ANGPING & ASSOCIATES SECURITIES, INC.www.angpingonline.comPHP 5,000 (for students); PHP 15,000 (for professionals)0.25%Metrobank
BPI SECURITIES CORP.www.bpitrade.comNo minimum0.25%BPI
COL FINANCIAL GROUP INC.www.colfinancial.comPHP 5,000 (COL Starter); PHP 25,000 (COL Plus); PHP 1 million (COL Premium)0.25%BPI, BDO, Metrobank
DA MARKET SECURITIES, INC.www.itrade.phPHP 50,0000.25%BPI, BDO, Metrobank, RCBC
F. YAP SECURITIES, INC.www.2tradeasia.comPHP 25,0000.25%RCBC and BDO
RCBC SECURITIES, INC.www.rcbcsec.comPHP 10,0000.25%RCBC
UNICAPITAL SECURITIES, INC.www.utradeph.comPHP 10,0000.25%BDO, BPI, Chinabank, Malayan
WEALTH SECURITIES, INC.www.wealthsec.comPHP 10,0000.25%UnionBank, BDO, BPI, EastWest Bank, RCBC, Metrobank
Why invest in stock market?
  • Liquidity
    There are usually buyers and sellers in the market for most major companies. As a result, you can buy and sell at your convenience. Ito yung tinatawag na liquidity madali mo bang makuha ang ung investment mo.

  • Cost
    Another thing to take note of is that the cost. Mababa lang ang cost in investing into stock market. Please check your stock broker fees and charges. Halimbawa for COL Financial their commission fee has a minimum charge of Php20 per transaction.

  • Low capital requirements
    You can start investing with Php 5,000 minimum investment depende sa stock brokerage firm (check the table above). Pag bibili ka ng shares of stocks may board lot depende sa minimum required ng stocks, kung ilang un pasok na board lot sa available balance mo yun ang mabibili mo.

  • Simplicity
    Buy low, sell high. Yet another advantage is that information about shares you're holding is easy to obtain. Pwede mong ma-check ang stock prices mo thru newspaper and sa internet. Public companies are also required by law to produce an annual report (which is sent to shareholders), disclosing their financial track records for the previous year.
How to earn in stock market?
  • Sell when you hit your target price
    Good investors invest in the long term. There is one strategy where in you buy and hold good stocks using peso cost averaging so kahit anung presyo nito bibilhin mo siya. Good stocks pay out much more over the long run.

  • Cash Dividends
    Dividends are a benefit to owning shares in a company that is paid out depends on the company. Ito yung cut mo sa kinita ng company. Stable companies often pay out dividends to keep investors happy because their stock price does not often change. Dividends are a great way to reinvest your cash dividends.

Below are some of my personal advice to keep in mind before entering the stock market
  • Invest only if you have surplus money in the bank
    First, review your finances and ask yourself. Meron ba kong extrang perang pang-invest? May credit card debts ba akong binabayaran? Meron ba akong fund incase mawalan ako ng trabaho or emergency? If you don't have spare money to invest, currently carrying debts and still saving for emergency fund maybe what you can do is #aralmunabagoinvest. Practice creating a budget and a plan para pagpasok ng income mo ay maibabawas mo na agad ang para sa savings mo. Ideally, put 3-6 months of your monthly expenses sa emergency fund para incase something happens hindi mo mapupull-out un mga pinasok mong money sa stock market ng palugi.

    Income - Savings/Investments = Expenses

  • Invest with a plan.
    How long you want to stay invested? Are you investing for your retirement? Are you investing for a child's college education? Are you investing to provide extra income? Ito ay ilan lamang sa mga tanong na ikaw lamang ang makakasagot. Whether you are investing in stock market, mutual funds, bonds, etc. have a plan. The key is to make your plan visible para alam mo yung target mo. Mas masarap at mas gaganahan kang mag-trabaho kapag alam mo yung investing goals mo.

  • Educate yourself, reasearch companies
    Learning is a continous process. Learn some basic terminologies, watch helpful videos like Pesos and Sense. Don't invest solely in one company. An ideal investor will have a diversified portfolio. This means you'll have money in a variety of stocks with different goals. Take time to study so you'll learn how to recognize high-fee investments, best investment for you (avoid sweet salestalks) and move toward a purposeful investment strategy.
The bottomline: Remember, your hard-earned money is your money. Learn to appreciate it and make an effort to make it grow. Accept that no one gets rich in an instant unless you strike lotto. As an OFW, save your money, learn how to invest and keep it for rainy days.


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