The first words that come to mind whenever people hear about the stock market are risky, complicated, right timing, for the rich only….Well, those were my thoughts before.
Let me share with you how I got into the stock market just to prove that any person can invest in it.
Here are, in my opinion, ways on how you can get into stock market investing:
- Stock Option as employee benefit. Major corporations usually offer this.
- Through Citisec (online broker)
- Through traditional brokers
Let me discuss them further.
Stock Option
I worked with San Miguel Corporation for 8 years and every so often (quarterly), the Stock Transfer Service Corporation (the department that handles stock transactions) would release a notice that they are selling SMC stocks to regular employees at certain prices.
When I worked there, they were offering 2 types of stocks, SMC-A and SMC–B. But now, San Miguel Corp has more than 2 listed companies in the Philippine Stock Exchange (PSE). Like many first-time investors, I bought SMC stocks because my officemates told me that they were good investments. So I bought shares and paid them through salary deduction.
During those days, I don’t monitor or research any of my stocks. I just know that I bought them at a lower price because my office mates told me so. I never sold my shares even if I was already fully-paid. In fact, I bought more shares whenever there were good deals.
I only sold my stocks when it was time for me to leave SMC and moved to another company in 2008. I invested for a total of 5 years. My net profit? A cool 150%!
Through Citisec (Online Investing)
I learned about Citisec through Bo Sanchez’s Truly Rich Financial Coaching Seminar which I attended last Sept. 2009. You would be surprised to know that I didn’t invest immediately after the seminar. I went into mutual funds first. More on mutual funds in my future posts.
Why didn’t I invest? Two things: I was lazy to learn about the stock market because it was totally new to me. Secondly, I was not open to understand what stock market investing was about. I had a mindset before that it was risky.
Six months passed and I decided to subscribe to the Truly Rich Club and read the ebook “My Maid Invests in the Stock Market and Why You Should Too!” After reading the book, I finally opened my account with Citisec last March 2010.
Within months of investing in the stock market, I realized that it was risky for those who are not willing to learn, those who do not have a financial planner training. Often times, we seek advice from people who are as “illiterate” as we are. These are the common mistakes many people commit, including myself.
I bought shares of growth companies as suggested by the Truly Rich Club and Citisec. They are FGEN, FPH & MWC. As of today, Sept. 30, all my stocks grew to 32%, 22% and 24% respectively.
I will sell my shares if those stocks are near my target prices. Yes, I am willing to wait since I’m a long-term trader. I monitor my stocks daily and attend seminars by Citisec to learn more. It may sound boring and a lot of work but it isn’t. It actually takes me less than 5 minutes to check the prices for the day and the seminars are voluntary and free!
My independent financial advice is to check this website, Citiseconline. What suits me may be different from yours. So discover your own path to stock market investing! I’m sure it’ll be worth your time and effort!
Through traditional brokers
I am personally not familiar with this since I have not invested through a broker.
According to the book, “Building Wealth With Stocks: A Basic Guide To Investing In the Philippine Stock Market,” traditional brokers are those who assign a licensed salesman to handle your account and take orders via a written instruction or through a phone call. Settlement of all transactions, either buying or selling is usually done after three (3) working days from the transaction date or T+3.
This means that the buyer must pay for the costs of the transaction to his stockbroker within 3 working days after the trade was done. Similarly, the seller will receive the proceeds of the sales from the broker after the 3rd day from the transaction date.
This means that the buyer must pay for the costs of the transaction to his stockbroker within 3 working days after the trade was done. Similarly, the seller will receive the proceeds of the sales from the broker after the 3rd day from the transaction date.
Today, local stocks are soaring! The PSEi climbs to a new record high last September 9, 2010. It gained 2.57% or 97.83 points at 3,902.56 – its highest since October 8, 2007. Wow! Ain't that great?!
My journey to stock market investing is still in its infancy stage. I still have a long way to go! I have yet to see longer trends since I came into the market during the recovery stage of the global economic crisis. But now, my eyes and mind are open to this new world of investment. Each day becoming less complicated and less emotional by doing my own homework through more research and knowledge. In due time, my rich financial harvest will be a reality.
P.S. How about you, how did you start your stock market journey?
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